Intuitive Surgical ISRG is set to report second-quarter 2026 earnings on July 16. The Zacks Consensus Estimate for sales and earnings is pegged at $2.81 billion and $2.48 per share, respectively. Earnings per share (EPS) estimates for ISRG have improved 1 cent to $10.41 for 2026 but declined 1 cent to $11.70 for 2027 over the past 30 days.
The company started 2026 with strong first-quarter earnings, continuing the momentum it built in 2025, driven by robust procedure growth, expanding system placements and accelerating adoption of its next-generation robotic platforms. While first-quarter performance was broad-based across geographies and product lines, the key question for investors is whether this strength continued into the second quarter amid macroeconomic pressures, pricing headwinds and intensifying competition.
Intuitive Surgical’s close peers, Thermo Fisher Scientific TMO and Boston Scientific BSX, are slated to announce their quarterly numbers in the upcoming weeks. (Stay up to date with all quarterly releases: See Zacks Earnings Calendar.)
Earnings Surprise History
In the last reported quarter, ISRG delivered an earnings surprise of 20.19%. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.82%.
In the last reported quarter, Thermo Fisher Scientific and Boston Scientific delivered an earnings surprise of 4.62% and 0.00%, respectively.
Intuitive Surgical, Inc. Price and EPS Surprise
Intuitive Surgical, Inc. price-eps-surprise | Intuitive Surgical, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Intuitive Surgical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here, as you will see below.
ISRG has an Earnings ESP of +2.78% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Catalysts Behind Q2 Performance
Intuitive Surgical’s core growth engine — procedures — likely remained resilient in the second quarter, supported by continued strength in U.S. general surgery and acute care procedures. Fourth-quarter trends of strong after-hours procedure growth and sustained utilization gains, particularly driven by the adoption of the da Vinci 5 platform, continued in the first quarter. This trend should have benefited second-quarter performance as well.
International markets, including India, Korea and distributor-led regions, continued to deliver strong growth in the first quarter, suggesting continued momentum into the soon-to-be-reported quarter. However, capital constraints in Europe and slower recovery in Japan might have moderated growth rates.
Segmental Performance Outlook
Instruments & Accessories (I&A): This segment is expected to have remained the primary revenue driver in the second quarter, benefiting from higher procedure volumes and increased adoption of da Vinci 5 and SP instruments. Pricing pressure — particularly in China and within U.S. ambulatory surgery centers (ASCs) — might have weighed on revenue per procedure despite volume growth.
Systems: System placements likely remained strong, supported by ongoing da Vinci 5 upgrades and trade-in cycles. Hospitals evaluating efficiency gains and workflow improvements must have continued to favor da Vinci 5, which demonstrated higher utilization than prior-generation systems. Softer capital spending in certain international markets and competitive intensity in China likely limited upside.
Services: Recurring revenue streams, including service contracts and digital ecosystem offerings such as telepresence and case insights, must have seen steady growth. Increasing integration of data analytics and AI-driven tools is enhancing customer stickiness and long-term monetization potential, which might have led to higher revenues in the second quarter.
Ion Platform: The Ion bronchoscopy platform remains an emerging growth lever. Continued expansion in lung biopsy procedures and ongoing investments in adjunct technologies such as ROSE and endobronchial ultrasound likely supported modest sequential growth in the quarter.
Price Performance & Valuation
Intuitive Surgical’s shares have lost 28.1% so far this year compared with the industry’s 13.2% decline. The company’s shares have underperformed the S&P 500 Index’s gain of 10.7% as well as the Zacks Medical sector’s growth of 0.5%.
ISRG has underperformed Thermo Fisher Scientific’s 13.2% decline but outperformed Boston Scientific’s 53.1% decline year to date.
YTD Price Performance
Image Source: Zacks Investment Research
Now, let us take a look at the value Intuitive Surgical offers to its investors at current levels.
ISRG is trading at a premium compared to its industry, with a forward 12-month P/E of 36.68X compared with the industry’s 25.4X. The current valuation came down from a five-year high of 96.05X but is higher than the five-year low of 36.68X. ISRG has traded at a premium to the industry valuation over the past five years, reflecting its higher growth prospects. The current Value score of D reflects a high valuation.
ISRG's P/E F12M Graph
Image Source: Zacks Investment Research
Investment Thesis
Intuitive Surgical’s first-quarter 2026 results reflected strong underlying momentum, driven by sustained procedure growth, expanding installed base and increasing adoption of advanced platforms like da Vinci 5, SP and Ion. The company’s long-term growth trajectory remains intact, supported by a large untapped market for minimally invasive surgery and continuous innovation across robotics, imaging and digital ecosystems.
However, near-term challenges persist. Pricing pressure in key markets, lower-margin mix from newer platforms, tariff impacts and macro-driven capital constraints could weigh on profitability. Elevated valuation levels continue to limit upside potential in the absence of meaningful earnings acceleration.
Conclusion
Intuitive Surgical has strong fundamental factors supporting its uptrend, along with a favorable Zacks Rank. The Style Score of C reflects moderate strength in the stock. Meanwhile, an earnings beat is likely for the second quarter. So, investors can bet on the stock before the earnings release.
Although the company’s valuation has declined, it still trades above the industry average. The premium likely reflects strong fundamentals, including growth in procedures and its installed base.
The strong fundamentals are likely to result in robust second-quarter results, with better-than-expected earnings. Despite a downtrend so far this year, current shareholders should continue to hold their position as the company’s long-term prospects seem to be good. New investors can also make an entry as a likely earnings beat can lead to a sudden surge in share price. The stock may also see a reversal if the margins reflect improvement over the second quarter. Although ISRG's valuation may remain elevated as it expands system placements outside the United States, increases utilization within existing U.S. accounts and broadens into additional indications, the recent sharp pullback presents an attractive entry point for long-term investors.
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This article originally published on Zacks Investment Research (zacks.com).