Intuitive Surgical or Abbott: Which MedTech Stock Is a Better Bet Now?

Core Insights - Intuitive Surgical (ISRG) and Abbott Laboratories (ABT) both reported strong fourth-quarter performances in 2025, but their growth trajectories are expected to diverge moving forward [1][2]. Intuitive Surgical (ISRG) - Procedure growth is the primary growth driver for Intuitive Surgical, with da Vinci procedures increasing approximately 18% to over 3.1 million globally in 2025, including a 15% growth in the U.S. market and 23% internationally [4][10]. - Total revenues for ISRG increased by 21%, with recurring revenues growing 20% and accounting for 81% of sales in the fourth quarter [4][10]. - The installed base of da Vinci systems expanded by 12% to over 11,100 systems, with system utilization increasing, particularly for the da Vinci 5 model [5][6]. - The company anticipates procedure growth of 13-15% going forward, despite macroeconomic risks and competition [7]. - Innovation remains a key focus, with plans to accelerate the rollout of da Vinci 5 and enhance imaging capabilities, including AI-enabled features [8][9]. - The Zacks Consensus Estimate for ISRG's 2026 earnings per share has improved by 48 cents in the past 90 days [9]. Abbott Laboratories (ABT) - Abbott Laboratories achieved broad-based device growth, with Medical Devices sales increasing by 10.5% in the fourth quarter, driven by a 12% rise in Diabetes Care continuous glucose monitoring (CGM) revenues [11][12]. - CGM growth has surpassed $1 billion for three consecutive years, with expectations for continued low-teens expansion in 2026 [12]. - Cardiovascular franchises reported double-digit gains, while Core Laboratory revenues grew 3.5% in the fourth quarter, excluding China [12]. - Nutrition revenues faced challenges due to pricing dynamics and volume pressure, with management expecting near-term softness before recovery in the second half of 2026 [13]. - Abbott's adjusted EPS grew by 12% in the fourth quarter, with projected organic sales growth of 6.5-7.5% and approximately 10% EPS growth for 2026 [13][14]. - The Zacks Consensus Estimate for ABT's 2026 earnings per share has improved by 1 cent in the past 90 days [14]. Price Performance & Valuation - Over the past year, Intuitive Surgical's stock declined by 9.9%, while Abbott's stock fell by 15.2%, contrasting with a 1.4% gain in the broader Medical sector and a 21.4% increase in the S&P 500 Index [16]. - From a valuation perspective, Abbott appears more attractive, trading at a price/earnings ratio of 19.91 compared to Intuitive Surgical's 49.41 [17]. Investment Outlook - Intuitive Surgical is seen as a compelling long-term investment opportunity due to its sustained double-digit procedure growth, high recurring revenue mix, and ongoing innovation [18][19]. - Abbott Laboratories offers defensive stability through its diversified model, but Intuitive Surgical's growth potential positions it as the more attractive option for long-term compounding [19].