Intuitive Surgical (ISRG 0.45%) is a very particular kind of stock. It pays no dividend, so income investors won't appreciate today's investment opportunity. It isn't cheap, so value investors will not like it either. It is a growth stock, most appropriate for those with a more aggressive streak.
The opportunity today is Intuitive Surgical's roughly 30% decline in stock price since the start of 2026. Here's why this drawdown may be a rare buying opportunity for this top surgical robotics stock.
Image source: Getty Images.
What does Intuitive Surgical do? Intuitive Surgical makes the da Vinci surgical robot system. At the end of the first quarter of 2026, there were 11,395 systems in place around the world, up 12% from the first quarter of the previous year. Simply put, despite the stock decline, the medical device maker's product continues to sell well.
However, there's a second measure that's worth considering. The number of procedures using a da Vinci system increased 17% year over year. That means that more and more surgeries are being performed with a da Vinci robot. So patient demand is strong, as well.
These trends will ebb and flow from quarter to quarter. However, the big picture is very clear. Intuitive Surgical's business is fundamentally sound. This is why investors are willing to pay a premium for the stock. Its price-to-earnings ratio is a lofty 51x, a figure that will only interest more aggressive growth investors. That said, the P/E is well below its five-year average of 70x.
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The opportunity isn't in the sale of Intuitive Surgical's robots What's interesting here, however, is that Intuitive Surgical generates only about 25% of its revenue from da Vinci system sales. The rest comes from what amounts to parts (instruments and accessories) and services. That is the flywheel of the business, and given the demand for robotic surgery, it is an annuity-like revenue stream. That revenue stream grows more attractive with each new da Vinci installation. This isn't just a fundamentally sound business; it is a strong business. And the da Vinci system continues to evolve, gaining regulatory approval for use in more and more types of surgery. That offers another avenue for long-term growth.
And yet the stock has fallen 30% in a very short period of time. Growth investors need to step back and put that drop into perspective. As the chart below highlights, this healthcare company's stock has declined by at least 30% eight times since its initial public offering. It recovered after each drop and went on to post new highs. While there's no way to know if that will happen this time, and some of the drops went well beyond 30%, if history is any guide, this drawdown will be temporary.
ISRG data by YCharts
Stepping in while Intuitive Surgical's shares appear to be in free fall won't be easy. It requires a great deal of faith in the business's underlying strength. But the sale of new systems remains robust, and parts and services revenue is driven by the still strong demand among patients for robotic surgery. Even if sales of new da Vinci systems slow, the large installed base will still generate significant revenue for the company.
Nothing has changed about Intuitive Surgical, but investor perception Intuitive Surgical's business isn't likely to fall off a cliff, which means this drawdown could be another temporary blip in the stock's long-term uptrend. Such drawdowns have happened before, but they aren't exactly everyday events. Which is why more aggressive growth investors may want to take advantage of what appears to be a rare buying opportunity in this top robotic surgery stock.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
Intuitive Surgical, Inc. (ISRG - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned -7.2%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Medical - Instruments industry, which Intuitive Surgical falls in, has gained 3.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Intuitive Surgical is expected to post earnings of $2.48 per share, indicating a change of +13.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.4 points to a change of +16.5% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $11.71 indicates a change of +12.6% from what Intuitive Surgical is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Intuitive Surgical.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Intuitive Surgical, the consensus sales estimate for the current quarter of $2.81 billion indicates a year-over-year change of +15%. For the current and next fiscal years, $11.72 billion and $13.18 billion estimates indicate +16.5% and +12.4% changes, respectively.
Last Reported Results and Surprise HistoryIntuitive Surgical reported revenues of $2.77 billion in the last reported quarter, representing a year-over-year change of +23%. EPS of $2.5 for the same period compares with $1.81 a year ago.
Compared to the Zacks Consensus Estimate of $2.61 billion, the reported revenues represent a surprise of +6.24%. The EPS surprise was +20.19%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Intuitive Surgical is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Intuitive Surgical. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
On June 02, 2026, we present a DCF analysis for Intuitive Surgical Inc (ISRG), a company that has faced significant price performance challenges recently, with
Key Takeaways Intuitive Surgical fell 11% in a month despite 23% Q1 2026 revenue growth and raised guidance.Intuitive Surgical placed 232 da Vinci 5 systems, with utilization running about 11% above Xi.Intuitive Surgical saw 19% international procedure growth and 39% growth in Ion procedures. Shares of Intuitive Surgical (ISRG - Free Report) have come under pressure recently, declining roughly 11% over the past month despite the company delivering another strong quarter. The weakness appears to be driven more by broader market concerns, valuation compression and worries surrounding global healthcare spending than by any deterioration in the company’s operating performance.
ISRG stock has underperformed its closest peers, Medtronic (MDT - Free Report) and Stryker (SYK - Free Report) , over the past month. Over the same period, shares of Medtronic have lost 5.8%, while those of Stryker have gained 0.8%.
Intuitive Surgical entered 2026 with considerable momentum. The robotic-surgery pioneer reported first-quarter 2026 revenue growth of 23% to $2.77 billion, supported by 17% total procedure growth, continued adoption of the da Vinci 5 platform and strong expansion of its Ion lung-biopsy business. Management was sufficiently confident in underlying trends to raise its full-year procedure growth outlook.
YTD Price Comparison
Image Source: Zacks Investment Research
With the stock pulling back while fundamentals remain strong, investors are increasingly asking whether a reversal could be on the horizon.
Growth Drivers That Could Fuel a Recoveryda Vinci 5 Continues to Drive Adoption and Utilization: The biggest growth catalyst for Intuitive Surgical remains the rollout of the da Vinci 5 surgical platform. During the first quarter, the company placed 232 da Vinci 5 systems, bringing the installed base to nearly 1,500 systems. Management highlighted that utilization on da Vinci 5 systems is approximately 11% higher than the Xi platform, helping hospitals improve throughput and efficiency.
The platform is also creating a favorable upgrade cycle as hospitals replace older systems. New force-feedback instruments, expanded procedure clearances and increasing surgeon adoption should continue supporting growth throughout 2026.
Digital Ecosystem and AI Create a Long-Term Moat: A key differentiator for Intuitive Surgical is the digital ecosystem being built around its robotic platforms. Management emphasized that da Vinci 5 is generating large-scale surgical data that can be leveraged for AI-enabled anatomy identification, workflow optimization, decision support and eventually aspects of automation.
The company’s growing installed base, millions of annual procedures and proprietary datasets provide a foundation that competitors may struggle to replicate. This data flywheel could become one of Intuitive Surgical’s strongest competitive advantages over the next decade.
Strong International and Procedure Growth: Procedure growth remains healthy across most markets. In the first quarter of 2026, da Vinci procedures increased 16%, while Ion procedures surged 39%. Outside the United States, da Vinci procedures grew 19%, with particularly strong performance in India, Canada, the United Kingdom, Korea and Taiwan. Procedures outside the U.S. market now represent 38% of total da Vinci volume, highlighting the growing importance of international markets.
