Robotics companies are at the forefront of innovation, driving efficiency and productivity across industries such as manufacturing, healthcare and logistics. The global robotics market is poised for significant growth, fueled by technological breakthroughs, and rising demand for automation and advancements in artificial intelligence (AI) and machine learning.
This potential for high growth promises substantial returns to investors. Also, robotics can address labor shortages and enhance precision in tasks, thereby reducing operational costs and improving quality. This space includes companies that integrate hardware, software and AI to build intelligent machines capable of performing complex tasks autonomously or semi-autonomously.
Pros and Cons of Robotics Application
Despite the rapid growth and transformative potential of this space, the investment landscape is not without risks. Robotics technology is still evolving, and companies in this space often face high research and development costs with no guaranteed success. Regulatory challenges, market volatility, concerns about job displacement and data privacy, along with the societal impact of automation add to the uncertainty.
At this stage, we recommend five robotics stocks for investment in second-half 2026. These are: Intuitive Surgical Inc. ISRG, Teradyne Inc. TER, Cadence Design Systems Inc. (CDNS, Microchip Technology Inc. MCHP and Fortive Corp. FTV. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Intuitive Surgical Inc.
Intuitive Surgical is increasingly embedding AI and digital tools into its robotic ecosystem. ISRG operates in the robotic surgery market for soft tissue procedures, where adoption is supported by the shift toward minimally invasive care. The company’s platforms include the da Vinci surgical system and the Ion endoluminal system.
ISRG continues to add digital capabilities that can improve training, workflow and program management for hospitals. These efforts include software and analytics that connect systems, instruments and services and can deepen customer engagement over time.
In the first quarter of 2026, ISRG highlighted expanded adoption of its da Vinci, Ion and digital platforms, which support continued investment in the connected ecosystem. Over time, digital features can differentiate the installed base and support incremental service and software revenues as hospitals focus on standardizing surgical programs.
Intuitive Surgical has an expected revenue and earnings growth rate of 16.5% and 16.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% over the last 30 days.
Teradyne Inc.
Teradyne benefits from strong AI-related demand that is driving significant investments in cloud AI build-out as customers accelerate the production of a wide range of AI accelerators, networking, memory, and power devices. AI computing is witnessing technological progress, which is bringing rapid transformation to design, process, and packaging technologies.
Robotics delivered $91 million of first-quarter 2026 revenues, up 32% year over year, and management highlighted a fourth consecutive quarter of sequential growth. The company cited customer engagement across e-commerce, electronics manufacturing, and semiconductor end markets, and noted that AI-related revenues in Robotics increased to 15% of quarterly sales with emerging data center applications.
TER continues to expect its large e-commerce customer to triple its revenue contribution in 2026 versus 2025, which, if executed, would improve scale and utilization in the Robotics segment. Over time, the use of robots in assisted assembly, test and data center operations could broaden the installed base beyond traditional factory automation deployments.
Teradyne has an expected revenue and earnings growth rate of 42.1% and 81.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.6% over the last 30 days.
Cadence Design Systems Inc.
Cadence Design Systems is benefiting from higher design complexity and rising customer spend on AI-driven automation. CDNS’ efforts to unify EDA, IP, 3D-IC, PCB and system analysis are aiding in capitalizing on the opportunity presented by the AI super cycle. The focus on generative AI, agentic AI and physical AI is leading to an exponential increase in computing demand and semiconductor innovation.
Amid rapid AI proliferation, the Cadence.ai portfolio has been gaining strength and new product launches (like AgentStack along with ChipStack, ViraStack and InnoStack AI Super Agents) are expected to aid in sustaining the momentum.
CDNS’ hardware systems continue to gain traction from AI, HPC, robotics and automotive companies. The inorganic strategy is the calculated execution of its Intelligent System Design vision. Backlog stood at $8 billion. CDNS now expects 2026 revenues to be between $6.125-$6.225 billion compared with $5.3 billion in 2025.
Cadence Design Systems has an expected revenue and earnings growth rate of 17.1% and 11.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has remained the same over the last 30 days.
Microchip Technology Inc.
Microchip Technology benefits from growing AI investments. The company’s Gen 4 and Gen 5 data center products are witnessing strong sales growth. MCHP’s new products are expected to gain traction with the launch of the industry's first 3-nanometer-based PCIe Gen 6 switch that powers modern AI infrastructure.
These switches offer double bandwidth, lower latency, advanced security and high-density AI connectivity for next-generation cloud and data center performance. The success of the restructuring plan also bodes well for MCHP’s prospects. The company also entered the PCIe retimer market in the June 2026 quarter as a companion device for Gen6 switches, and disclosed an OEM design win that displaced a competitor.
MCHP has expanded connectivity, storage and compute offerings for AI and data center applications, as well as intelligent power modules for AI at the edge. These factors are expected to drive top-line growth in the long term.
Microchip Technology has an expected revenue and earnings growth rate of 31.7% and 88.4%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% in the last 30 days.
Fortive Corp.
Fortive has been benefiting from productivity actions and reinvestment in innovation and commercial initiatives. FTV is benefiting from steady demand across Intelligent Operating Solutions and Advanced Healthcare Solutions. The company’s Fortive Accelerated strategy bodes well.
FTV is building the new Fortive around faster, profitable organic growth, disciplined capital allocation and consistent delivery. In first-quarter 2026, the company cited higher innovation velocity with several hardware milestones and AI-enhanced launches.
In healthcare, FTV’s Provation Mira Documentation Assist was introduced as a real-time, AI-powered, voice-driven documentation capability embedded into GI procedural workflows, which can reduce administrative burden and support continued software adoption.
FTV’s commercial efforts are increasingly targeted at higher-growth verticals such as AI data centers, defense and distributed energy, alongside made-in-region actions in India and China and a European launch of STERRAD ULTRA GI.
Fortive has an expected revenue and earnings growth rate of -6.9% and 9.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% in the last 30 days.
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Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).