Trended Unaudited Quarterly and Annual Condensed Consolidated Statements of Income (GAAP) and Other 2
Metrics
Trended Unaudited Quarterly and Annual Non-GAAP Financial Measures 3
Trended Unaudited Quarterly and Annual Procedures, Revenue, and Related Metrics - Worldwide 4
Trended Unaudited Quarterly and Annual Procedures, Revenue, and Related Metrics - By Geography 5
Trended Unaudited Quarterly and Annual Procedures, Revenue, and Related Metrics - Da Vinci Worldwide 6
Trended Unaudited Quarterly and Annual Procedures, Revenue, and Related Metrics - Da Vinci by 7
Geography
Trended Unaudited Quarterly and Annual Procedures, Revenue, and Related Metrics - Ion Worldwide 8
Reconciliation of Unaudited GAAP to Non-GAAP Financial Measures 9
Trended Unaudited Quarterly and Annual Condensed Consolidated Statements of Income (GAAP) and Other Metrics (in millions, except per share data and headcount) 2024 - 2026FY26 | |||||||||||||
Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 | FY24 | FY25 YTD | |||||||||||
Condensed Consolidated Statements of Income Revenue | $1,890.6 $2,009.9 $2,038.1 $2,413.5 $2,253.4 $2,440.0 $2,505.1 $2,866.2 $2,770.8 $2,892.3 | $ 8,352.1 | $10,064.7 $ 5,663.1 | ||||||||||
Gross Profit | 1,245.4 | 1,372.7 | 1,373.9 | 1,642.2 | 1,457.7 | 1,617.9 | 1,662.4 | 1,904.3 | 1,830.5 | 1,960.4 | 5,634.2 | 6,642.3 | 3,790.9 |
Gross Profit Margin | 65.9% | 68.3% | 67.4% | 68.0% | 64.7% | 66.3% | 66.4% | 66.4% | 66.1% | 67.8% | 67.5% | 66.0% | 66.9% |
Selling, General, and Administrative ("SG&A") Expenses | 491.5 | 525.3 | 510.6 | 612.6 | 563.4 | 561.2 | 573.3 | 687.1 | 613.3 | 617.9 | 2,140.0 | 2,385.0 | 1,231.2 |
Research and Development ("R&D") Expenses | 284.5 | 280.1 | 286.0 | 294.7 | 316.2 | 313.3 | 329.4 | 352.9 | 361.9 | 370.6 | 1,145.3 | 1,311.8 | 732.5 |
Total Operating Expenses | 776.0 | 805.4 | 796.6 | 907.3 | 879.6 | 874.5 | 902.7 | 1,040.0 | 975.2 | 988.5 | 3,285.3 | 3,696.8 | 1,963.7 |
Income from Operations | 469.4 | 567.3 | 577.3 | 734.9 | 578.1 | 743.4 | 759.7 | 864.3 | 855.3 | 971.9 | 2,348.9 | 2,945.5 | 1,827.2 |
Operating Margin | 24.8% | 28.2% | 28.3% | 30.4% | 25.7% | 30.5% | 30.3% | 30.2% | 30.9% | 33.6% | 28.1% | 29.3% | 32.3% |
Interest and Other Income, Net | 69.1 | 87.2 | 93.7 | 74.9 | 90.4 | 88.7 | 95.5 | 91.3 | 85.1 | 82.7 | 324.9 | 365.9 | 167.8 |
Income Before Taxes | 538.5 | 654.5 | 671.0 | 809.8 | 668.5 | 832.1 | 855.2 | 955.6 | 940.4 | 1,054.6 | 2,673.8 | 3,311.4 | 1,995.0 |
Income Tax Expense (Benefit) | (8.9) | 123.0 | 100.4 | 121.8 | (35.2) | 167.9 | 146.0 | 156.1 | 114.4 | 231.4 | 336.3 | 434.8 | 345.8 |
Effective Tax Rate | (1.7)% | 18.8% | 15.0% | 15.0% | (5.3)% | 20.2% | 17.1% | 16.3% | 12.2% | 21.9% | 12.6% | 13.1% | 17.3% |
Net Income | 547.4 | 531.5 | 570.6 | 688.0 | 703.7 | 664.2 | 709.2 | 799.5 | 826.0 | 823.2 | 2,337.5 | 2,876.6 | 1,649.2 |
Less: Net Income Attributable to Noncontrolling Interest in Joint Venture | 2.5 | 4.6 | 5.5 | 2.3 | 5.3 | 5.8 | 4.8 | 4.7 | 4.5 | 5.1 | 14.9 | 20.6 | 9.6 |
Net Income Attributable to Intuitive Surgical, Inc. | $ 544.9 | $ 526.9 | $ 565.1 | $ 685.7 | $ 698.4 | $ 658.4 | $ 704.4 | $ 794.8 | $ 821.5 | $ 818.1 | $ 2,322.6 | $ 2,856.0 | $ 1,639.6 |
Net Income Per Share Attributable to Intuitive Surgical, Inc. | $ 1.51 | $ 1.46 | $ 1.56 | $ 1.88 | $ 1.92 | $ 1.81 | $ 1.95 | $ 2.21 | $ 2.28 | $ 2.29 | $ 6.42 | $ 7.87 | $ 4.57 |
Diluted Shares Outstanding | 360.5 | 361.0 | 362.7 | 363.9 | 364.6 | 364.1 | 361.8 | 360.4 | 359.8 | 357.3 | 362.0 | 362.7 | 358.5 |
Other Metrics | |||||||||||||
Cash and Investments | $ 7,323 | $ 7,683 | $ 8,312 | $ 8,832 | $ 9,101 | $ 9,533 | $ 8,433 | $ 9,034 | $ 7,979 | $ 8,626 | $ 8,832 | $ 9,034 | $ 8,626 |
Capital Expenditures and Acquisitions | $ 243.6 | $ 310.3 | $ 248.3 | $ 313.0 | $ 116.6 | $ 156.5 | $ 105.4 | $ 175.2 | $ 631.5 | $ 112.6 | $ 1,115.2 | $ 553.7 | $ 744.1 |
Share Repurchases $ - $ - $ - $ - $ - $ 181.0 $1,919.6 $ 200.3 $1,127.5 $ 379.0 $ - $ 2,300.9 $ 1,506.5
Headcount 14,118 14,668 15,333 15,638 16,173 16,475 16,813 17,021 17,446 17,661 15,638 17,021 17,661
Trended Unaudited Quarterly and Annual Non-GAAP Financial Measures (#) (in millions, except per share data) 2024 - 2026 FY26Q1'24 | Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | Q3'25 | Q4'25 | Q1'26 | Q2'26 | FY24 | FY25 | YTD | |