The company also raised its 2026 da Vinci procedure growth forecast to 13.5-15.5%, signaling confidence in sustained demand.
Emerging Growth Platforms: Beyond its flagship system, Intuitive Surgical is seeing rapid growth in its single-port (SP) platform and Ion business. SP procedures rose 68%, while Ion continues to benefit from increasing adoption in lung cancer diagnosis. The company is also developing technologies such as ROSE and endobronchial ultrasound integration that could further strengthen Ion’s clinical value proposition.
Estimate Revision Trend for ISRGEstimates for Intuitive Surgical’s 2026 earnings have moved up 14.9% to $10.40 per share over the past year, while the same for 2027 earnings has improved 11.4% to $11.71. The positive estimate revision depicts bullish sentiments for the stock.
Image Source: Zacks Investment Research
Valuation and CompetitionEven after the recent pullback, Intuitive Surgical continues to command a premium valuation. The stock currently trades at a forward 12-month P/E ratio of 36.73, above the industry average of 24.75. However, it remains significantly below its five-year median multiple of 70.02, suggesting valuation has become more reasonable compared with historical levels. Currently, Medtronic and Stryker trade at 12.06X and 18.71X, respectively.
P/E F12M of ISRG vs MDT & SYK
Image Source: Zacks Investment Research
Competition remains a factor, particularly in international markets. Management highlighted continued pricing pressure and increasing domestic competition in China, where local robotic-surgery manufacturers are gaining traction.
Intuitive Surgical maintains a formidable competitive moat through its installed base, surgeon training ecosystem, extensive clinical evidence and growing digital infrastructure. Few rivals can match its scale, procedural experience and breadth of product offerings.
Challenges That Could Limit UpsideDespite strong fundamentals, several headwinds remain. Intuitive Surgical continues to experience lower tender activity, competitive pricing pressure and policy-related uncertainties in China. Japan is also recovering from a period of weak system placements, and management remains cautious about hospital spending trends in that market.
GLP-1 obesity drugs continue to weigh on bariatric procedure volumes, which declined approximately 10% in the first quarter. Tariffs, freight costs and semiconductor-memory inflation may also pressure margins during the remainder of 2026.
ConclusionWhile ISRG’s recent decline may appear concerning on the surface, its underlying business remains exceptionally strong. Robust procedure growth, accelerating da Vinci 5 adoption, expanding AI and digital capabilities, and growing international penetration continue to support a favorable long-term outlook.
Although challenges persist in China, Japan and certain procedure categories, Intuitive Surgical’s competitive position remains among the strongest in medical technology. With its valuation now well below historical averages and operational momentum remaining strong, the recent pullback may present a buying opportunity rather than a cause for concern.
Intuitive Surgical currently carries a Zacks Rank #2 (Buy), supported by a Growth Score and Momentum Score of B, suggesting improving earnings trends and positive trading momentum. Although its Value Score of D still reflects a premium valuation, the recent fall has made the stock considerably cheaper. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For investors, Intuitive Surgical appears to be an attractive stock at current levels, particularly for those seeking exposure to the long-term growth potential of robotic-assisted surgery and AI-enabled healthcare technologies.
Intuitive Surgical, Inc. (ISRG - Free Report) ended the recent trading session at $407.29, demonstrating a +1.24% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.74% for the day. On the other hand, the Dow registered a loss of 1.21%, and the technology-centric Nasdaq decreased by 0.89%.
The company's shares have seen a decrease of 10.87% over the last month, not keeping up with the Medical sector's loss of 0.49% and the S&P 500's gain of 5.39%.
The upcoming earnings release of Intuitive Surgical, Inc. will be of great interest to investors. The company's upcoming EPS is projected at $2.48, signifying a 13.24% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.81 billion, showing a 15% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.4 per share and revenue of $11.72 billion. These totals would mark changes of +16.46% and +16.47%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Intuitive Surgical, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Intuitive Surgical, Inc. is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, Intuitive Surgical, Inc. is at present trading with a Forward P/E ratio of 38.68. For comparison, its industry has an average Forward P/E of 21.61, which means Intuitive Surgical, Inc. is trading at a premium to the group.
Investors should also note that ISRG has a PEG ratio of 2.65 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Shares of robotic-surgery pioneer Intuitive Surgical (ISRG 0.45%) have been pummeled in 2026, down about 26% and trading not too far from a 52-week low as of this writing. That has wiped nearly a third of the stock's value since it peaked above $600 in January, leaving it far behind the broader market this year.
Two worries appear to be driving the sell-off. One is competition out of China, where homegrown surgical robots are gaining ground quickly. The other is newer and louder: OpenAI's late-May move into building its own robots, which has stoked fears that the artificial intelligence (AI) giant could one day push into robotic surgery.
So, with the stock this beaten down, is it time to buy?
Image source: The Motley Fool.
The business keeps strengthening It helps to first check whether anything has actually broken in the underlying business.
And rest assured, it hasn't.
In the first quarter of 2026, Intuitive reported revenue of $2.77 billion, up 23% year over year. The telling detail is that revenue climbed faster than the 17% growth in worldwide procedures on the company's da Vinci and Ion systems.
As the newer da Vinci 5 -- now nearly 1,500 systems in use -- takes a larger share of placements, it commands higher prices, while instrument and accessory revenue per procedure climbed to about $1,880 versus roughly $1,780 a year earlier.
Also worth noting, recurring revenue now impressively accounts for 86% of Intuitive Surgical's total sales.
Placements held up as well.
Intuitive placed 431 da Vinci systems in the quarter, up from 367 a year earlier, and its installed base grew 12% to 11,395 systems.
Further, the company's non-GAAP (adjusted) operating margin reached 39%, and adjusted earnings per share jumped 38%.
Management even lifted its full-year outlook, now guiding for da Vinci procedure growth of 13.5% to 15.5%.
The competition picture The China worry, however, is worth keeping an eye on. But it's not as big an issue as an investor new to the stock might assume.
Sure, Intuitive said its China procedure growth ran below the corporate average last quarter, held back by light tender activity and government-driven pricing pressure amid domestic rivals' share gains. And those rivals are advancing. In 2025, Chinese-made laparoscopic robots outsold imported ones in public tenders for the first time.
But China is a small piece of Intuitive's business. The company placed just 4 da Vinci systems there last quarter, against 226 in the U.S. and 117 in Europe, and total procedures outside the U.S. still grew 20%.
The OpenAI fear, on the other hand, may simply be overdone.
OpenAI's robotics effort, announced on May 31, targets general-purpose humanoid machines -- robots to help with construction and infrastructure now, and household tasks later. That is a different world from soft-tissue surgery, where Intuitive's moat rests on more than 11,000 installed systems and a two-decade head start in clinical evidence and regulatory clearances that an entrant would need years to match. OpenAI has no surgical product and has not even disclosed a hardware partner for its humanoid push. Intuitive Surgical CEO Dave Rosa has instead pointed to Intuitive's own surgical data -- the millions of procedures and force-feedback streams coming off da Vinci 5 -- as the foundation for its AI roadmap.
