“We continue to expect higher input costs in certain areas including freight and semiconductor memory.”

In context

“drivers to be general surgery in the US, including after hours, and procedures outside of urology internationally. Our range considers the impact of changes in ACA premium subsidies and patient behavior in the US, China tender volumes and competitive intensity in that market, capital pressure in parts of Europe related to macroeconomic impact, and shifting governmental priorities. Prior capital challenges in Japan and how long those persist in 2026, in pharmaceutical products for obesity management. Turning to gross profit on our last call, we forecast non GAAP gross profit margin to be within a range of 67.5%-68.5% of revenue. Which reflected 100-basis points of impact from tariffs. We are updating our estimate for non GAAP gross profit margin to be within a range of 68%-69% of revenue. We continue to expect higher input costs in certain areas including freight and semiconductor memory. Other factors for the year include fast growth of newer products, including da Vinci 5 and ION, modest incremental depreciation from recent facility expansion, and the impact from higher da Vinci system upgrades partially offset by product cost reductions. Our actual non GAAP gross profit margin will vary quarter to quarter depending largely on product, regional and trade in mix, and pricing. In regard to operating expenses, we now expect non GAAP operating expense growth to be between 11%-13%. In recent periods, R&D has grown faster than SG&A. We expect that trend to continue over the remainder of 2026. Additionally, in Q4 25, we made a $70 million multiyear contribution to the Intuitive Foundation. We do not expect to make a contribution to the foundation in 2026. We now estimate noncas”