It has been a frustrating 2026 for NIKE NKE and Intuitive Surgical ISRG, with shares underperforming. While the reasons for their weakness differ, both stocks have faced elevated investor expectations, valuation concerns, and business-specific headwinds that have weighed on their shares.
NIKE’s Turnaround Needs More Time
NKE shares were down roughly 35% year-to-date, with investors still waiting for its turnaround to gain real traction.
Q4 results offered some encouragement, as adjusted EPS of $0.20 topped the $0.11 Zacks Consensus Estimate. But revenue fell 1% year over year to $11 billion and dropped 4% on a currency-neutral basis. More importantly, NIKE Direct sales fell 7%, including a 12% drop in Digital, while Greater China revenue sank 17% on a currency-neutral basis.
Running and other performance categories are improving, but weakness in Sportswear and Jordan Streetwear, elevated promotions, and stiff competition continue to muddy the recovery.
EPS revisions remain negative, as shown below.
Image Source: Zacks Investment Research
ISRG: Great Quarter, Steep Expectations
ISRG’s overall business is still growing rapidly, but a premium valuation has left little room for disappointment.
Second-quarter adjusted EPS jumped 27.9% to $2.80, comfortably topping estimates, while revenue climbed 18.5% to $2.9 billion. Still, shares sank following the release as U.S. da Vinci procedure growth slowed to 12% from 14% in Q1.
Concerns surrounding elective-procedure demand, weaker bariatric volumes amid GLP-1 adoption, and tariff-related costs have added pressure. With shares down more than 30% in 2026, much of the decline has been valuation compression rather than collapsing fundamentals.
That aside, overall EPS revisions have begun to shift upward, as shown below. The favorable shift in the revisions picture bodes well for near-term momentum, with shares already bouncing modestly off 2026 lows.
Image Source: Zacks Investment Research
Bottom Line
Nike NKE and Intuitive Surgical ISRG have struggled in 2026, with Nike struggling to gain business momentum. ISRG has largely continued to post favorable results, but steep valuation multiples left the stock vulnerable amid a slight growth cooldown. Still, the EPS picture for ISRG remains much more constructive, reflective of a stronger pick overall from a near-term perspective.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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