INTUITIVE ANNOUNCES SECOND QUARTER EARNINGS

Transcript

1. #1prepared remarks

   EX-99.1 2 q226ex-991earningsrelease.htm EX-99.1

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   Contact: Investor Relations (408) 523-2161 |

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   INTUITIVE ANNOUNCES SECOND QUARTER EARNINGS SUNNYVALE, CALIF., July 16, 2026 – Intuitive (the “Company”) (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended June 30, 2026. Q2 Highlights • Worldwide procedures (da Vinci and Ion combined) grew approximately 16% compared with the second quarter of 2025. Da Vinci procedures grew approximately 15%, and Ion procedures grew approximately 36%. • The Company placed 468 da Vinci surgical systems, compared with 395 in the second quarter of 2025. The second quarter 2026 da Vinci surgical system placements included 246 da Vinci 5 systems, compared with 180 in the second quarter of 2025. The Company placed 55 Ion endoluminal systems, compared with 54 in the second quarter of 2025. • The Company grew its da Vinci surgical system installed base to 11,710 systems as of June 30, 2026, an increase of 12% compared with 10,488 as of June 30, 2025. The Company grew its Ion endoluminal system installed base to 1,096 systems as of June 30, 2026, an increase of 21% compared with 905 as of June 30, 2025. • Second quarter 2026 revenue…

4. #4qna

   Q2 Financial Summary Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attributable to Intuitive Surgical, Inc. are reported on a GAAP and non-GAAP* basis. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

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   Second quarter 2026 revenue was $2.89 billion, an increase of 19% compared with $2.44 billion in the second quarter of 2025. The higher second quarter revenue was driven by growth in procedure volume, higher da Vinci system leasing revenue, and an increase in the installed base of da Vinci and Ion systems.

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   Second quarter 2026 instruments and accessories revenue increased by 18% to $1.73 billion, compared with $1.47 billion in the second quarter of 2025. The increase in instruments and accessories revenue was primarily driven by approximately 15% growth in da Vinci procedure volume and approximately 36% growth in Ion procedure volume. Second quarter 2026 systems revenue was $685 million, compared with $575 million in the second quarter of 2025. The higher systems revenue reflected a higher lease installed base, higher da Vinci system average selling prices, and increased da Vinci system placements compared with the second quarter of 2025. The Company placed 468 da Vinci surgical systems, of which 246 were da Vinci 5 systems, in the second quarter of 2026, compared with 395 systems, of which 180 were da Vinci 5 systems, in the second quarter of 2025. The second quarter 2026 da Vinci surgical system placements included 254 systems placed under operating lease arrangements, of which 131 systems were placed under usage-based operating lease arrangements, compared with 193 systems placed under operating lease arrangements, of which 124 systems were placed under usage-based operating leas…

7. #7Dave Rosa · Intuitive CEO

   We are pleased with company performance this quarter, which reflects the strength of our portfolio – from da Vinci and Ion to our growing digital solutions,

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   our website at www.intuitive.com within 24 hours after the end of the live teleconference and will be accessible for at least 30 days. About Intuitive Intuitive (Nasdaq: ISRG), headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic-assisted surgery. Our technologies include the da Vinci surgical systems and the Ion endoluminal system. By uniting advanced systems, progressive learning, and value-enhancing services, we help physicians and their teams optimize care delivery to support the best outcomes possible. At Intuitive, we envision a future of care that is less invasive and profoundly better, where diseases are identified early and treated quickly, so patients can get back to what matters most. Product and brand names/logos are trademarks or registered trademarks of Intuitive or their respective owner. See www.intuitive.com/trademarks . For more information, please visit the Company’s website at www.intuitive.com . Page 3 of 10

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   Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements relate to expectations concerning matters that are not historical facts. Statements using words such as “estimates,” “projects,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “may,” “will,” “could,” “should,” “commit,” “would,” “seek,” “potential,” “targeted,” and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements are necessarily estimates reflecting the judgment of the Company’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements include, but are not limited to the following: statements related to future results of operations, including expected procedure growth in 2026, expected non-GAAP gross profit margins in 2026, and expected non-GAAP operating expense growth in 2026; future financi…

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    *About Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive, and non-GAAP net income per diluted share attributable to Intuitive (“EPS”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding items such as amortization of intangible assets, share-based compensation (“SBC”) and long-term incentive plan (“LTIP”) expenses, acquisition-related items, gains on the sale of businesses and assets, and other special items. LTIP expense relates to phantom…

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    Non-GAAP gross profit . The Company defines non-GAAP gross profit as gross profit, excluding SBC and LTIP expenses, amortization of intangible assets, and acquisition-related items. Non-GAAP income from operations . The Company defines non-GAAP income from operations as income from operations, excluding SBC and LTIP expenses, amortization of intangible assets, a facilities asset abandonment charge, litigation charges, acquisition-related items, and gains on the sale of businesses and assets. Non-GAAP net income attributable to Intuitive and EPS . The Company defines non-GAAP net income as net income attributable to Intuitive, excluding SBC and LTIP expenses, amortization of intangible assets, a facilities asset abandonment charge, litigation charges, acquisition-related items, gains on the sale of businesses and assets, gains or losses on strategic investments, tax adjustments, including the excess tax benefits associated with SBC arrangements and the net tax effects related to intra-entity transfers of non-inventory assets, and adjustments attributable to noncontrolling interest in joint venture, net of the related tax effects. The Company excludes the excess tax benefits assoc…

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    INTUITIVE SURGICAL, INC. UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS, EXCEPT PER SHARE DATA)