Non-GAAP Gross Profit Margin | 67.6% | 70.0% | 69.1% | 69.5% | 66.4% | 67.9% | 68.0% | 67.8% | 67.8% | 70.0% | 69.1% | 67.6% | 68.9% |
Non-GAAP SG&A Expenses | $ 422.2 | $ 438.1 | $ 432.7 | $ 522.2 | $ 482.2 | $ 472.4 | $ 476.7 | $ 599.3 | $ 522.5 | $ 522.1 | $ 1,815.2 | $ 2,030.6 | $ 1,044.6 |
Non-GAAP R&D Expenses | $ 226.4 | $ 214.0 | $ 220.2 | $ 228.5 | $ 246.9 | $ 238.1 | $ 251.2 | $ 272.4 | $ 279.8 | $ 283.8 | $ 889.1 | $ 1,008.6 | $ 563.6 |
Non-GAAP Operating Margin | 33.3% | 37.5% | 37.0% | 38.4% | 34.1% | 38.8% | 39.0% | 37.3% | 38.9% | 42.1% | 36.7% | 37.4% | 40.5% |
Non-GAAP Income Before Taxes | $ 702.5 | $ 833.5 | $ 849.5 | $1,015.3 | $ 858.5 | $1,039.7 | $1,068.4 | $1,156.8 | $1,161.3 | $1,300.5 | $ 3,400.8 | $ 4,123.4 | $ 2,461.8 |
Non-GAAP Net Income Attributable to Intuitive Surgical, Inc. | $ 541.1 | $ 641.0 | $ 669.1 | $ 804.7 | $ 661.5 | $ 797.9 | $ 867.2 | $ 913.6 | $ 901.1 | $1,002.1 | $ 2,655.9 | $ 3,240.2 | $ 1,903.2 |
Non-GAAP Net Income Per Share Attributable to Intuitive Surgical, Inc. | $ 1.50 | $ 1.78 | $ 1.84 | $ 2.21 | $ 1.81 | $ 2.19 | $ 2.40 | $ 2.53 | $ 2.50 | $ 2.80 | $ 7.34 | $ 8.93 | $ 5.31 |
Diluted Shares Outstanding | 360.5 | 361.0 | 362.7 | 363.9 | 364.6 | 364.1 | 361.8 | 360.4 | 359.8 | 357.3 | 362.0 | 362.7 | 358.5 |
Q1'24 | Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | Q3'25 | Q4'25 | Q1'26 | Q2'26 | FY24 | FY25 | FY26 YTD | |
Revenue and Related Metrics Instruments and Accessories Revenue (millions) | $ 1,158.9 | $ 1,244.4 | $ 1,264.2 | $ 1,411.5 | $ 1,367.7 | $ 1,474.1 | $ 1,518.8 | $ 1,658.3 | $ 1,686.4 | $ 1,734.9 | $ 5,079.0 | $ 6,018.9 | $ 3,421.3 |
Year-over-year growth | 18% | 16% | 18% | 23% | 18% | 18% | 20% | 17% | 23% | 18% | 19% | 19% | 20% |
Quarter-over-quarter growth (decline) | 1% | 7% | 2% | 12% | (3)% | 8% | 3% | 9% | 2% | 3% | |||
Year-over-year da Vinci procedure growth | 16% | 17% | 18% | 18% | 17% | 17% | 19% | 17% | 16% | 15% | 17% | 18% | 15% |
Quarter-over-quarter da Vinci procedure growth | 2% | 6% | 1% | 8% | 1% | 6% | 3% | 7% | -% | 5% | |||
Service Revenue (millions) | $ 313.5 | $ 317.3 | $ 328.9 | $ 347.4 | $ 363.0 | $ 391.2 | $ 395.9 | $ 422.0 | $ 433.7 | $ 472.4 | $ 1,307.1 | $ 1,572.1 | $ 906.1 |
Year-over-year growth | 11% | 10% | 12% | 14% | 16% | 23% | 20% | 21% | 19% | 21% | 12% | 20% | 20% |
Quarter-over-quarter growth | 3% | 1% | 4% | 6% | 4% | 8% | 1% | 7% | 3% | 9% | |||
Operating Lease Revenue (millions) | $ 148.0 | $ 156.9 | $ 167.8 | $ 181.5 | $ 195.2 | $ 213.8 | $ 223.0 | $ 242.3 | $ 250.2 | $ 261.8 | $ 654.2 | $ 874.3 | $ 512.0 |
Year-over-year growth | 32% | 28% | 32% | 31% | 32% | 36% | 33% | 33% | 28% | 22% | 31% | 34% | 25% |
Quarter-over-quarter growth | 7% | 6% | 7% | 8% | 8% | 10% | 4% | 9% | 3% | 5% | |||
Total Recurring Revenue (millions) (1) | $ 1,620.4 | $ 1,718.6 | $ 1,760.9 | $ 1,940.4 | $ 1,925.9 | $ 2,079.1 | $ 2,137.7 | $ 2,322.6 | $ 2,370.3 | $ 2,469.1 | $ 7,040.3 | $ 8,465.3 | $ 4,839.4 |
Year-over-year growth | 17% | 16% | 18% | 22% | 19% | 21% | 21% | 20% | 23% | 19% | 18% | 20% | 21% |
Quarter-over-quarter growth (decline) | 2% | 6% | 2% | 10% | (1)% | 8% | 3% | 9% | 2% | 4% | |||
% Recurring Revenue | 86% | 86% | 86% | 80% | 85% | 85% | 85% | 81% | 86% | 85% | 84% | 84% | 85% |
Systems Revenue (millions) | $ 418.2 | $ 448.2 | $ 445.0 | $ 654.6 | $ 522.7 | $ 574.7 | $ 590.4 | $ 785.9 | $ 650.7 | $ 685.0 | $ 1,966.0 | $ 2,473.7 | $ 1,335.7 |
Year-over-year growth (decline) | (2)% | 14% | 17% | 36% | 25% | 28% | 33% | 20% | 24% | 19% | 17% | 26% | 22% |
Quarter-over-quarter growth (decline) | (13)% | 7% | (1)% | 47% | (20)% | 10% | 3% | 33% | (17)% | 5% | |||
Total Revenue (millions) (2) | $ 1,890.6 | $ 2,009.9 | $ 2,038.1 | $ 2,413.5 | $ 2,253.4 | $ 2,440.0 | $ 2,505.1 | $ 2,866.2 | $ 2,770.8 | $ 2,892.3 | $ 8,352.1 | $10,064.7 | $ 5,663.1 |
Year-over-year growth | 11% | 14% | 17% | 25% | 19% | 21% | 23% | 19% | 23% | 19% | 17% | 21% | 21% |
Quarter-over-quarter growth (decline) | (2)% | 6% | 1% | 18% | (7)% | 8% | 3% | 14% | (3)% | 4% |
(1) We present operating lease revenue, which is classified as systems revenue, as a component of total recurring revenue.
