Intuitive Surgical, Inc.

🇺🇸NASDAQ Global Select
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Intuitive Surgical, Inc. stock analysis ISRG overview
Very Bullish +85

Intuitive Announces First Quarter Earnings

📈 Intuitive Surgical reported first-quarter 2026 revenue of $2.77 billion, a 23% increase from the same period in 2025.

🔼 Worldwide robotic procedures grew approximately 17%, with Ion procedures surging 39% compared to da Vinci's 16% growth.

🛠 The company placed 431 da Vinci surgical systems and 52 Ion endoluminal systems during the quarter, exceeding prior year volumes.

📊 The installed base expanded by 12% for da Vinci systems (now 11,395 units) and 22% for Ion systems (now 1,041 units).

💰 GAAP net income reached $822 million, or $2.28 per diluted share, up from $698 million in the previous year's quarter.

🚀 Da Vinci 5 models accounted for a significant portion of placements, with 232 units deployed compared to 147 last year.

💼 The company repurchased 2.3 million shares of stock for $1.1 billion, reducing its cash holdings by approximately $1.05 billion.

🔧 Instruments and accessories revenue rose 23% to $1.69 billion, driven by increased procedure volume and Ion growth.

⚠️ Operations included a share-based compensation expense of $213 million, with GAAP operating income rising to $855 million.

💵 Intuitive ended the quarter with $7.98 billion in cash, cash equivalents, and investments across its global operations.

🗣️ CEO Dave Rosa highlighted expanded adoption of da Vinci, Ion, and digital platforms as a key performance driver.

🎯 Management aims for worldwide da Vinci procedure growth between 13.5% and 15.5% throughout the full year of 2026.

📉 Expected non-GAAP gross profit margin for 2026 is projected between 67.5% and 68.5% of revenue, including tariff impacts.

📈 Non-GAAP operating expenses are expected to grow between 11% and 14% in 2026 following the current quarter's results.

⚖️ GAAP net income included excess tax benefits of $73 million during the first quarter compared to $145 million in the prior year.

📉 Ion procedures represented the strongest growth segment within the minimally invasive care portfolio for this reporting period.

Bullish Signals
  • Intuitive Surgical reported first quarter 2026 worldwide procedures growth of approximately 17%, with da Vinci procedures increasing by 16% and Ion procedures surging by 39%.
  • The Company placed 431 da Vinci surgical systems in the first quarter of 2026, a significant increase from 367 placements in the same period last year, while also placing 52 Ion endoluminal systems compared to 49.
  • First quarter 2026 revenue reached $2.77 billion, representing a robust 23% increase over the $2.25 billion reported in the first quarter of 2025.
  • GAAP net income attributable to Intuitive Surgical rose to $822 million, or $2.28 per diluted share, compared with $698 million, or $1.92 per diluted share, in the prior year period.
  • Non-GAAP net income strengthened to $901 million, or $2.50 per diluted share, up from $662 million, or $1.81 per diluted share, in the first quarter of 2025.
  • Instruments and accessories revenue increased by 23% to $1.69 billion, driven by approximately 16% growth in da Vinci procedure volume and 39% growth in Ion procedure volume.
  • The installed base continued to expand significantly, with the da Vinci surgical system count reaching 11,395 systems and the Ion endoluminal system count growing to 1,041 systems.
  • Intuitive repurchased 2.3 million shares of its common stock for $1.1 billion in the first quarter of 2026, demonstrating confidence in the company's long-term value.
Risk Factors
  • First quarter 2026 excess tax benefits decreased to $73 million ($0.20 per diluted share) from $145 million ($0.40 per diluted share) in the first quarter of 2025, which is a significant year-over-year decline in one-time income support.
  • Cash position ended the first quarter of 2026 at $7.98 billion, representing a decrease of $1.05 billion during the quarter driven primarily by share repurchases and business acquisitions.
  • The company plans to continue aggressive capital deployment with significant cash used for repurchasing common stock, which reduces liquidity available for growth or R&D investment.
  • Management expects non-GAAP gross profit margins in 2026 to be within a range of 67.5% to 68.5%, and this guidance explicitly includes an estimated adverse impact from tariffs amounting to 1.0% of revenue.
  • Operating expenses are expected to grow by 11% to 14% in 2026, which represents a relatively high growth rate compared to the anticipated procedure volume growth of approximately 13.5% to 15.5%.
  • The company's forward guidance assumes tariffs remain in place through the end of the year, indicating ongoing headwinds from trade policy that could negatively impact profitability if additional tariffs are enacted.
Full Analysis
Intuitive Surgical announced its first quarter 2026 financial results today, reporting significant growth across its global portfolio of robotic-assisted surgery technologies. Worldwide procedures combining both da Vinci and Ion systems grew approximately 17% compared to the first quarter of 2025. The company placed 431 da Vinci surgical systems in the quarter, a notable increase from 367 placements in the previous year, including 232 placements of the newer da Vinci 5 systems. Meanwhile, its Ion endoluminal system placements increased to 52 systems, up from 49 a year ago. As of March 31, 2026, the installed base reached 11,395 da Vinci systems and 1,041 Ion systems, reflecting total growth rates of 12% and 22%, respectively, compared to the end of 2025. Revenue for the quarter ended March 31, 2026, totaled $2.77 billion, representing a 23% increase from $2.25 billion in the first quarter of 2025. First quarter instruments and accessories revenue rose to $1.69 billion, driven largely by higher procedure volumes and growth in Ion procedures, while systems revenue reached $651 million. Profitability saw substantial improvement as well, with GAAP net income attributable to Intuitive Surgical rising to $822 million, or $2.28 per diluted share, from $698 million in the prior year period. On a non-GAAP basis, net income was reported at $901 million, or $2.50 per diluted share. The company also returned capital to shareholders by repurchasing 2.3 million shares of common stock for approximately $1.1 billion during the quarter. Looking ahead, Intuitive Surgical provided guidance for the full year of 2026. The company anticipates worldwide da Vinci procedure growth between 13.5% and 15.5%. Additionally, they expect non-GAAP gross profit margins to fall within a range of 67.5% to 68.5% of revenue for the year, a figure that accounts for an estimated 1.0% impact from current tariffs. Operating expenses are expected to grow between 11% and 14%. Dave Rosa, Intuitive's CEO, commented on the results, highlighting expanded adoption across their da Vinci, Ion, and digital platforms while reaffirming the company’s commitment to supporting customers globally in achieving better patient outcomes and improving care experiences. The company closed the quarter with $7.98 billion in cash, cash equivalents, and investments.