Intuitive Surgical (ISRG 2.69%) is a promising healthcare company that could help revolutionize the sector. Its da Vinci surgical systems can help make surgery more precise and lead to better outcomes for patients. The company has been experiencing strong growth in recent years and still has much more potential in the long term.
Investors, however, haven't been terribly bullish on it of late, as the stock has declined more than 10% this year, falling to less than $500. Could the healthcare stock prove to be a steal of a deal at its current price?
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The company's growth rate has been strong
For years, Intuitive Surgical has been growing its top line by double digits at a fairly consistent pace. And over the past 12 months, it has experienced an acceleration. During the fourth quarter of 2025, which covered the last three months of the year, its revenue rose by 19%, totaling just under $2.9 billion. That's a higher rate than what it was averaging just a few years ago, as you can see from the chart below.
ISRG Revenue (Quarterly YoY Growth) data by YCharts
The robotic-assisted surgery market is still in its early growth stages, and there could be significantly more growth ahead for Intuitive Surgical, which is why it can make for a compelling long-term investment to hang on to.
NASDAQ: ISRG
Key Data Points
Is Intuitive Surgical stock a bargain buy?
At less than $500, Intuitive's stock is trading at a price-to-earnings multiple of more than 60. And on a forward basis, based on analyst projections, it's trading at around 50 times its estimated future profits. These are hefty multiples, which effectively price in a lot of future growth for the business. By comparison, the average stock on the S&P 500 trades at 25 times its trailing earnings, and the multiple drops to 22 when looking at future earnings.
While I wouldn't call the stock a bargain at this kind of a valuation, I do think there is potential for it to be a good long-term investment -- but only if you're prepared to hold on for several years, as there can be tremendous growth ahead for Intuitive in the future.
Although its price point has come down to less than $500, this is still the type of investment you're going to need to be patient with, as Intuitive's high valuation could make it vulnerable to more of a decline, especially if there's a correction in the market. But for long-term investors, Intuitive could make for a good growth stock to simply buy and forget about.
