Can Intuitive Surgical Weather GLP-1 Drag on Bariatric Surgery?

Intuitive Surgical ISRG faces a persistent headwind in one of its historically important U.S. procedure categories, namely bariatric surgery. For six consecutive quarters, domestic bariatric volumes have declined in the high single digits, a trend the company directly links to the rapid adoption of GLP-1 weight-loss drugs.Management confirmed that bariatric now represents less than 3% of U.S. da Vinci procedures, but the pace of decline has not stabilized. In recent discussions with roughly 50 bariatric surgeons, Intuitive Surgical found broad uncertainty. Surgeons note mixed patient behavior — some patients are abandoning GLP-1 therapy because of cost or side effects, whereas many others are beginning new regimens. Importantly, physicians are yet to observe any indicator that would help them predict when procedure volumes may stabilize.This “GLP-1 overhang” presents a real business challenge for Intuitive Surgical, especially given the category’s historic contribution to U.S. multiport adoption. However, the company appears positioned to offset the drag through strength in other areas of its portfolio. Benign general surgery — particularly cholecystectomy, appendectomy, hernia repair and benign gynecology — continues to post robust U.S. growth.These categories represent far larger and more durable procedure pools, and hospitals adopting the new da Vinci 5 platform are already driving higher utilization rates tied to efficiency gains, advanced features, such as integrated insufflation and enhanced surgeon autonomy.International markets add another buffer — general surgery, colorectal, hysterectomy, and thoracic procedures grew 26-39% year over year outside the United States, demonstrating stable multi-specialty momentum even as bariatric dynamics remain largely a U.S.-specific issue. Meanwhile, Intuitive Surgical’s expanding platforms — including Ion, which grew procedures 52%, and SP, which surged 91% — offer incremental diversification into new clinical use cases.The GLP-1 effect is a real and lingering challenge. However, Intuitive Surgical’s expanding procedural footprint, increasing adoption of the da Vinci 5, and solid momentum across non-bariatric categories offer a significant counterbalance, mitigating the risk that persistent bariatric softness poses to its long-term growth outlook.Peers Also Facing GLPI-1 PressureApart from Intuitive Surgical, several other medical-device companies, including Medtronic MDT and Teleflex TFX, are also feeling the impact of rising GLP-1 adoption, which is adversely affecting bariatric procedure volumes in the United States. However, management teams generally characterize GLP-1s as a near-term headwind for bariatric procedure growth rather than a complete displacement, noting that cost, adherence issues, and weight-loss plateaus will continue to maintain a role for surgery and related devices.Medtronic continues to face pressure from declining bariatric surgery volumes, caused by ongoing market softness and a shift toward robotic procedures. Management flagged “ongoing but stable market pressures from bariatric surgery” as a headwind to its Surgical business, which grew only 1% in the second quarter of fiscal 2026.To offset this drag, the company is leaning on faster-growing franchises. Momentum in Cardiac Ablation (PFA) surged 71%, helping counterbalance weakness elsewhere. Upcoming catalysts, such as the U.S. launch of the Hugo robotic system, broader indications, and strong early adoption of Altaviva for incontinence, are likewise contributing to a more diversified growth profile beyond bariatrics. Across the portfolio, Medtronic is accelerating innovation and capitalizing on high-growth markets to mitigate bariatric softness.Teleflex continues to encounter pressure in bariatric-related products, particularly UroLift, which remains under “meaningful” strain as GLP-1 weight-loss drugs weigh on bariatric procedure volumes. TFX management also acknowledged a write-down tied to lower long-term growth expectations for its stapling system, even though the product is still growing at an upper-single-digit rate.To offset these challenges, Teleflex is leaning on stronger segments across RemainCo. Surgical revenues grew nearly 9%, supported by chest drainage and instrumentation, while Interventional posted 9% organic growth, excluding acquisitions. The newly acquired Vascular Intervention business is also outperforming expectations. Collectively, these businesses are helping cushion bariatric softness and sustain mid-single-digit growth momentum.ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have gained 6.5% in the year-to-date period compared with a 2% rise for the industry.Image Source: Zacks Investment ResearchFrom a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 58.42, above the industry average. But, it is still lower than its five-year median of 71.54. ISRG carries a Value Score of F.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Intuitive Surgical’s 2025 earnings implies an 17.3% rise from the year-ago period’s level.Image Source: Zacks Investment ResearchThe company currently sports a Zacks Rank #1 (Strong Buy). 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Click to get this free report Medtronic PLC (MDT): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks