ISRG

A month has gone by since the last earnings report for Integra LifeSciences (IART). Shares have lost about 1.6% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Integra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Integra LifeSciences Holdings Corporation reported second-quarter 2026 adjusted earnings per share of 56 cents, up 24.4% year over year. The figure beat the Zacks Consensus Estimate by 16.7%. GAAP earnings per share were 6 cents in the quarter compared with the year-ago period’s loss of $6.31 per share. Revenues of $418.76 million increased 0.8% and missed the consensus mark by 0.2%. IART’s Specialty Surgery Posts Growth Specialty Surgery revenues totaled $309.3 million, up 1.7% on a reported basis and 1.6% organically. Neurosurgery sales increased 1.9% organically, driven by Certas Plus, Bactiseal and CUSA as supply reliability and fulfillment improved. Instruments advanced 3.2% organically. ENT sales declined 1.9% organically as growth in MicroFrance ENT instruments was offset by weakness in other products. Management said reimbursement pressure on sinus balloons continued, while overall procedure demand remained generally consistent with its expectations. Integra’s Tissue Reconstruction Faces Pressure Tissue Reconstruction revenues were $109.5 million, down 1.9% on a reported basis and 2.0% organically. Wound Reconstruction declined in the mid-single digits, with growth in DuraSorb and the PriMatrix relaunch offset by lower MicroMatrix and Integra Skin sales. Integra Skin improved sequentially but faced a difficult year-ago comparison that included backorder clearance. Management said wound reconstruction was roughly flat for the first half of 2026 and remained within the range contemplated in the full-year outlook. IART’s Margin Performance In the reported quarter, adjusted gross profit totaled $256.9 million, up 1.8% year over year. The adjusted gross margin expanded 60 basis points (bps) to 61.3%. Selling, general and administrative expenses decreased 4.1% to $172.4 million, while research and development expenses fell 10.2% to $24.3 million.Adjusted EBITDA was $78.4 million, up 10.1% year over year. The adjusted EBITDA margin expanded 160 bps to 18.7%, reflecting manufacturing efficiencies, lower remediation spending and benefits from the company’s margin-improvement initiatives. IART’s Financial Position Integra exited the second quarter of 2026 with approximately $214.4 million in cash and cash equivalents compared with $236.8 million at the end of the first quarter. Cumulative net cash provided by operating activities at the end of the second quarter was $32.6 million, compared with the cash outflow of $2.3 million a year ago. Integra Provided 2026 & Q3 Guidance For full-year 2026, the company expects reported revenues to be in the range of $1.654-$1.695 billion, reflecting reported growth of 1.1% to 3.7%. The company reaffirmed its organic revenue growth guidance of 0.8% to 3.3%. Meanwhile, adjusted earnings per share are expected to be between $2.40 and $2.50. For the third quarter of 2026, Integra expects reported revenues in the range of $410-$425 million, representing reported growth of 2.0% to 5.7% and organic growth of 1.9% to 5.7%. Adjusted earnings are expected to be in the range of 53-61 cents per share. Since the earnings release, investors have witnessed a downward trend in estimates review. Currently, Integra has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Integra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Integra is part of the Zacks Medical - Instruments industry. Over the past month, Intuitive Surgical, Inc. (ISRG), a stock from the same industry, has gained 4%. The company reported its results for the quarter ended June 2026 more than a month ago. Intuitive Surgical reported revenues of $2.89 billion in the last reported quarter, representing a year-over-year change of +18.5%. EPS of $2.80 for the same period compares with $2.19 a year ago. Intuitive Surgical is expected to post earnings of $2.61 per share for the current quarter, representing a year-over-year change of +8.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Intuitive Surgical has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for OPKO Health (OPK). Shares have lost about 9.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is OPKO Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. OPKO Health Q2 Earnings & Revenues Beat Estimates OPKO Health, Inc. reported a second-quarter 2026 loss of 1 cent per share, narrower than the year-ago quarter's loss of 19 cents. The figure beat the Zacks Consensus Estimate of a loss of 8 cents by 87.5%. Revenues rose 4.3% year over year to $163.6 million, driven by strong growth in the Pharmaceuticals segment. The top line also surpassed the Zacks Consensus Estimate by 24.7%. The better-than-expected performance reflected higher pharmaceutical revenues, including income related to the amended Nicoya licensing agreement, partially offset by lower Diagnostics revenues following last year's oncology asset divestiture. Q2 Segment Details Total pharmaceutical revenues increased 59.8% year over year to $89 million. The upside was primarily driven by higher product sales and a significant increase in revenues from intellectual property transfers and other sources. Diagnostics service revenues declined 26.3% year over year to $74.5 million. The comparison was affected by the sale of OPK's oncology assets to Labcorp in September 2025, which contributed $24.9 million to revenues in the prior-year quarter. Excluding the divested oncology business, core diagnostics revenues declined modestly to $68.2 million from $69.3 million a year ago. Revenues from the 4Kscore prostate cancer test fell to $6.3 million from $6.9 million. Management attributed the decline primarily to changes in test mix following the transfer of certain lower-margin esoteric tests to strategic partners. OPK’s Product Sales Improve Product revenues increased 5.4% year over year to $42.9 million. Growth was supported by higher sales volumes in the company's Spanish and Mexican operations, along with a favorable foreign exchange impact of $1.8 million. These gains were partially offset by approximately $1.7 million of lower revenues across other international markets. RAYALDEE revenues increased to $8.1 million from $7.2 million in the prior-year quarter, mainly driven by favorable gross-to-net adjustments. Management stated that international pharmaceutical operations continued to perform well, while RAYALDEE sales remained ahead of internal expectations. OPK’s Margin Expands as Costs Decline For the second quarter, gross profit increased to $80 million from $49.4 million a year ago, while gross margin expanded to 48.9% from 31.5%. The improvement reflected lower service costs following the Diagnostics asset sale and a higher contribution from intellectual property and other revenues, including income tied to the amended Nicoya agreement. Total costs and expenses declined 21.3% year over year to $170.6 million. Cost of service revenues fell 29% year over year to $58.5 million, while selling, general and administrative expenses declined 11.2% to $52.9 million. Research and development expenses increased 9.3% year over year to $33.2 million, reflecting continued investment in early-stage clinical programs. Consolidated operating loss narrowed to $7 million from $60 million, aided by higher pharmaceutical revenues, lower Diagnostics costs and an $18.1 million Labcorp earnout gain. The Diagnostics segment posted an operating income of $4.8 million against an operating loss of $18.2 million a year ago. Cash Position OPKO Health exited the second quarter with cash, cash equivalents, marketable securities and restricted cash of $314.4 million compared with $341.9 million at the first-quarter end. During the quarter, the company repurchased $13.2 million worth of common stock. As of June 30, 2026, cumulative share repurchases under the existing authorization totaled approximately $105.3 million, with $94.7 million still available for future buybacks. Cumulative net cash used in operating activities at the end of second-quarter 2026 was $62.8 million compared with $117.9 million a year ago. OPK’s Q3 & FY26 Guidance For the third quarter of 2026, OPKO Health expects total revenues in the range of $131-$142 million. The outlook includes service revenues of $73-$78 million, product revenues of $40-$44 million and intellectual property and other revenues of $16-$20 million. Management raised its full-year 2026 revenue guidance to $560-$585 million from the previous range of $530-$560 million. The company lowered its full-year cost and expense outlook to $710-$740 million from the earlier projection of $725-$750 million. Expected research and development spending remains unchanged at $125-$135 million. