Intuitive Surgical Net Income Climbs 18% to $821.5M in Q1 2026
Intuitive Surgical Inc., a robotic-assisted surgical technology company, reported net income of $821.5 million for the three months ended March 31, 2026, up from $698.4 million in the same period a year earlier. Total revenue rose 23% to $2.77 billion.
Intuitive Surgical Inc. (NASDAQ: ISRG), a robotic-assisted surgical technology company, reported net income of $821.5 million for the three months ended March 31, 2026, up 18% from $698.4 million in the same period a year earlier. Total revenue rose 23% to $2.77 billion from $2.25 billion. Read more earnings reports.
Product revenue climbed 24% to $2.34 billion from $1.89 billion, while service revenue increased 19% to $433.7 million from $363.0 million. Gross profit expanded to $1.83 billion from $1.46 billion, representing a gross margin of 66.1% compared to 64.7% in the prior-year quarter.
Income from operations surged 48% to $855.3 million from $578.1 million. Operating expenses totaled $975.2 million, up 11% from $879.6 million, driven by higher selling, general, and administrative costs of $613.3 million and research and development spending of $361.9 million.
Diluted earnings per share reached $2.28, up from $1.92 a year earlier, based on 359.8 million diluted shares outstanding compared to 364.6 million in the prior-year period. The company repurchased and retired 2.3 million shares during the quarter for $1.13 billion.
Cash and cash equivalents fell to $2.01 billion as of March 31, 2026, from $3.37 billion at December 31, 2025. Operating activities generated $911.9 million in cash during the quarter, up 57% from $581.6 million in the first quarter of 2025. The company spent $528.2 million on acquisitions and intellectual property during the period.
On March 1, 2026, the company completed an acquisition for $565.7 million, adding $243.2 million in goodwill and $233.2 million in intangible assets. The acquired business contributed $20.0 million in deferred revenue and $74.0 million in net investments in sales-type leases.
Total assets stood at $20.11 billion as of March 31, 2026, compared to $20.46 billion at year-end 2025. Stockholders' equity declined to $17.60 billion from $17.94 billion, reflecting the share repurchases and dividend-equivalent payments.
| Three Months Ended March 31 (in millions, except per share) | 2026 | 2025 |
|---|---|---|
| Total Revenue | $2,770.8 | $2,253.4 |
| Product Revenue | $2,337.1 | $1,890.4 |
| Service Revenue | $433.7 | $363.0 |
| Gross Profit | $1,830.5 | $1,457.7 |
| Operating Expenses | $975.2 | $879.6 |
| Income from Operations | $855.3 | $578.1 |
| Net Income | $826.0 | $703.7 |
| Net Income Attributable to Intuitive Surgical | $821.5 | $698.4 |
| Diluted EPS | $2.28 | $1.92 |
Inventory rose to $1.95 billion from $1.84 billion, while accounts receivable increased to $1.60 billion from $1.53 billion. Deferred tax assets declined to $683.8 million from $1.02 billion, partially offset by a deferred income tax benefit that contributed $339.3 million to operating cash flow.
The company recorded $209.5 million in share-based compensation expense, up from $185.2 million in the prior year. Interest and other income totaled $85.1 million, down from $90.4 million, as foreign exchange remeasurement losses of $19.2 million offset investment gains.