How GLP-1 Drugs Are Creating a New Wave of Challenges for Surgical Device Makers

The rise of GLP-1 weight-loss medications is forcing a significant recalibration across the medical device industry. What started as a promising pharmaceutical trend has evolved into a meaningful market drag for companies specializing in bariatric procedures. Intuitive Surgical [ISRG], along with peers like Medtronic [MDT] and Teleflex [TFX], are all grappling with this emerging challenge in their core business segments.

The Bariatric Softness Deepens

For Intuitive Surgical, the numbers tell a sobering story. Bariatric procedure volumes have contracted for six straight quarters domestically, with high single-digit declines becoming the new normal. The company has confirmed that bariatric work now accounts for less than 3% of U.S. da Vinci procedures — a far cry from its historically dominant position. More concerning, there’s no clear signal on when this contraction might stabilize.

The root cause is straightforward: patients increasingly view GLP-1 drugs as an alternative to surgery. During recent conversations with roughly 50 bariatric surgeons, Intuitive Surgical uncovered a messy picture. Some patients are ditching GLP-1 therapy due to cost or adverse effects, but many are starting new treatment cycles. The uncertainty cuts both ways — surgeons have no reliable way to forecast when procedure volumes might recover.

How Device Makers Are Adapting

Despite the bariatric headwind, Intuitive Surgical isn’t defenseless. The company is seeing meaningful strength in other surgical categories that don’t face the same GLP-1 wave drag. Benign general surgery — encompassing cholecystectomy, appendectomy, hernia repair, and benign gynecology — is posting robust U.S. growth. These procedure categories represent larger, more stable patient pools with deeper demand drivers. Adoption of the da Vinci 5 platform is also accelerating utilization through efficiency gains and advanced capabilities like integrated insufflation.

Outside the United States, the picture brightens considerably. General surgery, colorectal, hysterectomy, and thoracic procedures grew 26-39% year-over-year internationally, demonstrating that the GLP-1 pressure remains largely a domestic phenomenon. Meanwhile, newer platforms like Ion (up 52%) and SP (surged 91%) are opening new clinical pathways and diversifying revenue streams.

Medtronic is tackling similar headwinds through portfolio acceleration. Bariatric-related softness constrained its Surgical business to just 1% growth in Q2 of fiscal 2026, but robust momentum in Cardiac Ablation (PFA jumped 71%) is providing meaningful offset. Upcoming catalysts like the Hugo robotic system launch and broader clinical indications are expected to drive incremental contribution.

Teleflex confronts specific pressure in bariatric-adjacent products, particularly UroLift, which remains under strain from GLP-1 competition. The company also flagged lower long-term growth expectations for its stapling system. Yet RemainCo’s surgical segment (9% growth) and Interventional platform (9% organic growth) are cushioning the decline, alongside stronger-than-expected performance from its newly acquired Vascular Intervention business.

Market Valuation and Forward Outlook

ISRG shares have appreciated 6.5% year-to-date, outpacing a modest 2% industry gain. The stock trades at a forward P/E of 58.42, above sector averages but still below its five-year median of 71.54. The Zacks Consensus Estimate points to 17.3% earnings growth in 2025 compared to the prior year, suggesting that market participants view the bariatric drag as manageable rather than catastrophic.

The GLP-1 wave drag represents a real, persistent challenge for device manufacturers. Yet Intuitive Surgical, Medtronic, and Teleflex are demonstrating that diversified portfolio strength, international expansion, and accelerating adoption of next-generation platforms can effectively counterbalance near-term procedure volume softness. The question isn’t whether these companies can weather the storm — it’s whether they can capitalize on the competitive reorganization it creates.