ISRG · 10-Q · 2026Q2 · Full report

Operating Expense Trends

INTUITIVE SURGICAL INC · 2026-07-21 · Importance 47 · Surprise 22 · From source text

SG&A increased 10% to $617.9 million in the second quarter and 9% to $1.231 billion in the first six months, while declining to 21% and 22% of revenue from 23% and 24%, respectively. SG&A growth was driven by higher headcount, employee compensation, variable compensation, share-based compensation, and infrastructure costs, including depreciation. R&D increased 18% to $370.6 million quarterly and 16% to $732.5 million year to date, with higher direct project costs and personnel expenses from expanded product initiatives and increased headcount. R&D share-based compensation rose 16% to $86.7 million quarterly and 17% to $168.7 million year to date, and the company expects R&D expense to continue increasing.

Key facts

• Research and development expenses were $370.6 million for Q2 2026, up 18% from $313.3 million in Q2 2025. source
• Selling, general, and administrative expenses were $617.9 million for Q2 2026, up 10% from $561.2 million in Q2 2025. source
• Operating income included $24.0 million and $4.8 million of intangible asset-related charges for the three months ended June 30, 2026 and 2025, respectively. source
• We expect depreciation expense to continue to increase in the remainder of 2026 due to increased capital expenditures in 2025. source
• Operating income included $213 million and $200 million of share-based compensation expense related to employee stock plans for the three months ended June 30, 2026 and 2025, respectively. source

Impact estimates