(2) Total revenue consists of instruments and accessories revenue, service revenue, and systems revenue.
Q1'24 | Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | Q3'25 | Q4'25 | Q1'26 | Q2'26 | FY24 | FY25 | YTD | ||
U.S. Revenue and Related Metrics Instruments and Accessories Revenue (millions) | $ 822.4 | $ 891.4 | $ 904.8 | $1,007.8 | $ 963.8 | $1,017.3 | $1,062.0 | $1,160.3 | $1,121.8 | $1,180.4 | $3,626.4 | $4,203.4 | $2,302.2 | |
Year-over-year growth | 17% | 17% | 17% | 23% | 17% | 14% | 17% | 15% | 16% | 16% | 19% | 16% | 16% | |
Quarter-over-quarter growth (decline) | -% | 8% | 2% | 11% | (4)% | 6% | 4% | 9% | (3)% | 5% | ||||
Year-over-year da Vinci procedure growth | 14% | 14% | 16% | 15% | 13% | 14% | 16% | 15% | 14% | 12% | 15% | 15% | 13% | |
Quarter-over-quarter da Vinci procedure growth (decline) | -% | 5% | 1% | 8% | (2)% | 6% | 2% | 7% | (3)% | 4% | ||||
Service Revenue (millions) | $ | 203.6 | $ 203.5 | $ 209.2 | $ 224.1 | $ 238.5 | $ 258.1 | $ 258.1 | $ 275.9 | $ 281.7 | $ 310.7 | $ 840.4 | $1,030.6 | $ 592.4 |
Year-over-year growth | 9% | 7% | 11% | 13% | 17% | 27% | 23% | 23% | 18% | 20% | 10% | 23% | 19% | |
Quarter-over-quarter growth | 2% | -% | 3% | 7% | 6% | 8% | -% | 7% | 2% | 10% | ||||
Systems Revenue (millions) | $ | 212.5 | $ 224.3 | $ 265.4 | $ 420.4 | $ 335.9 | $ 354.0 | $ 397.5 | $ 494.4 | $ 379.8 | $ 442.1 | $1,122.6 | $1,581.8 | $ 821.9 |
Year-over-year growth (decline) | (4)% | 18% | 23% | 77% | 58% | 58% | 50% | 18% | 13% | 25% | 30% | 41% | 19% | |
Quarter-over-quarter growth (decline) | (11)% | 6% | 18% | 58% | (20)% | 5% | 12% | 24% | (23)% | 16% | ||||
Total Revenue (millions) | $1,238.5 | $1,319.2 | $1,379.4 | $1,652.3 | $1,538.2 | $1,629.4 | $1,717.6 | $1,930.6 | $1,783.3 | $1,933.2 | $5,589.4 | $6,815.8 | $3,716.5 | |
Year-over-year growth | 12% | 15% | 17% | 32% | 24% | 24% | 25% | 17% | 16% | 19% | 19% | 22% | 17% | |
Quarter-over-quarter growth (decline) | (1)% | 7% | 5% | 20% | (7)% | 6% | 5% | 12% | (8)% | 8% | ||||
OUS Revenue and Related Metrics | ||||||||||||||
Instruments and Accessories Revenue (millions) | $ 336.5 | $ 353.0 | $ 359.4 | $ 403.7 | $ 403.9 | $ 456.8 | $ 456.8 | $ 498.0 | $ 564.6 | $ 554.5 | $1,452.6 | $1,815.5 | $1,119.1 | |
Year-over-year growth | 18% | 13% | 22% | 24% | 20% | 29% | 27% | 23% | 40% | 21% | 19% | 25% | 30% | |
Quarter-over-quarter growth | 4% | 5% | 2% | 12% | -% | 13% | -% | 9% | 13% | (2)% | ||||
Year-over-year da Vinci procedure growth | 20% | 22% | 24% | 25% | 24% | 23% | 24% | 21% | 19% | 20% | 23% | 23% | 20% | |
Quarter-over-quarter da Vinci procedure growth | 7% | 6% | 2% | 8% | 6% | 5% | 3% | 5% | 5% | 6% | ||||
Service Revenue (millions) | $ 109.9 | $ 113.8 | $ 119.7 | $ 123.3 | $ 124.5 | $ 133.1 | $ 137.8 | $ 146.1 | $ 152.0 | $ 161.7 | $ 466.7 | $ 541.5 | $ 313.7 | |
Year-over-year growth | 14% | 16% | 15% | 17% | 13% | 17% | 15% | 18% | 22% | 21% | 15% | 16% | 22% | |
Quarter-over-quarter growth | 4% | 4% | 5% | 3% | 1% | 7% | 4% | 6% | 4% | 6% | ||||
Systems Revenue (millions) | $ 205.7 | $ 223.9 | $ 179.6 | $ 234.2 | $ 186.8 | $ 220.7 | $ 192.9 | $ 291.5 | $ 270.9 | $ 242.9 | $ 843.4 | $ 891.9 | $ 513.8 | |
Year-over-year growth (decline) | -% | 10% | 10% | (3)% | (9)% | (1)% | 7% | 24% | 45% | 10% | 4% | 6% | 26% | |
Quarter-over-quarter growth (decline) | (15)% | 9% | (20)% | 30% | (20)% | 18% | (13)% | 51% | (7)% | (10)% | ||||
Total Revenue (millions) | $ 652.1 | $ 690.7 | $ 658.7 | $ 761.2 | $ 715.2 | $ 810.6 | $ 787.5 | $ 935.6 | $ 987.5 | $ 959.1 | $2,762.7 | $3,248.9 | $1,946.6 | |
Year-over-year growth | 11% | 13% | 17% | 13% | 10% | 17% | 20% | 23% | 38% | 18% | 13% | 18% | 28% | |
Quarter-over-quarter growth (decline) | (3)% | 6% | (5)% | 16% | (6)% | 13% | (3)% | 19% | 6% | (3)% | ||||
Q1'24 | Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | Q3'25 | Q4'25 | Q1'26 | Q2'26 | FY24 | FY25 | YTD | |
Da Vinci System Installed Base Rollforward Beginning da Vinci System Installed Base | 8,606 | 8,887 | 9,203 | 9,539 | 9,902 | 10,189 | 10,488 | 10,763 | 11,106 | 11,395 | 8,606 | 9,902 | 11,106 |
Systems Placed: | |||||||||||||
Dual Console da Vinci X Systems | - | 3 | - | 2 | - | 2 | 1 | 3 | 3 | - | 5 | 6 | 3 |
Single Console da Vinci X Systems | 38 | 38 | 47 | 47 | 38 | 47 | 41 | 35 | 38 | 58 | 170 | 161 | 96 |
Dual Console da Vinci Xi Systems | 58 | 44 | 45 | 76 | 40 | 21 | 34 | 32 | 34 | 19 | 223 | 127 | 53 |
Single Console da Vinci Xi Systems | 185 | 165 | 156 | 164 | 123 | 122 | 81 | 124 | 90 | 107 | 670 | 450 | 197 |
Dual Console da Vinci 5 Systems | - | 4 | 8 | 46 | 35 | 56 | 77 | 130 | 93 | 114 | 58 | 298 | 207 |
