01—Abstract
Summary
Summary of the 10-Q filed July 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Intuitive Surgical Inc. reported strong financial performance for the six months ended June 30, 2026, with total revenue increasing by 21% year-over-year to $5.66 billiona.
This growth was driven by robust increases in both product revenue (21%b) and service revenue (20%). The company saw significant expansion in its da Vinci surgical system placements, up 18% year-over-year in the second quarter, alongside a 36% surge in Ion procedures, indicating strong adoption of its robotic-assisted surgical and diagnostic platforms.
Profitability also improved, with operating income rising 31% in the second quarter, reflecting healthy gross profit margins. The company continued to execute on its capital allocation strategy, repurchasing approximately $1.51 billionc of its common stock in the first six months of the year, while maintaining a strong cash and investment balance of $8.63 billion.
02—Key points
Key Highlights
- Total revenue grew 21% to $5.66 billion for the first six months of 2026 compared to the same period in 2025.
- Da Vinci system placements increased by 18% in Q2 2026 year-over-year, demonstrating continued demand for its robotic surgical systems.
- Ion procedure volume saw substantial growth of 36% in Q2 2026 compared to the prior year, highlighting strong adoption of its endoluminal system.
- Gross profit margin improved to 67.9% for product revenue and 67.2% for service revenue in Q2 2026, indicating enhanced profitability.
- Operating income grew 31% in Q2 2026, reflecting strong operational execution and revenue growth.
- The company repurchased $1.51 billion of common stock in the first six months of 2026, signaling a commitment to returning capital to shareholders.
- Cash, cash equivalents, and investments stood at a robust $8.63 billion as of June 30, 2026, providing financial flexibility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Intuitive Surgical kept $0.28.
- Revenue$2.89B100.0%
- Cost of revenue−$931.9M32.2%
- Gross profit$1.96B67.8%
- Operating costs−$988.5M34.2%
- Operating income$971.9M33.6%
- Interest, other & tax−$153.8M5.3%
- Net income$818.1M28.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 21, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.89B$2.44B | +18.5% |
| Cost of Revenue | $931.90M$822.10M | +13.4% |
| Gross Profit | $1.96B$1.62B | +21.2% |
| R&D Expenses | $370.60M$313.30M | +18.3% |
| SG&A Expenses | $617.90M$561.20M | +10.1% |
| Operating Expenses | $988.50M$874.50M | +13.0% |
| Operating Income | $971.90M$743.40M | +30.7% |
| Net Income | $818.10M$658.40M | +24.3% |
| EPS (Basic) | $2.31$1.84 | +25.5% |
| EPS (Diluted) | $2.29$1.81 | +26.5% |
| Shares Outstanding (Basic) | 354.10M358.50M | −1.2% |
| Shares Outstanding (Diluted) | 357.30M364.10M | −1.9% |
05—Questions
Frequently Asked Questions
What is the overall financial performance for Intuitive Surgical in the reported period?
Intuitive Surgical demonstrated strong financial performance, with total revenue increasing by 21% to $5.66 billion for the six months ended June 30, 2026, compared to the same period in 2025. This growth was driven by an 18% increase in product revenue and a 20% increase in service revenue. Profitability also improved, with operating income rising 31% in the second quarter of 2026.
How is the company's core business, the da Vinci surgical system, performing?
The da Vinci surgical system continues to show strong momentum. System placements increased by 18% year-over-year in the second quarter of 2026, reaching 468 units. Da Vinci procedures grew by 15% in Q2 2026. The company also reported a 21% increase in its da Vinci installed base, reaching approximately 11,710 systems.
What is the performance of the Ion endoluminal system?
The Ion endoluminal system is experiencing significant growth. Ion procedures increased by 36% in the second quarter of 2026 compared to the prior year, and the installed base grew by 21% to approximately 1,096 systems. This indicates strong market acceptance and increasing utilization of the Ion system.
What is the company's approach to capital allocation, particularly regarding share repurchases?
Intuitive Surgical actively returns capital to shareholders through its stock repurchase program. In the first six months of 2026, the company repurchased approximately $1.51 billion of its common stock. As of June 30, 2026, approximately $4.7 billion remained authorized for future repurchases.
How is the company managing its liquidity and financial resources?
The company maintains a strong liquidity position. As of June 30, 2026, Intuitive Surgical reported $8.63 billion in cash, cash equivalents, and investments. Operating activities provided $1.97 billion in cash for the first six months of 2026, underscoring its ability to generate cash from its core operations to fund growth and strategic initiatives.
06—Continue