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 21.62% due to these changes. Currently, OPKO Health has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, OPKO Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. OPKO Health is part of the Zacks Medical - Instruments industry. Over the past month, Intuitive Surgical, Inc. (ISRG), a stock from the same industry, has gained 2.8%. The company reported its results for the quarter ended June 2026 more than a month ago. Intuitive Surgical reported revenues of $2.89 billion in the last reported quarter, representing a year-over-year change of +18.5%. EPS of $2.80 for the same period compares with $2.19 a year ago. Intuitive Surgical is expected to post earnings of $2.61 per share for the current quarter, representing a year-over-year change of +8.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Intuitive Surgical. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OPKO Health, Inc. (OPK) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Intuitive Surgical (NASDAQ:ISRG) beat both top- and bottom-line consensus estimates in its fiscal Q2 2026 results, with revenue for the quarter growing 19% to $2.89 billion and adjusted EPS of $2.80 exceeding expectations by $0.30. Despite that, the stock plunged due to mounting concerns about slowing domestic procedure growth. Worldwide procedures, da Vinci and Ion combined, grew around 16% compared to the prior year period, with Da Vinci procedures growing approximately 15% and Ion procedures growing approximately 36%. These trends disappointed investors accustomed to the company's historically strong procedure growth rates. Looking beyond the initial market reaction, is Intuitive Surgical (NASDAQ:ISRG) still worth its premium valuation? UBS believes that the recent share selloff for Intuitive Surgical (NASDAQ:ISRG) is overdone, and the firm’s work on automation suggests a “potentially dramatic acceleration” in penetration on procedures being brought to a faster and cheaper point than laparoscopy today. It thus upgraded the stock to Buy from Neutral, but brought the price target down to $500 from $550. Despite the price target downgrade, UBS sees an estimate and re-rating opportunity for Intuitive Surgical (NASDAQ:ISRG), and considers it to be “one of the cleanest growth stories in MedTech.” While analyst sentiment remains mixed, Intuitive Surgical (NASDAQ:ISRG) continues to exhibit strong profitability margins, supported by the non-GAAP gross profit margin reaching 70.0% in the quarter and the non-GAAP operating margin expanding by 330 basis points year-over-year to 42.1%. The gross margin expanding to a healthy 70.0% non-GAAP is a point of optimism for investors, as are strong recurring streams that make up around 85% of the total sales. Adoption of the company's newest da Vinci 5 surgical platform continues to accelerate, suggesting hospitals remain willing to invest despite broader macroeconomic uncertainty. The company reported strong system placements of 468 da Vinci units in fiscal Q2, reflecting an 18% year-over-year growth. Furthermore, Intuitive Surgical's (NASDAQ:ISRG) business model remains one of its biggest competitive advantages. Approximately 85% of total revenue came from recurring sources during the quarter, providing investors with significant revenue visibility as the installed base continues to grow. Several prominent institutional investors hold stakes in Intuitive Surgical (NASDAQ:ISRG), including Assenagon Asset Management S.a., Swedbank Ab, and Rathbone Brothers Plc. The primary reason Intuitive Surgical (NASDAQ:ISRG) disappointed investors despite strong quarterly results was concern over procedure growth.  Management did not raise its procedure growth guidance, keeping it intact and expecting 2026 da Vinci procedure growth of 13.5% to 15.5%, with results closer to the midpoint. Intuitive Surgical's premium valuation may also leave little room for execution missteps or slower-than-expected growth. The impact of tariffs remains another important area of investor focus for Intuitive Surgical (NASDAQ:ISRG). The company expects the current tariffs to remain in place through the end of the year, and remains uncertain about the execution of additional tariffs, as that would cause a material change in its financial results for the year, including a change in expected non-GAAP gross profit margin. The ultimate effect of tariffs is made further uncertain by factors such as the nature, scope, and amount of the tariffs and the proportion of components procured and finished goods manufactured outside of the United States. In addition, competition within robotic-assisted surgery is gradually increasing, which could place greater pressure on pricing and market share over the long term. Investors should continue monitoring the pace of da Vinci procedure growth and whether the company can sustain strong system placements across hospitals and international markets. While demand for robotic-assisted surgery remains robust, future growth will depend on Intuitive Surgical's (NASDAQ:ISRG) ability to expand its installed base and drive recurring revenue from instruments, accessories, and services. Another important factor to monitor is the adoption of the company's next-generation technologies, including da Vinci 5. Continued adoption could provide an additional catalyst for procedure growth and strengthen the company's competitive position in robotic surgery. Intuitive Surgical's (NASDAQ:ISRG) latest results suggest that demand for robotic-assisted surgery remains resilient. The key question for investors is whether the company can continue translating its technological leadership and expanding installed base into sustainable earnings growth while navigating tariff-related cost pressures. While we acknowledge the potential of ISRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow. Disclosure: None. 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Align Technology, Inc. ALGN reported second-quarter 2026 non-GAAP earnings of $2.64 per share, up 6.0% year over year. The figure beat the Zacks Consensus Estimate by 3.1%. Revenues increased 4.3% to $1.06 billion and topped the consensus mark by 0.4%. The quarterly results benefited from record Clear Aligner shipments of 691.8 thousand cases, up 7.4% year over year. International markets delivered double-digit volume growth, while North America remained stable. Following the earnings announcement, ALGN shares rose 2.6% yesterday. Clear Aligner revenues increased 8.2% year over year to $870.9 million. This growth reflected higher shipment volumes, price increases, lower net deferrals and favorable foreign exchange. These gains were partly offset by higher discounts and a mix shift toward lower-priced products and countries. Shipments to orthodontists and general practitioner dentists rose 7.8% and 6.6%, respectively. A record 89,200 doctors submitted Invisalign cases, while doctor utilization increased 3.8% year over year. International momentum was led by double-digit growth across EMEA and APAC, along with record second-quarter shipments in Latin America. Imaging Systems and CAD/CAM Services revenues declined 10.8% year over year to $185.3 million. Persistent softness in the capital equipment market and a shift toward lower-priced scanners, rentals and leasing programs weighed on reported revenues. However, scanner unit placements increased by double digits, with placements to new doctors reaching a record. The active scanner installed base grew approximately 11%, while restorative, wellness and orthodontic scans increased 16% to more than 12.4 million. Exocad revenues also posted double-digit growth. The second-quarter gross margin expanded 180 basis points year over year to 71.7%, driven by operational efficiencies, a tariff refund and higher Clear Aligner average selling prices. Non-GAAP gross margin also increased 180 basis points to 72.3%. Operating expenses rose 10.7% to $603.4 million, mainly due to a U.K. value-added tax accrual and higher employee compensation. GAAP operating margin contracted 150 basis points to 14.6%, while non-GAAP operating margin expanded 160 basis points to 22.9%. Align ended the second quarter with $1.10 billion in cash and cash equivalents, up from $1.06 billion at the end of the first quarter. Operating cash flow totaled $192.8 million, while free cash flow totaled $157.1 million after capital expenditures of $35.7 million. The company repurchased roughly 393,400 shares for $67 million during the quarter. Management increased its 2026 repurchase commitment to $400-$500 million. ALGN had $733.3 million remaining under its existing $1 billion authorization at quarter-end. Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote For the third quarter of 2026, Align expects worldwide revenues of $1.00-$1.02 billion, down sequentially. Clear Aligner volume is projected to grow in the mid-single digits year over year, while average selling prices are expected to decline sequentially due to geographic mix and foreign exchange. Systems and Services revenues are forecasted to decrease both sequentially and year over year. For 2026, management continues to expect worldwide revenue growth of 3-4%. Clear Aligner volume is now projected to increase approximately 6%, while average selling prices are expected to be flat to slightly lower year over year. Systems and Services revenues are forecasted to decline 6-8%, reflecting the shift toward lower-priced scanners and flexible acquisition models. Align Technology exited the second quarter of 2026 on a solid note, with both earnings and revenues beating their respective estimates. The company delivered growth across customer segments and continued to gain momentum among teen and growing kid patients. The growth was led by China, Japan, Turkey, India and Brazil. Management cited continued adoption of Invisalign First, the Invisalign Palatal Expander and Invisalign Mandibular Advancement with Occlusal Blocks. Investments in patient financing, clinical support, doctor subscription programs and practice productivity tools also supported treatment adoption and patient conversion. Expansion of both margins in the quarter is highly promising. However, the seasonality in capital equipment affected the quarter’s Systems and Services revenues. Align Technology currently has a Zacks Rank #4 (Sell). Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Phibro Animal Health PAHC and QuidelOrtho CP QDEL. Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter 2026 adjusted EPS of $2.80, which exceeded the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion topped the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ISRG’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.5%. Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a third-quarter fiscal 2026 adjusted EPS of 76 cents, which outpaced the Zacks Consensus Estimate by 5.9%. Revenues of $383.5 million outperformed the Zacks Consensus Estimate by 6.3%. PAHC’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.2%. QuidelOrtho, currently carrying a Zacks Rank #2, reported a first-quarter 2026 adjusted loss of 4 cents per share, which missed the Zacks Consensus Estimate by 110.8%. Revenues of $619.8 million beat the Zacks Consensus Estimate by 0.3%. QDEL beat earnings estimates in three of the trailing four quarters and missed on one occasion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Align Technology, Inc. (ALGN) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Intuitive Surgical, Inc. ISRG used its second-quarter 2026 earnings call to emphasize strong platform adoption while acknowledging slower U.S. procedure growth in deferrable categories. Management maintained its full-year procedure outlook, raised the gross-margin range and highlighted da Vinci 5, SP, Ion and lower-cost system options as the main levers for broader adoption. Revenues of $2.89 billion exceeded the Zacks Consensus Estimate of $2.81 billion. Non-GAAP earnings of $2.80 per share beat the consensus estimate of $2.48. Intuitive Surgical, Inc. price-consensus-eps-surprise-chart | Intuitive Surgical, Inc. Quote Daniel Connally, vice president and head of investor relations, said Intuitive still expects 2026 da Vinci procedure growth of 13.5% to 15.5%, with results closer to the midpoint. The outlook continues to assume growth from U.S. general surgery and procedures outside urology internationally. It also incorporates ACA subsidy changes, China competition, European capital pressure, Japan funding dynamics and obesity drugs. Second-half comparisons become tougher, particularly in the United States during the third quarter, while international holiday timing also affects quarterly growth patterns. David Rosa, chief executive officer, said U.S. da Vinci procedure growth moderated to 12%, with weakness concentrated in procedures patients can defer. Rosa stated that customer feedback pointed to insurance coverage and premium changes as factors affecting treatment timing. Jamie Samath, chief financial officer and enterprise technology leader, also cited a law-of-large-numbers effect. Bariatric procedures remained pressured by rising GLP-1 use, while after-hours procedures increased 26%. Outside the United States, da Vinci procedure growth reached 20%. Samath said that the U.S. capital environment remained stable, supported by 267 system placements, up 24% year over year. About half of U.S. placements were trade-ins. Da Vinci 5 demand drove upgrades, while leasing gave hospitals more flexibility when capital budgets were constrained. Around 70% of U.S. system acquisitions were under leasing arrangements. A JPMorgan analyst questioned whether hospital finances could weaken. Samath responded that the pipeline remained healthy and had not been affected by ACA enrollment concerns. Rosa said da Vinci 5 adoption remained strong, with 246 placements in the quarter, including 114 dual-console systems. The installed base exceeded 1,700 systems. SP procedures grew 61%, helped by adoption in the United States and Korea. Ion procedures rose 36% to 48,000, taking cumulative procedures above 400,000. Management also highlighted XiR for ambulatory surgery centers and cost-sensitive international markets. Samath said that about 130 XiR systems were installed, including roughly 50 in the United States. Rosa stated Intuitive plans to extend the useful life of selected EndoWrist instruments in the first half of 2027 to lower customer costs in high-volume benign procedures. Samath said that the impact will build progressively through 2027 rather than arrive as a step change. Pricing details are expected on the next earnings call. Bank of America and Wolfe Research analysts pressed management on the potential effect on instruments and accessories revenue per procedure. Samath refrained from quantifying it but emphasized balancing growth and profitability. Connally raised the 2026 non-GAAP gross-margin outlook to 68% to 69% from 67.5% to 68.5%, while retaining an estimated 100-basis-point tariff impact. Second-quarter non-GAAP gross margin was 70%, or 68.7% excluding a $36 million pretax tariff-refund benefit. Non-GAAP operating expenses increased 13%. Management’s tone combined confidence in platform demand with caution around U.S. patient behavior, China pricing pressure and uneven international capital conditions. The company is prioritizing R&D, software updates, new clinical applications and lower-cost access points while preserving investment in manufacturing and global commercial infrastructure. ISRG carries a Zacks Rank #2 (Buy). Its Growth Score of B, Momentum Score of A and VGM Score of B are favorable, while the Value Score of D points to weaker value characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The combination supports growth and momentum-oriented interest. The Zacks Rank can change as earnings estimates are revised after the reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Intuitive Surgical (ISRG) shares closed lower on July 22 after Johnson & Johnson (JNJ) finally entered its market. The FDA granted De Novo authorization for J&J’s Ottava surgical robot, clearing it for general surgery procedures in the upper abdomen. It is J&J’s first move into soft-tissue surgery, which covers the most common operations performed in the U.S. Ottava’s selling point is its design, with the robotic arms built into the operating