Intuitive Surgical (ISRG) Stock Forecast & Price Target

Intuitive Surgical demonstrated strong growth in its robotic surgery systems, with notable increases in utilization rates for both the Ion and SP systems, indicating a positive trajectory in surgical procedures and market adoption. The company reported improved gross margin guidance, reflecting robust US system placements and a favorable outlook on tariffs, which underscores the operational efficiency being achieved. Additionally, with the rising installed base of da Vinci systems and the increasing surgeon adoption of the D5 model, Intuitive Surgical is well-positioned for sustained revenue growth and enhanced profitability.

The analysis indicates a negative outlook for Intuitive Surgical's stock largely due to several fundamental challenges affecting its operations. Key issues include lower-than-expected services revenue of $396 million and ongoing macroeconomic uncertainty impacting hospital capital budgets, which have led to deferred robotic purchasing decisions. Additional concerns stem from stagnant growth in novel platforms, decreasing bariatric procedures, and market resistance to robotic surgical methods in emerging markets, combined with external factors such as tariffs on imports from Mexico and delayed rollouts of next-generation systems.