Intuitive Surgical, Inc. earnings

Management highlights

• Q1 was a solid start with 17% total procedure growth. Da Vinci procedures grew 16%, Ion 39%. • US da Vinci grew 14%, led by general surgery; outside US, 19% growth. Asia had mixed results. • Placed 431 DaVinci and 52 Ion systems. DaVinci 5 utilization higher. • Digital ecosystem investment ongoing, DaVinci 5 captures real - world data. My Intuitive Plus expanding. • SP momentum: procedures grew 68%, driven by Korea and US. • ION results positive, clinical publications show IONS supports earlier malignancy identification. • Leadership transition: Dr. Miriam Kuret retired, Dr. Jamie Wong promoted to CMO.

Guidance

• Full - year 2026 da Vinci procedure growth forecast increased to 13.5% - 15.5% from 13% - 15%. • Non - GAAP gross profit margin forecast updated to 67.5% - 68.5% of revenue (previously 67% - 68%, 120bps impact from tariffs now 100bps). • Non - GAAP operating expense growth expected 11% - 14%. • Non - cash stock compensation expense estimated $890M - $920M. • Other income (mostly interest) forecast $315M - $335M. • Non - GAAP income tax rate expected 22% - 23% of pre - tax income

Segment performance

In Q1 2026, total procedures grew 17%. Da Vinci procedures grew 16% to 847,000, with 14% growth in the US led by general surgery and 19% growth outside the US. Ion procedures increased 39% to 43,000. Revenue was $2.77 billion, with recurring revenue at $2.4 billion (86% of total). Non - GAAP operating margin was 39%. Da Vinci systems placed: 431 (232 DaVinci 5, 34 SP, 34 XIR). Ion systems placed: 52. Q1 systems revenue grew 24% to $651 million. Non - GAAP gross margin 67.8%, up from 66.4% last year. Non - GAAP net income $901 million, EPS $2.50

Risks & headwinds

• Cyber incident in Q1 with unauthorized access to customer and employee data, but didn't disrupt business or products. • Macro factors like oil and memory prices expected to have greater unfavorable impact in remainder of year. • China market challenges with lower tenders, competitive and pricing pressures. • Japan market challenges with lower capital placements and cautious outlook due to public hospital financial position

Analyst Q&A

• Q: Talk about digital and data roadmap for Intuitive.

  A: AI through quintuple aim lens, layered capabilities starting with high - quality data, leading to insights and actions in operating room, including anatomy identification, augmented dexterity.

• Q: Follow - up on ROSE and EBUS timelines.

  A: Both known tech, short - term timelines not this year, bring differentiated value.

• Q: Size appendectomy opportunity and Japan new procedures impact.

  A: Haven't sized appendectomy yet, Japan MHLW added reimbursement for seven procedures, impact modest.

• Q: Innovation - led revenue growth.

  A: R&D deployment for differentiation on quintuple aim, mixed dynamic between push and pull of R&D and cost sensitivity.

• Q: Utilization and global competition.

  A: Utilization varies by market, competition about meeting customer needs at right price point, refurbished XI has attractive economics.

• Q: SP adoption and TAM.

  A: SP procedure growth strong, continues progression, long - term opportunity underestimated.

• Q: OUS INA dynamics and OUS strategy.

  A: INA delta likely from customer ordering patterns, FX, strong capital placements; OUS strategy includes localized approach, multi - year market access efforts, direct in some markets, possible localized manufacturing