Intuitive Surgical reported strong Q2 results, with revenue up 19% year-over-year to $2.89 billion and non-GAAP earnings per share rising 28% to $2.80. Recurring revenue accounted for 85% of total sales. Total procedures increased 16%, driven by 15% growth in da Vinci procedures and 36% growth in Ion procedures. Whilst US growth slowed, international da Vinci procedures rose 20%, expanding across Europe and Asia. The company maintained its 2026 procedure outlook, keeping da Vinci procedure growth guidance at 13.5% to 15.5% whilst raising its non-GAAP gross margin forecast to 68% to 69%. Management highlighted continued demand for newer platforms including da Vinci 5, SP and Ion. The installed base grew to nearly 13,000 systems worldwide.

Intuitive Surgical reported second-quarter revenue of $2.89 billion, up 18.5% year on year and beating Wall Street estimates of $2.82 billion. The medical technology company's non-GAAP profit of $2.80 per share exceeded analyst expectations by 11.9%. Despite the strong results, the stock declined. The drop was attributed to recent declines in overall surgery volumes reported by major healthcare providers and a Class II recall of certain da Vinci surgical components. Operating margin improved to 33.6%, up from 30.5% in the same quarter last year. Analysts expect revenue to grow 12.5% over the next 12 months, representing a deceleration from recent growth rates. The company has demonstrated solid long-term performance, with 16.4% annualised revenue growth over the past five years.

Intuitive Surgical shares have fallen 28% this year, prompting several analyst downgrades following first-quarter earnings. However, Goldman Sachs analyst David Roman raised the stock's price target to $558, arguing the market has misunderstood recent changes to the company's instrument lifetimes. Intuitive increased the lifespan of five force-feedback surgical tools from six to 15 uses to ease supply chain bottlenecks, with no impact on revenue per procedure. The company also extended standard instrument lifespans to reduce hospital costs, which may slightly affect recurring revenue but builds customer loyalty. First-quarter results showed 23% revenue growth to $2.77 billion, with earnings per share up 18.7% to $2.28. Goldman Sachs maintains that extending instrument lifecycles represents an established pattern rather than a defensive response to refurbishment competitors.