Intuitive Surgical (ISRG)

Surgical robotics (Intuitive Surgical) — the da Vinci robotic-surgery near-monopoly

AI exposure 4% — derived from reported segment revenue, not asserted.

Where it sits

Frontier & Emerging Bets → Healthcare AI & Medtech · figures rebased to Q2 2026, reported 2026-07-16

da Vinci surgical instruments + accessories (recurring, per-procedure razor-blade model) leads 2 businesses in this sub-tier that together are 76% of revenue, so Healthcare AI & Medtech is effectively the whole company rather than one leg of it. The rest is tagged separately: Robotics & Autonomous Systems at 24%.

Also tagged: secondary in Frontier & Emerging Bets → Robotics & Autonomous Systems.

Reported segments

Intuitive Surgical ($2.89B Q2 2026, +19% YoY). Instruments & Accessories 59.9% ($1.73B, +18%) = primary B7 Healthcare AI & Medtech — the per-procedure consumable stream; Systems 23.7% ($685M) = B7 Robotics & Autonomous Systems secondary — da Vinci 5 and Ion; Services 16.4%. Recurring revenue is roughly 85% of the mix, so the razor-and-blade model dominates.

How the 4% is built

Investment read

Moat. An 11,710-system da Vinci installed base, a razor-and-blade instrument and service annuity (~85% recurring), and surgeon-training lock-in that compounds with every resident trained on the platform. The da Vinci 5 cycle — 53% of Q2 2026 placements and still a small share of the installed base — extends the switching cost rather than resetting it, and Ion (+36% procedures, 1,096 systems) is building a second franchise on the same model.

Bottleneck / pricing power. Strong pricing power: 70.0% non-GAAP gross margin with instruments and accessories +18% YoY. It is no longer uncontested — J&J's Ottava clearance decision lands in H2 2026 — and two exogenous items now cap the margin rather than competition doing it: roughly 1% of revenue in tariff cost embedded in FY26 guidance, and GLP-1 erosion of the bariatric procedure bucket.

Role in the AI stack. The surgical-robotics (medical-AI-applied) layer.

Connected companies

Others in Healthcare AI & Medtech

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