table instead of separate carts. The design cuts the floor space needed by up to half. The market read this as bad news for Intuitive, but I believe the case against that is strong. J.P. Morgan analyst Robbie Marcus said his checks with doctors still point to Intuitive as the clear favorite. The analyst cited surgeon relationships and da Vinci’s place in hospital workflows as the reasons for backing ISRG. Dear SpaceX Stock Fans, Mark Your Calendars for July 23 The Biggest Risk to SpaceX Stock Comes After Earnings. Here Are The Numbers You Should Keep An Eye On. Walmart Stock’s Extended Downturn Could Trigger a Possible Comeback Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The deeper issue for J&J is what Intuitive actually sells. Intuitive's recurring revenue made up 85% of the quarter’s total. The business is tied to procedures already running on machines already installed. Winning that away takes more than a hospital buying one Ottava. It takes surgeons switching, and most surgeons performing robotic surgery today trained on da Vinci. Changing platforms means retraining the whole operating room team. This is not theoretical. Medtronic’s (MDT) Hugo cleared the FDA last December for urology and has barely moved the needle since. Ottava is a stronger product from a bigger company than Hugo, but it starts from the same place, selling to hospitals that already own the alternative and surgeons who already know how to use it. A clearance gives J&J the right to compete, but it does not guarantee that the surgeons will buy in. Intuitive Surgical operates as a medical technology company focused on robotics-assisted surgery. The company’s da Vinci Surgical platform is used in a wide range of minimally invasive procedures, while its Ion system helps physicians perform minimally invasive lung biopsies. In addition to its robotic systems, ISRG supplies surgical instruments, training, software, and ongoing technical support to healthcare providers. Over the past year, Intuitive Surgical shares have fallen roughly 33%, dropping from above $590 to around $330. While the broader medical device sector also faced pressure, it performed much better than ISRG stock. During the same period, the iShares US Medical Devices ETF (IHI) declined about 19%. The company’s underperformance was driven by several factors, including GLP-1/ACA demand headwinds and decelerating procedure growth guidance. Intuitive’s valuation looks reasonable by most measures. The forward GAAP price-to-earnings (P/E) of 38.63x sits 44% below the company’s 5-year average of 69.35x. The forward price-to-sales (P/S) ratio of 10.53x is also 38% below its 5-year average of 17.02x. Both point to a stock trading at a considerable discount to its historical norms. EPS growth trajectory is steady but modest. Earnings are expected to grow 21% in 2026 before settling into a range of 11% to 13% through 2029. The capital structure is almost flawless. Intuitive holds $8.63 billion in cash against no debt at all. This gives the company room to keep funding new platforms while competitors spend to catch up. The market has already marked ISRG stock down for the competition that is now arriving. What it has not priced is the chance that the switching costs hold. From that point of view, the discounted stock could become an attractive entry point for a business that is not actually losing ground. On July 16, the company released its second-quarter fiscal 2026 earnings report, posting revenue of $2.89 billion. Recurring revenue accounted for $2.47 billion, representing 85% of total sales. Intuitive Surgical reported a non-GAAP gross margin of 70%, excluding a one-time $36 million tariff refund benefit. Non-GAAP net income reached $1 billion, or $2.80 per share. At the end of the quarter, the company had $8.6 billion in cash and investments. Looking ahead, management reaffirmed its full-year 2026 procedure growth outlook. It expects da Vinci procedure growth to range from 13.5% to 15.5%, with results likely to be close to the midpoint of that range. However, Intuitive Surgical revised its non-GAAP gross profit margin forecast to 68% to 69% of revenue. It also warned that higher semiconductor memory and freight costs will continue to put pressure on margins. Following the company’s earnings report, Bernstein cut its price target on ISRG stock from $750 to $685 while reaffirming an “Outperform” rating on July 17. The firm highlighted that ISRG delivered another strong quarter, reporting revenue ahead of market expectations. However, the firm expects investor sentiment to remain cautious as concerns about the pace of U.S. procedure growth could create pressure on the shares, especially heading into the third quarter. According to 31 Wall Street analysts covering ISRG stock, it has a consensus “Moderate Buy” rating. Their estimates suggest that ISRG has an average price target of $503.64, offering around 52% upside from current levels. In addition to this, the highest price target of $685 reflects an impressive 106% upside from the current share price. On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Intuitive Surgical (NASDAQ: ISRG) delivered its second-quarter earnings report last week. It crushed the average analyst bottom-line estimate for profitability and edged past the consensus for revenue. Why, then, was the stock punished by a concentrated investor sell-off that it hasn't yet recovered from? Here's a look at the quarter and -- more importantly -- whether the company's weakened share price makes it an irresistible bargain. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Intuitive -- a next-generation medical device company that specializes in surgical robots -- booked total revenue of $2.89 billion, up almost 19% year over year, in the quarter. That was on the back of a roughly 16% rise in the number of procedures performed by the company's robots. Currently, Intuitive offers two product lines, da Vinci (for general surgical use) and Ion (a specialized system for diagnosing lung issues). Breaking that down further, da Vinci procedures worldwide rose by around 15%, and those for Ion advanced at a 36% clip. Those figures from U.S. procedures were 12% for da Vinci -- down from 14% in the first quarter -- and 21% for Ion. The number of da Vinci systems in place with clients at the end of the quarter was 11,710, 12% higher than at the same time in 2025. The installed base of Ion rose by 21% to 1,096. Turning to profitability, net income not under generally accepted accounting principles (GAAP) landed at just over $1 billion, or $2.80 per share. That represented a nearly 26% improvement over the year-ago profit. On average, prognosticators tracking Intuitive stock were expecting $2.82 billion in revenue and merely $2.51 per share in non-GAAP (adjusted) net income. Intuitive charges its clients for the single- and limited-use instruments needed for each Ion or da Vinci procedure; purchasing or leasing the system is only the initial expense for those customers. On top of that, the company earns its keep from services such as training and maintenance; these are highly sophisticated robotic surgical tools, after all. Intuitive makes most of its revenue from the per-procedure charges. It breaks its top line down into three streams, with these fees comprising the instruments and accessories category. This brought in more than $1.73 billion in the quarter, for growth of 18%. As for the other two, systems is the company's revenue bucket for those initial customer buys/leases. This also grew handsomely, rising by 19% to $685 million. Finally, services (again, maintenance, training, etc.) increased by 21% to over $472 million. In other words, there was growth all over the place in Intuitive's fundamentals. So why the sell-off? Most likely, the culprit was the decline in growth of da Vinci procedures in the U.S., its most important market. Also, management maintained its guidance for da Vinci worldwide procedure growth of around 13.5% to 15.5% for the full year, with adjusted gross profit margin hitting 68% to 69%. So da Vinci procedures experienced a sequential slowdown in the company's most critical market, and for 2026, international growth might land a bit below the second-quarter result. On top of that, in Intuitive's conference call disseminating the quarter's results, management indicated that closer scrutiny of high expenses in China's healthcare