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Intuitive Surgical (ISRG) and Medtronic (MDT) reported solid Q2 results, with ISRG's revenue growing 21% to $2.44 billion, driven by a 17% increase in da Vinci procedures. Medtronic's first-quarter fiscal 2026 sales rose 8.4% to $8.6 billion. ISRG's forward price-to-sales multiple is 15.8X, higher than MDT's 3.3X. ISRG's installed base of da Vinci systems grew 14% to nearly 10,500, while MDT's diversified business faces challenges.

Intuitive Surgical (ISRG) and Medtronic (MDT) have both reported robust financial results for their respective second quarters. Intuitive Surgical's revenue grew by 21% to $2.44 billion, driven by a 17% increase in da Vinci procedures. This growth is particularly notable as the company's da Vinci 5 surgical system moves into its global launch phase [1].

Analysts have maintained a positive outlook on Intuitive Surgical. Bernstein SocGen Group, for instance, maintained its Outperform rating and increased its price target from $675 to $685. The company's adjusted earnings per share increased by 23% to $2.19, outpacing consensus projections [1].

Medtronic, on the other hand, reported its first-quarter fiscal 2026 sales rising by 8.4% to $8.6 billion. While the company's organic revenue growth was characterized as "holding on for dear life near 5%," it managed to exceed expectations. Several firms have adjusted their price targets for Medtronic, with RBC Capital raising its target to $103, TD Cowen reiterating a Buy rating with a price target of $106, and UBS increasing its target to $95 [2].

Despite the strong financial results, Intuitive Surgical faces challenges. The company's installed base of da Vinci systems grew by 14% to nearly 10,500, but it also faces increased costs due to tariffs. Meanwhile, Medtronic's diversified business faces growth challenges, with organic revenue growth described as "near delusion" by Wolfe Research. However, the company's capital allocation approach, returning over 100% of cumulative free cash flow through dividends and share repurchases, is seen as a positive [2].

The forward price-to-sales multiple for Intuitive Surgical is 15.8X, higher than Medtronic's 3.3X. This discrepancy reflects the differing growth prospects and risk profiles of the two companies. While Intuitive Surgical is seen as a leader in the robotic surgery market, Medtronic is a more diversified player with a significant presence in 150 countries worldwide [3].

In conclusion, both Intuitive Surgical and Medtronic reported solid financial results for their respective quarters. While Intuitive Surgical faces some headwinds, its strong brand and extensive installed base position it well for continued growth. Medtronic, despite facing growth challenges, remains a top choice for income seekers, particularly given the growth opportunity its launch of the Hugo system is expected to provide.

References:
[1] https://finance.yahoo.com/news/analysts-intuitive-surgical-isrg-boost-151516743.html
[2] https://www.investing.com/news/analyst-ratings/medtronic-stock-faces-growth-challenges-despite-costcutting-potential-93CH-4208522
[3] https://www.nasdaq.com/articles/rise-surgical-robotics-could-send-these-2-healthcare-stocks-soaring