Intuitive Surgical 8-K
PositiveEarningsNew guidanceImpairment / chargeLegal / investigation
da Vinci antitrust settlement drives a $450M charge and GAAP profit decline despite procedure and lease growth
Filed 2026-10-20 16:05 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with FY2026 outlook. Revenue rose 22% as procedure volume, operating lease revenue and the installed base grew. Intuitive reached a written agreement to settle the da Vinci antitrust class action for $450M and mutually agreed injunctive relief; the settlement requires preliminary and final court approval.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $3.05B, +22% Y/Y | $8.71B, +21% Y/Y |
| GAAP gross profit margin | 68.4%, vs 66.4% | 67.4%, vs 65.8% |
| Non-GAAP gross profit margin | 69.9%, vs 68.0% | 69.2%, vs 67.5% |
| GAAP income from operations | $593M, -22% Y/Y | $2.42B, +16% Y/Y |
| Non-GAAP income from operations | $1.27B, +30% Y/Y | $3.56B, +33% Y/Y |
| GAAP net income attributable to Intuitive Surgical, Inc. | $523M, -26% Y/Y | $2.16B, +5% Y/Y |
| Non-GAAP net income attributable to Intuitive Surgical, Inc. | $1.05B, +22% Y/Y | $2.96B, +27% Y/Y |
| GAAP diluted EPS | $1.49, vs $1.95 | $6.07, +7% Y/Y |
| Non-GAAP diluted EPS | $3.00, +25% Y/Y | $8.30, +30% Y/Y |
- The settlement resulted in a $450M pre-tax Q3 charge ($347M net of tax, or $0.99 per diluted share). GAAP results also included a $22M after-tax benefit from prior-period tariff refunds.
- Worldwide da Vinci and Ion procedures grew 15% Y/Y (da Vinci +14%, Ion +31%). Intuitive placed 546 da Vinci systems, including 315 da Vinci 5 systems, vs 427 and 240; it placed 56 Ion systems vs 50. Installed bases reached 12,094 da Vinci systems (+12%) and 1,152 Ion systems (+21%).
- Intuitive repurchased 7.8M shares for $2.94B. Cash, cash equivalents and investments were $6.80B at quarter-end, down $1.83B during the quarter, primarily due to repurchases and capital spending, partly offset by cash generated from operations.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Worldwide da Vinci procedure growth | FY2026 | ≈14%-15%; expects growth closer to midpoint | — | — |
| Non-GAAP gross profit margin | FY2026 | 68.7%-69.3% of revenue; includes estimated tariff impact of 0.9% of revenue, excluding recognized refunds | — | — |
| Non-GAAP operating expense growth | FY2026 | 11%-13% | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Worldwide da Vinci procedure growth | FY2026 | Approximately 13.5%-15.5%; expected closer to midpoint | ≈14%-15%; expects growth closer to midpoint | narrowed (raised low end, lowered high end) |
| Non-GAAP gross profit margin | FY2026 | 68.0%-69.0% of revenue | 68.7%-69.3% of revenue; includes estimated tariff impact of 0.9% of revenue, excluding recognized refunds | raised |
| Non-GAAP operating expense growth | FY2026 | 11%-13% | 11%-13% | reaffirmed |
Investor Takeaways
- Court approval of the antitrust settlement remains pending.
- FY2026 da Vinci procedure growth relative to the 14%-15% outlook and the impact of tariffs on margins are key items to monitor.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-20 22:34:07Z