Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Intuitive Surgical delivered a strong Q1 FY2026 with revenue of $2.77B (+23.0% YoY), operating income surging 48.0% to $855.3M, and operating cash flow jumping 56.8% to $911.9M, reflecting robust procedure volume growth and expanding margins.
Revenue
$2.77B
+22.96% YoY
EPS (Diluted)
$2.28
+18.75% YoY
Gross Margin
66.1%
+1.4 pts YoY
Operating Income
$855.3M
+47.95% YoY
Source: SEC XBRL
Intuitive Surgical (ISRG) reported Q1 FY2026 revenue of $2.77B, up 23.0% year over year. Operating margin was 30.9%, up 5.2 points from 25.7% a year earlier. Operating cash flow was $911.9M, up 56.8% year over year. ISRG's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.80 | 2.55 | Beat +9.8% |
| Mar 2026This filing | 2.50 | 2.14 | Beat +16.8% |
| Dec 2025 | 2.53 | 2.30 | Beat +9.9% |
| Sep 2025 | 2.40 | 2.02 | Beat +18.7% |
Adjusted (non-GAAP) EPS of $2.50 versus the $2.14 analyst consensus — a +16.8% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.28.
Compiled by AI from this SEC filing
Revenue grew 23.0% YoY to $2.77B in Q1 FY2026, up from $2.25B in Q1 FY2025, reflecting continued adoption of the da Vinci surgical system and strong procedure volume growth across key surgical specialties globally.
Source: 10-Q Income Statement Data
Operating income surged 48.0% YoY to $855.3M, with operating margin expanding approximately 520 basis points to 30.9% from 25.7%, demonstrating meaningful operating leverage as revenue growth outpaced SG&A growth of only 8.9% and R&D growth of 14.5%.
Source: 10-Q Income Statement Data
Gross margin improved to 66.1% from 64.7% in the prior year period, a gain of approximately 140 basis points YoY, suggesting favorable product mix, improved manufacturing efficiencies, or pricing power in the installed base.
Source: 10-Q Income Statement & Key Ratios
Intuitive Surgical repurchased $1.12B in shares during Q1 FY2026, compared to zero buybacks in Q1 FY2025, contributing to a financing cash outflow of $1.35B and a 22.0% decline in cash and equivalents to $2.01B.
Source: 10-Q Cash Flow Statement Data
Operating cash flow of $911.9M exceeded net income of $821.5M, representing a 56.8% YoY increase and indicating high earnings quality with strong cash conversion from operations.
Source: 10-Q Cash Flow Statement Data
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Cash and equivalents declined 22.0% YoY to $2.01B, driven by $1.12B in share buybacks and $914.5M in investing outflows. While the balance sheet remains strong with a current ratio of 4.61 and low debt-to-equity of 0.14, the aggressive capital return program reduces the liquidity buffer available for strategic acquisitions or unexpected downturns.
Source: 10-Q Balance Sheet & Cash Flow Statement Data
Total liabilities rose 24.9% YoY to $2.51B, outpacing asset growth of 4.6%, and current liabilities increased 24.2% to $1.91B. Although the current ratio remains healthy at 4.61, the pace of liability growth warrants monitoring as it could reflect increased operational commitments or deferred revenue obligations.
Source: 10-Q Balance Sheet Data
Intuitive Surgical's revenue model is heavily dependent on recurring procedure-based revenue and system placements. Any slowdown in hospital capital spending, reimbursement changes, or competitive pressure from emerging robotic surgery platforms could disproportionately impact revenue growth and the premium valuation the company commands.
Source: 10-Q Income Statement Data
R&D expense grew only 14.5% YoY to $361.9M, below the 23.0% revenue growth rate, which could indicate either improved R&D efficiency or a potential underinvestment in next-generation platforms needed to maintain competitive differentiation in the rapidly evolving surgical robotics market.
Source: 10-Q Income Statement Data
Investing cash flow swung from a positive $213.5M in Q1 FY2025 to a negative $914.5M in Q1 FY2026, a change of over $1.1B, suggesting significant capital expenditures or investment activity. Without detailed filing text, the nature of these investments and their expected returns cannot be fully assessed.
Source: 10-Q Cash Flow Statement Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.77 $B | 2.25 $B | +22.96% |
Cost of Revenue $M | 940.30 $M | 795.70 $M | +18.17% |
Gross Profit $B | 1.83 $B | 1.46 $B | +25.57% |
Operating Income $M | 855.30 $M | 578.10 $M | +47.95% |
Net Income $M | 821.50 $M | 698.40 $M | +17.63% |
EPS (Basic) $ | 2.31 $ | 1.95 $ | +18.46% |
EPS (Diluted) $ | 2.28 $ | 1.92 $ | +18.75% |
R&D Expense $M | 361.90 $M | 316.20 $M | +14.45% |
SG&A Expense $M | 613.30 $M | 563.40 $M | +8.86% |
Answers draw on this SEC filing and the data on this page
Intuitive Surgical delivered robust Q2 FY2026 results, with double-digit revenue and earnings growth propelled by da Vinci 5 adoption and higher procedure volumes, while navigating tariff and regulatory challenges.
Intuitive Surgical delivered a strong FY2025 with revenue surging 20.5% to $10.1B, net income rising 23.0% to $2.86B, and the company initiating a $2.3B share buyback program, reflecting robust demand for its da Vinci surgical systems.
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