Of course, the real worry may be more subtle. Perhaps the fact that OpenAI is getting into robotics has some investors worried that AI will lower the barriers to entry for other healthcare companies to compete more directly with Intuitive Surgical in minimally invasive surgery. Still, there's no substance behind this potential threat yet.
With all of this said, there are still risks and legitimate concerns. Bariatric procedures, for instance, fell about 10% in the U.S. as GLP-1 weight-loss drugs cut into demand. And tariffs, along with higher memory and freight costs, are pressuring margins.
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The shares aren't cheap either. At a price-to-earnings ratio of about 51 as of this writing, this valuation leaves almost no room for slip-ups of any kind over the long haul.
Still, for investors who can tolerate the volatility associated with a highly valued growth stock, this could be a reasonable entry point for a small starter position into a dominant, fast-growing business, as businesses as high quality as Intuitive Surgical rarely trade at valuations that look attractive.
Do you want to buy some quality growth stocks, but don't want to pay a steep premium to do so? Below, I've got a list of three terrific stocks that are trading lower recently and that have hit new 52-week lows.
Intuitive Surgical (ISRG 0.45%), Mastercard (MA +0.53%), and T-Mobile US (TMUS +1.69%) have been struggling of late, but here's why now can be a great time to add them to your portfolio.
Image source: Getty Images.
Intuitive Surgical Shares of healthcare company Intuitive Surgical have fallen by 27% thus far in 2026. The company is a leader in the robotic-assisted surgery market, but the stock may have been coming under pressure due to its high valuation. In the past, it wouldn't have been uncommon to see it trading at more than 70 times its trailing earnings. Today, it's down to around 50, and on a forward basis, it's trading at a multiple of around 40 (based on analyst projections for its earnings in the year ahead).
It may not seem like a huge bargain, but that may prove to be the case in the long term. Robotic-assisted surgery is still a fairly small slice of the healthcare market; analysts at Grand View Research estimate the global surgical robot market was worth just $6.6 billion last year. And even though it's expected to grow significantly, by 2033, they project it'll be worth $18.5 billion, which still isn't terribly large.
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Over the very long term, there may be much more growth ahead, which is why Intuitive Surgical could make for an intriguing long-term holding. Its da Vinci systems have been generating strong demand despite their high costs, and in just the span of three years, the company's revenue has grown from $6.2 billion (in 2022) to more than $10 billion this past year.
The stock has recently hit a new 52-week low, and it's also around its two-year low. Now could be a great time to add it to your portfolio.
T-Mobile US T-Mobile's stock has also been falling this year; it's down 13% thus far. The wireless network operator prides itself on being the "un-carrier" by being different from its rivals and prioritizing customer satisfaction. It has been doing well this year, and during the first three months of 2026, its revenue rose by an impressive rate of around 11%.
While competition is normally intense in the telecom industry, T-Mobile has done an excellent job of continuing to grow over the years. The stock has fallen to a new 52-week low this week amid a broader decline in telecom stocks, as fears heighten about the possible disruption that SpaceX may cause. It's a concern, but I think it's a premature one at this stage. T-Mobile's business is massive and has the resources to be able to compete aggressively against rivals, as it has demonstrated in the past.
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With its decline in value, you can now buy T-Mobile stock at a relatively modest forward price-to-earnings (P/E) multiple of 17, which is well below the S&P 500 average of 22.
Mastercard Financial stocks such as Mastercard have been struggling this year due to concerns about possible caps on credit card interest rates. However, nothing has panned out, and there's no indication that Mastercard's business is in serious trouble.
For investors, this is still an excellent growth stock to invest in. Demand remains strong as the company continues to be a leader in the credit card industry. Revenue for the first three months of 2026 totaled $8.4 billion and was up 16% year over year. Profits surged by even more, 18%, totaling $3.9 billion.
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This is the type of company that can succeed regardless of economic conditions, which is why it can be a no-brainer buy when it's on sale. And today it is. Now, it's trading at a forward P/E of 24, which is lower than what it has averaged in the past. That's a solid price for a top growth stock.
These companies seem to have what it takes to perform well over decades, through ups and downs. Each has grown huge by executing their plans successfully and adapting to change.
Key Takeaways Intuitive Surgical posted a 39% adjusted operating margin in Q1 2026 amid tariff pressures.Adjusted gross margin rose 140 bps to 67.8% as cost reductions and volume leverage offset tariffs.ISRG expects tariff, freight and memory cost pressure, but drives efficiency gains across operations. Intuitive Surgical (ISRG - Free Report) delivered another quarter of impressive profitability in the first quarter of 2026, demonstrating how its scale and operational discipline continue to support earnings growth despite a challenging cost environment. Amid ongoing tariff pressures and emerging inflationary headwinds, the company reported an adjusted operating margin of 39%, driven by robust procedure growth, higher recurring revenues and increasing adoption of its latest platforms.
At the gross margin level, performance was equally encouraging. Adjusted gross margin expanded to 67.8%, up 140 basis points from the year-ago period’s level, despite the impact of tariffs. Management attributed the improvement primarily to product cost reductions and leverage from higher production volumes, which more than offset tariff-related costs during the quarter.
The company also noted that the da Vinci 5 system achieved contribution margins comparable to the mature Xi platform, while the Ion platform’s contribution margins approached the corporate average, reflecting meaningful manufacturing and engineering improvements.
Although margins are improving, cost pressures are likely to continue amid geopolitical uncertainty and the rising cost of raw materials. Intuitive Surgical expects a greater impact from higher oil prices, semiconductor memory costs and freight expenses over the remainder of 2026. ISRG’s updated guidance assumes approximately 100 basis points of tariff-related pressure, along with additional inflation from logistics and memory components. These factors remain key variables to monitor as the year progresses.
The company’s response is centered on scale and continuous cost improvement. Management highlighted ongoing initiatives to leverage fixed overhead, improve da Vinci 5 product and service margins, and reduce manufacturing costs for the SP and Ion platforms. Additionally, a favorable product mix, including increasing adoption of premium-priced da Vinci 5 systems and higher recurring revenues from instruments, accessories and services, is supporting profitability.
While tariffs and input inflation remain headwinds, Intuitive Surgical’s first-quarter results suggest that operational leverage, product innovation and manufacturing efficiency are currently more than offsetting those pressures. This is likely to help the company in sustaining industry-leading margin profile.
Peer UpdateStryker’s (SYK - Free Report) is focusing on operational discipline and cost containment to improve margins amid near-term disruptions. The company’s first-quarter adjusted operating margin declined 180 basis points due to cyberattack-related manufacturing inefficiencies, tariff headwinds and lower absorption of fixed costs.
However, management emphasized that continued cost discipline and operational excellence initiatives partially offset these pressures and remain critical to restoring profitability. Stryker expects to maintain its long-term margin expansion trajectory, targeting more than 150 basis points of cumulative improvement over its planning horizon.