system could put some pressure on its business in that sizable market. To me, this is a classic case of high expectations meeting closer-to-the-ground reality. Even the most innovative companies can't keep high growth rates forever. Yet I don't feel that the da Vinci procedure dynamic represents a sufficient (current and potential) slowdown to warrant selling out of Intuitive. Which, let's bear in mind, is still a leader in robotic surgery after all these years -- da Vinci was introduced over 25 years ago. Intuitive still has a mighty market share approaching 80% in soft-tissue procedures, even though monster rivals like device king Medtronic have spent, and are continuing to spend, billions of dollars developing rival systems. With its relatively long presence in this niche yet high-potential healthcare segment, Intuitive is well established with practitioners and hospital operators. It's also, thanks to its business model, locked in as a robo-surgery provider with many of them. It isn't easy or quick to switch to a new system, nor are there many choices on the market. Meanwhile, this planet's population -- and that of the U.S. -- is aging proportionally, meaning it'll require more healthcare. And, it follows, more surgical procedures that Intuitive's machines can assist with. Given all that, I wouldn't be worried about slight dips in Intuitive's growth. I also wouldn't fret about the company's seemingly high valuations, given its potential to at least sustain its double-digit growth cadence. For me, this stock is clearly and compellingly a buy candidate. Before you buy stock in Intuitive Surgical, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intuitive Surgical wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $364,562!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,247,668!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 21, 2026. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical and Medtronic. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy. Is Intuitive Surgical a Buy After Its Latest Earnings Report? was originally published by The Motley Fool

Interested in Intuitive Surgical, Inc.? Here are five stocks we like better. Intuitive Surgical reported strong second-quarter results, with revenue up 19% and non-GAAP earnings per share up 28%. Investors focused on the company’s unchanged da Vinci procedure-growth guidance, which implies slower growth than in recent years. The stock’s premium valuation and technical breakdown could keep pressure on shares, even as analysts remain broadly bullish. Intuitive Surgical (NASDAQ: ISRG) was part of the artificial intelligence (AI)/robotics trade before it became mainstream. The company manufactures the da Vinci robotic surgical system, which has an installed base of over 11,700 systems as of June 30, 2026. → Sandisk: What the Chart Is Trying to Tell Us That was one highlight from the company’s Q2 2026 earnings report. In the report, released after the market closed on July 16, the company delivered impressive numbers. → MarketBeat Week in Review – 07/13- 07/17 Second quarter 2026 revenue of $2.89 billion increased 19%, compared with $2.44 billion in the second quarter of 2025. Second quarter 2026 non-GAAP net income attributable to Intuitive Surgical, Inc. was $1 billion, or $2.80 per diluted share, compared with $800 million, or $2.19 per diluted share, in the second quarter of 2025. → Has Broadcom Become Too Expensive for Its AI Story? The Company repurchased 0.9 million shares of its common stock for $380 million in the second quarter of 2026. Despite the strong report, ISRG fell approximately 10% in after-hours trading. The headline reason is that the company didn’t raise its full-year guidance for da Vinci procedures. The company’s prior guidance was 13.5% to 15.5%, which would mark its slowest growth in several years. To be fair, Intuitive Surgical is still posting impressive growth numbers for its da Vinci system. For the quarter just ended: Worldwide da Vinci procedures grew approximately 15% year over year (YOY). The company placed 468 da Vinci surgical systems, compared with 395 in the second quarter of 2025. The second quarter 2026 da Vinci surgical system placements included 246 da Vinci 5 systems, compared with 180 in the second quarter of 2025. The company grew its da Vinci surgical system installed base to 11,710 systems as of June 30, 2026, an increase of 12% YOY. But it’s hard to overstate how important the da Vinci is to Intuitive Surgical’s growth. The system is a one-time purchase. But it spawns a host of services, instruments, and accessories that drive revenue and earnings. To be fair, ISRG has been dropping since July 14. That’s when HCA Healthcare (NYSE: HCA) trimmed its full-year outlook, which implied fewer surgical procedures and sent all medical device stocks lower. That's not necessarily what Intuitive Surgical is reporting. It’s just reporting slower growth. Yet growth is still growth. At the close of trading on July 16, Intuitive Surgical traded for around 46x forward earnings. That’s a premium to the S&P 500, but for investors new to ISRG, it’s a discount to prior price-to-earnings (P/E) ratios, which at one point in the last few years were around 60x. Nevertheless, ISRG is expensive at a time when investors are becoming more sensitive to the value they’re getting for the price. Some investors will point to companies like Medtronic (NYSE: MDT) and Boston Scientific (NYSE: BSX), which are also in the medical device sector and trade at far lower multiples than Intuitive Surgical. However, those companies have a broader product portfolio. Whereas Intuitive Surgical is laser-focused on the DaVinci system. The point is it’s not an apples-to-apples comparison. However, even as a standalone stock, ISRG has always commanded a premium price. The weekly chart shows that ISRG is now trading below its 200-week simple moving average (411.89) for the first time in years. This level served as reliable support throughout the 2023-2025 uptrend. Prior to the earnings report, shares had fallen roughly 32% from last year's peak near $590. The post-earnings drop to around $359 would represent a decisive break below that long-term trendline. The weekly RSI sits at 35.97, its lowest reading since the 2022 bear market, though not yet in oversold territory below 30. That leaves room for further downside before technical buyers would typically step in. The trend structure—lower highs since early 2025—suggests momentum remains firmly with sellers for now. A reclaim of the 200-week average would be the first signal that the technical picture is stabilizing. At a time when high-speed algorithms are programmed to make buy/sell decisions based on raw data, this could be an overcorrection. It’s possible that the stock will reverse direction in the coming days. Analysts remain bullish on ISRG with a consensus price target of $530.92, representing nearly 50% updside potential. That means if the stock continues to drop, as analysts maintain bullish targets, the opportunity for patient investors becomes even greater. The company may not have an impenetrable moat, but it’s still well fortified. For investors who have had ISRG on a watchlist, the time to buy may be coming. The article "Why Intuitive Surgical’s Strong Quarter Still Spooked Investors" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Intuitive Surgical, Inc. ISRG reported second-quarter 2026 adjusted earnings per share (EPS) of $2.80, which beat the Zacks Consensus Estimate of $2.48 by 12.9%. The bottom line increased 27.9% from $2.19 in the year-ago quarter. GAAP EPS was $2.28 versus $1.92 a year ago. Revenues rose 18.5% year over year to $2.89 billion and surpassed the consensus estimate of $2.81 billion by 3.1%. Growth reflected higher procedure volumes, system leasing revenues and expansion of the installed base. Worldwide da Vinci and Ion procedures increased about 16%. Recurring revenues reached $2.47 billion and represented about 85% of total quarterly revenues, highlighting the importance of procedure-driven instruments, accessories, leasing and service sales. Despite this robust quarterly performance, the stock was down 10.8% during after-hours trading on July 16, likely due to weaker sequential procedure growth. Intuitive Surgical, Inc. price-consensus-eps-surprise-chart | Intuitive Surgical, Inc. Quote ISRG’s Instruments Revenues Rise 18% Instruments