Intuitive Surgical (ISRG) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw 17% total procedure growth, with da Vinci procedures up 16% to 847,000 and Ion procedures up 39% to 43,000–42,700, driven by strong adoption in the U.S. and Europe, but mixed results in Asia.

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

• Revenue rose 23% year-over-year to $2.77 billion, driven by higher procedure volume and system placements.

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

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

Financial highlights

• Q1 revenue increased 23% year-over-year to $2.77 billion; recurring revenue accounted for 86% of total revenue.

• Non-GAAP operating margin was 39%; non-GAAP net income was $901 million ($2.50/share), up from $662 million ($1.81/share) last year.

• GAAP net income was $822 million ($2.28/share), compared to $698 million ($1.92/share) last year.

• Non-GAAP gross margin was 67.8%; GAAP gross margin was 66.1%, both up year-over-year.

• Ended Q1 with $7.98–$8 billion in cash and investments, down from $9 billion due to $1.1 billion in stock repurchases, distributor acquisition, and $103 million in capex.

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 100 basis points of 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 and macroeconomic factors could materially impact results.