ISRG · 10-Q · 2026Q2 · Full report

China Surgical Robot Quotas

INTUITIVE SURGICAL INC · 2026-07-21 · Importance 40 · Surprise 42

China’s 2023 quota permits 559 new surgical robots, including systems from competitors; as of June 30, 2026, Intuitive had placed 169 da Vinci systems under the quota and three under special approval. Since 2022, provincial limits on hospital charges for robotic-assisted surgery have reduced procedures and affected instruments and accessories pricing in impacted provinces. During the second quarter of 2026, China’s National Healthcare Security Administration issued a unified national pricing framework requiring provinces to implement NHSA-mandated limits in upcoming quarters. Although the limits had not materially affected Intuitive as of the filing date because only a small portion of its Chinese installed base was in impacted provinces, future pricing restrictions could materially pressure Chinese procedure volumes and instruments-and-accessories revenue.

Key facts

• Our operations involve importing certain raw materials from China, importing sub-assemblies to support our local da Vinci Xi surgical system manufacturing in China, and selling U.S.-manufactured da Vinci Xi surgical systems into China; these imports into the U.S. and China are subject to tariffs which are expected to adversely impact the product cost of our da Vinci Xi surgical system in China. source
• Under the original 2023 Quota, the China government will allow for the sale of 559 new surgical robots into China. source
• System demand in China has been adversely affected by increasing competition from domestic manufacturers and a central government healthcare governance campaign initially launched in July 2023. source
• As of June 30, 2026, including systems sold in prior quarters, we have placed 169 da Vinci surgical systems under the original 2023 Quota and 3 da Vinci surgical systems under special approval. source