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    | | | | | | | | | | | | | | | | | | | Three Months Ended | | June 30, 2026 | | March 31, 2026 | | June 30, 2025 | Revenue: | | | | | | Instruments and accessories | $ | 1,734.9 | | | $ | 1,686.4 | | | $ | 1,474.1 | | Systems | 685.0 | | | 650.7 | | | 574.7 | | Services | 472.4 | | | 433.7 | | | 391.2 | | Total revenue | 2,892.3 | | | 2,770.8 | | | 2,440.0 | | Cost of revenue: | | | | | | Product | 777.0 | | | 780.0 | | | 686.2 | | Service | 154.9 | | | 160.3 | | | 135.9 | | Total cost of revenue (1) | 931.9 | | | 940.3 | | | 822.1 | | Gross profit | 1,960.4 | | | 1,830.5 | | | 1,617.9 | | Operating expenses: | | | | | | Selling, general, and administrative | 617.9 | | | 613.3 | | | 561.2 | | Research and development | 370.6 | | | 361.9 | | | 313.3 | | Total operating expenses | 988.5 | | | 975.2 | | | 874.5 | | Income from operations (2) | 971.9 | | | 855.3 | | | 743.4 | | Interest and other income (expense), net | 82.7 | | | 85.1 | | | 88.7 | | Income before taxes | 1,054.6 | | | 940.4 | | | 832.1 | | Income tax expense (benefit) (3) | 231.4 | | | 114.4 | | | 167.9 | | Net income | 823.2 | | | 826.0 | | | 664.2 | | Less: net income attributable to nonco…

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    INTUITIVE SURGICAL, INC. UNAUDITED YEAR-TO-DATE CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS, EXCEPT PER SHARE DATA)

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    | | | | | | | | | | | | | Six Months Ended | | June 30, | | 2026 | | 2025 | Revenue: | | | | Instruments and accessories | $ | 3,421.3 | | | $ | 2,841.8 | | Systems | 1,335.7 | | | 1,097.4 | | Services | 906.1 | | | 754.2 | | Total revenue | 5,663.1 | | | 4,693.4 | | Cost of revenue: | | | | Product | 1,557.0 | | | 1,356.9 | | Service | 315.2 | | | 260.9 | | Total cost of revenue (1) | 1,872.2 | | | 1,617.8 | | Gross profit | 3,790.9 | | | 3,075.6 | | Operating expenses: | | | | Selling, general, and administrative | 1,231.2 | | | 1,124.6 | | Research and development | 732.5 | | | 629.5 | | Total operating expenses | 1,963.7 | | | 1,754.1 | | Income from operations (2) | 1,827.2 | | | 1,321.5 | | Interest and other income, net | 167.8 | | | 179.1 | | Income before taxes | 1,995.0 | | | 1,500.6 | | Income tax expense (3) | 345.8 | | | 132.7 | | Net income | 1,649.2 | | | 1,367.9 | | Less: net income attributable to noncontrolling interest in joint venture | 9.6 | | | 11.1 | | Net income attributable to Intuitive Surgical, Inc. | $ | 1,639.6 | | | $ | 1,356.8 | | Net income per share attributable to Intuitive Surgical, Inc.: | | | | Basic | $ | 4.63 | |…

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    INTUITIVE SURGICAL, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (IN MILLIONS)

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    | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | Cash, cash equivalents, and investments | $ | 8,625.5 | | | $ | 9,034.1 | | Accounts receivable, net | 1,673.2 | | | 1,527.3 | | Inventory | 2,028.7 | | | 1,840.0 | | Property, plant, and equipment, net | 5,551.5 | | | 5,342.4 | | Goodwill | 580.6 | | | 370.3 | | Deferred tax assets | 652.4 | | | 1,018.6 | | Other assets | 1,764.7 | | | 1,326.0 | | Total assets | $ | 20,876.6 | | | $ | 20,458.7 | | | | | | Accounts payable and other liabilities | $ | 1,916.9 | | | $ | 1,918.9 | | Deferred revenue | 662.0 | | | 598.1 | | Total liabilities | 2,578.9 | | | 2,517.0 | | Stockholders’ equity | 18,297.7 | | | 17,941.7 | | Total liabilities and stockholders’ equity | $ | 20,876.6 | | | $ | 20,458.7 | | | | | | | | | | | | | | | | | |

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    INTUITIVE SURGICAL, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (IN MILLIONS, EXCEPT PER SHARE DATA)

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    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, 2026 | | March 31, 2026 | | June 30, 2025 | | June 30, 2026 | | June 30, 2025 | GAAP gross profit | | $ | 1,960.4 | | | $ | 1,830.5 | | | $ | 1,617.9 | | | $ | 3,790.9 | | | $ | 3,075.6 | | GAAP gross profit margin (1) | | 67.8% | | 66.1% | | 66.3% | | 66.9% | | 65.5% | Share-based compensation expense | | 36.2 | | | 36.0 | | | 36.6 | | | 72.2 | | | 72.8 | | Long-term incentive plan expense | | (0.1) | | | 0.1 | | | 0.1 | | | — | | | 0.4 | | Amortization of intangible assets | | 23.3 | | | 6.6 | | | 2.5 | | | 29.9 | | | 4.9 | | Acquisition-related items | | 4.1 | | | 5.9 | | | — | | | 10.0 | | | — | | Non-GAAP gross profit | | $ | 2,023.9 | | | $ | 1,879.1 | | | $ | 1,657.1 | | | $ | 3,903.0 | | | $ | 3,153.7 | | Non-GAAP gross profit margin (1) | | 70.0% | | 67.8% | | 67.9% | | 68.9% | | 67.2% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | GAAP income from operations | | $ | 971.9 | | | $ | 855.3 | | | $ | 743.4 | | | $ | 1,827.2…