Single Console da Vinci 5 Systems | 8 | 66 | 102 | 128 | 112 | 124 | 163 | 173 | 139 | 132 | 304 | 572 | 271 |
Da Vinci SP Systems | 24 | 21 | 21 | 30 | 19 | 23 | 30 | 35 | 34 | 38 | 96 | 107 | 72 |
Total System Units Placed (1) | 313 | 341 | 379 | 493 | 367 | 395 | 427 | 532 | 431 | 468 | 1,526 | 1,721 | 899 |
Trade-Ins, Lease Upgrades, and Retirements (3) | (32) | (25) | (43) | (130) | (80) | (96) | (152) | (189) | (142) | (153) | (230) | (517) | (295) |
8,887 | 9,203 | 9,539 | 9,902 | 10,189 | 10,488 | 10,763 | 11,106 | 11,395 | 11,710 | 9,902 | 11,106 | 11,710 |
: 65 | 83 | 79 | 82 | 91 | 69 | 116 | 100 | 125 | 123 | 309 | 376 | 248 |
Ending da Vinci System Installed Base (2)
(1) Includes da Vinci systems placed under the following operating leasing arrangements Fixed-Payment
% of Total da Vinci Units Placed | 21% | 24% | 21% | 17% | 25% | 17% | 27% | 19% | 29% | 26% | 20% | 22% | 28% |
Usage-Based | 94 | 92 | 141 | 140 | 107 | 124 | 115 | 150 | 118 | 131 | 467 | 496 | 249 |
% of Total da Vinci Units Placed | 30% | 27% | 37% | 28% | 29% | 31% | 27% | 28% | 27% | 28% | 31% | 29% | 28% |
(2) Includes da Vinci systems under the following operating leasing arrangements:
Fixed-Payment | 1,223 | 1,261 | 1,289 | 1,307 | 1,308 | 1,301 | 1,379 | 1,400 | 1,477 | 1,522 | 1,307 | 1,400 | 1,522 |
% of Total da Vinci Installed Base | 14% | 14% | 14% | 13% | 13% | 12% | 13% | 13% | 13% | 13% | 13% | 13% | 13% |
Usage-Based | 1,112 | 1,208 | 1,352 | 1,492 | 1,598 | 1,686 | 1,736 | 1,810 | 1,848 | 1,903 | 1,492 | 1,810 | 1,903 |
% of Total da Vinci Installed Base | 13% | 13% | 14% | 15% | 16% | 16% | 16% | 16% | 16% | 16% | 15% | 16% | 16% |
(3) During the fourth quarter of 2025 and 2024, we performed a verification audit of our installed base records that identified 22 and 54 systems, respectively, mostly older S and Si models, which had been retired. We removed these systems from our installed base estimate during the fourth quarter of 2025 and 2024.
Other Metrics (in thousands) | |||||||||||||
Da Vinci Procedures | 627 | 661 | 670 | 725 | 732 | 775 | 797 | 849 | 847 | 889 | 2,683 | 3,153 | 1,737 |
U.S. | 412 | 433 | 438 | 474 | 465 | 495 | 507 | 545 | 528 | 552 | 1,757 | 2,012 | 1,081 |
OUS | 215 | 228 | 232 | 251 | 267 | 280 | 290 | 304 | 319 | 337 | 926 | 1,141 | 656 |
Da Vinci Instruments and Accessories Revenue per Procedure | $ 1.78 | $ 1.79 | $ 1.80 | $ 1.86 | $ 1.78 | $ 1.80 | $ 1.80 | $ 1.85 | $ 1.88 | $ 1.83 | $ 1.81 | $ 1.81 | $ 1.85 |
Da Vinci System Average Selling Price | $ 1,380 | $ 1,440 | $ 1,510 | $ 1,590 | $ 1,620 | $ 1,500 | $ 1,600 | $ 1,680 | $ 1,740 | $ 1,590 | $ 1,500 | $ 1,600 | $ 1,660 |
Q1'24 | Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | Q3'25 | Q4'25 | Q1'26 | Q2'26 | FY24 | FY25 | YTD | |
U.S. da Vinci System Installed Base Rollforward Beginning da Vinci System Installed Base | 5,111 | 5,243 | 5,385 | 5,582 | 5,807 | 5,957 | 6,087 | 6,223 | 6,364 | 6,477 | 5,111 | 5,807 | 6,364 |
Systems Placed: | |||||||||||||
Single Console da Vinci X Systems | 1 | 1 | 4 | 2 | 1 | 1 | 1 | 1 | - | - | 8 | 4 | - |
Dual Console da Vinci Xi Systems | 36 | 17 | 28 | 36 | 18 | 5 | 10 | 11 | 3 | 3 | 117 | 44 | 6 |
Single Console da Vinci Xi Systems | 94 | 54 | 71 | 62 | 34 | 26 | 18 | 23 | 19 | 37 | 281 | 101 | 56 |
Dual Console da Vinci 5 Systems | - | 4 | 8 | 45 | 35 | 56 | 73 | 116 | 82 | 109 | 57 | 280 | 191 |
Single Console da Vinci 5 Systems | 8 | 66 | 102 | 126 | 111 | 122 | 155 | 144 | 110 | 102 | 302 | 532 | 212 |
Da Vinci SP Systems | 9 | 7 | 6 | 13 | 5 | 6 | 6 | 9 | 12 | 16 | 35 | 26 | 28 |
Total System Units Placed (1) | 148 | 149 | 219 | 284 | 204 | 216 | 263 | 304 | 226 | 267 | 800 | 987 | 493 |
Trade-Ins, Lease Upgrades, and Retirements (2) | (16) | (7) | (22) | (59) | (54) | (86) | (127) | (163) | (113) | (129) | (104) | (430) | (242) |
Ending da Vinci System Installed Base | 5,243 | 5,385 | 5,582 | 5,807 | 5,957 | 6,087 | 6,223 | 6,364 | 6,477 | 6,615 | 5,807 | 6,364 | 6,615 |
(1) Includes da Vinci system units placed under the following operating leasing arrangements: | |||||||||||||
Fixed-Payment | 25 | 28 | 35 | 37 | 46 | 45 | 82 | 53 | 69 | 69 | 125 | 226 | 138 |
Usage-Based | 86 | 86 | 134 | 131 | 94 | 110 | 101 | 131 | 98 | 118 | 437 | 436 | 216 |
(2) During the fourth quarter of 2025 and 2024, we performed a verification audit of our installed base records that identified 16 and 25 systems, respectively, mostly older S and Si models, which had been retired. We removed these systems from our installed base estimate during the fourth quarters of 2025 and 2024, respectively.
