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Wednesday, Piper Sandler analyst Adam Maeder adjusted the price target for Intuitive Surgical (NASDAQ:ISRG) shares, reducing it to $575 from the previous $670, while maintaining an Overweight rating on the stock. Currently trading at $514.58, the company commands a market capitalization of $183.19 billion. According to InvestingPro data, analyst price targets range from $350 to $700, reflecting diverse market opinions on this healthcare technology leader.
Intuitive Surgical reported first-quarter earnings that surpassed consensus expectations on both revenue and earnings per share. The company has demonstrated strong growth, with revenue increasing 17.24% over the last twelve months. In response to the company’s performance, management has increased its full-year 2025 procedure guidance from a growth of 13-16% year-over-year to 15-17%. This revision reflects the company’s continuing momentum. InvestingPro analysis indicates the company maintains a "GREAT" financial health score of 3.09, suggesting robust operational performance.
During the earnings call, tariffs and macroeconomic factors were major topics of discussion. Intuitive Surgical revised its gross margin guidance for fiscal year 2025 from 67-68% to 65-66.5%, citing an expected tariff-related headwind of approximately 170 basis points. The company has maintained strong margins historically, with a current gross profit margin of 67.46%. Despite the lower gross margin forecast, the firm’s outlook on the U.S. capital expenditure environment remains positive, with strong demand for soft-tissue robotic systems noted. For deeper insights into Intuitive Surgical’s financial metrics and growth potential, explore the comprehensive analysis available on InvestingPro.
Maeder expressed that the tariff-related reduction in gross margin guidance is somewhat disappointing but believes the impact will be temporary. The analyst suggests that Intuitive Surgical has likely accounted for a worst-case scenario in its projections. While the adjusted earnings per share forecast for fiscal years 2025 and 2026 reflects the anticipated tariff impact, Piper Sandler’s broader view of Intuitive Surgical as a leading large-cap medtech company remains unchanged.
In his commentary, Maeder reiterated the Overweight rating with the new price target, acknowledging the company’s strong earnings performance and underlying growth potential despite the near-term challenges posed by tariffs.
In other recent news, Intuitive Surgical reported first-quarter 2025 earnings that exceeded expectations, with a revenue of $2.253 billion and an adjusted earnings per share (EPS) of $1.81. This performance was driven by a significant increase in procedures utilizing the company’s technology, though a slight decline in system placements was noted. The company’s results have led several analysts to adjust their price targets. Raymond (NSE:RYMD) James reduced its target to $592, citing margin pressures due to tariffs, while maintaining an Outperform rating. Bernstein also lowered its target to $675, emphasizing strong procedure growth and a healthy capital position, and maintained an Outperform rating. Leerink Partners revised its target to $539, highlighting a higher expected worldwide procedure growth rate for FY25, and reiterated an Outperform rating. BTIG adjusted its target to $542, noting robust adoption of the Da Vinci (EPA:SGEF) 5 system, and kept a Buy rating. Jefferies set a new target of $530, maintaining a Hold rating, and acknowledged the tariff impact on gross margins. These developments underscore the mixed outlook among analysts, with a consensus on Intuitive Surgical’s strong procedural growth but concerns over tariffs and international market challenges.
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