and accessories revenues increased 17.7% year over year to $1.73 billion. Growth was driven by higher da Vinci and Ion procedure volumes, along with a favorable mix of da Vinci 5 and single-port procedures. Worldwide da Vinci procedure volume increased roughly 15% year over year, while Ion procedures climbed approximately 36%. U.S. da Vinci procedures rose 12%, led by general surgery, while procedures outside the United States advanced 20%. Management noted some moderation in deferrable U.S. procedures, partly reflecting patient coverage and premium dynamics. Bariatric procedures also declined in the high-single digits amid increased use of GLP-1 obesity drugs. International growth remained strong, particularly in India, Italy, Taiwan and the United Kingdom. Da Vinci instruments and accessories revenue per procedure was approximately $1,830, up from $1,800 a year earlier. Higher adoption of Force Feedback instruments and newer platforms supported the metric, while customer ordering patterns, increased cholecystectomy procedures and lower bariatric volumes limited growth. ISRG System Placements Gain on da Vinci 5 Systems revenues totaled $685 million, up 19.2% from the prior-year quarter’s level. Intuitive Surgical placed 468 da Vinci systems, an 18.5% increase from 395 systems a year ago. The total included 246 da Vinci 5 systems compared with 180 in the second quarter of 2025. The company also placed 55 Ion systems compared with 54 a year earlier. Da Vinci placements included 254 systems under operating lease arrangements, of which 131 were usage-based leases. Leasing represented 54% of total da Vinci placements and continued to offer customers greater capital flexibility. The global da Vinci installed base increased 11.7% year over year to 11,710 systems. The Ion installed base grew 21.1% to 1,096 systems. Services Service revenues improved 20.8% to $472.4 million, supported by the larger installed base and higher service revenue per da Vinci system. Adjusted gross profit rose to $2.02 billion from $1.66 billion a year earlier. The adjusted gross margin expanded to 70% from 67.9%. Excluding a $36 million pretax benefit related to refunds of previously paid tariffs, the margin would have been 68.7%. Adjusted operating income increased 28.7% to $1.22 billion. The adjusted operating margin was approximately 42.1% compared with 38.8% in the prior-year quarter. Adjusted operating expenses rose 13%, reflecting higher headcount, variable compensation and facility costs as Intuitive Surgical continued investing in research and development. Intuitive Surgical ended the quarter with $8.63 billion in cash, cash equivalents and investments, up $650 million sequentially. Cash generation from operations more than offset common-stock repurchases during the period. Total assets increased to $20.88 billion from $20.11 billion in the first quarter of 2026. The company repurchased 0.9 million shares for $379 million at an average price of $439 per share. Capital expenditures totaled $112 million, while free cash flow for the first six months of 2026 increased 71% year over year to $1.8 billion. Intuitive Surgical maintained its 2026 worldwide da Vinci procedure growth forecast of 13.5% to 15.5% and expects results to be closer to the midpoint. The outlook incorporates uncertainty surrounding U.S. patient behavior, China tender activity, competition and capital constraints in parts of Europe. The company raised its adjusted gross margin outlook to 68-69% from 67.5-68.5%. The range includes an estimated tariff impact equal to 1% of revenues. Adjusted operating expense growth is now projected to be 11-13% compared with the earlier expectation of 11-14%. ISRG ended the second quarter on a strong note, with earnings and revenues beating the Zacks Consensus Estimate. Shares of Intuitive Surgical have lost 29% so far this year compared with the industry’s 14.2% decline. The S&P 500 Index has increased 10.9% during the same time frame. Image Source: Zacks Investment Research Intuitive Surgical's shares fell sharply after earnings release as investors likely focused on signs of moderating procedure growth rather than the headline beat. U.S. da Vinci procedure growth slowed to 12% in the second quarter from 14% in the first quarter, with management acknowledging that growth in elective procedures weakened amid uncertainty surrounding changes to Affordable Care Act (ACA) premium subsidies. The company also highlighted that bariatric procedures continued to decline at a high-single-digit rate due to increasing adoption of GLP-1 weight-loss drugs. While management maintained its full-year procedure growth outlook, it refrained from raising guidance despite a strong first half and cautioned about tougher comparisons in the second half. Investors were also unsettled by the planned 2027 extension of instrument life, which could pressure recurring Instruments & Accessories revenues, even though management believes it will support broader adoption over time. Nevertheless, Intuitive Surgical's long-term outlook remains compelling. Strong adoption of da Vinci 5, accelerating SP and Ion procedure growth, expanding ambulatory surgery center penetration through XiR, and continued software, AI and product innovations position the company for sustained growth. International opportunities, particularly in Japan and India, together with new clinical applications in cardiac, lung and gastrointestinal procedures, provide additional avenues for expansion beyond 2026. Zacks Rank & Key Picks Intuitive Surgical currently carries a Zacks Rank #2 (Buy). Some better-ranked stocks from the broader medical space are Alcon ALC, West Pharmaceutical Services WST and Cardinal Health CAH, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Alcon reported first-quarter 2026 earnings per share of 85 cents, which beat the Zacks Consensus Estimate by 6.3%. Revenues of $2.69 billion surpassed the Zacks Consensus Estimate by 0.3%. Alcon has an estimated long-term earnings growth rate of 11.5%. ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 3.66%. West Pharma reported first-quarter 2026 adjusted EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $845 million surpassed the Zacks Consensus Estimate by 8.6%. West Pharma has an estimated long-term earnings growth rate of 14.4%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%. Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%. Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Alcon (ALC) : Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SUNNYVALE, Calif., July 16, 2026 (GLOBE NEWSWIRE) -- Intuitive (the “Company”) (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended June 30, 2026. Q2 Highlights Worldwide procedures (da Vinci and Ion combined) grew approximately 16% compared with the second quarter of 2025. Da Vinci procedures grew approximately 15%, and Ion procedures grew approximately 36%. The Company placed 468 da Vinci surgical systems, compared with 395 in the second quarter of 2025. The second quarter 2026 da Vinci surgical system placements included 246 da Vinci 5 systems, compared with 180 in the second quarter of 2025. The Company placed 55 Ion endoluminal systems, compared with 54 in the second quarter of 2025. The Company grew its da Vinci surgical system installed base to 11,710 systems as of June 30, 2026, an increase of 12% compared with 10,488 as of June 30, 2025. The Company grew its Ion endoluminal system installed base to 1,096 systems as of June 30, 2026, an increase of 21% compared with 905 as of June 30, 2025. Second quarter 2026 revenue of $2.89 billion increased 19%, compared with $2.44 billion in the second quarter of 2025. Second quarter 2026 GAAP net income attributable to Intuitive Surgical, Inc. was $818 million, or $2.29 per diluted share, compared with $658 million, or $1.81 per diluted share, in the second quarter of 2025. Second quarter 2026 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $1.00 billion, or $2.80 per diluted share, compared with $0.80 billion, or $2.19 per diluted share, in the second quarter of 2025. Second quarter 2026 GAAP and non-GAAP* net income attributable to Intuitive Surgical, Inc. included a benefit of $28 million, net of tax, or $0.08 per diluted share, related to refunds for tariffs paid in prior periods under the International Emergency Economic Powers Act (“IEEPA”). The Company repurchased 0.9 million shares of its common stock for $0.38 billion in the second quarter of 2026. Q2 Financial Summary Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attributable to Intuitive Surgical, Inc. are reported on a GAAP and non-GAAP* basis. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release. Second quarter 2026 revenue was $2.89 billion, an increase of 19% compared with $2.44 billion in the second quarter of 2025. The higher second quarter revenue was driven by growth in procedure volume, higher da Vinci system leasing revenue, and an increase in the installed base of da Vinci and Ion systems. Second quarter 2026 instruments and accessories revenue increased by 18% to $1.73 billion, compared with $1.47 billion in the second quarter of 2025. The increase in instruments and accessories revenue was primarily driven by approximately 15% growth in da Vinci procedure volume and approximately 36% growth in Ion procedure volume. Second quarter 2026 systems revenue was $685 million, compared with $575 million in the second quarter of 2025. The higher systems revenue reflected a higher lease installed base, higher da Vinci system average selling prices, and increased da Vinci system placements compared with the second quarter of 2025. The Company placed 468 da Vinci surgical systems, of which 246 were da Vinci 5 systems, in the second quarter of 2026, compared with 395 systems, of which 180 were da Vinci 5 systems, in the second quarter of 2025. The second quarter 2026 da Vinci surgical system placements included 254 systems placed under operating lease arrangements, of which 131 systems were placed under usage-based operating lease arrangements, compared with 193 systems placed under operating lease arrangements, of which 124 systems were placed under usage-based operating lease arrangements in the second quarter of 2025. Second quarter 2026 GAAP income from operations increased to $972 million, compared with $743 million in the second quarter of 2025. Second quarter 2026 GAAP income from operations included share-based compensation expense of $213 million, compared with $200 million in the second quarter of 2025. Second quarter 2026 non-GAAP* income from operations increased to $1.22 billion, compared with $0.95 billion in the second quarter of 2025. Second quarter 2026 GAAP net income attributable to Intuitive Surgical, Inc. was $818 million, or $2.29 per diluted share, compared with $658 million, or $1.81 per diluted share, in the second quarter of 2025. Second quarter 2026 GAAP net income attributable to Intuitive Surgical, Inc. included excess tax benefits of $17 million, or $0.05 per diluted share, compared with $33 million, or $0.09 per diluted share, in the second quarter of 2025. Additionally, second quarter 2026 GAAP net income included a benefit of $28 million, net of tax, or $0.08 per diluted share, related to refunds for tariffs paid in prior periods under IEEPA. Second quarter 2026 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $1.00 billion, or $2.80 per diluted share, compared with $0.80 billion, or $2.19 per diluted share, in the second quarter of 2025. Second quarter 2026 non-GAAP* net income included a benefit of $28 million, net of tax, or $0.08 per diluted share, related to refunds for tariffs paid in prior periods under IEEPA. The Company ended the second quarter of 2026 with $8.63 billion in cash, cash equivalents, and investments, an increase of $0.65 billion during the quarter, primarily driven by cash generated from operations, partially offset by cash used for repurchases of common stock. “We are pleased with company performance this quarter, which reflects the strength of our portfolio – from da Vinci and Ion to our growing digital solutions,” said Dave Rosa, Intuitive CEO. “Our commitment to customers around the world – our north star – remains the same: helping them deliver better patient outcomes, better patient and care team experiences, lower costs, and broader access to minimally invasive care.” 2026 Financial Outlook The Company expects the following results for the full year of 2026: Worldwide da Vinci procedure growth of approximately 13.5% to 15.5% in 2026. The Company expects to be closer to the midpoint of this range. Non-GAAP* gross profit margin to be within a range of 68.0% to 69.0% of revenue in 2026. This range includes an estimated impact from tariffs of 1.0% of revenue. Non-GAAP* operating expense growth of 11% to 13% in 2026. The range for expected non-GAAP* gross profit margin reflects the Company’s estimates of the adverse impact from tariffs that are currently in effect as of the time of this press release and assumes such tariffs remain in place through the end of the year. Should additional tariffs beyond our expectations be implemented, the additional impact on the Company’s financial results in 2026, including the change in expected non-GAAP* gross profit margin, could be material. The ultimate effect of tariffs will depend on various factors, including the proportion of components procured and finished goods manufactured outside of the United States and the amount, scope, nature, and timing of the tariffs. The 2026 financial outlook provided above includes forward-looking, non-GAAP financial measures, which management uses in measuring performance. We do not provide a reconciliation of non-GAAP outlook measures to corresponding GAAP measures on a forward-looking basis, because we are unable to predict with reasonable certainty the exact timing and ultimate outcome of certain items, including but not limited to legal proceedings, without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP. For additional information regarding the nature of these items, refer to the reconciliations of historical GAAP to non-GAAP measures included elsewhere in this release. Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at https://isrg.gcs-web.com/. Webcast and Conference Call Information Intuitive will hold a teleconference at 1:30 p.m. PDT today to discuss the second quarter 2026 financial results. The call will be webcast live and can be accessed on Intuitive’s website at www.intuitive.com. For those individuals planning to participate on the call, registration can be completed online at https://edge.media-server.com/mmc/p/dekvotz4/ to receive dial-in details and an individual pin. The webcast replay of the call will be made available on our website at www.intuitive.com within 24 hours after the end of the live teleconference and will be accessible for at least 30 days. About Intuitive Intuitive (Nasdaq: ISRG), headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic-assisted surgery. Our technologies include the da Vinci surgical systems and the Ion endoluminal system. By uniting advanced systems, progressive learning, and value-enhancing services, we help physicians and their teams optimize care delivery to support the best outcomes possible. At Intuitive, we envision a future of care that is less invasive and profoundly better, where diseases are identified early and treated quickly, so patients can get back to what matters most. Product and brand names/logos are trademarks or registered trademarks of Intuitive or their respective owner. See www.intuitive.com/trademarks. For more information, please visit the Company’s website at www.intuitive.