Procurement teams are actively mitigating inflationary pressures from higher oil and other input costs through supplier contracts and sourcing initiatives, while productivity gains and sales recovery should improve manufacturing leverage in the second half of 2026.
Zimmer Biomet (ZBH - Free Report) is leveraging structural cost improvements to support margins while funding strategic growth investments. Management highlighted operational excellence as a key pillar, with initiatives focused on expanding manufacturing into lower-cost geographies, reducing inventory levels and accelerating SKU rationalization. These actions are expected to strengthen the company’s already strong margin profile and improve cash conversion over time.
In the first quarter, adjusted gross margin reached 73%, benefiting from favorable product mix and tariff-related gains, while adjusted operating margin remained solid at 27.3% despite increased spending on commercial transformation and sales-force specialization. By streamlining operations and optimizing its manufacturing footprint, Zimmer Biomet aims to offset pricing pressure, absorb investment costs and sustain profitability as it executes its multiyear growth strategy.
ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 26.1% so far this year compared with a 16.3% decline for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 38.15, above the industry average. But it is still lower than its five-year median of 70.02. ISRG carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 16.5% rise from the year-ago period’s level.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical, Inc. (ISRG - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Intuitive Surgical basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Intuitive Surgical imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Intuitive SurgicalThis company is expected to earn $10.40 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Intuitive Surgical. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.1%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Intuitive Surgical to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Recently, Zacks.com users have been paying close attention to Intuitive Surgical (ISRG). This makes it worthwhile to examine what the stock has in store.
GameStop Corp. (GME, Financials) is not backing away from eBay.The company raised its stake in eBay to 7.8% from 6.6%, even after eBay’s board rejected its buyout approach. That tells investors one thing: GameStop is still interested, and it may not be done pushing.
A bigger stake does not mean a deal is coming. But it does make the situation harder for eBay to brush aside. When a company keeps buying after being told no, investors usually start looking for the next move. That could mean a revised offer, more pressure on the board or a broader push for changes.
For eBay shareholders, GameStop’s larger stake could keep the stock in focus. For GameStop shareholders, the bigger question is simple: What does management see in eBay, and how much is it willing to spend?
That is what makes the story interesting. GameStop is trying to do more than run its retail business, but that comes with a trade-off. Some investors may see the move as bold. Others may worry GameStop is stepping too far outside familiar territory.
GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today released financial results for the first quarter ended May 2, 2026. The Company's condensed and consolidated financial statements, including GAAP and non-GAAP results, are below. FIRST QUARTER HIGHLIGHTS Highest quarterly net income in GameStop's history of $389.6 million. Highest first quarter operating income in GameStop's history of $143.3 million. Net sales grew 14% year-over-year, driven by co.
GameStop Corp. (NYSE:GME) posted its first-quarter results after Tuesday's closing bell, beating estimates and highlighting record quarterly net income.
GameStop Corporation (NYSE:GME) shares are trading higher Wednesday after the company announced better-than-expected first-quarter financial results on Tuesday after the market closed. The company also approved a $2 billion repurchase authorization.
Shares of GameStop (NYSE:GME | GME Price Prediction) are up 10% to $23 on Wednesday morning, snapping back from a brutal stretch after the video game retailer posted its highest quarterly net income on record and approved a fresh $2 billion buyback. The pop comes after Tuesday’s $20.92 close and an after-hours surge that extended into the premarket session.
The catalyst landed after the bell on June 2, when GameStop released its Q1 FY2026 results and the board unanimously authorized a new repurchase program. Meanwhile, takeover target eBay (NASDAQ:EBAY) is barely moving, with eBay stock up less than 1% to around $109.36 as traders digest GameStop’s continued pursuit.
The rebound is notable because GameStop stock was down 21% over the past month heading into the print. Today’s move is a snapback on a genuine surprise rather than continued momentum.
Record Earnings, With an Important Asterisk GameStop reported net income of $389.6 million, its highest quarterly profit ever, versus $44.8 million in the prior-year quarter. Net sales rose 14% to $835.3 million, with the collectibles segment surging 65% year over year to become the largest product category.
The operational turnaround at GameStop is genuine. Operating income swung to $143.3 million from a $10.8 million operating loss a year earlier, and gross margin expanded to 41% from 35%. Diluted EPS came in at $0.66, with reported diluted EPS of $0.30 against an estimate of $0.04.
However, the headline figure deserves context. The record net income was boosted by a $268.4 million unrealized gain on a derivative asset tied to eBay common stock (put and call options). Stripping that out, GameStop’s adjusted net income was $179.3 million, versus $73.1 million in the prior-year quarter, still a substantial improvement.
$2 Billion Buyback Reignites the Squeeze Chatter GameStop’s board unanimously approved a discretionary $2 billion share repurchase authorization on June 2, 2026, running through June 2, 2029. The program replaces the prior authorization from March 2019.
The bulls on Reddit are reading the program as ammunition to pressure short positions and defend GameStop stock. Skeptics view the move as a distraction from core retail execution, especially given the eBay-related derivative exposure. GameStop’s own release flags potential short squeezes among risk factors, and Reddit’s r/stocks sentiment briefly peaked at 72 (bullish) during the 3 a.m. ET premarket rally window.
The eBay Pursuit Escalates GameStop has increased its eBay stake to about 7%, up from around 5%, while continuing a hostile pursuit that eBay’s board has so far rejected. eBay rebuffed GameStop’s unsolicited $56 billion offer last month, calling the proposal “neither credible nor attractive.”
GameStop CEO Ryan Cohen has stated that he remains committed to acquiring eBay and could take the offer directly to shareholders if needed. The size mismatch is significant, with eBay roughly five times as large as GameStop. The prediction market traders on Polymarket currently price the deal at just a 16% implied probability.
What to Watch The setup leaves a few clear catalysts for GameStop stock through the regular session and into the weeks ahead. Investors can watch for whether GameStop begins executing under the new authorization, eBay’s formal response to the increased stake, and any move by Cohen to bypass the eBay board.
On the operational side, the 65% collectibles growth is the cleanest signal that GameStop’s pivot is taking hold. From a research standpoint, prudent investors may consider sizing their positions to reflect the company’s meme-stock volatility profile and the binary nature of the eBay outcome. GME stock was still down 32% over the past year before today’s move, a reminder that the operational story and the trading story don’t always align.
GameStop GME shares rose on Wednesday after the video game retailer reported record quarterly earnings and unveiled a new $2 billion share repurchase program, even as its recent bid to acquire eBay failed to gain traction.
The company's stock climbed 6.12% to $22.21on Wednesday after it posted what it described as the highest quarterly net income in its history and the strongest first-quarter operating profit on record.
GameStop reported first-quarter net income of $389.6 million, or 66 cents per share, compared with $44.8 million, or 9 cents per share, during the same period a year earlier.
Revenue increased 14% year over year to $835.3 million from $732.4 million, with the company attributing the growth primarily to strength in its collectibles business.
Adjusted net income, which excludes impairments, gains on digital assets and related receivables, unrealized gains on derivative assets, and certain other items, rose to $179.3 million from $73 million a year ago.
