<\/p>\n
Intuitive Surgical (ISRG) has been one of the year\u2019s most punished large-cap healthcare names.<\/p>\n
The maker of the da Vinci surgical robot has watched its stock fall about 28% in 2026, even as revenue keeps climbing.<\/p>\n
Analysts have piled on. Deutsche Bank slashed its target. Bank of America trimmed its own. The mood around the stock turned sour fast.<\/p>\n
Much of the worry traces back to a single May announcement about how long Intuitive\u2019s surgical tools can be reused.<\/p>\n
Then Goldman Sachs stepped in and told investors that their fear is misplaced.<\/p>\n
Goldman Sachs reiterates its Buy rating on Intuitive Surgical<\/p>\n
Goldman Sachs kept its Buy rating on Intuitive Surgical and a 12-month price target of $558 in a June 15 research note from analyst David Roman.<\/p>\n
That target sat about 36% above where the stock closed on June 12, a bold stance at a moment when much of Wall Street was moving the other way.<\/p>\n
More Healthcare Coverage:<\/p>\n
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The call cuts against a clear bearish tide. <\/p>\n
CNBC data shows Deutsche Bank dropped its target to $366 and Bank of America cut its own to $515 within the past few weeks.<\/p>\n
Goldman\u2019s view is that investors are misreading Intuitive\u2019s May 21 update, which involves over 100 enhancements for the da Vinci 5 robotic system, according to Investing.com, as a threat to its most important revenue line.<\/p>\n
Goldman Sachs is sticking with a Buy rating on Intuitive Surgical, maker of the da Vinci robot, even as the stock has fallen about 28% in 2026.<\/p>\n
Beijing Youth Daily / Getty Images<\/p>\n
What Intuitive\u2019s instrument changes actually mean for revenue<\/p>\n
The update covered two changes, and Goldman argues that the market blurred them together.<\/p>\n
The first involves Force Feedback instruments, which let surgeons feel the push and pull on tissue through the console controls, according to an article on Intuitive\u2019s Newsroom. <\/p>\n
Intuitive said five of its six Force Feedback tools now last up to 15 uses, up from six, GlobNewswire reported.<\/p>\n
That change carries no impact on revenue per case. It simply lets more hospitals adopt a tool that Intuitive could not supply at scale.<\/p>\n
The second change targets older core instruments, where Intuitive plans to raise the number of uses in 2027 to lower hospital costs.<\/p>\n
That one does trim instruments and accessories revenue, the recurring money Intuitive collects each time a hospital uses its tools. The segment brought in $1.69 billion last quarter, a 23% jump, according to its SEC release.<\/p>\n
Why Goldman thinks the sell-off misreads the story<\/p>\n
The stock\u2019s 28% slide this year, reported in a Simply Wall St article on Yahoo Finance, stems partly from a fear that Goldman thinks is overblown.<\/p>\n
Some investors read the May move as a defensive swipe at firms that refurbish and resell used da Vinci instruments, such as Restore Robotics.<\/p>\n
Goldman disagrees, noting that Intuitive has extended instrument life repeatedly for years, long before refurbishers became a talking point.<\/p>\n
Related: Microsoft and Copilot just hit a jackpot in healthcare<\/p>\n
Precedent helps. Intuitive\u2019s 2020 Extended Use Program raised some core instruments from 10 uses to between 12 and 18.<\/p>\n
It warned then of a 7% cut to revenue per procedure. The actual drop landed near 2% before returning to growth.<\/p>\n
Goldman expects a repeat, with higher-priced Force Feedback tools and advanced instruments offsetting the cheaper core tools.<\/p>\n
The bank still models a modest 1% annual decline in U.S. revenue per procedure, with estimates unchanged.<\/p>\n
What still has to go right for ISRG stock<\/p>\n
A few things need to go Intuitive\u2019s way before the stock can reach Goldman\u2019s target.<\/p>\n
Four factors investors should track:<\/p>\n
July earnings call: Intuitive is expected to detail the core-instrument changes on its second-quarter call, which would remove a key unknown for the stock.Competition: Medtronic\u2019s Hugo system and Johnson & Johnson\u2019s planned OTTAVA robot are pushing harder into robotic surgery.GLP-1 pressure: Bariatric surgery volumes fell about 10% as weight-loss drugs cut demand, The Motley Fool reported.Valuation: The stock still trades at a premium, leaving little room for a miss.<\/p>\n
A new Force Feedback cardiac trial, reported by TipRanks, could widen Intuitive\u2019s lead if the results land well.<\/p>\n
The fundamentals underneath remain strong. <\/p>\n
Intuitive grew first-quarter revenue 23% to $2.77 billion, with da Vinci procedures up 16% and 847,000 procedures performed, according to a recent SEC filing.<\/p>\n
For investors, the takeaway is straightforward. <\/p>\n
Goldman\u2019s call rewards patience over panic, but Intuitive Surgical\u2019s July earnings report is the real test of whether the instrument fears are valid or not.<\/p>\n
Related: Goldman Sachs spots stock market\u2019s next winners<\/p>\n
#Goldman #Sachs #Intuitive #Surgical #call #grain<\/p>\n","protected":false},"excerpt":{"rendered":"
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