Investment Rating - The report maintains an "Overweight" rating for Intuitive Surgical (ISRG) and Boston Scientific (BSX) in the large-cap category, while Insulet (PODD) is highlighted as a top pick among small to mid-cap companies [15][17][18]. Core Insights - The healthcare sector is projected to experience revenue growth of approximately 6% in 2026, driven by healthy volumes and demographic trends [15]. - The report indicates that the MedTech sector is currently facing challenges with muted new money interest, as investor focus has shifted towards technology and AI stocks [11]. - Despite some negative pre-announcements from companies, there are positive indicators from firms like ISRG and BSX, suggesting a cautiously optimistic outlook for the sector [9][10]. Summary by Sections Healthcare Sector Snapshot - Healthcare stocks in the S&P 500 have shown a slight increase of 0.5% year-to-date, underperforming compared to the S&P 500's 1.4% [7]. - Key performers within the healthcare sector include Labs (+8.6%), CROs (+6.3%), and Lifescience Tools (+5.2%), while Biotech (-0.7%) and Large Pharma (-1.8%) lag behind [7]. Key Takeaways from the Conference - The conference revealed a mix of pre-announcements, with ISRG and DXCM performing better than expected, while ATEC and ENOV faced challenges [9]. - There is a notable interest in surgical robotics and diabetes management, with companies like MDT and BSX leading in these areas [12]. Sector Outlook for 2026 - The report forecasts EPS growth of around 7% for 2026, emphasizing the importance of high-quality companies with strong earnings visibility [15]. - The anticipated growth in the MedTech sector is supported by ongoing innovation and favorable demographic trends, despite potential budget constraints in healthcare [15]. Top Picks - The report identifies ISRG and BSX as top large-cap picks, citing their strong growth potential and innovative product pipelines [15][17]. - Among small to mid-cap companies, Insulet (PODD) is highlighted for its robust sales growth and market position in diabetes management [18].

Robotic surgical arm in a modern hospital room, highlighting medical technology driving healthcare stock rotation. Key Points Healthcare stocks rebounded in 2025, but select growth names are emerging outside traditional biotech. Medical technology and healthcare services offer recurring revenue and lower binary risk. Intuitive Surgical, Edwards Lifesciences, and IQVIA provide different paths to long-term healthcare growth. Interested in IQVIA Holdings Inc.? Here are five stocks we like better. Hea ...

Core Viewpoint - Intuitive Surgical is facing several challenges, particularly in Asia and with its product placements, but there are still promising opportunities for growth in robotic surgery. Group 1: Challenges - Procedure growth in Japan remains below expectations, with the Japanese Ministry of Health nearing the end of its evaluation of reimbursement guidelines for additional robotic procedures, set to take effect in June 2026 [3][4]. - Increased competition from Chinese robotic surgical systems companies is impacting Intuitive's performance, as local suppliers are favored in provincial tenders, leading to lower pricing [4][5]. - The company has seen a significant decline in Ion system placements, with only 42 systems placed in Q4 2025 compared to 69 in the same period the previous year, attributed to U.S. customers focusing on increasing utilization [6][7]. Group 2: Growth Projections - Intuitive Surgical projects da Vinci procedure growth of 13% to 15% for 2026, which is below the 18% growth achieved in 2025, indicating a slowdown [9]. - Factors contributing to this slowdown include capital pressures in Europe and potential impacts on U.S. hospitals from changes to Affordable Care Act premium subsidies and Medicaid funding [10]. Group 3: Opportunities - A study published in the Annals of Surgery found that patients undergoing robotic-assisted surgeries were 50% less likely to require subsequent open surgery compared to those with laparoscopic procedures, highlighting the effectiveness of robotic surgery [11]. - There is a significant opportunity for Intuitive Surgical, with approximately 20 million soft tissue surgical procedures performed annually that could benefit from robotic assistance [12].

Key Points Bristol Myers Squibb just announced an important partnership with Microsoft that involves AI. Intuitive Surgical has integrated AI real-time processing into its surgical robots, but that could be just the start. 10 stocks we like better than Bristol Myers Squibb › Artificial intelligence chip giant Nvidia has grown to be the largest component of the S&P 500, as Wall Street jumps on the AI bandwagon. There's no question that AI is going to be a world-changing technology. However, it isn't ...

