ISRG · 8-K · 20261020PR000067

Income Tax Rate Changes

INTUITIVE SURGICAL INC · 2026-10-20 · Importance 47 · Surprise 48

Third-quarter income tax expense was $144 million on $668 million of pretax income, implying a GAAP effective tax rate of approximately 21.5%. The prior-year quarter had $146 million of tax expense on $855 million of pretax income, implying an effective rate of approximately 17.1%. The quarter included $13 million of excess tax benefits from share-based compensation, compared with $24 million in the prior-year quarter. For the first nine months, tax expense increased to $490 million from $279 million, while excess tax benefits declined to $103 million from $203 million.

Key facts

• Q3 2026 diluted net income per share included an IEEPA tariff refunds net of tax benefit of $0.06 and litigation charges net of tax of $(1.00). source
• For the three months ended September 30, 2026, tax adjustments included excess tax benefits associated with share-based compensation arrangements of $(12.6) million, the tax impact related to intra-entity transfers of non-inventory assets of $10.7 million, and other tax adjustment effects of $(142.5) million. source