ISRG · Q2 FY2026
INTUITIVE SURGICAL INC Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $2.89B | $2.44B (yr ago) | Beat |
| EPS | $2.29 GAAP | $1.81 GAAP (yr ago) | Beat |
| Free Cash Flow | $1.06B | $0.72B (yr ago) | Beat |
| Gross Margin | 67.8% GAAP | 66.3% GAAP (yr ago) | Beat |
| Operating Margin | 33.6% GAAP | 30.5% GAAP (yr ago) | Beat |
What changed
Revenue increased 19% year over year as procedure growth, leasing revenue and a larger installed base lifted all three revenue categories. GAAP operating margin expanded 3.1 percentage points to 33.6%, while free cash flow rose to $1.06 billion; a $0.08-per-share tariff-refund benefit contributed to reported EPS.
Impact on the investment thesis
With no prior SageNoodle fair value, this update initiates fair value at $366 per share. The quarter supports a premium valuation through durable procedure growth and operating leverage, but the one-time tariff refund and unchanged full-year outlook do not justify extrapolating the entire earnings improvement.