2 Brilliant Medical Device Stocks to Buy Now and Hold for the Long Term

Intuitive Surgical (NASDAQ: ISRG) and Medtronic (NYSE: MDT) share one big similarity. They both make surgical robots. Aside from that, however, they are very different companies. If you are a buy-and-hold investor, they are both interesting opportunities, but which one you pick will depend on whether or not you prefer growth or income.

Here's what you need to know.

Surgical robots are changing the face of medicine

Intuitive Surgical was at the forefront of the surgical robot revolution when it introduced its da Vinci system. It remains at the forefront of the medical device niche today, with 10,763 of its robots in use at the end of the third quarter of 2025. That was up 13% year over year, with 19% more procedures being performed.

The company's Ion endoluminal system, a newer surgical robotics product, is seeing even more rapid growth, with 30% year-over-year growth in systems installed and a 52% jump in the number of procedures performed. That's coming off a much smaller base, since there are only 954 of the Ion systems in place. The Ion unit, however, highlights some of the biggest benefits of surgical robots, which are less invasive and provide better patient outcomes. The Ion system is specifically designed to collect lung tissue samples, which is a pretty sensitive procedure.

There is a huge long-term opportunity for investors who are focused on growth, as more and more of the company's products get put into place. The big story, however, is the sale of instruments, accessories, and services, which account for roughly 75% of the top line on the income statement. That's an annuity-like income stream that gets bigger with every surgical system sold.

Image source: Getty Images.

The problem is that growth stocks are often expensive, and they can be quite volatile. For example, Intuitive Surgical's price-to-earnings ratio is over 60x, and the stock price has fallen 20% or more three times since 2020. A good third quarter, unsurprisingly, has resulted in a renewed interest in the shares. Still, if you are a growth investor and can handle a bit of a roller coaster ride, Intuitive Surgical could be the type of innovative medical device company you'd like to own.

Slower, more boring, and more diversified

If you can't get on board with a volatile growth stock, what about a surgical robotics company that is just two years shy of becoming a Dividend King? It offers a well-above-market 3% dividend yield, too. Medtronic is, basically, a bit of a tortoise compared to Intuitive Surgical, but that will probably make conservative income investors happy.

What's likely to be most compelling to risk-averse investors, however, is that surgical robots are just one part of Medtronic's product roster. It provides cardiovascular and neuroscience products. It also has a diabetes division, but it is spinning that business off as it revamps to focus on its best opportunities. Overall, the company is near the end of what has been a slow-moving effort to get Medtronic onto a faster growth path. But slow and steady is what you'd expect from a company with 48 consecutive annual dividend increases under its belt.

If you don't like the volatility of a growth stock and prefer to collect reliable dividends, Medtronic will be the better option here. That said, the business overhaul is still a work in progress, since the diabetes business isn't expected to be separated out until 2026. But that's also why the yield is still historically high. This is one for patient long-term investors.

The future is now, if you are investing

Don't sleep on Intuitive Surgical or Medtronic, depending on which one better suits your investment approach. They are interesting right now, but that may not always be the case. A sizable post-earnings price jump for Intuitive Surgical highlights just how quickly the mood can change around that stock. Meanwhile, Medtronic's shares are starting to gain more attention as the company gets closer to the diabetes segment spinoff.

Reuben Gregg Brewer has positions in Medtronic. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.