OUS da Vinci System Installed Base Rollforward | |||||||||||||
Beginning da Vinci System Installed Base | 3,495 | 3,644 | 3,818 | 3,957 | 4,095 | 4,232 | 4,401 | 4,540 | 4,742 | 4,918 | 3,495 | 4,095 | 4,742 |
Systems Placed: | |||||||||||||
Dual Console da Vinci X Systems | - | 3 | - | 2 | - | 2 | 1 | 3 | 3 | - | 5 | 6 | 3 |
Single Console da Vinci X Systems | 37 | 37 | 43 | 45 | 37 | 46 | 40 | 34 | 38 | 58 | 162 | 157 | 96 |
Dual Console da Vinci Xi Systems | 22 | 27 | 17 | 40 | 22 | 16 | 24 | 21 | 31 | 16 | 106 | 83 | 47 |
Single Console da Vinci Xi Systems | 91 | 111 | 85 | 102 | 89 | 96 | 63 | 101 | 71 | 70 | 389 | 349 | 141 |
Dual Console da Vinci 5 Systems | - | - | - | 1 | - | - | 4 | 14 | 11 | 5 | 1 | 18 | 16 |
Single Console da Vinci 5 Systems | - | - | - | 2 | 1 | 2 | 8 | 29 | 29 | 30 | 2 | 40 | 59 |
Da Vinci SP Systems | 15 | 14 | 15 | 17 | 14 | 17 | 24 | 26 | 22 | 22 | 61 | 81 | 44 |
Total System Units Placed (1) | 165 | 192 | 160 | 209 | 163 | 179 | 164 | 228 | 205 | 201 | 726 | 734 | 406 |
Trade-Ins, Lease Upgrades, and Retirements (2) | (16) | (18) | (21) | (71) | (26) | (10) | (25) | (26) | (29) | (24) | (126) | (87) | (53) |
Ending da Vinci System Installed Base | 3,644 | 3,818 | 3,957 | 4,095 | 4,232 | 4,401 | 4,540 | 4,742 | 4,918 | 5,095 | 4,095 | 4,742 | 5,095 |
(1) Includes da Vinci system units placed under the following operating leasing arrangements: | |||||||||||||
Fixed-Payment | 40 | 55 | 44 | 45 | 45 | 24 | 34 | 47 | 56 | 54 | 184 | 150 | 110 |
Usage-Based | 8 | 6 | 7 | 9 | 13 | 14 | 14 | 19 | 20 | 13 | 30 | 60 | 33 |
(2) During the fourth quarters of 2025 and 2024, we performed a verification audit of our installed base records that identified 6 and 29 systems, respectively, mostly older S and Si models, which had been retired. We removed these systems from our installed base estimate during the fourth quarters of 2025 and 2024, respectively.
Q1'24 Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | Q3'25 | Q4'25 | Q1'26 | Q2'26 | FY24 | FY25 | YTD | ||||||
Revenue and Related Metrics | |||||||||||||||||
Ion Instruments and Accessories Revenue (millions) | $ 44.5 | $ 57.7 | $ 58.1 | $ 61.9 | $ 67.7 | $ 77.5 | $ 84.0 | $ 88.3 | $ 95.2 | $ 109.1 | $ 222.2 | $ 317.5 | $ 204.3 | ||||
Year-over-year growth | 83 % | 84% | 79% | 62% | 52% | 34% | 45% | 43% | 41% | 41% | 76% | 43% | 41% | ||||
Quarter-over-quarter growth | 17 % | 30% | 1% | 7% | 9% | 14% | 8% | 5% | 8% | 15% | |||||||
Year-over-year Ion procedure growth | 91 % | 83% | 72% | 70% | 57% | 52% | 52% | 44% | 39% | 36% | 78% | 51% | 37% | ||||
Quarter-over-quarter Ion procedure growth | 19 % | 19% | 7% | 12% | 10% | 15% | 7% | 6% | 6% | 12% | |||||||
Ion Service Revenue (millions) | $ | 7.2 | $ | 8.5 | $ 10.0 | $ 10.8 | $ 11.2 | $ 12.5 | $ 13.1 | $ 13.8 | $ 14.4 | $ | 16.9 | $ 36.5 | $ 50.6 | $ 31.3 | |
Year-over-year growth | 64 % | 70% | 79% | 69% | 56% | 47% | 31% | 28% | 29% | 35% | 71% | 39% | 32% | ||||
Quarter-over-quarter growth | 13 % | 18% | 18% | 8% | 4% | 12% | 5% | 5% | 4% | 17% | |||||||
Ion Systems Revenue (millions) | $ 26.3 | $ | 29.7 | $ 26.4 | $ 31.2 | $ 27.9 | $ 24.1 | $ 34.4 | $ 33.9 | $ 28.3 | $ | 32.3 | $ 113.6 | $ | 120.3 | $ 60.6 | |
Year-over-year growth (decline) | 39 % | 27% | 15% | 94% | 6% | (19)% | 30% | 9% | 1% | 34% | 40% | 6% | 17% | ||||
Quarter-over-quarter growth (decline) | 63 % | 13% | (11)% | 18% | (11)% | (14)% | 43% | (1)% | (17)% | 14% | |||||||
Total Ion Revenue (millions) | $ 78.0 | $ | 95.9 | $ 94.5 | $ 103.9 | $ 106.8 | $ 114.1 | $ 131.5 | $ 136.0 | $ 137.9 | $ | 158.3 | $ 372.3 | $ | 488.4 | $ 296.2 | |
Year-over-year growth | 64 % | 60% | 55% | 71% | 37% | 19% | 39% | 31% | 29% | 39% | 63% | 31% | 34% | ||||
Quarter-over-quarter growth (decline) | 29 % | 23% | (1)% | 10% | 3% | 7% | 15% | 3% | 1% | 15% | |||||||
Ion System Installed Base Rollforward | |||||||||||||||||
Beginning Ion System Installed Base | 534 | 604 | 678 | 736 | 805 | 853 | 905 | 954 | 995 | 1,041 | 534 | 805 | 995 | ||||
Systems Placed (1) | 70 | 74 | 58 | 69 | 49 | 54 | 50 | 42 | 52 | 55 | 271 | 195 | 107 | ||||
Trade-Ins and Retirements | - | - | - | - | (1) | (2) | (1) | (1) | (6) | - | - | (5) | (6) | ||||
Ending Ion System Installed Base (2) | 604 678 736 805 853 905 954 995 1,041 1,096 | 805 995 1,096 | |||||||||||||||
