ISRG · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

INTUITIVE SURGICAL INC · 2026-07-21 · Importance 58 · Surprise 56

Income tax expense increased 38% to $231.4 million in the second quarter of 2026 and 161% to $345.8 million in the first six months. The effective tax rate increased to 21.9% quarterly from 20.2% and to 17.3% year to date from 8.8%. The increase primarily reflected lower excess tax benefits from employee equity plans and a lower federal R&D credit, partly offset by lower taxes on foreign earnings. Equity-plan excess tax benefits reduced the tax rate by 1.6 percentage points quarterly and 4.5 points year to date in 2026, versus 4.0 and 11.9 points, respectively, in 2025.

Key facts

• Income tax expense was $231.4 million for Q2 2026 and $345.8 million for the six months ended June 30, 2026; effective income tax rate was 21.9% for Q2 2026 and 17.3% for the six months ended June 30, 2026. source
• Excess tax benefits associated with employee equity plans reduced effective tax rate by 1.6 and 4.0 percentage points for the three months ended June 30, 2026 and 2025, respectively, and by 4.5 and 11.9 percentage points for the six months ended June 30, 2026 and 2025, respectively. source