Intuitive (ISRG) Q3 2026 Earnings Call: Revenue Up 22%, Procedure Outlook Narrowed
Source Tradingkey
Key Takeaways
- Q3 2026 revenue increased 22% year over year to just over $3 billion, with recurring revenue representing 84% of the total.
- Combined da Vinci and Ion procedures grew 15%. Da Vinci procedures rose 14%, including 10% growth in the U.S. and 20% outside the U.S., while Ion procedures increased 31%.
- Intuitive placed 546 da Vinci systems, up 28%, including 315 da Vinci 5 systems. Net da Vinci placements, which expand the installed base, grew 40%.
- Non-GAAP operating margin was 42%, or 41% excluding a one-time $28 million pretax tariff refund. Non-GAAP EPS increased 25% to $3.00.
- Management narrowed its 2026 da Vinci procedure growth outlook to 14%-15%, with growth expected near the midpoint, and raised the non-GAAP gross margin range to 68.7%-69.3%.
- Instrument pricing actions and a China price reduction are expected to lower da Vinci instruments and accessories revenue per procedure by approximately 3%-5% on a constant-mix basis once fully implemented.
Core Financial Data
| Metric | Q3 2026 result | Year-over-year change / context |
|---|---|---|
| Revenue | Just over $3 billion | Up 22% |
| Recurring revenue mix | 84% | Instruments, accessories and service remained the majority of revenue |
| Instruments and accessories revenue | $1.8 billion | Up 18% |
| Systems revenue | $769 million | Up 30% |
| Service revenue | $482 million | Up 22% |
| Non-GAAP gross margin | 69.9% | 68.9% excluding the $28 million tariff refund, up 90 basis points year over year |
| Non-GAAP operating margin | 42% | 41% excluding the tariff refund |
| Non-GAAP EPS | $3.00 | Up 25% |
| GAAP net income | $523 million | Versus $704 million in Q3 2025; results included a $450 million litigation settlement |
| GAAP diluted EPS | $1.49 | Versus $1.95 in Q3 2025 |
| Cash and investments | $6.8 billion | Down from $8.6 billion in Q2 2026 |
| Share repurchases | $2.9 billion | Average purchase price of $377 per share |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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