Intuitive Surgical, Inc.: In-Line Procedures and Reiterated Guide Overshadow Healthy da Vinci Placements and Robust Profitability

Research evidence excerpt

Intuitive Surgical, Inc.: In-Line Procedures and Reiterated Guide Overshadow Healthy da Vinci Placements and Robust Profitability

J P M O R G A N North America Equity Research

16 July 2026

Intuitive Surgical, Inc. Overweight

ISRG, ISRG US

In-Line Procedures and Reiterated Guide Overshadow Price (16 Jul 26):$402.33

Healthy da Vinci Placements and Robust Profitability ▼Price Target (Dec-26):$450.00 Prior (Dec-26):$550.00

The path of least resistance heading into 2Q was to the downside, so many were

already positioned for softer procedure volumes. With generalists and long-onlys Medical Supplies & Devices

mostly staying away from stocks with >30x multiples (since you can get fast- Robbie Marcus, CFA AC

growing AI stocks in the 20x's), we aren't surprised to see ISRG shares sell off on (1-212) 622-6657

in-line procedure volumes and an implied deceleration in 2H. While it feels like it's robert.j.marcus@jpmorgan.com

all negatives with ACA-related procedure softness, and we're not saying the stock Allen Gong

shouldn't be off tonight, there are a lot of positives we think should be recognized. (1-212) 622-9520

allen.gong@jpmorgan.com

First, at 28-29x 2027 JPM earnings now, this is the cheapest stock in our coverage

Lilia-Celine B Lozada

universe vs. its organic growth. Second, for the first time in over a year, Intuitive

(1-212) 622-1019

had a good US net new placement quarter and beat consensus US total placements. lilia-celine.b.lozada@jpmchase.com

Margins were once again excellent, with gross margin delivering 220bps upside Henry Householter

and operating margin +360bps, leading to $0.30 of EPS upside (+14%). (1-212) 464-5599

henry.householter@jpmorgan.com

These strong headline results were overshadowed by KPI’s that were only in-line J.P. Morgan Securities LLC