Intuitive Surgical (ISRG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 23% year-over-year to $2.77 billion, driven by 16–17% da Vinci procedure growth (847,000 procedures) and 39% Ion procedure growth (42,700–43,000 procedures), with strong U.S. and European performance and mixed results in Asia.

• 431 da Vinci systems and 52 Ion systems were placed, increasing installed bases by 12% and 22%, respectively, with global installed base reaching 11,395 as of March 31, 2026.

• Non-GAAP net income was $901 million ($2.50/share), up from $662 million ($1.81/share); GAAP net income was $822 million ($2.28/share), up from $698 million ($1.92/share) last year.

• Leadership transition: Dr. Myriam Curet retiring as CMO, succeeded by Dr. Jaime Wong.

• Investments in clinical trials, market access, digital infrastructure, AI, and telesurgery are supporting global adoption and innovation.

Financial highlights

• Non-GAAP gross margin was 67.8% (up from 66.4%); GAAP gross margin was 66.1% (up from 64.7%).

• Non-GAAP operating margin was 39%; operating income rose 48% to $855 million.

• Recurring revenue accounted for 86% of total revenue; instruments and accessories revenue increased 23% to $1.69 billion.

• Ended Q1 with $7.98–$8 billion in cash and investments, down from $9 billion due to $1.1 billion in stock repurchases and distributor acquisition.

• Service revenue per system for da Vinci installed base increased 6% year-over-year.

Outlook and guidance

• Full-year 2026 da Vinci procedure growth forecast raised to 13.5%–15.5%.

• Non-GAAP gross profit margin guidance increased to 67.5%–68.5% of revenue, reflecting tariff impact and higher input costs.

• Non-GAAP operating expense growth expected between 11%–14%; non-cash stock compensation expense estimated at $890M–$920M.

• Other income forecasted at $315M–$335M due to lower average cash balances.

• Tariffs, macroeconomic, and geopolitical factors could materially impact results.