On an adjusted basis, the company earned 30 cents per share.
The latest results suggest GameStop's ongoing efforts to diversify beyond traditional video game retailing are gaining momentum.
The company said year-over-year sales growth was largely driven by its collectibles segment, an area it has increasingly emphasized as physical game sales across the industry have come under pressure.
Operating income reached $143.3 million, marking the company's strongest first-quarter operating performance on record.
The earnings report comes despite limited Wall Street coverage of the company.
Alongside the earnings release, GameStop announced that its board of directors had approved a new $2 billion stock repurchase authorization.
The program will remain in effect through June 2, 2029, replacing a previous authorization established in March 2019.
Share buyback programs typically reduce the number of shares outstanding and can provide additional support for earnings per share over time.
The announcement added to positive investor sentiment following the stronger-than-expected profitability and revenue growth reported for the quarter.
eBay takeover bid remains in focusThe earnings release follows GameStop's recent attempt to acquire eBay in a transaction valued at approximately $56 billion in cash and stock.
Late last month, eBay said its board and independent advisers had reviewed the proposal and decided to reject it, citing uncertainty surrounding financing, leverage, and the leadership structure of a combined company.
Despite the rejection, GameStop subsequently disclosed that it had increased its ownership stake in eBay to 6.55% of the company's outstanding shares, up from roughly 5%.
The retailer has also recently asked shareholders to approve an increase in its authorized share count as well as a 100% performance-based option award for Chief Executive Officer Ryan Cohen.
While the proposed acquisition did not move forward, GameStop's latest results and substantial buyback authorization shifted investor attention back toward the company's improving financial performance and evolving capital allocation strategy.
Shares of GameStop (GME 1.94%) rose on Wednesday after the video game retailer reported a surge in quarterly profits.
Image source: Getty Images.
Successfully navigating industry trends GameStop's net sales jumped 14% year over year to $835.3 million in its fiscal first quarter, which ended on May 2.
The gains were fueled by the impressive performance of the company's collectible business. Sales in the fast-growing segment leaped 65% to $348.9 million.
GameStop has worked to diversify its revenue streams as the video game industry has migrated from physical discs to digital downloads.
This digital shift has made it easier to buy games online rather than in physical retail stores. That's pressured GameStop's customer traffic and dented its lucrative business of buying and selling pre-owned games.
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In response to these challenges, CEO Ryan Cohen has moved to position GameStop as a place to buy and sell trading cards and other popular collectibles.
The plan seems to be working. GameStop's adjusted net income surged 145% to $179.3 million.
Shifting from dilution to buybacks Equity offerings have led to lower per-share profit growth. GameStop's adjusted earnings per share did, however, increase by a still impressive 76% to $0.30.
Now, GameStop wants to use some of its sizable cash reserves to boost its per-share metrics. With over $8 billion in unrestricted cash and investments on its balance sheet, its board of directors authorized a $2 billion stock buyback program.
If GameStop can continue to crank out profits, these repurchases could support further share price appreciation.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Retail investors talked up five hot stocks this week (June 1 to June 5) on X and Reddit’s r/WallStreetBets, driven by retail hype, earnings, AI infrastructure momentum, and corporate/geopolitical news flow.
Retail investors were bullish on MRVL. An investor who suffered losses on his portfolio this week was considering shifting all his holdings to MRVL, calling it a “steady” stock. The stock had a 52-week range of $61.44 to $324.20, trading around $305 to $317 per share, as of the publication of this article. It was up 377.27% over the year, higher by 222.26% over the last six months, and 272.36% year-to-date. MRVL had a strong price trend in the medium, short, and long term, with a solid growth ranking, as per Benzinga's Edge Stock Rankings. Broadcom Some retail investors were frustrated at how AVGO earnings dragged down other tech stocks this week. The stock had a 52-week range of $241.11 to $495.00, trading around $410 to $419 per share, as of the publication of this article. It advanced by 60.45% over the year and 9.94% in the last six months. The stock was also up 21.04% YTD. AVGO had a strong price trend in the short, medium, and long terms, with a poor value ranking as per Benzinga's Edge Stock Rankings. CrowdStrike Holdings Retail investors praised CRWD’s recovery following it post earnings slump. The stock had a 52-week range of $342.72 to $785.66, trading around $711 to $720 per share, as of the publication of this article. It advanced 56.13% over the year and 40.14% in the last six months. The stock gained 53.40% YTD. Benzinga's Edge Stock Rankings showed that CRWD had a strong price trend in the long, short, and medium terms. GameStop Retail investors on Reddit were super bullish on their favorite stock following GameStop’s strong earnings. The stock had a 52-week range of $19.93 to $30.61, trading around $21 to $23 per share, as of the publication of this article. It was down 25.64% over the year, lower by 2.96% over the last six months, and up 10.01% year-to-date. GME maintains a weak price trend over the long, short, and medium terms, as per Benzinga's Edge Stock Rankings, with a solid value score. Lululemon Several investors felt that Michael Burry was fooling the market by recommending LULU and making money off his Substack subscriptions. The stock had a 52-week range of $116.63 to $338.49, trading around $108 to $125 per share, as of the publication of this article. It declined by 62.73% over the year, and 31.96% over the last six months, and 39.89% YTD. According to Benzinga's Edge Stock Rankings, LULU was maintaining a weak price trend over the short, medium, and long terms, with a solid quality score. Retail focus blended AI infrastructure momentum, earnings beats, and geopolitical news-driven narratives with broader market action during the week.
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GameStop delivered a strong Q1, with net sales up 14% and a major shift toward higher-margin collectibles driving operational profitability. GameStop's $2 billion buyback and cost discipline signal strategic capital allocation, but the company's legacy hardware business continues to decline. GameStop's proposed $55 billion hostile bid for eBay faces major financing and strategic hurdles, making a successful takeover highly unlikely.
GameStop is rated Strong Buy with a $27.68 12-month price target, driven by record Q1 operating income and robust cash reserves. GME's $8.4B cash position covers most of its market cap, offering significant downside protection and acquisition optionality. Collectibles now comprise 42% of sales, driving margin expansion and repositioning GME away from declining physical games.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$19.93▼
$28.10P/E Ratio16.47
GameStop NYSE: GME issued what would otherwise be a very bullish $2 billion buyback announcement, but investors should be more than skeptical.
The company sold those shares not too long ago, building capital for its next move. Assuming it follows through on the purchases, investors can only be left to wonder what’s going on.
Get GameStop alerts:
The reality is that GameStop’s board is trying to game the market, trigger a short squeeze, and get its price back in action.
$2 billion is a lot of money, worth more than 20% of the early June market cap, and a resounding signal of board confidence. GameStop also ended the quarter with $8.4 billion in cash (including cash equivalents and marketable securities), so it clearly has the balance sheet capacity to execute a sizable buyback.
