INTUITIVE ANNOUNCES THIRD QUARTER EARNINGS
INTUITIVE SURGICAL INC (ISRG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Contact: Investor Relations (408) 523-2161 INTUITIVE ANNOUNCES THIRD QUARTER EARNINGS SUNNYVALE, CALIF., October 20, 2026 – Intuitive (the “Company”) (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, to
How this was made
The 30-second read
Why it matters
The earnings release combines robust revenue growth with a sizable legal expense, creating a nuanced market reaction.
Market read
Earnings provide fresh data on growth trends and a material legal settlement, influencing the stock and sector peers.
What to watch
Cash depletion from $2.94B share repurchase may limit near‑term liquidity.
Third quarter 2026 revenue increased 22% to $3.05 billion, while GAAP earnings absorbed a $450 million antitrust litigation settlement charge and non-GAAP net income rose to $1.05 billion.
Revenue, procedure volumes, system placements and non-GAAP earnings advanced strongly, while GAAP operating income and net income declined because of a $450 million litigation settlement charge.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $3.05B | – | 22% |
| Q3 2026 gross profitGAAP | $2.08B | – | – |
| Q3 2026 gross profit marginGAAP | 68.4% | – | – |
| Q3 2026 non-GAAP gross profitnon-GAAP | $2.13B | – | – |
| Q3 2026 non-GAAP gross profit marginnon-GAAP | 69.9% | – | – |
| Q3 2026 total operating expensesGAAP | $1.49B | – | – |
| Q3 2026 selling, general, and administrative expensesGAAP | $1.08B | – | – |
| Q3 2026 research and development expensesGAAP | $408.3M | – | – |
| Q3 2026 income from operationsGAAP | $592.6M | – | – |
| Q3 2026 non-GAAP income from operationsnon-GAAP | $1.27B | – | – |
| Q3 2026 interest and other income, netGAAP | $75.8M | – | – |
| Q3 2026 income before taxesGAAP | $668.4M | – | – |
| Q3 2026 income tax expenseGAAP | $144M | – | – |
| Q3 2026 net incomeGAAP | $524.4M | – | – |
| Q3 2026 net income attributable to Intuitive Surgical, Inc.GAAP | $522.8M | – | – |
| Q3 2026 non-GAAP net income attributable to Intuitive Surgical, Inc.non-GAAP | $1.05B | – | – |
| Q3 2026 basic net income per share attributable to Intuitive Surgical, Inc.GAAP | $ 1.50 | – | – |
| Q3 2026 diluted net income per share attributable to Intuitive Surgical, Inc.GAAP | $ 1.49 | – | – |
| Q3 2026 non-GAAP diluted net income per share attributable to Intuitive Surgical, Inc.non-GAAP | $ 3.00 | – | – |
| Q3 2026 diluted weighted-average shares outstandingGAAP | 351.6M | – | – |
| Q3 2026 worldwide procedures (da Vinci and Ion combined)other | approximately 15% growth | – | approximately 15% |
| Q3 2026 da Vinci proceduresother | approximately 14% growth | – | approximately 14% |
| Q3 2026 Ion proceduresother | approximately 31% growth | – | approximately 31% |
| Q3 2026 da Vinci surgical system placementsother | 546 systems | – | – |
| Q3 2026 da Vinci 5 system placementsother | 315 systems | – | – |
| Q3 2026 Ion endoluminal system placementsother | 56 systems | – | – |
| Q3 2026 da Vinci surgical system installed baseother | 12,094 systems | – | 12% |
| Q3 2026 Ion endoluminal system installed baseother | 1,152 systems | – | 21% |
| Nine months ended September 30, 2026 total revenueGAAP | $8.71B | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $5.88B | – | – |
| Nine months ended September 30, 2026 GAAP gross profit marginGAAP | 67.4% | – | – |
| Nine months ended September 30, 2026 non-GAAP gross profitnon-GAAP | $6.03B | – | – |
| Nine months ended September 30, 2026 non-GAAP gross profit marginnon-GAAP | 69.2% | – | – |
| Nine months ended September 30, 2026 total operating expensesGAAP | $3.46B | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | $2.42B | – | – |
| Nine months ended September 30, 2026 non-GAAP income from operationsnon-GAAP | $3.56B | – | – |
| Nine months ended September 30, 2026 net income attributable to Intuitive Surgical, Inc.GAAP | $2.16B | – | – |
| Nine months ended September 30, 2026 non-GAAP net income attributable to Intuitive Surgical, Inc.non-GAAP | $2.96B | – | – |
| Nine months ended September 30, 2026 diluted net income per share attributable to Intuitive Surgical, Inc.GAAP | $ 6.07 | – | – |
| Nine months ended September 30, 2026 non-GAAP diluted net income per share attributable to Intuitive Surgical, Inc.non-GAAP | $ 8.30 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 Instruments and accessoriesThe increase was primarily driven by approximately 14% growth in da Vinci procedure volume and approximately 31% growth in Ion procedure volume. | $1.80B | – | 18% |
| Q3 2026 SystemsHigher systems revenue reflected increased da Vinci system placements and a higher lease installed base compared with the third quarter of 2025. | $769.1M | – | – |
| Q3 2026 ServicesNo segment-specific driver was provided. | $482.2M | – | – |
full year of 2026 outlook
- Gross marginNon-GAAP* gross profit margin to be within a range of 68.7% to 69.3% of revenue in 2026. This range includes an estimated impact from tariffs of 0.9% of revenue (excluding recognized tariff refunds).
