ISRG FY2026 Q1 Earnings Call

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Travis“Hey, congrats on a good quarter. Maybe to start with, I kind of want to talk a little bit about some of the future. You talked a lot about data and digital infrastructure, augmented dexterity. Just kind of curious how you see the digital and data roadmap for Intuitive, and there's also some hints on biopsy and the ROSE acquisition. So love to kind of hear your big picture view of how that kind of plays out and anything you can say on timing. Dave Rosa (CEO)Yep, happy to do it, Travis. Thank you for the question. So I'll start with AI, and I'm really— and you asked the question, but I'm going to speak specifically about AI as it shows up in our products and and with our customers, and not so much AI on the corporate side. And so, if, when we look at AI, it's like any other product, and it's really through the lens of the quintuple aim. And will it advance outcomes and reduce variation, improve care team patient experiences, lower total cost, you know, advance access for patients around the globe? And we believe yes, that, AI will be a contributor to moving the Quintuple Aim forward. And our, our approach here is what we've described in the past, and it's really to build kind of this layered capabilities. And it starts with high-quality data, and that data will exist in video data from surgeries. It'll exist in robotic data streams like kinematic data and force data. It will exist in connected electronic medical records where we're working with customers to do so. And once we have that high-quality data set, then the job of our, of AI and our data scientists is to turn that into meaningful insights. And, and once we have those, I, I think the critical part here is how do we deliver those to the customer? And it has to be in a consumable fashion. It has to be at the right time in the moment that matters to the customer. And so there are, I think, ways in which this will show up to the customer. Some will be as operational guidance and assistance as they look at their hospital robotic program and want to increase efficiencies or understand costs. Some of it may show up in the learning of a surgeon and/or a care team. But a lot of it will show up in the operating room, and I think show up in the surgery itself. And an example of this kind of first phase might be AI-enabled anatomy identification, where you can see AI showing critical structures in the surgical field, showing tissue planes to help assist the surgeon. Then, over time, what we expect is that many of those same foundations that are being established and built in kind of that first phase, if you will, will support more advanced assistance around augmented dexterity, and it will include, likely include aspects of automation. There, an example might be helping to control the camera as the surgeon is focused on the procedure. And so throughout this, every step, it's about clinical value, of course, and it's about safety and reliability, and not just doing this in a one-off, but doing this in a scaled fashion. And so if I, if I look at that as the layer that we're progressing through, and I, and I look to see where, how do we sit, how do we exist within the AI ecosystem, and how are we differentiated? I think part of that differentiation is around the installed base of systems that we have out there, including about the 1,500 da Vinci 5 systems, the 3 million and more procedures that are being done on an annual basis. And I believe that gives us the foundation to strengthen the differentiation over the next, you know, 3 to 5 years. If you look at the industry and you say, what is broadly available? Broadly available to everyone. It's things like edge and cloud compute, the math that underscores much of this, some of the training algorithms. Our advantage, we believe, lies in the unique datasets that are available to us today through something like force feedback and will be increasingly available to us as we add capability to DaVinci 5. And so all of that together creates this flywheel. It's a flywheel that starts with data, insights, actions, advancing the quintuple aim. The flywheel spins and becomes that virtuous cycle. And, you know, we have the teams focused on it and we are investing to advance this in the future and look forward to updating you along the journey. TravisThat's exciting. Can't wait.”