However, with eBay NASDAQ: EBAY still (unwittingly) on the table, using $2 billion to repurchase shares appears out of step with the company’s broader strategy. Analysts are already doubtful the company can effect a takeover. As it stands, eBay’s board rejected the bid, but GME CEO Ryan Cohen is going after it anyway. What started as a 5% stake in February 2026 has grown to about 7.8% ownership through stocks and options.
The irony is that investing in eBay is among Mr. Cohen’s best moves as GameStop’s CEO. The stock is up approximately 30% from its February average, driven by its impressive turnaround. eBay is aggressively integrating AI, driving increased engagement, ads, and ad revenue, while focusing on its most lucrative niche markets, including collectibles. It benefits from increased exposure even if GameStop is unsuccessful.
Assuming success, the question then becomes execution, which is another questionable part of this story that could result in both companies' failures. So, $2 billion in share buybacks is a good thing, but only if they follow through.
GameStop Returns to Growth, Collectibles LeadsGameStop posted a decent fiscal Q1, with revenue up 14% to over $835 million, which beat analyst estimates of $767 million. The strength was driven entirely by collectibles, as the core hardware and software businesses continue contracting.
Hardware sales fell by over 3%, led by a 13% decline in software sales, while collectibles grew by 65%. Collectibles accounted for nearly 42% of the revenue and will be the critical segment moving forward. Gaming hardware is unlikely to become extinct, but games are shifting toward more cloud-based applications, meaning a reduced market size for legacy products, hardware, and software.
Margin news is the shining star of the report. GameStop’s revenue improvement was compounded by operational efficiencies, resulting in substantial bottom-line strength.
Core earnings grew by a triple-digit amount to set a company record, even when adjusted for one-offs. Looking forward, the company will likely sustain profitability, raising yet another question. If GameStop is on track for sustained improvement, why does it need eBay, other than to get more exposure?
The balance sheet brings more good news. The solid quarter led to positive cash flow and an increase in the capital reserve. Total company liquidity, excluding any credit lines, is approximately $9.7 billion, roughly equal to the company’s market cap. Debt is also up, but remains very low, at less than 1x equity.
A Short-Squeeze Is PossibleGameStop Stock Forecast Today12-Month Stock Price Forecast:
$0.00
-100.00% Downside
Reduce
Based on 2 Analyst Ratings
Current Price$21.75High Forecast$0.00Average Forecast$0.00Low Forecast$10,000,000.00GameStop Stock Forecast Details
Analysts, institutional, and short-interest data suggest a short-covering rally, if not a squeeze, is possible.
Analysts' coverage remains virtually non-existent, with only two tracked by MarketBeat. With one Sell and one Hold rating, the consensus rating is Reduce, but there was some optimistic chatter following the fiscal Q1 earnings release.
Skepticism about share buybacks was offset by comments on unexpected revenue and earnings strength and what they may mean for future quarters.
Institutional data is more obviously bullish, with them owning approximately 30% of the stock and accumulating shares. Low ownership or not, accumulation is a bullish sign that can put pressure on short sellers.
Short interest is the critical factor. It remains elevated around 14% as of early June, sufficient to cap gains in the absence of a bullish catalyst. The fiscal Q1 results provide such a catalyst and may lead to covering in upcoming quarters. Until then, GME shares are more likely to trade within the established trading range as clarity on company goals, strategy, and execution develops.
Risks for GameStop include eBay and its turnaround. A larger, more effective competitor, its established business has regained traction. It can dominate the collectibles market and has AI to help it. If GameStop can’t buy eBay or develop a plan to compete, the stock price will remain under pressure until something else changes.
Catalysts include advancing the eBay plan, continued traction in the core business, and a rebound in Bitcoin. Down more than 40% since purchase, Bitcoin’s performance has a significant impact on the company’s total value and the return it received on its capital. The cash balance is enormous but came at the cost of shareholder value; BTC losses erode the value.
Should You Invest $1,000 in GameStop Right Now?Before you consider GameStop, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and GameStop wasn't on the list.
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GameStop (NYSE:GME | GME Price Prediction) has reinvented itself into a cash-rich holding company rather than a brick-and-mortar gaming retailer, and the market is still struggling to price what that means. After a blowout Q1 FY26 report, neutral retail sentiment, and a deep disconnect with traditional Wall Street coverage, my model sees meaningful upside from current levels.
The 24/7 Wall St. Price Target for GameStop Our 24/7 Wall St. price target for GameStop is $39.22 over the next 12 months, implying 76.05% upside from the current quote of $22.28. The model carries a 90% confidence reading. Our recommendation is buy, anchored in expanding margins, a fortress balance sheet, and a forward earnings ramp that the broader market has not yet underwritten.
Metric Value Current Price $22.28 24/7 Wall St. Price Target $39.22 Upside 76.05% Recommendation BUY Confidence Level 90% A Quiet Stock Hiding a Loud Earnings Beat GameStop is up 6.5% over the past week and 10.96% year to date, yet still sits 54% below its 52-week high of $29.41. The one-year return is -26.57%, so investors stepping in today are paying near the low end of the recent range.
Q1 FY26 results, filed June 2, delivered the catalyst the bull thesis needed. EPS came in at $0.30 against a $0.04 estimate, revenue rose 14% to $835.3 million, and gross margin expanded to 40.7% from 34.5%.
Collectibles surged 65% to $348.9 million, now 41.8% of sales. Free cash flow hit $333.1 million, and the board approved a fresh $2 billion repurchase authorization.
The Case for $42 and Higher The bull case hinges on the collectibles flywheel and aggressive capital deployment. Operating income swung from a $10.8 million loss to $143.3 million in a single year, and SG&A fell $26.5 million YoY.
Add $83.7 million in quarterly interest income, the new $2 billion buyback, and net insider buying, and the bull case price target stretches to $42.56, a 91% annualized return. A successful eBay tie-up, where Polymarket currently prices completion at 15.5%, would be pure upside.
The Risks Worth Watching The bear case rests on dilution, crypto volatility, and execution. GameStop carries roughly $4.16 billion in convertible notes, plus warrants exercisable at $32 that could raise another $1.9 billion. Q4 FY25 included a $151 million loss on digital assets, and the Bitcoin position sits around $519.4 million.
The lone published analyst target is $13.50, well below today’s price. Bears argue convertible debt and crypto exposure justify that discount.
The counter is that the same convertibles funded the $83.7 million quarterly interest income stream, and Q3 FY26 revenue came in 16.84% below expectations, a reminder that retail seasonality still matters. A bear case 12-month target sits near $30.71, still above current levels.
GameStop Price Prediction 2026-2030 My verdict is a buy with a 24/7 Wall St. price target of $39.22 and 90% confidence. The tipping factor is the forward earnings power implied by collectibles mix shift and interest income on the balance sheet.
The thesis fits investors comfortable with a beta of 1.77 and confidence in the Cohen capital allocation strategy. The thesis weakens if Bitcoin retraces meaningfully or if the eBay derivative position unwinds against the company.
Year 24/7 Wall St. Price Target 2026 $39.22 2027 $52 2028 $68 2029 $85 2030 $103.90 These projections assume GameStop continues executing on collectibles, deploys the buyback consistently, and avoids a major drawdown on its digital asset book. Significant upside or downside could come from the eBay outcome and any swing in Bitcoin pricing.