Core Insights - Intuitive Surgical reported strong fourth-quarter earnings and revenue, surpassing analyst expectations, driven by growth in da Vinci and Ion procedures [1][2] Financial Performance - Adjusted earnings per share reached $2.53, exceeding the consensus estimate of $2.26 [1] - Revenue increased to $2.87 billion, surpassing expectations of $2.75 billion, marking a 19% rise from $2.41 billion in the same quarter last year [1] Procedure Growth - Da Vinci procedures grew by 17%, while Ion procedures saw a significant increase of 44% during the quarter [2] - The company placed 532 da Vinci systems in the quarter, up from 493 a year earlier, expanding the installed base to 11,106 systems, a 12% year-over-year increase [2] Revenue Breakdown - Revenue from instruments and accessories rose 17% to $1.66 billion [2] - Systems revenue increased to $786 million from $655 million in the prior-year quarter [2] Future Outlook - The company forecasts worldwide da Vinci procedure growth of approximately 13% to 15% in 2026, a decrease from 18% growth projected for 2025 [3] - Intuitive Surgical anticipates a non-GAAP gross profit margin of 67% to 68% of revenue, factoring in an estimated 1.2 percentage point impact from tariffs [3]

Key Takeaways ISRG posted Q4 EPS of $2.53 and revenues of $2.87B, beating estimates and lifting the stock 2.4% after hours.ISRG saw 19.1% revenue growth from higher da Vinci placements and rising global procedure volume.ISRG's gross margin fell 210 bps to 67.6% as operating and R&D expenses rose year over year.Intuitive Surgical (ISRG) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $2.53, which beat the Zacks Consensus Estimate of $2.25 by 12.4%. The bottom line improved 14.5% year over y ...

Intuitive Surgical Inc (NASDAQ:ISRG) reported better-than-expected financial results for the fourth quarter after the market close on Thursday.Intuitive Surgical reported revenue of $2.87 billion for the fourth quarter, beating analyst estimates of $2.75 billion, according to Benzinga Pro. The robotic-assisted surgery company reported fourth-quarter adjusted earnings of $2.53 per share, beating analyst estimates of $2.26 per share.Intuitive Surgical expects full-year 2026 worldwide da Vinci procedures to in ...

Intuitive Surgical Inc (NASDAQ:ISRG) reported better-than-expected financial results for the fourth quarter after the market close on Thursday.Intuitive Surgical reported revenue of $2.87 billion for the fourth quarter, beating analyst estimates of $2.75 billion, according to Benzinga Pro. The robotic-assisted surgery company reported fourth-quarter adjusted earnings of $2.53 per share, beating analyst estimates of $2.26 per share.Intuitive Surgical expects full-year 2026 worldwide da Vinci procedures to in ...

Core Viewpoint - Intuitive Surgical (ISRG) stock remained relatively flat after a late-Thursday increase, following a strong fourth-quarter earnings report but disappointing 2026 guidance [1] Financial Performance - The company reported an adjusted earnings per share of $2.53, surpassing expectations of $2.27 [1] - Sales for the quarter reached $2.87 billion, indicating robust performance in the robotics surgery sector [1] Market Reaction - Despite the strong earnings report, the stock's performance was muted, reflecting investor concerns over future guidance [1]

Core Insights - Intuitive Surgical, Inc. (ISRG) reported revenue of $2.87 billion for the quarter ended December 2025, reflecting an 18.8% increase year-over-year, with EPS at $2.53 compared to $2.21 in the same quarter last year [1] - The reported revenue met the Zacks Consensus Estimate of $2.87 billion, while the EPS exceeded the consensus estimate of $2.25 by 12.61% [1] Financial Performance Metrics - The installed base of the Da Vinci Surgical System reached 11,106, slightly above the five-analyst average estimate of 11,088 [4] - Revenue from products (instruments, accessories, and systems) was $2.44 billion, surpassing the seven-analyst average estimate of $2.31 billion, marking an 18.3% year-over-year increase [4] - Revenue from services was reported at $422 million, exceeding the average estimate of $404.99 million by seven analysts, representing a 21.5% increase compared to the previous year [4] - Revenue from systems was $785.9 million, significantly above the seven-analyst average estimate of $670.95 million, indicating a year-over-year growth of 20.1% [4] Stock Performance - Intuitive Surgical's shares have returned -9.3% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]