Intuitive Surgical earnings for the third quarter of 2026 showed revenue rising 22%, but a $450 million antitrust settlement charge pushed reported profit lower. Shares fell sharply in after-hours trading following the October 20 results, despite adjusted earnings exceeding Wall Street expectations. The proposed settlement still requires court approval.
Key Takeaways
- Revenue reached $3.05 billion, while adjusted earnings rose to $3.00 per diluted share.
- The settlement charge reduced after-tax income by $347 million, or $0.99 per diluted share.
- Management expects full-year da Vinci procedure growth near the midpoint of its 14%–15% range.
Table of Contents
- Intuitive Surgical earnings reflect a large legal charge
- Procedure growth supports revenue and system placements
- Full-year outlook centers on procedure growth and tariffs
- Conclusion
Intuitive Surgical earnings reflect a large legal charge
The company’s third-quarter earnings announcement details an October 2026 written agreement to settle previously disclosed antitrust class-action litigation involving its da Vinci business. The agreement includes a one-time $450 million payment and mutually agreed injunctive relief, without any admission of liability or wrongdoing.
Intuitive recorded the charge in the quarter ended September 30, 2026. The settlement remains subject to preliminary and final court approval, and the company cautioned that approval is not assured and class members could object.
GAAP net income fell to $523 million, or $1.49 per diluted share, from $704 million, or $1.95 per share, a year earlier. By contrast, non-GAAP net income rose to $1.05 billion, or $3.00 per diluted share, from $867 million, or $2.40 per share.
The legal expense helps explain why reported and adjusted profit moved in opposite directions. Both earnings measures also included a $22 million after-tax benefit, equivalent to $0.06 per diluted share, from refunds of tariffs paid in prior periods.
| 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. |
| Ion system placements | 56 in Q3 2026, compared with 50 a year earlier. |
| Da Vinci operating lease placements | 291 systems, including 160 under usage-based arrangements. |
Procedure growth supports revenue and system placements
Revenue increased to $3.05 billion from $2.51 billion in the third quarter of 2025. Intuitive attributed the increase to higher procedure volume, operating lease revenue and a larger installed base of systems.
Worldwide procedures across the da Vinci and Ion platforms grew approximately 15%. Da Vinci procedures increased about 14%, while Ion procedures rose about 31%. That activity supported instruments and accessories revenue, which increased 18% to $1.80 billion.
Intuitive placed 546 da Vinci systems, compared with 427 a year earlier. The total included 315 da Vinci 5 systems, up from 240. Systems revenue reached $769 million, compared with $590 million, reflecting higher placements and a larger lease installed base.
Full-year outlook centers on procedure growth and tariffs
Management expects worldwide da Vinci procedure growth of approximately 14%–15% for full-year 2026, with the result closer to the midpoint. That is a forecast for da Vinci procedures, not the combined da Vinci and Ion growth measure reported for the quarter.
The company projects a non-GAAP gross profit margin of 68.7%–69.3% and non-GAAP operating expense growth of 11%–13%. The margin range includes an estimated tariff impact equal to 0.9% of revenue, excluding recognized tariff refunds.
Those estimates assume tariffs in effect at the time of the announcement remain in place through year-end. Intuitive warned that additional tariffs beyond its expectations could materially affect its financial results.
Conclusion
The next legal milestone is court consideration of the proposed settlement. For operating performance, management’s full-year da Vinci procedure-growth and margin ranges provide the benchmarks for the remaining quarter of 2026.
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