Ending Ion Installed System Base - U.S. | 597 | 669 | 722 | 784 | 828 | 873 | 913 | 948 | 986 | 1,028 | 784 | 948 | 1,028 | ||||
Ending Ion Installed System Base - OUS | 7 | 9 | 14 | 21 | 25 | 32 | 41 | 47 | 55 | 68 | 21 | 47 | 68 | ||||
(1) Includes Ion Systems Placed under Operating Lease Arrangements | 39 | 40 | 36 | 38 | 29 | 34 | 17 | 16 | 36 | 31 | 153 | 96 | 67 | ||||
(2) Includes Ion System Installed Base under Operating Lease Arrangements | 244 | 275 | 296 | 319 | 334 | 358 | 362 | 360 | 380 | 397 | 319 | 360 | 397 | ||||
Other Metrics (in thousands) Ion Procedures | 19.5 | 23.2 | 24.9 | 27.9 | 30.7 | 35.3 | 37.9 | 40.2 | 42.7 | 47.9 | 95.5 | 144.1 | 90.6 | ||||
Ion Instruments and Accessories Revenue per Procedure | $ 2.28 | $ 2.49 | $ 2.33 | $ 2.22 | $ 2.21 | $ 2.20 | $ 2.22 | $ 2.20 | $ 2.23 | $ 2.28 | $ 2.33 | $ 2.20 | $ 2.25 | ||||
Ion System Average Selling Price | $ 550 | $ 570 | $ 590 | $ 580 | $ 550 | $ 610 | $ 580 | $ 590 | $ 630 | $ 650 | $ 570 | $ 580 | $ 650 | ||||
GAAP gross profit | Q1'24 $1,245.4 | Q2'24 $1,372.7 | Q3'24 $1,373.9 | Q4'24 $1,642.2 | Q1'25 $1,457.7 | Q2'25 $1,617.9 | Q3'25 $1,662.4 | Q4'25 $1,904.3 | Q1'26 $1,830.5 | Q2'26 $1,960.4 | FY24 $5,634.2 | FY25 $6,642.3 | YTD $3,790.9 | |||||||||||
GAAP gross profit margin (1) | 65.9% | 68.3% | 67.4% | 68.0% | 64.7% | 66.3% | 66.4% | 66.4% | 66.1% | 67.8% | 67.5% | 66.0% | 66.9% | |||||||||||
Share-based compensation expense | 29.1 | 29.7 | 31.3 | 33.6 | 36.2 | 36.6 | 38.8 | 35.5 | 36.0 | 36.2 | 123.7 | 147.1 | 72.2 | |||||||||||
Long-term incentive plan expense | 0.3 | 0.1 | 0.2 | 0.2 | 0.3 | 0.1 | 0.2 | (0.1) | 0.1 | (0.1) | 0.8 | 0.5 | - | |||||||||||
Amortization of intangible assets | 3.8 | 3.7 | 2.4 | 2.4 | 2.4 | 2.5 | 2.4 | 2.4 | 6.6 | 23.3 | 12.3 | 9.7 | 29.9 | |||||||||||
Acquisition-related items | - | - | - | - | - | - | - | - | 5.9 | 4.1 | - | - | 10.0 | |||||||||||
Non-GAAP gross profit | $1,278.6 | $1,406.2 | $1,407.8 | $1,678.4 | $1,496.6 | $1,657.1 | $1,703.8 | $1,942.1 | $1,879.1 | $2,023.9 | $5,771.0 | $6,799.6 | $3,903.0 | |||||||||||
Non-GAAP gross profit margin (2) | 67.6% | 70.0% | 69.1% | 69.5% | 66.4% | 67.9% | 68.0% | 67.8% | 67.8% | 70.0% | 69.1% | 67.6% | 68.9% | |||||||||||
GAAP SG&A expenses | $ | 491.5 | $ | 525.3 | $ | 510.6 | $ | 612.6 | $ | 563.4 | $ | 561.2 | $ | 573.3 | $ | 687.1 | $ | 613.3 | $ | 617.9 | $2,140.0 | $2,385.0 | $1,231.2 | |
Share-based compensation expense | (66.6) | (78.3) | (76.3) | (77.7) | (80.2) | (85.0) | (87.3) | (88.1) | (91.7) | (87.1) | (298.9) | (340.6) | (178.8) | |||||||||||
Long-term incentive plan expense | (1.9) | (0.9) | (1.0) | (1.0) | (0.5) | (0.2) | (1.1) | 1.3 | (0.4) | 0.3 | (4.8) | (0.5) | (0.1) | |||||||||||
Amortization of intangible assets | (0.8) | (0.8) | (0.6) | (0.2) | (0.5) | (0.1) | (0.1) | - | (0.2) | (0.5) | (2.4) | (0.7) | (0.7) | |||||||||||
Facilities asset abandonment charge | - | - | - | - | - | - | - | - | - | (6.9) | - | - | (6.9) | |||||||||||
Litigation charges | - | (7.2) | - | (12.6) | - | (3.5) | (8.1) | (2.0) | (6.3) | - | (19.8) | (13.6) | (6.3) | |||||||||||
Gains on sale of businesses and assets | - | - | - | 1.1 | - | - | - | 1.0 | 7.9 | - | 1.1 | 1.0 | 7.9 | |||||||||||
Acquisition-related items | - | - | - | - | - | - | - | - | (0.1) | (1.6) | - | - | (1.7) | |||||||||||
Non-GAAP SG&A expenses | $ | 422.2 | $ | 438.1 | $ | 432.7 | $ | 522.2 | $ | 482.2 | $ | 472.4 | $ | 476.7 | $ | 599.3 | $ | 522.5 $ | 522.1 | $1,815.2 | $2,030.6 | $1,044.6 | ||
GAAP R&D expenses | $ | 284.5 | $ | 280.1 | $ | 286.0 | $ | 294.7 | $ | 316.2 | $ | 313.3 | $ | 329.4 | $ | 352.9 | $ | 361.9 $ | 370.6 | $1,145.3 | $1,311.8 | $ 732.5 | ||
Share-based compensation expense | (57.6) | (65.6) | (65.3) | (65.7) | (68.8) | (74.6) | (77.4) | (79.6) | (81.8) | (86.6) | (254.2) | (300.4) | (168.4) | |||||||||||
Amortization of intangible assets | (0.5) | (0.5) | (0.5) | (0.5) | (0.5) | (0.6) | (0.8) | (0.9) | (0.3) | (0.2) | (2.0) | (2.8) | (0.5) | |||||||||||
Non-GAAP R&D expenses | $ | 226.4 | $ | 214.0 | $ | 220.2 | $ | 228.5 | $ | 246.9 | $ | 238.1 | $ | 251.2 | $ | 272.4 | $ | 279.8 | $ | 283.8 | $ 889.1 | $1,008.6 | $ | 563.6 |
GAAP income from operations | $ | 469.4 | $ | 567.3 | $ | 577.3 | $ | 734.9 | $ | 578.1 | $ | 743.4 | $ | 759.7 | $ | 864.3 | $ | 855.3 | $ | 971.9 | $2,348.9 | $2,945.5 | $1,827.2 | |
