Intuitive Surgical beats, 22% revenue growth, flags 3–5% I&A pricing headwind to expand access

 

• Q3 revenue grew 22% to $3.05B and non-GAAP EPS rose 25% to $3.00, beating estimates.
• Company expects new pricing and extended-use instruments to reduce I&A revenue per procedure 3–5%.
• China implementing significant I&A price cuts from November; operating environment there remains challenging.
• Disclosed written agreement to settle da Vinci antitrust class action via one-time $450M no-fault U.S. customer payment.
• Settlement incurs corresponding charge, pressures GAAP EPS but removes associated litigation overhang.
• Management issued 2026 guidance for 14–15% da Vinci procedure growth and 68.7%–69.3% non-GAAP gross margins, expecting results near midpoint.
• Total procedures up 15%, led by 31% Ion and 14% da Vinci growth.
• Da Vinci system placements rose 28%; installed base now over 13,200 multiport, SP, Ion systems.
• Non-GAAP gross margin 69.9% (68.9% ex-tariff); operating margin 42%, both improving YoY.
• Company repurchased $2.9B of stock in Q3, reducing cash balance to $6.8B.
• Slowing 10% U.S. da Vinci growth contrasts with strong capital and innovation pipeline.
• Future I&A pricing reductions and moderating U.S. procedure growth could weigh on revenue-per-procedure trends.
• Strong quarter driven by broad-based procedure growth, richer da Vinci 5, SP, Ion mix and margin expansion.

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