- Operating expensesNon-GAAP* operating expense growth of 11% to 13% in 2026.
- NoteWorldwide da Vinci procedure growth of approximately 14% to 15% in 2026. The Company expects to be closer to the midpoint of this range.
Capital returns
- The Company repurchased 7.8 million shares of its common stock for $2.94 billion in the third quarter of 2026.
What drove it
- Third quarter revenue growth was driven by growth in procedure volume, higher operating lease revenue, and an increase in the installed base of systems.
- Third quarter da Vinci placements were 546 systems, including 315 da Vinci 5 systems.
- Third quarter 2026 placements under operating lease arrangements were 291 systems, of which 160 systems were placed under usage-based operating lease arrangements.
- The Company recognized benefits related to refunds for tariffs paid in prior periods under IEEPA, including $ 25.7 million in product cost of revenue and $ 2.1 million in service cost of revenue.
Concerns
- The Company recorded a $450 million charge to selling, general, and administrative expenses for the proposed settlement of the previously disclosed antitrust class action litigation.
- The settlement remains subject to preliminary and final Court approval, and the Company stated there can be no assurance that the Court will approve it or that individual class members will not object.
- The full-year non-GAAP gross-profit-margin range includes an estimated tariff impact of 0.9% of revenue, excluding recognized tariff refunds.
- The Company stated that additional tariffs beyond its expectations could have a material impact on 2026 financial results, including expected non-GAAP gross profit margin.
- Share-based compensation expense was $216 million in the third quarter of 2026, and the Company stated that it has been and will continue to be a significant recurring expense.
What to watch
- Whether worldwide da Vinci procedure growth is closer to the midpoint of the approximately 14% to 15% full-year 2026 outlook range.
- Full-year non-GAAP gross profit margin relative to the 68.7% to 69.3% outlook range and the estimated 0.9% of revenue tariff impact.
- Full-year non-GAAP operating expense growth relative to the 11% to 13% outlook range.
- The outcome of preliminary and final Court approval for the proposed antitrust litigation settlement.
- Da Vinci 5 adoption, operating-lease placements, usage-based operating-lease placements, and the installed-base expansion.
Balance sheet and cash flow
- Cash, cash equivalents, and investments were $ 6,800.4 million as of September 30, 2026, compared with $ 9,034.1 million as of December 31, 2025.
- Cash, cash equivalents, and investments decreased by $1.83 billion during the quarter, primarily driven by cash used for repurchases of common stock and purchases of property, plant, and equipment, partially offset by cash generated from operations.
- Accounts receivable, net was $ 1,721.3 million as of September 30, 2026, compared with $ 1,527.3 million as of December 31, 2025.
- Inventory was $ 2,128.2 million as of September 30, 2026, compared with $ 1,840.0 million as of December 31, 2025.
- Property, plant, and equipment, net was $ 5,676.2 million as of September 30, 2026, compared with $ 5,342.4 million as of December 31, 2025.
- Total assets were $ 19,349.1 million as of September 30, 2026, compared with $ 20,458.7 million as of December 31, 2025.