GAAP operating margin (3) | 24.8% | 28.2% | 28.3% | 30.4% | 25.7% | 30.5% | 30.3% | 30.2% | 30.9% | 33.6% | 28.1% | 29.3% | 32.3% | |||||||||||
Share-based compensation expense | 153.3 | 173.6 | 172.9 | 177.0 | 185.2 | 196.2 | 203.5 | 203.2 | 209.5 | 209.9 | 676.8 | 788.1 | 419.4 | |||||||||||
Long-term incentive plan expense | 2.2 | 1.0 | 1.2 | 1.2 | 0.8 | 0.3 | 1.3 | (1.4) | 0.5 | (0.4) | 5.6 | 1.0 | 0.1 | |||||||||||
Amortization of intangible assets | 5.1 | 5.0 | 3.5 | 3.1 | 3.4 | 3.2 | 3.3 | 3.3 | 7.1 | 24.0 | 16.7 | 13.2 | 31.1 | |||||||||||
Facilities asset abandonment charge | - | - | - | - | - | - | - | - | - | 6.9 | - | - | 6.9 | |||||||||||
Litigation charges | - | 7.2 | - | 12.6 | - | 3.5 | 8.1 | 2.0 | 6.3 | - | 19.8 | 13.6 | 6.3 | |||||||||||
Gains on sale of businesses and assets | - | - | - | (1.1) | - | - | - | (1.0) | (7.9) | - | (1.1) | (1.0) | (7.9) | |||||||||||
Acquisition-related items | - | - | - | - | - | - | - | - | 6.0 | 5.7 | - | - | 11.7 | |||||||||||
Non-GAAP income from operations | $ 630.0 | $ 754.1 | $ 754.9 | $ 927.7 | $ 767.5 | $ 946.6 | $ 975.9 | $1,070.4 | $1,076.8 | $1,218.0 | $3,066.7 | $3,760.4 | $2,294.8 | |||||||||||
Non-GAAP operating margin (4) | 33.3% | 37.5% | 37.0% | 38.4% | 34.1% | 38.8% | 39.0% | 37.3% | 38.9% | 42.1% | 36.7% | 37.4% | 40.5% | |||||||||||
GAAP income before taxes | Q1'24 $ 538.5 | Q2'24 $ 654.5 | Q3'24 $ 671.0 | Q4'24 $ 809.8 | Q1'25 $ 668.5 | Q2'25 $ 832.1 | Q3'25 $ 855.2 | Q4'25 $ 955.6 | Q1'26 $ 940.4 | Q2'26 $1,054.6 | FY24 $2,673.8 | FY25 $3,311.4 | YTD $1,995.0 |
Share-based compensation expense | 153.3 | 173.6 | 172.9 | 177.0 | 185.2 | 196.2 | 203.5 | 203.2 | 209.5 | 209.9 | 676.8 | 788.1 | 419.4 |
Long-term incentive plan expense | 2.2 | 1.0 | 1.2 | 1.2 | 0.8 | 0.3 | 1.3 | (1.4) | 0.5 | (0.4) | 5.6 | 1.0 | 0.1 |
Amortization of intangible assets | 5.1 | 5.0 | 3.5 | 3.1 | 3.4 | 3.2 | 3.3 | 3.3 | 7.1 | 24.0 | 16.7 | 13.2 | 31.1 |
Facilities asset abandonment charge | - | - | - | - | - | - | - | - | - | 6.9 | - | - | 6.9 |
Litigation charges | - | 7.2 | - | 12.6 | - | 3.5 | 8.1 | 2.0 | 6.3 | - | 19.8 | 13.6 | 6.3 |
Gains on sale of businesses and assets | - | - | - | (1.1) | - | - | - | (1.0) | (7.9) | - | (1.1) | (1.0) | (7.9) |
Acquisition-related items | - | - | - | - | - | - | - | - | 6.0 | 5.7 | - | - | 11.7 |
(Gains) losses on strategic investments | 3.4 | (7.8) | 0.9 | 12.7 | 0.6 | 4.4 | (3.0) | (4.9) | (0.6) | (0.2) | 9.2 | (2.9) | (0.8) |
Non-GAAP income before taxes | $ 702.5 | $ 833.5 | $ 849.5 | $1,015.3 | $ 858.5 | $1,039.7 | $1,068.4 | $1,156.8 | $1,161.3 | $1,300.5 | $3,400.8 | $4,123.4 | $2,461.8 |
GAAP net income attributable to Intuitive | $ 544.9 | $ 526.9 | $ 565.1 | $ 685.7 | $ 698.4 | $ 658.4 | $ 704.4 | $ 794.8 | $ 821.5 | $ 818.1 | $2,322.6 | $2,856.0 | $1,639.6 |
Share-based compensation expense | 153.3 | 173.6 | 172.9 | 177.0 | 185.2 | 196.2 | 203.5 | 203.2 | 209.5 | 209.9 | 676.8 | 788.1 | 419.4 |
Long-term incentive plan expense | 2.2 | 1.0 | 1.2 | 1.2 | 0.8 | 0.3 | 1.3 | (1.4) | 0.5 | (0.4) | 5.6 | 1.0 | 0.1 |
Amortization of intangible assets | 5.1 | 5.0 | 3.5 | 3.1 | 3.4 | 3.2 | 3.3 | 3.3 | 7.1 | 24.0 | 16.7 | 13.2 | 31.1 |
Facilities asset abandonment charge | - | - | - | - | - | - | - | - | - | 6.9 | - | - | 6.9 |
Litigation charges | - | 7.2 | - | 12.6 | - | 3.5 | 8.1 | 2.0 | 6.3 | - | 19.8 | 13.6 | 6.3 |
Gains on sale of businesses and assets | - | - | - | (1.1) | - | - | - | (1.0) | (7.9) | - | (1.1) | (1.0) | (7.9) |
Acquisition-related items | - | - | - | - | - | - | - | - | 6.0 | 5.7 | - | - | 11.7 |
(Gains) losses on strategic investments | 3.4 | (7.8) | 0.9 | 12.7 | 0.6 | 4.4 | (3.0) | (4.9) | (0.6) | (0.2) | 9.2 | (2.9) | (0.8) |
Tax adjustments | (167.0) | (64.5) | (74.0) | (86.0) | (226.6) | (67.8) | (49.9) | (82.7) | (141.1) | (62.1) | (391.5) | (427.0) | (203.2) |
Adjustments attributable to noncontrolling interest in joint venture | (0.8) | (0.4) | (0.5) | (0.5) | (0.3) | (0.3) | (0.5) | 0.3 | (0.2) | 0.2 | (2.2) | (0.8) | - |
Non-GAAP net income attributable to Intuitive | $ 541.1 | $ 641.0 | $ 669.1 | $ 804.7 | $ 661.5 | $ 797.9 | $ 867.2 | $ 913.6 | $ 901.1 | $1,002.1 | $2,655.9 | $3,240.2 | $1,903.2 |