Shares of Here Group, Zepp Health, Burning Rock Biotech and So-Young International all posted meteoric gains last year, but have given most of that back in 2026
AMC Entertainment Holdings, Inc. (NYSE:AMC) reported first-quarter earnings on Tuesday after the market closed. Here’s a rundown of the report.
AMC stock is showing exceptional strength. Why are AMC shares rallying? Q1 HighlightsAMC reported an adjusted loss of 36 cents per share, inline with the consensus estimate. In addition, it reported revenue of $1.04 billion, beating the consensus estimate of $968.51 million and representing a 21.2% year-over-year increase.
MC reported attendance of 47.6 million patrons in the quarter, up 13.6% year-over-year, while U.S. attendance rose 14.2% year-over-year to 30.7 million patrons.
Food and beverage revenue per patron also increased across both domestic and international markets. AMC said global food and beverage revenue per patron was $7.29, compared to $6.76 in the prior year's first quarter.
"I am so very pleased to report that AMC achieved our best adjusted EBITDA first quarter result since 2019 pre-pandemic," said CEO Adam Aron.
Aron said the improvement was driven by strong domestic and international results, along with cost improvements.
The company ended the quarter with cash and cash equivalents of $339.2 million.
AMC also pointed to improving box office trends heading into the rest of the year.
"The box office is back, and in a big and powerful way," Aron said.
The company said first-quarter domestic box office performance increased 22% year-over-year, marking the strongest growth since the pandemic. Aron also said AMC expects "significantly rising revenues" for the full-year 2026.
AMC highlighted the success of "Project Hail Mary" in the first quarter and "The Super Mario Galaxy Movie" in the second quarter. The company said it remains optimistic about the remainder of the 2026 film slate, particularly in the second half of the year.
AMC also announced that Arena One at AMC will launch in more than 300 U.S. theaters in June, offering live concert experiences across North American locations.
AMC Technical Picture Remains MixedAMC Shares RiseAMC Price Action: At the time of publication, AMC shares are trading 2.52% higher at $1.63, according to data from Benzinga Pro.
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The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is AMC Entertainment (AMC - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
AMC Entertainment is one of 244 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. AMC Entertainment is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AMC's full-year earnings has moved 22% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AMC has returned 5.1% so far this year. In comparison, Consumer Discretionary companies have returned an average of -7.2%. This shows that AMC Entertainment is outperforming its peers so far this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Monarch Casino (MCRI - Free Report) . The stock is up 22.9% year-to-date.
For Monarch Casino, the consensus EPS estimate for the current year has increased 9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, AMC Entertainment belongs to the Leisure and Recreation Services industry, which includes 28 individual stocks and currently sits at #201 in the Zacks Industry Rank. On average, stocks in this group have lost 3.5% this year, meaning that AMC is performing better in terms of year-to-date returns.
In contrast, Monarch Casino falls under the Gaming industry. Currently, this industry has 37 stocks and is ranked #99. Since the beginning of the year, the industry has moved -19.8%.
AMC Entertainment and Monarch Casino could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
LEAWOOD, Kan.--(BUSINESS WIRE)--AMC Theatres® (NYSE: AMC), the largest theatrical exhibitor in the United States and the world, is introducing an expanded lineup of new menu items at AMC Feature Fare locations nationwide, giving moviegoers even more ways to enjoy bold flavors and elevated snacks alongside this summer's biggest movies. Available at more than 400 AMC locations in the United States, AMC Feature Fare continues to evolve beyond traditional movie theatre concessions with a growing li.
AMC Entertainment Holdings shares surged 17% on Wednesday after Chief Executive Officer and Chairman Adam Aron disclosed a substantial open-market purchase of the company's stock, signaling renewed confidence in the theater chain's outlook. According to a Form 4 filing with the US Securities and Exchange Commission dated May 19, Aron purchased 250,000 shares of AMC's Class A common stock at an average price of about $1.38 per share.
Retail investors talked up five hot stocks this week (May 18 to May 22) on X and Reddit’s r/WallStreetBets, driven by retail hype, earnings, AI infrastructure momentum, and corporate/geopolitical news flow.
Many retail investors were bullish on NVDA, saying its stock price was “too low” and there was more room to run. The stock had a 52-week range of $129.16 to $236.54, trading around $218 to $221 per share, as of the publication of this article. It rose 66.55% over the year, and advanced by 22.71% and 17.70% over the last six months and year-to-date, respectively. NVDA had a strong price trend in the medium, short, and long term, with a solid quality ranking, as per Benzinga's Edge Stock Rankings. Arm Holdings Some retail investors were confused about the optimism around ARM stock, pointing out its high valuations. The stock had a 52-week range of $100.02 to $298.70, trading around $295 to $299 per share, as of the publication of this article. It advanced by 128.62% over the year and 126.67% in the last six months. The stock was also up 169.01% YTD. ARM had a strong price trend in the short, medium, and long terms, with a poor value ranking as per Benzinga's Edge Stock Rankings. AMC Entertainment Holdings Retail investors were betting on AMC to skyrocket. The stock had a 52-week range of $0.9300 to $4.0800, trading around $1.54 to $1.57 per share, as of the publication of this article. It declined 46.76% over the year and 29.09% in the last six months. The stock was unchanged YTD. Benzinga's Edge Stock Rankings showed that AMC had a weak price trend in the long term but a strong trend in the short and medium terms. Rocket Lab Retail investors were bullish on RKLB following its deal with the U.S. Space Force. The stock had a 52-week range of $24.67 to $138.38, trading around $124 to $128 per share, as of the publication of this article. It was up 398.41% over the year, higher by 211.29% over the last six months, and 79.83% YTD. RKLB maintains a strong price trend over the long, short, and medium terms, as per Benzinga's Edge Stock Rankings. Nebius Group Several investors were bullish on NBIS, with some calling it “the easiest money known to mankind.” The stock had a 52-week range of $34.72 to $233.73, trading around $218 to $220 per share, as of the publication of this article. It advanced by 465.08% over the year, and 164.15% over the last six months, and 162.74% higher YTD. According to Benzinga's Edge Stock Rankings, NBIS was maintaining a strong price trend over the short, medium, and long terms, with a poor value score. Retail focus blended AI infrastructure momentum, earnings beats, and geopolitical news-driven narratives with broader market action during the week.
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At its U.S. theatres, AMC’s highest-attended Thursday-through-Monday in 2026 was driven by a strong opening from THE MANDALORIAN AND GROGU, and rare week-over-week box office growth from OBSESSION
THE MANDALORIAN AND GROGU becomes the fifth film in the past two months to open to more than $75 million domestically
AMC’s movie-themed merchandise program for THE MANDALORIAN AND GROGU is the Company’s third best in AMC history during a movie’s opening weekend
LEAWOOD, Kan.--(BUSINESS WIRE)--AMC Entertainment (NYSE: AMC), the largest theatrical exhibitor in the United States and in the world, welcomed more than 5.0 million moviegoers to its theatres across the United States and to its ODEON Cinemas locations internationally during the U.S. Memorial Day holiday weekend, spanning Thursday through Monday. At its U.S. locations, AMC enjoyed its highest-attended Thursday-through-Monday period of 2026, reflecting continued strong momentum at the box office as the industry heads into a busy summer moviegoing season.
