01—Abstract
Summary
Summary of the 10-Q filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Intuitive Surgical, Inc. (ISRG) reported strong financial results for the first quarter ended March 31, 2026, demonstrating robust top-line growth and improving profitability.
Total revenue increased by a significant 23% year-over-year to $2.77 billiona, driven by a 24% increase in systems revenue and a 23% increase in instruments and accessories revenue. This growth was supported by a substantial increase in da Vinci procedures, up 16%, and Ion procedures, up 39%. The company also saw a healthy increase in da Vinci system placements, up 17%, and a growing installed base for both da Vinci and Ion systems.
Profitability improved, with gross profit margin rising to 66.1% and operating income growing by 48% to $855 millionb. Net income attributable to Intuitive Surgical, Inc. also saw a healthy increase.
The company's balance sheet remains strong, although cash and investments decreased due to significant share repurchases and a strategic business acquisition. The company continues to invest in research and development, reflecting its commitment to innovation and future growth, while also managing potential macroeconomic and geopolitical headwinds.
02—Key points
Key Highlights
- Total revenue grew 23% year-over-year to $2.77 billion.
- Da Vinci procedures increased by 16% to 847,000, and Ion procedures increased by 39% to 42,700.
- Systems revenue grew 24% to $651 million, while instruments and accessories revenue rose 23% to $1.69 billion.
- Operating income surged 48% to $855 million, indicating strong operational leverage.
- The company repurchased $1.13 billion of its common stock during the quarter, demonstrating a commitment to returning capital to shareholders.
- A business acquisition was completed for approximately $533.1 million, enhancing direct distribution capabilities in key European markets.
- Gross profit margin improved to 66.1% from 64.7% in the prior year period.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Intuitive Surgical kept $0.30.
- Revenue$2.77B100.0%
- Cost of revenue−$940.3M33.9%
- Gross profit$1.83B66.1%
- Operating costs−$975.2M35.2%
- Operating income$855.3M30.9%
- Interest, other & tax−$33.8M1.2%
- Net income$821.5M29.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 22, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.77B$2.25B | +23.0% |
| Cost of Revenue | $940.30M$795.70M | +18.2% |
| Gross Profit | $1.83B$1.46B | +25.6% |
| R&D Expenses | $361.90M$316.20M | +14.5% |
| SG&A Expenses | $613.30M$563.40M | +8.9% |
| Operating Expenses | $975.20M$879.60M | +10.9% |
| Operating Income | $855.30M$578.10M | +48.0% |
| Net Income | $821.50M$698.40M | +17.6% |
| EPS (Basic) | $2.31$1.95 | +18.5% |
| EPS (Diluted) | $2.28$1.92 | +18.7% |
| Shares Outstanding (Basic) | 354.90M357.50M | −0.7% |
| Shares Outstanding (Diluted) | 359.80M364.60M | −1.3% |
05—Questions
Frequently Asked Questions
What is the primary driver of Intuitive Surgical's revenue growth in this quarter?
The primary driver of Intuitive Surgical's revenue growth is the increasing volume of da Vinci procedures performed worldwide, which drives demand for instruments and accessories, as well as service revenue. This is complemented by the growth in Ion procedures and the placement of new da Vinci and Ion systems.
How is the company managing its cash and investments given the recent acquisition and share repurchases?
The company's cash, cash equivalents, and investments decreased by $1.05 billion, primarily due to cash used for share repurchases ($1.13 billion) and the acquisition of a business ($528 million). However, these uses were partially offset by cash generated from operations ($911.9 million), indicating a strong operational cash flow generation despite significant capital allocation activities.
What are the potential risks or challenges facing Intuitive Surgical based on this report?
The company faces macroeconomic and geopolitical uncertainties, including inflationary pressures, elevated interest rates, and supply chain disruptions. Specific to the report, there are ongoing legal proceedings related to antitrust claims, and the company is navigating evolving tariffs and trade barriers. Additionally, competition from other robotic surgical system manufacturers is increasing, particularly in markets like China.
What is the significance of the business acquisition mentioned in the report?
The acquisition of ab medica, Abex, and Excelencia Robótica for approximately $533.1 million on March 1, 2026, is significant as it allows Intuitive Surgical to assume direct distribution responsibilities for da Vinci and Ion systems in Italy, Spain, Portugal, Malta, and San Marino, transitioning these markets from a distributor model to a direct sales model and enhancing control over customer relationships and market strategy in these key European regions.
06—Continue