Truist Securities has reiterated its Buy rating on Intuitive Surgical (NASDAQ:ISRG), sustaining a price target of $650.00 after the company unveiled its fourth-quarter earnings. This valuation suggests an upside of approximately 23.6% over the current trading price of $525.81. Meanwhile, analyst price targets vary widely across the market, ranging from $378 to $750, according to InvestingPro data.
The medical technology firm delivered earnings per share that significantly surpassed expectations, alongside revenue results ahead of forecasts—a detail that had been pre-announced on January 14. Trailing twelve months revenue stands at $9.61 billion, complemented by a strong gross profit margin of 66.38%. Projections for 2026 indicate a gross margin improvement of 90 basis points year-over-year, outpacing consensus forecasts despite facing roughly a 1% incremental tariff headwind.
Truist Securities emphasized Intuitive Surgical's sustained momentum, driven by solid growth in procedures and utilization across all company platforms. The Xi-Refurbished program was noted for its potential to appeal to more price-sensitive customers and promote adoption at ambulatory surgery centers over time. This performance underpins an impressive 22.18% revenue growth over the past twelve months, alongside a compound annual growth rate (CAGR) of 13% over five years.
The firm also expressed optimism regarding expansion in the cardiac total addressable market and potential new indications, which may lead to more than 150,000 additional procedures in the future. Reflecting these factors, Truist Securities modestly increased its 2027 earnings per share estimates and maintained that Intuitive Surgical is well positioned to achieve a mid-to-high-teens compound annual growth rate in both revenue and profits.
Other recent analyst commentary echoes this positive viewpoint. RBC Capital reiterated an Outperform rating, while Piper Sandler lifted its price target to $620, citing the company's strong margin performance. Raymond James followed suit with an increased target of $615, noting margins and earnings ahead of expectations. Conversely, Evercore ISI reduced its price target to $550, while acknowledging a 19% increase in revenue propelled by a 20% rise in systems revenue and considerable placements. Bernstein SocGen raised its target to $750, recognizing a 14% rise in earnings per share surpassing consensus estimates despite a significant donation affecting earnings.
This array of analyst updates reflects a broadly favorable industry assessment, tempered by variations based on specific performance metrics. Overall, Intuitive Surgical's earnings release affirms its strong position within the medical device sector, characterized by robust top-line growth, expanding margins, and strategic initiatives aimed at broadening customer reach and procedure volumes.