Intuitive Surgical posts Q3 beat but shares tumble on settlement charge and pricing cuts
+1 new source since this summary was written
Intuitive Surgical reported third‑quarter 2026 adjusted earnings of $3.00 per share on revenue of $3.05 billion, surpassing analyst forecasts. The results were offset by a $450 million pre‑tax legal settlement and announced reductions in instrument pricing that could cut revenue per procedure by 3%‑5%. Procedure growth slowed, with U.S. da Vinci volumes up 10% year‑over‑year and the company trimming its full‑year procedure growth outlook to 14%‑15%. The market reacted with a 7.5% pre‑market decline in the stock.
Why it matters
The settlement charge and pricing changes lowered expected recurring revenue, prompting analysts to cut price targets (e.g., Raymond James to $480, Mizuho to $400). The reduced procedure growth guidance may dampen revenue growth expectations for 2027.
Key facts
- 1Adjusted EPS was $3.00 per share, beating the $2.65 consensus estimate. finance.yahoo.com
- 2Revenue was $3.05 billion, exceeding the $2.91 billion forecast. finance.yahoo.com
- 3A $450 million pre‑tax charge was recorded for a class‑action lawsuit settlement. finance.yahoo.com
- 4U.S. da Vinci procedure volume grew 10% year‑over‑year, while international volume grew 20%. finance.yahoo.com
- 5Full‑year procedure growth guidance was lowered to a range of 14%‑15%. investing.com
- 6Da Vinci system placements totaled 546 units, up from 427 a year earlier. gurufocus.com
Summary written by AlphAI AI Desk from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.