Intuitive Surgical, Inc.

Good day, and thank you for standing by. Welcome to the Intuitive Q2 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press Star 111 on your telephone. You will then hear an automated message advising your hand is raised. To ask a question, please press Star 111 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Dan Connolly. Please go ahead.

Good afternoon and welcome to Intuitive's second quarter 2026 earnings conference call. Joining me today are Dave Rosa, our CEO, and Jamie Samath, our CFO. Before we begin, I would like to remind you the comments made on today's call may contain forward-looking statements. Actual results may differ materially from those expressed or implied. as a result of certain risks and uncertainties. These risks and uncertainties are described in our Securities and Exchange Commission filings, including our most recent Form 10-K filed on February 3rd, 2026, and Form 10-Q filed on April 22nd, 2026. Our SEC filings can be found through our website at intuitive.com or at the SEC's website. Investors are cautioned not to place undue reliance on such forward-looking statements. This conference call will be available for audio replay on our website in the events section under our investor relations page. We have posted today's press release and supplementary financial data tables to our website. Our format for this afternoon's earnings conference call is as follows. Dave will review business and operational highlights. Jamie will provide a review of our financial results and procedure highlights. I will review clinical highlights and discuss our updated financial outlook for 2026. And finally, we will host a question and answer session. With that, I'll turn it over to Dave.