Non-GAAP net income per share attributable to Intuitive - diluted | $ 1.50 | $ 1.78 | $ 1.84 | $ 2.21 | $ 1.81 | $ 2.19 | $ 2.40 | $ 2.53 | $ 2.50 | $ 2.80 | $ 7.34 | $ 8.93 | $ 5.31 |
Diluted shares outstanding | 360.5 | 361.0 | 362.7 | 363.9 | 364.6 | 364.1 | 361.8 | 360.4 | 359.8 | 357.3 | 362.0 | 362.7 | 358.5 |
(1) GAAP gross profit margin is calculated by dividing GAAP gross profit by revenue. | |||||||||||||
(2) Non-GAAP gross profit margin is calculated by dividing non-GAAP gross profit by revenue. |
(3) GAAP operating margin is calculated by dividing GAAP income from operations by revenue.
(4) Non-GAAP operating margin is calculated by dividing non-GAAP income from operations by revenue.
This information is supplemental to the second quarter 2026 earnings press release issued by Intuitive Surgical, Inc., on July 16, 2026, and should be read in conjunction with that release and the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2026, when filed with the U.S. Securities and Exchange Commission.
(#) About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), we use the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP SG&A expenses, non-GAAP research and development ("R&D") expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP income before taxes, 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.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items such as amortization of intangible assets, share-based compensation ("SBC") and long-term incentive plan ("LTIP") expenses, and other special items. LTIP expense relates to phantom share awards granted in China by our 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 our business within the period. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance. We believe that 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 our business.
Non-GAAP gross profit. We define non-GAAP gross profit as gross profit, excluding SBC and LTIP expenses, amortization of intangible assets, and acquisition-related items.
Non-GAAP SG&A expenses. We define non-GAAP SG&A expenses as SG&A expenses, excluding SBC and LTIP expenses, amortization of intangible assets, a facilities asset abandonment charge, litigation charges, gains on the sale of businesses and assets, and acquisition-related items.
Non-GAAP R&D expenses. We define non-GAAP R&D expenses as R&D expenses, excluding SBC expenses and amortization of intangible assets.
Non-GAAP income from operations. We define 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, gains on the sale of businesses and assets, and acquisition-related items.
Non-GAAP income before taxes. We define non-GAAP income before taxes as income before taxes, excluding SBC and LTIP expenses, amortization of intangible assets, a facilities asset abandonment charge, litigation charges, gains on the sale of businesses and assets, acquisition-related items, and gains (losses) on strategic investments.
Non-GAAP net income attributable to Intuitive and EPS. We define 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, gains on the sale of businesses and assets, acquisition-related items, gains (losses) on strategic investments, tax adjustments, including 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. We exclude 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 we do not believe these items correlate with the on-going results of our 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 our operating results. Our calculated non-GAAP effective tax rate is generally higher than our GAAP effective tax rate. We define 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 SG&A expenses, non-GAAP R&D expenses, non-GAAP income from
operations, non-GAAP income before taxes, non-GAAP net income attributable to Intuitive, and non-GAAP EPS exclude items such as amortization of intangible assets, SBC and LTIP expenses, excess tax benefits associated with SBC arrangements, and non-cash amortization of deferred tax assets related to intra-entity transfer 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 our business. In addition, the components of the costs that we exclude in our calculation of non-GAAP net income attributable to Intuitive and non-GAAP EPS may differ from the components that our 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.