Intuitive Surgical earnings for the third quarter of 2026 showed revenue rising 22% to $3.05 billion as surgical procedures and system placements increased. Results announced October 20 also showed a split in profitability: adjusted earnings rose, while a $450 million pre-tax antitrust settlement charge pushed reported net income lower.
Key Takeaways
- Revenue reached $3.05 billion, above the pre-release analyst forecast of $2.91 billion.
- Adjusted diluted earnings rose to $3.00 per share, while GAAP earnings fell to $1.49.
- The proposed antitrust settlement remains subject to preliminary and final court approval.
Table of Contents
- Intuitive Surgical earnings separate growth from legal costs
- More procedures support instruments and system sales
- Antitrust agreement is not yet final
- Full-year outlook retains tariff assumptions
- Conclusion
Intuitive Surgical earnings separate growth from legal costs
The company’s third-quarter 2026 earnings release reported non-GAAP net income of $1.05 billion, compared with $867 million a year earlier. Adjusted diluted earnings increased to $3.00 from $2.40 for the quarter ended September 30.
GAAP net income moved in the opposite direction, falling to $523 million from $704 million. Diluted earnings declined to $1.49 from $1.95. The proposed settlement accounted for an after-tax expense of $347 million, or $0.99 per diluted share.
Both GAAP and adjusted earnings included a $22 million after-tax benefit from refunds of tariffs paid in prior periods, equivalent to $0.06 per diluted share. The adjusted figures therefore should not be read as excluding every unusual benefit.
| Item | Details |
|---|---|
| Da Vinci installed base | 12,094 systems at September 30, 2026, up 12% year over year. |
| Ion installed base | 1,152 systems at September 30, 2026, up 21% year over year. |
| Quarterly share repurchases | 7.8 million shares purchased for $2.94 billion. |
| Cash, cash equivalents and investments | $6.80 billion at quarter-end, down $1.83 billion during the quarter. |
More procedures support instruments and system sales
Worldwide procedures using da Vinci and Ion systems increased approximately 15% year over year. Da Vinci procedures grew about 14%, while Ion procedures increased about 31%.
Instruments and accessories revenue rose 18% to $1.80 billion. This business links revenue to surgical activity after a system is placed, making procedure volumes important beyond the initial equipment transaction.
Systems revenue increased to $769 million from $590 million. Intuitive placed 546 da Vinci systems, compared with 427 a year earlier, including 315 da Vinci 5 systems versus 240. The company attributed overall revenue growth to higher procedure volume, operating lease revenue and a larger installed system base.
Antitrust agreement is not yet final
Intuitive said it reached a written agreement in October to settle previously disclosed antitrust class action litigation for a one-time payment of $450 million and mutually agreed injunctive relief, without admitting liability or wrongdoing.
Although the company recorded the charge in the third quarter, the settlement still requires preliminary and final court approval. Intuitive cautioned that approval is not assured and individual class members may object.
Full-year outlook retains tariff assumptions
Management expects worldwide da Vinci procedure growth of approximately 14% to 15% for 2026, with the outcome closer to the midpoint. It projects a non-GAAP gross profit margin of 68.7% to 69.3% and non-GAAP operating expense growth of 11% to 13%.
The margin forecast includes an estimated tariff impact equal to 0.9% of revenue, excluding recognized tariff refunds. It assumes tariffs in effect at the release date remain through year-end; additional tariffs could materially affect results.
Conclusion
Procedure growth supported higher sales and adjusted profit, but the legal charge reduced GAAP earnings. The pending settlement approval process and management’s full-year procedure and margin targets remain the key items to watch.
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