Intuitive Surgical Stock Is Trading at Multi-Year Lows: Is It a Bargain Buy?

Intuitive Surgical (NASDAQ: ISRG), maker of the da Vinci robotic-assisted surgical systems, recently posted a strong quarter. But despite consistently solid numbers, the stock itself has been in a tailspin this year. As of Monday's close, it was down 38% thus far in 2026, and it's not just trading at a new 52-week low, but it's at a multi-year low as well; the last time it was at these levels was back in early 2024.

What's behind the stock's struggles this year, and could this be a glorious opportunity for long-term investors to buy the stock at a discount?

Image source: Getty Images.

Intuitive Surgical's growth has been looking much better of late

Last week, Intuitive Surgical posted its second-quarter numbers, which yet again featured double-digit growth. Revenue of $2.9 billion for the period ending June 30 rose by 19% year over year. Over the past year, its growth rate has been comfortably above 15%. With hospitals resuming normal procedures and demand being higher, it's looking more like a top growth stock again.

ISRG Revenue (Quarterly YoY Growth) data by YCharts

The number of da Vinci procedures rose by 15%, and the install base for the surgical system also rose by 12%, totaling 11,710 as of the end of the period. It's an excellent sign that the business is growing well and with a higher install base, winning over new customers as well, setting itself up for even more growth ahead.

However, despite the solid numbers, the stock has been struggling this year. The company's Chief Financial Officer, Jamie Samath, noted that the expiration of the Affordable Care Act's enhanced premiums had a "modest adverse impact" on procedures during the quarter, which may help explain some of the market's apprehension. There's also been a decline in bariatric cases due to the rising popularity of GLP-1 weight loss drugs.

While the business has been doing well, these headwinds are preventing Intuitive from doing even better.

Has Intuitive Surgical stock become a bargain buy?

Intuitive Surgical stock is currently trading at 33 times its estimated future earnings (based on analyst estimates), which is considerably lower than its past levels, as it wasn't uncommon for the multiple to be as high as around 70. Its elevated valuation may have also been a key reason for the stock's decline this year.

However, now with a lighter valuation, Intuitive's stock may be a great buy. The company has been posting strong numbers, and with plenty of growth opportunities still out there related to robotic-assisted surgery, this can be an excellent investment to buy and hold for the long haul.

David Jagielski, CPA 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.