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements relate to expectations concerning matters that are not historical facts. Statements using words such as “estimates,” “projects,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “may,” “will,” “could,” “should,” “commit,” “would,” “seek,” “potential,” “targeted,” and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements are necessarily estimates reflecting the judgment of the Company’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements include, but are not limited to the following: statements related to future results of operations, including expected procedure growth in 2026, expected non-GAAP gross profit margins in 2026, and expected non-GAAP operating expense growth in 2026; future financial position; the goals the Company shares with its customers, including improving patient outcomes; the estimated impact from tariffs, including the potential for material adverse impact on the Company’s financial results if additional tariffs beyond the Company’s current expectations are implemented; expectations regarding the continuation of share-based compensation expense as a significant recurring expense; the Company’s strategic vision for the future of minimally invasive care; and the Company’s inability to predict with reasonable certainty the exact timing and ultimate outcome of certain items, including legal proceedings. These forward-looking statements should be considered in light of various important factors, including, but not limited to, the following: the overall macroeconomic environment, which may impact customer spending and the Company’s costs, including tariffs, the levels of inflation, and interest rates; the conflict in Ukraine; conflicts in the Middle East, including Israel and Iran; disruption to the Company’s supply chain, including increased difficulties in obtaining a sufficient supply of materials; curtailed or delayed capital spending by hospitals; the impact of global and regional economic and credit market conditions on healthcare spending; delays in obtaining new product approvals, clearances, or certifications from the United States (“U.S.”) Food and Drug Administration (“FDA”), comparable regulatory authorities, or notified bodies; the risk of the Company’s inability to comply with complex FDA and other regulations, which may result in significant enforcement actions; regulatory approvals, clearances, certifications, and restrictions or any dispute that may occur with any regulatory body; healthcare reform legislation in the U.S. and its impact on hospital spending, reimbursement, and fees levied on certain medical device revenues; changes in hospital admissions and actions by payers to limit or manage surgical procedures; the timing and success of product development and customer acceptance of developed products; the results of any collaborations, in-licensing arrangements, joint ventures, strategic alliances, or partnerships, including the joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd.; the Company’s completion of and ability to successfully integrate acquisitions, including the recently completed acquisition of the da Vinci and Ion distribution businesses in Italy, Spain, and Portugal and the transition from a distributor to a direct sales model in those markets; intellectual property positions and litigation; competition from companies offering alternative surgical approaches or robotic-assisted surgical systems, including domestic competitors in certain geographic markets such as China; risks associated with the Company’s operations and any expansion outside of the U.S.; unanticipated manufacturing disruptions or the inability to meet demand for products; the Company’s reliance on sole- and single-sourced suppliers; the results of legal proceedings to which the Company is or may become a party; adverse publicity regarding the Company and the safety of the Company’s products and adequacy of training; the impact of changes to tax legislation, guidance, and interpretations; changes in tariffs, trade barriers, and regulatory requirements (including changes to tariffs imposed by the U.S. on imports from various countries, including Mexico, where the Company currently manufactures a significant majority of its instruments and accessories, Germany, where the Company currently manufactures a majority of its endoscopes, and China, where the Company currently imports certain materials); hospital staffing constraints and labor availability; cybersecurity risks, including risks to the Company’s supply chain; and other risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and which are based on current expectations and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those risk factors identified under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company’s other filings with the Securities and Exchange Commission (“SEC”). The Company’s actual results may differ materially and adversely from those expressed in any forward-looking statement, and the Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law. *About Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive, and non-GAAP net income per diluted share attributable to Intuitive (“EPS”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding items such as amortization of intangible assets, share-based compensation (“SBC”) and long-term incentive plan (“LTIP”) expenses, acquisition-related items, gains on the sale of businesses and assets, and other special items. LTIP expense relates to phantom share awards granted in China by the Company’s Intuitive-Fosun joint venture to its employees that vest over four years and can remain outstanding for seven to ten years. These awards are valued based on certain key performance metrics. Accordingly, they are subject to significant volatility based on the performance of these metrics and are not tied to performance of the Company’s business within the period. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to its historical performance. The Company believes these non-GAAP financial measures are useful to investors, because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by institutional investors and the analyst community to help them analyze the performance of the Company’s business. Non-GAAP gross profit. The Company defines non-GAAP gross profit as gross profit, excluding SBC and LTIP expenses, amortization of intangible assets, and acquisition-related items. Non-GAAP income from operations. The Company defines non-GAAP income from operations as income from operations, excluding SBC and LTIP expenses, amortization of intangible assets, a facilities asset abandonment charge, litigation charges, acquisition-related items, and gains on the sale of businesses and assets. Non-GAAP net income attributable to Intuitive and EPS. The Company defines non-GAAP net income as net income attributable to Intuitive, excluding SBC and LTIP expenses, amortization of intangible assets, a facilities asset abandonment charge, litigation charges, acquisition-related items, gains on the sale of businesses and assets, gains or losses on strategic investments, tax adjustments, including the excess tax benefits associated with SBC arrangements and the net tax effects related to intra-entity transfers of non-inventory assets, and adjustments attributable to noncontrolling interest in joint venture, net of the related tax effects. The Company excludes the excess tax benefits associated with SBC arrangements as well as the tax effects associated with non-cash amortization of deferred tax assets related to intra-entity non-inventory transfers, because the Company does not believe these items correlate with the ongoing results of its core operations. The tax effects of the non-GAAP items are determined by applying a calculated non-GAAP effective tax rate, which is commonly referred to as the with-and-without method. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Company’s operating results. The Company’s calculated non-GAAP effective tax rate is generally higher than its GAAP effective tax rate. The Company defines non-GAAP EPS as non-GAAP net income attributable to Intuitive divided by diluted shares outstanding, which are calculated as GAAP weighted-average outstanding shares plus dilutive potential shares outstanding during the period. There are a number of limitations related to the use of non-GAAP measures versus measures calculated in accordance with GAAP. Non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive, and non-GAAP EPS exclude items such as SBC and LTIP expenses, amortization of intangible assets, excess tax benefits associated with SBC arrangements, and non-cash amortization of deferred tax assets related to intra-entity transfers of non-inventory assets, which are primarily recurring items. SBC expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business. In addition, the components of the costs that the Company excludes in its calculation of non-GAAP net income attributable to Intuitive and non-GAAP EPS may differ from the components that its peer companies exclude when they report their results of operations. Management addresses these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income attributable to Intuitive and non-GAAP EPS and evaluating non-GAAP net income attributable to Intuitive and non-GAAP EPS together with net income attributable to Intuitive and net income per share attributable to Intuitive calculated in accordance with GAAP. Contact: Investor Relations(408) 523-2161