Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJames Halley, The Motley FoolWed, July 15, 2026 at 3:07 PM GMT+2 5 min readIntuitive Surgical (NASDAQ: ISRG) is scheduled to report earnings after the market closes on July 16. The robotic healthcare stock has suffered so far this year, falling a little more than 30%, despite a strong first-quarter earnings report.Positioning a trade or an investment right before an earnings report always carries a bit of event risk, but the current setup for Intuitive Surgical presents a compelling bull case.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »It's worth noting that the stock has a recent history of earnings beats, bettering analysts' predictions in each of the past four quarters. If Intuitive reports better earnings than the current predictions of $2.81 billion in revenue and $2.48 in earnings per share (EPS), the stock will likely go up. However, it's important to take a longer view of the company's potential if you're planning on investing.Here are three reasons why Intuitive Surgical's stock is a good long-term buy:Image source: Getty Images.While Intuitive historically commands a premium multiple due to its absolute dominance in robotic surgery, the stock's sell-off this year has driven its forward price-to-earnings (P/E) multiple down to around 36x. That's a stark discount to its 5-year historical average of more than 58 times forward P/E. This compression offers a much more attractive entry point into a company where more than 80% of revenue is highly durable and recurring, from instruments, accessories, and services.In the first quarter, recurring revenue from instruments and services grew 23% year over year to $2.12 billion. The increase in instruments and accessories revenue was primarily driven by approximately 16% growth in da Vinci procedure volume, customer buying patterns, and approximately 39% growth in Ion procedure volume.Once a hospital installs a machine, it is effectively locked into the Intuitive ecosystem, creating a powerful, reliable revenue stream for investors.It's worth noting that in the first quarter, revenue and EPS both grew by double-digit percentages, with revenue reported as $2.77 billion, up 23% year over year, and EPS of $2.28, up nearly 19% over the same period a year ago.One reason for pessimism among investors is that GLP-1 obesity drugs are lowering bariatric surgical volumes. However, Intuitive is making up for that with the growth in other medical procedures performed using its systems. The other concern is that the company is now promoting a longer lifespan for its instruments to lower hospital costs, but while that may cut down on revenue from instruments and accessories, it also builds customer loyalty and improves the company's moat.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info