Leading the weekend was THE MANDALORIAN AND GROGU, with a media-reported $82 million domestically over a 3-day period and around $100 million when including the holiday Monday. The film’s strong debut also marks the fifth movie in the past two months to open to more than $75 million domestically, underscoring the growing consistency of major theatrical releases in 2026.
In addition to the box office performance, demand was strong for collectible items tied to THE MANDALORIAN AND GROGU. AMC guests sought out the Grogu Pram popcorn vessel, Mando Helmet popcorn bucket, and more. As a result, THE MANDALORIAN AND GROGU’s movie-themed merchandise program performance is the third best in AMC history during a movie’s opening weekend.
Not to be lost among a strong blockbuster opening, the weekend also featured an impressive hold from OBSESSION, which delivered rare week-over-week box office strength and continued to resonate with audiences. At the domestic box office, OBSESSION earned a media-reported $30-plus million during the Memorial Day holiday weekend. That’s up more than 30% versus its opening weekend. And MICHAEL continued its exceptionally strong run at the box office during the holiday weekend.
These results highlight the sustained appeal of theatrical moviegoing when audiences are presented with compelling, well-marketed films across a range of genres.
AMC Chairman and CEO Adam Aron commented:
“We congratulate the talented filmmakers, cast, and crew behind THE MANDALORIAN AND GROGU, along with our partners at Disney and Lucasfilm, on delivering a film that has clearly captured the attention of moviegoers around the world. This film stood out as the clear number one title of the weekend, drawing strong attendance across our theatres globally, and it adds to a growing list of successful releases, becoming the fifth film in the past two months to open above $75 million domestically.”
Aron continued:
“The Memorial Day holiday weekend once again demonstrated the power of the big screen experience. Just as importantly, the consistency we are seeing at the box office is unmistakable, with five films in the past two months alone opening above $75 million domestically. At the same time, the continued strength of OBSESSION and ongoing success of MICHAEL shows that audiences are not only turning out for new releases, but are also sustaining strong interest in films with positive word of mouth. When compelling content meets the theatrical experience, the results speak for themselves.”
The strong summer moviegoing season is expected to continue in the weeks ahead, with a steady pipeline of major releases scheduled to arrive in theatres throughout the summer. SCARY MOVIE (June 5); MASTERS OF THE UNIVERSE (June 5); DISCLOSURE DAY (June 12); TOY STORY 5 (June 19); SUPERGIRL (June 26); MINIONS & MONSTERS (July 1) all arrive over the next five weekends. Showtimes and tickets are available at amctheatres.com and the AMC mobile app.
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 855 theatres and 9,640 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, website, and mobile apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. For more information, visit amctheatres.com.
Walt Disney Co (NYSE:DIS) entered 2026 with a strong slate of films for the box office, including its first theatrical Star Wars franchise film since 2019. That film is setting new franchise lows and could put pressure on Disney stock.
More Than 25 Million Moviegoers Attend AMC Theatres and ODEON Cinemas in the month of May 2026, the highest May attendance since 2019
More Than 4 Million Moviegoers Attend AMC Theatres and ODEON Cinemas this weekend, Thursday Through Sunday May 28 to 31
BACKROOMS Becomes the Sixth Film in the Past 10 Weeks to Open to More Than $75 Million Domestically
LEAWOOD, Kan.--(BUSINESS WIRE)--AMC Entertainment (NYSE: AMC), the largest theatrical exhibitor in the United States and the world, welcomed more than 4.2 million moviegoers to its U.S. AMC Theatres and internationally at its ODEON Cinemas this past weekend, from Thursday through Sunday. After yet another strong weekend at the box office in May, both domestically and globally AMC Entertainment received 25.5 million guests at our theatres, recording the highest-attended month of May since 2019.
The most recent weekend attendance continues a trend seen throughout much of 2026, with domestic box office results consistently meeting, and repeatedly exceeding, expectations. This weekend, BACKROOMS opened to a media-reported $81 million domestically, becoming the sixth film in the past ten weeks to debut above $75 million domestically in their opening weekends. Other films since March 20 that opened to more than $75 million domestically in 2026 include: THE MANDALORIAN AND GROGU, THE DEVIL WEARS PRADA 2, MICHAEL, THE SUPER MARIO GALAXY MOVIE, and PROJECT HAIL MARY.
Also contributing to the weekend's strong results, OBSESSION actually increased its domestic box office gross from the previous weekend, as it also did the weekend before, an extremely rare accomplishment for a wide theatrical release.
AMC Chairman and CEO Adam Aron commented: "Week after week in 2026, it's been clear that as Hollywood has been releasing well-made and well-marketed movies, moviegoers have been pouring out in droves to enjoy the incomparable magic of the big screen experience that we offer in our theatres. The results that AMC saw in May were particularly encouraging. With our welcoming 25.5 million guests to our theatres in May of 2026, we posted our most highly attended May since 2019, both domestically and globally. These immensely satisfying results reflect the strength of a diverse film slate, one that was driven both by established blockbusters with their well-known characters along with entirely new IP. This current measure of success, combined with the many compelling movies coming to our screens in the weeks and months ahead, gives us great confidence as we look to the rest of 2026."
Aron continued, “Undoubtedly, you will understand and appreciate our enthusiasm when you look at the line up of just some of the films coming to our theatres over the next five weekends: SCARY MOVIE (June 5); MASTERS OF THE UNIVERSE (June 5); DISCLOSURE DAY (June 12); TOY STORY 5 (June 19); SUPERGIRL (June 26); and MINIONS & MONSTERS (July 1) along with many other interesting titles that will be gracing our screens.”
Showtimes and tickets are available at amctheatres.com and on the AMC mobile app.
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 855 theatres and 9,640 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, website, and mobile apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. For more information, visit amctheatres.com
AMC Entertainment Holdings Inc (NYSE:AMC) shares are soaring Monday morning after the company recorded its highest attendance for the month of May since 2019.
AMC Entertainment shares surged on Monday after the theater chain reported its strongest May attendance in seven years, adding to signs that the movie exhibition industry is benefiting from a stronger film slate in 2026. The company said 25.5 million people attended AMC Theatres and Odeon Cinemas globally during May, marking its highest attendance for any month of May since 2019.
LEAWOOD, Kan.--(BUSINESS WIRE)---- $AMC--AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”), announced today that it has completed its previously disclosed $150 million at-the-market (“ATM”) equity offering launched on February 9, 2026. AMC raised $150.0 million of new equity capital through the sale of approximately 105.3 million shares, before commissions and fees.The completion of this ATM equity offering boosts AMC's cash position and further strengthens our balance sheet. Coupled.
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