- Total liabilities were $ 3,231.3 million as of September 30, 2026, compared with $ 2,517.0 million as of December 31, 2025.
- Stockholders’ equity was $ 16,117.8 million as of September 30, 2026, compared with $ 17,941.7 million as of December 31, 2025.
Analysis
Intuitive reported broad-based Q3 growth. Revenue was $ 3,048.7 million, compared with $ 2,505.1 million in the third quarter of 2025, and the release attributed the increase to procedure-volume growth, higher operating-lease revenue, and a larger system installed base. Worldwide procedures grew approximately 15%, including approximately 14% growth in da Vinci procedures and approximately 31% growth in Ion procedures. Instruments and accessories revenue increased 18% to $ 1,797.4 million, while systems revenue was $ 769.1 million.
System utilization and placement trends supported the top line. Intuitive placed 546 da Vinci systems, including 315 da Vinci 5 systems, versus 427 and 240, respectively, in the year-ago quarter. Operating-lease placements were 291 systems, including 160 usage-based operating-lease placements. The da Vinci installed base reached 12,094 systems, up 12% from 10,763 systems, while the Ion installed base reached 1,152 systems, up 21% from 954 systems.
Profitability diverged sharply between GAAP and non-GAAP measures because the Company recorded a $450 million charge to selling, general, and administrative expenses for a proposed antitrust litigation settlement. GAAP income from operations was $ 592.6 million, compared with $ 759.7 million, and GAAP net income attributable to Intuitive Surgical, Inc. was $ 522.8 million, compared with $ 704.4 million. Non-GAAP income from operations increased to $ 1,269.7 million from $ 975.9 million, and non-GAAP net income attributable to Intuitive Surgical, Inc. increased to $ 1,054.5 million from $ 867.2 million. The quarter also included an IEEPA tariff-refund benefit of $22 million, net of tax, or $0.06 per diluted share.
Margins improved year over year on both reported bases. GAAP gross profit margin was 68.4%, compared with 66.4%, and non-GAAP gross profit margin was 69.9%, compared with 68.0%. The Company ended the quarter with $ 6,800.4 million in cash, cash equivalents, and investments, down from $ 9,034.1 million at December 31, 2025, after repurchasing 7.8 million shares for $2.94 billion and funding property, plant, and equipment purchases.
For full-year 2026, Intuitive expects worldwide da Vinci procedure growth of approximately 14% to 15%, closer to the midpoint, non-GAAP gross profit margin of 68.7% to 69.3% of revenue, and non-GAAP operating expense growth of 11% to 13%. The gross-margin range incorporates an estimated tariff impact of 0.9% of revenue, excluding recognized tariff refunds. The litigation settlement approval process and tariff developments remain the principal disclosed uncertainties around reported profitability and the outlook.
Management, verbatim
Our strong performance this quarter was marked by broad-based adoption across our multi-port, single-port, and Ion platforms, with customers using our systems to perform, on average, over 10,000 procedures per day throughout the period.
Dave Rosa, Intuitive CEO
Not in the filing
stated, not guessed- Previous-period outlook was not provided; comparison of actual results with prior guidance is unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Dividend amount and dividend activity were not reported.
- Revenue guidance was not provided.
- Tax-rate guidance was not provided.
- Q3 2026 GAAP and non-GAAP operating-margin figures were not reported.
- Percentage changes for systems revenue and services revenue were not reported.
- Quarter-over-quarter percentage changes were not reported for the reported revenue segments or earnings metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Intuitive Surgical is a leading provider of robotic‑assisted surgical systems, reporting its quarterly results via an SEC 8‑K filing.
Ticker impact
Intuitive Surgical disclosed Q3 2026 earnings, revenue up 22% to $3.05B and a $450M antitrust settlement charge.
potential modest upside as revenue growth offsets settlement charge
Strong procedural volume growth and system placements support earnings, while the $450M charge drags profit; market likely prices in mixed impact.
Market effects
Positive signal for minimally invasive surgery equipment sector as procedure volumes rise.
U.S. healthcare investors may see incremental demand for robotic systems.
Limited to medical device space; no broad market ripple.
Counterpoint
The settlement charge could signal deeper regulatory risk, weighing on the stock despite growth.
Key entities
- CompanyIntuitive Surgical Inc.
Manufacturer of da Vinci and Ion surgical platforms.
