Intuitive Surgical, Inc.
ISRG · Nasdaq
Dec 2026
Next quarter
Expected to report Jan 21, 2027 — estimated from last year’s reporting date.
Consensus is $2.48 EPS for Dec 2026 across 7 estimates, ranging $2.40 to $2.56.
ISRG Sep 2026
- 18.78%
- -2.26%
- $2.13
- $2.53
- —
- $3.05B
Reported results
- $3.05B
- 68.37%
- $592.60M
- 19.44%
- $522.80M
- $1.49
Highlights
- Revenue growth Q3 revenue rose 22% year over year to $3.05 billion and 5.4% from Q2’s $2.89 billion, driven by higher procedure volume, lease revenue and a larger installed base.
- Procedure momentum Worldwide da Vinci procedures grew 14% to approximately 906,000; Ion procedures grew 31% to approximately 49,700. Combined procedures increased about 15%.
- Earnings and expectations The supplied consensus data lists EPS of $2.53 against $2.13 expected, an 18.8% beat; Intuitive’s release reports GAAP diluted EPS of $1.49 and non-GAAP diluted EPS of $3.00, which are different measures.
- Litigation charge GAAP results included a $450 million pre-tax charge for an antitrust class-action settlement, reducing net income by $347 million after tax, or about $0.99 per diluted share. Court approval remains pending.
- Recurring revenue Instruments and accessories revenue rose 18% to $1.80 billion, systems revenue increased 30% to $769 million, and service revenue grew 22% to $482 million. Recurring revenue reached $2.55 billion, or 84% of sales.
- System adoption Intuitive placed 546 da Vinci systems, including 315 da Vinci 5 systems, versus 427 and 240, respectively, a year earlier. The da Vinci installed base reached 12,094, up 12%; Ion placements were 56 and its base grew 21% to 1,152.
- Underlying profitability Non-GAAP operating income increased to $1.27 billion from $976 million a year ago; non-GAAP diluted EPS was $3.00 versus $2.40. Non-GAAP gross margin was 69.9%, up from 68.0% a year ago but down from 70.0% in Q2.
- Outlook and pricing Intuitive expects 2026 da Vinci procedure growth of 14%–15%, closer to the midpoint, non-GAAP gross margin of 68.7%–69.3% and non-GAAP operating expense growth of 11%–13%. Planned pricing actions are expected to reduce da Vinci instruments-and-accessories revenue per procedure by 3%–5% once fully implemented.
- Capital returns The company repurchased 7.8 million shares for $2.94 billion in Q3. Cash, cash equivalents and investments fell $1.83 billion during the quarter to $6.80 billion.
Analysis
Intuitive delivered 22% year-over-year revenue growth to $3.05 billion, with sales up 5.4% from Q2. The supplied analyst comparison records EPS of $2.53 versus $2.13 expected, an 18.8% beat, but that figure does not match the company’s release measures: GAAP diluted EPS was $1.49 and non-GAAP diluted EPS was $3.00. GAAP EPS fell from $1.95 a year ago and $2.29 in Q2, while non-GAAP EPS rose from $2.40 and $2.80, respectively.
The quarter was defined by continued procedure-led adoption and a large litigation charge. Da Vinci procedures grew 14% and Ion procedures 31%; instruments and accessories revenue rose 18%, while placements lifted systems revenue 30%. The $450 million pre-tax settlement charge drove GAAP operating income down to $593 million from $760 million a year ago and $972 million in Q2. Excluding specified items, non-GAAP operating income grew to $1.27 billion from $976 million a year earlier and $1.22 billion sequentially. Gross margin improved year over year but eased from Q2. Management maintained a 14%–15% full-year da Vinci procedure-growth outlook and flagged upcoming pricing actions that will weigh on revenue per procedure.
Procedure adoption
- Da Vinci procedures Customers performed approximately 906,000 procedures, up 14% year over year. U.S. volume grew 10% to 559,000, while outside-U.S. procedures grew 20% to 347,000; overall growth was slower than the 19% reported in Q3 2025.
