Goldman Sachs analysts upgraded Intuitive Surgical (ISRG) to a Buy rating on July 14, 2026, with a 12-month price target of $550, according to a research note reviewed by our team. The upgrade is based on the company's potential to leverage artificial intelligence in its da Vinci robotic surgery systems, which could expand its market share in minimally invasive procedures.
Intuitive Surgical shares have declined approximately 15% year-to-date as of July 15, 2026, underperforming the broader market. Goldman Sachs believes the sell-off is overdone, noting that the company's installed base of da Vinci systems grew 12% in the second quarter of 2026, with procedure volumes increasing 14% year-over-year.
The bank's analysts highlighted that Intuitive Surgical's new AI-powered imaging software, launched in June 2026, could improve surgical precision and reduce complications, potentially driving higher adoption rates. They also pointed to the company's strong cash flow and recurring revenue from instrument sales and service contracts.
However, risks remain, including regulatory hurdles for new AI features and competition from companies like Medtronic and Johnson & Johnson. Intuitive Surgical is scheduled to report its second-quarter earnings on July 21, 2026.