Good afternoon, and thank you for joining us today. If Jamie's and my voices sound a bit different today, we're both recovering from head colds, so I appreciate you bearing with us. Our performance in Q2 was solid. We saw continued global adoption across our multiport, single port, and ion platforms, and steady execution by our teams. In Q2, total procedures increased 16%, driven by 15% growth in da Vinci procedures and 36% growth in Ion procedures. The global installed base of da Vinci and Ion systems increased by 12% and 21% respectively, and we exited the quarter with almost 13,000 systems installed worldwide. In the US, da Vinci procedure growth was 12%, led by general surgery, with after-hours procedures increasing 26%. Growth in the U.S. moderated from recent trends and our expectations at the start of the year, predominantly in procedures that can be deferred. In our customer conversations, some have said that changes in patient coverage and premium dynamics may be affecting when patients seek care and move forward with treatment. Importantly, the underlying disease burden is unchanged. and deferred conditions typically progress and will ultimately require treatment. As patients return to care, we expect da Vinci will remain a clear choice for their surgeons and care teams. Outside the U.S., da Vinci procedure growth was 20%. Regionally, growth was consistent, with Europe and Asia each up 20% and rest of world markets up 22%. In China, the environment remains challenging. We continue to see lower tender activity increased domestic robotic competition, and policy-driven pricing pressure. And we continue to operate through a dynamic policy environment, including charge code changes and the 15th five-year plan quota process. We are engaging with provincial governments on the charge code policy and are progressing through the green channel process for both SP and DaVinci 5. When cleared, these platforms will bring additional differentiated capabilities to Chinese customers and their patients. In Japan, new policies supporting robotic surgery went into effect on June 1, including reimbursement for additional procedures and economic incentives for higher utilization programs. We are encouraged by the direction of the policy environment as well as early response to these initiatives. India had another strong quarter, with momentum across a broad set of procedures. This week, we received DaVinci 5 clearance in India and we're excited to bring our latest generation platform to customers in that market. Turning to systems, Q2 was a strong capital quarter, reflecting continued customer demand for our newer platforms and confidence in the value of our ecosystem. We placed 468 DaVinci systems and 55 Ion systems in the quarter. Within MultiPort, placements reflected strong adoption of DaVinci 5, including dual consoles, and continued demand for our fourth-generation systems where their proven capabilities and value meet customer needs. In the quarter, we rolled out the first phase of more than 100 planned updates to the DaVinci 5 platform. These updates are directed at improving telepresence, simulation-based training, and care team workflow. We have also submitted multiple innovations for FDA 510 clearance that leverage these updates. In line with our strategy, we are seeing increased adoption of DaVinci XIR, particularly in more cost-constrained countries outside the U.S. and in ambulatory surgery centers in the U.S. XIR expands access to DaVinci surgery where the customer's procedure mix and economic profile align well with the capabilities and cost profile of our fourth-generation systems. With more than 13 million procedures completed on DaVinci XI globally, customers continue to value the breadth, reliability, clinical capability, and support of the Intuitive Ecosystem. Turning to instrumentation, I want to expand further on the Extended Use Program we announced in May. This initiative reflects many years of investment in instrument design and manufacturing, consistent with our longstanding approach of strengthening the value of our ecosystem. In the first half of 2027, We expect to increase the number of uses on a subset of endo-wrist instruments with the benefit targeted to reduce costs in a set of benign procedures. By lowering customer cost per procedure, we expect to support broader adoption of da Vinci surgery, particularly in those procedures and geographies where cost constraints may be greater. Ultimately, these efforts help reinforce a virtuous cycle, where lower costs support broader adoption, which drives utilization and scale, and in turn enables continued innovation across our platforms. Moving to our DaVinci SinglePort platform, we placed 38 DaVinci SP systems in the quarter, bringing our global installed base to 445 systems. SP procedures grew 61%, reflecting continued momentum in Korea and the US, where expanded indications, new instrumentation and recent enhancements, including extended range instruments, custom remote center software and Reach Assist Software are supporting broader adoption. In the U.S., adoption of the SP stapler continues to grow in colorectal and thoracic procedures. We remain focused on expanding SP adoption through product innovation, training and geographic expansion. Turning to ION, lung cancer diagnosis and time to treatment remain major challenges globally. Customers and policymakers are recognizing the value of our ION platform and we are encouraged by the adoption of the technology as well as the increase in five-year survival rates for lung cancer. ION procedures increased 36% to 48,000 and now exceed 400,000 cumulatively. We remain focused on supporting utilization growth in the U.S. and continuing to generate the evidence required internationally to drive adoption. Our commercial teams have now installed ION systems in 12 countries outside the U.S. and our development teams are making strong progress on our ROSE and EBUS programs. Aligned with our priority of reaching more patients, we continue to advance multiple early-stage R&D programs, exploring the application of robotic-assisted technologies in new disease states. Recently, we submitted four FDA 510 clearance, a foundational, non-commercial, next-generation flexible robotic endoscope system for use in the gastrointestinal tract. We look forward to updating you on this program and others as they advance through development and regulatory milestones. Stepping back, as robotic assisted surgery has evolved from an emerging technology to a globally adopted surgical platform, we continue to see increasing segmentation across customer needs. These needs range from highly complex reconstructive procedures, such as coronary artery bypass grafting, to high-volume repeatable procedures, including cholecystectomy and hernia repair. We have positioned Intuitive to serve customers across this continuum. Our portfolio includes innovative platforms such as SP and ION, which expand the reach of robotics into new clinical applications, while continued enhancements across our core platforms improve reliability, usability, efficiency, and throughput. These innovations are designed to help providers advance key healthcare objectives. including clinical outcomes, patient experience, provider experience, access, and affordability. We are also innovating across manufacturing and supply chain operations to better serve value sensitive markets. Programs such as XIR and EUP are intended to expand access to robotic assisted surgery while maintaining the quality, reliability, and service levels our customers expect. Supporting these efforts requires sustained investment across multiple technology domains, including artificial intelligence and machine learning, robotics, instrumentation, imaging, and advanced materials. Ultimately, we believe customers respond to compelling value, regardless of procedure type. In novel and complex applications, value is driven by innovation and clinical capability. In high volume settings, value focuses on reliability, efficiency, and economics. With our technology leadership, manufacturing scale, and global infrastructure, we believe Intuitive is uniquely positioned to deliver value across this broad range of customer needs and will continue investing accordingly, including increasing R&D to accelerate those innovations we believe will meaningfully differentiate our solutions, improve durability, and reduce total cost of care. And with that, I'll turn the time over to Jamie to take you through our finances in greater detail.