ISRG · 10-Q · 2026Q2 · Full report

Supply Chain Constraints

INTUITIVE SURGICAL INC · 2026-07-21 · Importance 29 · Surprise 24 · In source text

Intuitive continues to experience extended delivery lead times and price volatility for semiconductor materials, particularly memory, as demand rises from data-processing and storage applications. Certain raw materials and finished components face multi-year lead times, shipment delays, limited alternative sourcing, and supplier capacity and financial-health risks. The company is managing these pressures through supplier engagement and other mitigation efforts, although the constraints had not materially affected the business through June 30, 2026. Supply-chain cybersecurity incidents are also being monitored because disruptions to supplier operations or logistics networks could affect production and deliveries.

Key facts

• We expect future placements of da Vinci systems will be impacted by supply chain risks, economic and geopolitical factors, inflationary pressures, high interest rates, hospital staffing constraints, procedure growth rates, and other listed factors. source
• Restrictions on the export of rare earth elements, including magnets, and critical minerals from China could potentially restrict access to components used in our products and could have a material adverse effect on our business. source
• We continue to experience extended delivery lead times and price volatility for certain semiconductor materials, including memory, driven by accelerated demand associated with data processing and storage applications. source
• We import endoscopes, a majority of which are manufactured in Germany, and certain raw materials and finished goods from outside of the U.S. that are subject to tariffs. source
• Some of our suppliers have incurred incremental tariffs and have passed or may pass on those additional costs to us, and pass-through tariffs and other specific tariff actions have not had a material direct impact to date. source
• We currently manufacture a significant majority of our instruments and accessories in Mexicali, Mexico. source

Impact estimates