Key Points
Intuitive Surgical makes the da Vinci surgical robot.
The company is growing strongly but has a lofty price tag.
The stock is prone to drawdowns, such as the one in January.
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Intuitive Surgical (NASDAQ: ISRG) is not going to interest value-conscious investors. In fact, with a price-to-earnings ratio of 60, it is quite an expensive stock. For reference, the S&P 500 index has an average P/E of 28, and it is trading near all-time highs right now. Aggressive growth investors that take a long-term view, however, may appreciate the opportunity opened up by the stock's January swoon.
What does Intuitive Surgical do?
Intuitive Surgical makes the da Vinci surgical robot. At the end of 2025, there were 11,106 da Vinci systems operating globally, up 12% year over year. The number of surgeries performed with a da Vinci system rose 18%, showing that there's both high demand for the system from medical professionals and high demand among patients for robotic-assisted surgery. The company is expecting the number of surgeries performed with da Vinci systems to rise as much as 15% in 2026.
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Image source: Getty Images.
What's interesting is that robots account for only around 25% of the company's sales. The rest comes from services, instruments, and accessories. These are annuity-like business lines because they provide Intuitive Surgical with a recurring income stream. That income stream grows with each new robot sold.
With advances in AI and improvements in surgical outcomes enabled by robot-assisted surgery, it seems Intuitive Surgical is well positioned to be a long-term winner in the healthcare sector.
Not cheap, but cheaper
What's interesting is that growth stocks like Intuitive Surgical tend to move higher in a jagged fashion. And while the stock isn't cheap on an absolute basis, its current P/E ratio of 60 is below its five-year average of 71, thanks to the stock's January drawdown. The stock is roughly 19% below its 2026 high-water mark and 21% below its all-time high reached in late 2025.
The stock has experienced frequent drawdowns of 25% to 30%, and sometimes more. If you are a long-term investor with a growth focus, Intuitive Surgical's January slump could be setting up a buying opportunity. Again, Intuitive Surgical is not cheap on an absolute basis, but if you believe in the long-term opportunity presented by surgical robotics, now could be a good time to pay attention to Intuitive Surgical's stock.
When it comes to growth stocks, it is often better to be roughly right in your entry point than to miss a buying opportunity by trying to time it perfectly.
Should you buy stock in Intuitive Surgical right now?
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
