10-QPeriod: Q1 FY2026

INTUITIVE SURGICAL INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 22, 2026For Securities:ISRG

Summary

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 billion, 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 million. 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.

Financial Highlights

45 data points
Beta

Revenue

$2.77B

66.1% Gross Margin

Net Income

$821.50M

29.6% Net Margin

EPS (Diluted)

$2.28

Total Assets

$20.11B

Cash & Equivalents

$2.01B

Free Cash Flow

$911.90M

Financial Statements
Beta
Revenue$2.77B
Cost of Revenue$940.30M
Gross Profit$1.83B
R&D Expenses$361.90M
SG&A Expenses$613.30M
Operating Expenses$975.20M
Operating Income$855.30M
Net Income$821.50M
EPS (Basic)$2.31
EPS (Diluted)$2.28
Shares Outstanding (Basic)354.90M
Shares Outstanding (Diluted)359.80M

Key Highlights

  • 1Total revenue grew 23% year-over-year to $2.77 billion.
  • 2Da Vinci procedures increased by 16% to 847,000, and Ion procedures increased by 39% to 42,700.
  • 3Systems revenue grew 24% to $651 million, while instruments and accessories revenue rose 23% to $1.69 billion.
  • 4Operating income surged 48% to $855 million, indicating strong operational leverage.
  • 5The company repurchased $1.13 billion of its common stock during the quarter, demonstrating a commitment to returning capital to shareholders.
  • 6A business acquisition was completed for approximately $533.1 million, enhancing direct distribution capabilities in key European markets.
  • 7Gross profit margin improved to 66.1% from 64.7% in the prior year period.

Frequently Asked Questions

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.

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.

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.

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.