Intuitive Surgical Q2 Earnings Call Highlights

Intuitive Surgical Q2 Earnings Call Highlights Posted by Defense World Staff on Jul 18th, 2026 Share on Twitter Share on Facebook Share on LinkedIn Share on Stocktwits Get alerts: Intuitive Surgical (NASDAQ:ISRG) reported a solid second quarter of 2026, with management pointing to continued global adoption of its da Vinci, da Vinci SP and Ion platforms, even as U.S. procedure growth moderated and China remained challenging.

Chief Executive Officer Dave Rosa said total procedures increased 16% in the quarter, driven by 15% growth in da Vinci procedures and 36% growth in Ion procedures. The installed base of da Vinci and Ion systems rose 12% and 21%, respectively, and the company ended the quarter with nearly 13,000 systems installed worldwide. “Our performance in Q2 was solid,” Rosa said. “We saw continued global adoption across our MultiPort, da Vinci SP, and Ion platforms and steady execution by our teams.”

Revenue rises 19% as recurring revenue remains dominant Chief Financial Officer Jamie Samath said second-quarter revenue increased 19% year over year to $2.89 billion, or 18% on a constant-currency basis. Recurring revenue rose 19% to $2.47 billion and represented 85% of total revenue. Non-GAAP operating margin was 42%, and non-GAAP earnings per share increased 28% from the prior year to $2.80. Non-GAAP net income was $1 billion, compared with $798 million a year earlier. On a GAAP basis, net income was $818 million, or $2.29 per share, compared with $658 million, or $1.81 per share, in the second quarter of last year.

Samath said the quarter’s results included a $36 million pre-tax benefit tied to the refund of previously paid IEEPA tariffs. Non-GAAP gross margin was 70%, or 68.7% excluding that tariff refund benefit, compared with 67.9% in the prior-year period. The company ended the quarter with $8.6 billion in cash and investments, up from $8 billion in the prior quarter. Samath said the increase was driven by operating cash flow, partly offset by $379 million in stock repurchases and $112 million in capital expenditures. Free cash flow for the first half of 2026 was $1.8 billion, up 71% from the first six months of 2025.

U.S. procedure growth slows, international markets expand In the U.S., da Vinci procedure growth was 12%, led by general surgery, while after-hours procedures increased 26%. Rosa said U.S. growth moderated from recent trends and from the company’s expectations at the start of the year, particularly in procedures that can be deferred. “In our customer conversations, some have said that changes in patient coverage and premium dynamics may be affecting when patients seek care and move forward with treatment,” Rosa said.

Samath added that customer feedback suggested a “modest adverse impact” on U.S. da Vinci procedure growth from patients affected by the expiration of subsidies for ACA enhanced premiums. Samath also said U.S. da Vinci bariatric cases continued to be affected by rising GLP-1 usage, declining in the high single digits during the quarter. Outside the U.S., da Vinci procedure growth was 20%. Rosa said Europe and Asia each grew 20%, while rest-of-world markets increased 22%. Samath highlighted strong results in India, Italy, Taiwan and the U.K., as well as solid growth in distributor markets and Germany. He said procedure growth in China and Japan was slightly ahead of the global average but continued to be affected by market-specific dynamics.

Capital placements rise on demand for newer platforms Intuitive placed 468 da Vinci systems in the quarter, up from 395 in the year-ago period. Of those placements, 246 were da Vinci 5 systems, including 114 dual consoles. The da Vinci 5 installed base is now just over 1,700 systems, used by more than 15,000 surgeons since launch, Samath said. The company also placed 55 Ion systems, compared with 54 last year. Systems revenue increased 19% to $685 million. U.S. da Vinci placements rose 24% to 267 systems, driven by adoption of and upgrades to da Vinci 5...