$ISRG

INTUITIVE SURGICAL INC

CIK:0001035267|SEC Filings

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 2,892.3	$ 2,440.0	$ 5,663.1	$ 4,693.4
Cost of revenue:
Total cost of revenue	931.9	822.1	1,872.2	1,617.8
Gross profit	1,960.4	1,617.9	3,790.9	3,075.6
Operating expenses:
Selling, general, and administrative	617.9	561.2	1,231.2	1,124.6
Research and development	370.6	313.3	732.5	629.5
Total operating expenses	988.5	874.5	1,963.7	1,754.1
Income from operations	971.9	743.4	1,827.2	1,321.5
Interest and other income, net	82.7	88.7	167.8	179.1
Income before taxes	1,054.6	832.1	1,995.0	1,500.6
Income tax expense	231.4	167.9	345.8	132.7
Net income	823.2	664.2	1,649.2	1,367.9
Less: net income attributable to noncontrolling interest in joint venture	5.1	5.8	9.6	11.1
Net income attributable to Intuitive Surgical, Inc.	$ 818.1	$ 658.4	$ 1,639.6	$ 1,356.8
Net income per share attributable to Intuitive Surgical, Inc.:
Basic (in dollars per share)	$ 2.31	$ 1.84	$ 4.63	$ 3.79
Diluted (in dollars per share)	$ 2.29	$ 1.81	$ 4.57	$ 3.72
Shares used in computing net income per share attributable to Intuitive Surgical, Inc.:
Basic (in shares)	354.1	358.5	354.5	358.0
Diluted (in shares)	357.3	364.1	358.5	364.4
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on hedge instruments	$ 3.1	$ (15.3)	$ 13.0	$ (25.7)
Unrealized gains (losses) on available-for-sale securities	(18.7)	7.4	(42.3)	36.5
Foreign currency translation gains (losses)	6.2	38.1	(5.3)	43.6
Employee benefit plan adjustments	0.2	0.2	(0.9)	0.3
Other comprehensive income (loss)	(9.2)	30.4	(35.5)	54.7
Total comprehensive income	814.0	694.6	1,613.7	1,422.6
Less: comprehensive income attributable to noncontrolling interest	6.6	6.1	11.6	11.5
Total comprehensive income attributable to Intuitive Surgical, Inc.	807.4	688.5	1,602.1	1,411.1
Corporate Joint Venture
Operating expenses:
Less: net income attributable to noncontrolling interest in joint venture	5.1	5.8	9.6	11.1
Product
Revenue:
Total revenue	2,419.9	2,048.8	4,757.0	3,939.2
Cost of revenue:
Total cost of revenue	777.0	686.2	1,557.0	1,356.9
Service
Revenue:
Total revenue	472.4	391.2	906.1	754.2
Cost of revenue:
Total cost of revenue	$ 154.9	$ 135.9	$ 315.2	$ 260.9

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income	$ 1,649.2	$ 1,367.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and loss on disposal of property, plant, and equipment	371.2	289.6
Amortization of intangible and other assets	59.9	24.4
Accretion of discounts, amortization of premiums, and (gains) losses on investments, net	(19.0)	(27.4)
Gain on sale of business and assets	7.9	0.0
Deferred income taxes	370.3	(29.4)
Share-based compensation expense	419.4	381.4
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(49.8)	(44.1)
Inventory	(514.6)	(494.2)
Prepaids and other assets	(179.0)	(141.8)
Accounts payable	21.4	72.4
Accrued compensation and employee benefits	(229.7)	(114.9)
Deferred revenue	44.7	48.8
Other liabilities	36.8	(35.7)
Net cash provided by operating activities	1,972.9	1,297.0
Investing activities:
Purchase of investments	(1,349.1)	(691.8)
Proceeds from sales of investments	0.1	249.1
Proceeds from maturities of investments	1,106.0	1,190.0
Proceeds from sale of assets	46.0	0.0
Purchase of property, plant, and equipment	(215.9)	(271.9)
Acquisition of business, net of cash, and intellectual property and other investing activities	(528.2)	(1.2)
Net cash provided by (used in) investing activities	(941.1)	474.2
Financing activities:
Proceeds from issuance of common stock relating to employee stock plans	187.4	183.7
Taxes paid related to net share settlement of equity awards	(365.4)	(386.3)
Repurchase of common stock	(1,443.5)	(181.0)
Other financing activities	(20.1)	0.0
Net cash used in financing activities	(1,641.6)	(383.6)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	8.1	(3.5)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(601.7)	1,384.1
Cash, cash equivalents, and restricted cash, beginning of period	3,407.4	2,062.4
Cash, cash equivalents, and restricted cash, end of period	2,805.7	3,446.5
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Acquisition of property, plant, and equipment in accounts payable and accrued liabilities	68.8	74.8
Unsettled common stock repurchases in accrued liabilities	$ 63.5	$ 0.0

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 2,760.4	$ 3,368.0
Short-term investments	2,455.8	2,566.9
Accounts receivable, net	1,673.2	1,527.3
Inventory	2,028.7	1,840.0
Prepaids and other current assets	624.6	477.3
Total current assets	9,542.7	9,779.5
Property, plant, and equipment, net	5,551.5	5,342.4
Long-term investments	3,409.3	3,099.2
Deferred tax assets	652.4	1,018.6
Intangible and other assets, net	1,140.1	848.7
Goodwill	580.6	370.3
Total assets	20,876.6	20,458.7
Current liabilities:
Accounts payable	277.2	255.1
Accrued compensation and employee benefits	425.7	648.4
Deferred revenue	549.4	506.7
Other accrued liabilities	670.6	596.0
Total current liabilities	1,922.9	2,006.2
Other long-term liabilities	656.0	510.8
Total liabilities	2,578.9	2,517.0
Contingencies (Note 8)
Stockholders’ equity:
Preferred stock, 2.5 shares authorized, $0.001 par value, issuable in series; zero shares issued and outstanding as of June 30, 2026, and December 31, 2025	0.0	0.0
Common stock, 600.0 shares authorized, $0.001 par value, 353.9 shares and 355.1 shares issued and outstanding as of June 30, 2026, and December 31, 2025, respectively	0.4	0.4
Additional paid-in capital	11,325.0	10,768.5
Retained earnings	6,837.2	7,011.8
Accumulated other comprehensive income	5.8	43.3
Total Intuitive Surgical, Inc. stockholders’ equity	18,168.4	17,824.0
Noncontrolling interest in joint venture	129.3	117.7
Total stockholders’ equity	18,297.7	17,941.7
Total liabilities and stockholders’ equity	$ 20,876.6	$ 20,458.7