$ISRG

Seven companies with strong earnings-beat histories report next week. RingCentral (up 160% YTD) has beaten estimates 98% of the time, averaging 4.2% gains on earnings days. Intuitive Surgical (down 26% YTD) has beaten estimates 89% of the time, averaging 2.4% gains. Both report earnings in October.

UBS reiterated a Buy rating on Intuitive Surgical (ISRG) with a $500 price target ahead of its Q3 earnings. UBS believes procedure volume concerns are overstated and expects growth from robotic adoption and AI. ISRG trades at a P/E of 49, with strong fundamentals including 67% gross margins and 21% revenue growth. Analysts generally view ISRG positively, with recent ratings and price targets ranging from $470 to $685.

Intuitive Surgical (ISRG) reported Q2 2026 revenue of $2.4199 billion, with instruments and accessories contributing $1.7349 billion. The company's da Vinci installed base grew to 11,710 systems. Procedures rose 16%, and non-GAAP EPS of $2.80 beat estimates. ISRG holds $8.6255 billion in cash and expects 13.5% to 15.5% procedure growth in 2026. Management warns of tariff risks.

Citi upgraded Flutter (FLUT) to Buy with a $91 target. Cantor upgraded Humana (HUM) to Overweight with a $460 target. TD Cowen upgraded Marvell (MRVL) to Buy with a $350 target. Evercore upgraded NetApp (NTAP) to Outperform with a $300 target. Citi upgraded XPO (XPO) to Buy with a $224 target. UBS downgraded AppFolio (APPF) to Neutral with a $220 target. William Blair downgraded Option Care Health (OPCH) after its acquisition by CD&R and McKesson (MCK).

Wall Street analysts issued upgrades, downgrades, and initiations for several companies. Notable upgrades include Marvell (MRVL) to Buy with a $350 target and NetApp (NTAP) to Outperform with a $300 target. Downgrades include AppFolio (APPF) to Neutral with a $220 target. Initiations include Abbott Laboratories (ABT) with an Overweight rating and $120 target. Major indices closed at record highs, with the S&P 500 at 7,818 and Nasdaq at 27,599.

Netflix (NFLX) and Intuitive Surgical (ISRG) are highlighted as potential long-term investments. Netflix aims to boost engagement through sports streaming and a potential app hub. Intuitive Surgical faces competition but has a strong market position in robotic surgery. Both stocks have declined but are seen as recovery candidates.

Intuitive Surgical (ISRG) reported slowed U.S. procedure growth in Q2 2026, impacting revenue. Options market predicts a range of $282.59 to $608.66 by September 2027, with a 21% chance of falling below the low end. ISRG's stock has shown similar volatility historically. The slowdown is attributed to patient coverage changes and GLP-1 drug use for weight loss.

Intuitive Surgical received CE mark approval for its da Vinci surgical robot to perform cardiac procedures in adults, including minimally invasive coronary artery bypass. This approval allows Intuitive to compete with rivals Medtronic and Johnson & Johnson in the surgical robotics space. The company aims to expand its cardiac surgery offerings globally, following FDA clearance for cardiovascular procedures in January.

Intuitive Surgical is seeking a rehearing in a US appeals court after a panel revived an antitrust case against it. The company is challenging a decision that could impact its legal and competitive position.

Gilead Sciences (GILD) and Intuitive Surgical (ISRG) reported strong quarterly growth. GILD saw 10% product sales growth, raising its full-year outlook. ISRG grew revenue by 19%, driven by da Vinci procedure volumes. GILD's HIV sales rose 12%, while ISRG's installed base expanded. Both face challenges: GILD's reliance on HIV and ISRG's growth expectations and margin pressures.