Could This Healthcare Stock Help Make You Rich Over the Next Decade?

Intuitive Surgical (NASDAQ: ISRG) is the dominant manufacturer of robotic surgical systems. The healthcare company's da Vinci Xi, designed for soft-tissue operations, is the most widely used multiport robotic surgery system in the world, and it was used in more than 3 million surgical procedures last year.

However, the stock has fallen more than 17% so far this year. The biggest concern for investors is that the company's moat, while wide, isn't impenetrable. Johnson & Johnson and Medtronic have expanded into robotic surgery, and Restore Robotics, a private company, has received Food and Drug Administration clearances for four alternative da Vinci-compatible tools.

Here are three reasons an investment in medical device maker Intuitive Surgical could make you rich in the coming decade, despite increased competition.

Image source: Getty Images.

Physicians and hospitals have invested time, energy, and money in the system

The biggest hurdle for competitors isn't the technology -- it's the surgeon. Most surgeons practicing today using robotics were trained on the da Vinci platform during their residency or fellowship. Switching to another system, such as Medtronic's Hugo, would require significant retraining for the entire operating room staff.

In the high-stakes area of surgery, hospitals are often reluctant to disrupt established workflows. Intuitive Surgical's My Intuitive app and data analytics suite allow surgeons to track their performance metrics, creating a digital dependency that competitors will have a hard time matching.

Intuitive has an installed base of more than 12,100 systems globally. This creates a powerful economic cycle, with 81% of the company's revenue coming from recurring sales of instruments, accessories, and services. Even if a hospital buys a competitor's robot for a specific department, it is unlikely to replace an existing da Vinci system because of the huge amount of capital already invested and the high volume of consumables the hospital already stocks.

The company's operating leases and usage-based models make it easier for hospitals to upgrade to its newest system, the da Vinci 5, rather than start anew with a competitor's system.]\

Intuitive's continued financial strength

In 2025, the company reported revenue of $10.1 billion, up 21%, and earnings per share (EPS) of $7.87, up 22.5%. It has consistently grown annual revenue and EPS over the past decade, including a 272% rise in annual revenue and 278% increase in annual EPS in that period.

Its shares have been down since its earnings release because some thought its guidance was underwhelming. Yet the guidance points to worldwide growth in da Vinci procedures of 13% to 15% in 2026 and a gross profit margin of 67% to 68% of revenue, compared to 67.6% in 2025.

A better mousetrap (or robotic system) matters

Intuitive spent $1.3 billion last year on research and development, and it consistently has raised the bar with its systems. The da Vinci 5's continued rollout is a major catalyst for 2026. It features a platform shift with force feedback technology, enabling surgeons to feel the push and pull of tissue and reducing the force applied by up to 43%, according to Intuitive, leading to better patient outcomes.

In the fourth quarter, 303 of the 532 systems placed in medical settings were da Vinci 5 models. This indicates a strong replacement trend as hospitals upgrade their entire robotic fleets, further locking them into the Intuitive ecosystem for the next decade.

The company could see its market share dip slightly as competitors pick up smaller or more cost-conscious hospitals, but its revenue and procedure volumes continue to climb. The combination of surgeon loyalty, a huge existing footprint, and the cutting-edge tech in the da Vinci 5 makes Intuitive Surgical a good stock for the next decade.

James Halley has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends Johnson & Johnson and Medtronic and 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.