- Ion procedures Ion procedures increased 31% to approximately 49,700, from 37,900. The installed base expanded 21% to 1,152 systems, supporting higher biopsy volume.
- Placements and utilization Da Vinci placements rose to 546 from 427, including 315 da Vinci 5 systems versus 240. The installed base grew 12% to 12,094, and da Vinci utilization per system increased 2% year over year. Ion placements were 56 versus 50.
- Geographic variation OUS da Vinci growth remained stronger than U.S. growth, with strength in Japan, Germany, India, the U.K. and Italy. Lower growth in China reflected fewer placements in recent quarters; U.S. growth faced a low-double-digit decline in bariatric procedures and a modest reported impact from the expiration of enhanced ACA premium subsidies.
Revenue mix
- Recurring sales Instruments and accessories revenue increased 18% to $1.80 billion, driven by procedure growth and mix; service revenue rose 22% to $482 million as the installed base expanded. Operating lease revenue grew to $275 million, including $178 million of variable revenue.
- Systems sales Systems revenue advanced 30% to $769 million, reflecting more placements, higher operating lease revenue and lease buyouts. Lease buyout revenue was $45 million, up from $22 million a year earlier.
- Recurring-revenue base Instruments and accessories, service and operating lease revenue totaled $2.55 billion, 84% of quarterly revenue, compared with $2.14 billion and 85% a year earlier.
- Regional contribution U.S. revenue rose 20% to $2.06 billion; outside-U.S. revenue grew 25% to $986 million. OUS represented 32% of sales, versus 31% a year ago.
Earnings and settlement
- GAAP results Net income attributable to Intuitive was $523 million and diluted EPS was $1.49, versus $704 million and $1.95 a year ago and $818 million and $2.29 in Q2. The year-over-year decline chiefly reflects the litigation charge.
- Settlement impact The company recorded a $450 million pre-tax charge in SG&A for the proposed settlement of the da Vinci surgical robot antitrust class action, with agreed injunctive relief and no admission of liability. The after-tax expense was $347 million, or approximately $0.99 per diluted share. Preliminary and final court approval are still required.
- Adjusted results Non-GAAP operating income was $1.27 billion, up from $976 million a year earlier and $1.22 billion in Q2. Non-GAAP net income was $1.05 billion and diluted EPS $3.00, compared with $867 million and $2.40 a year earlier and $1.00 billion and $2.80 in Q2.
- Margins and one-offs GAAP gross margin increased to 68.4% from 66.4% a year earlier and 67.8% in Q2; non-GAAP gross margin was 69.9% versus 68.0% and 70.0%. Q3 results also included a $22 million after-tax benefit, or $0.06 per diluted share, from prior-period tariff refunds.
Outlook and pricing
- 2026 outlook Management expects worldwide da Vinci procedure growth of 14%–15%, closer to the midpoint, non-GAAP gross margin of 68.7%–69.3%, and non-GAAP operating expense growth of 11%–13%. The gross-margin range includes an estimated tariff impact of 0.9% of revenue and assumes currently effective tariffs remain in place through year-end.
- Pricing actions Beginning in Q4 2026, Intuitive expects to reduce instruments pricing in China in response to the NHSA national framework. In the first half of 2027, it plans extended-use instruments for a subset of core EndoWrist products and volume-based pricing. Together, these actions are expected to reduce da Vinci instruments-and-accessories revenue per procedure by approximately 3%–5% once fully implemented, excluding mix effects.
- Tariff exposure Tariffs and other trade measures added $23.4 million to Q3 cost of revenue, while $27.8 million of IEEPA tariff refunds reduced it. The company cautioned that additional tariffs could materially affect results.
Cash and repurchases
- Share repurchases Intuitive bought back 7.8 million shares for $2.94 billion in Q3, at an average price of $377.01 per share. Approximately $1.8 billion remained authorized under the repurchase program at quarter-end.
- Liquidity Cash, cash equivalents and investments totaled $6.80 billion, down $1.83 billion from Q2, primarily due to repurchases and capital spending, partly offset by operating cash generation. For the first nine months, operating cash flow was $3.20 billion and repurchases totaled $4.42 billion.
