Intuitive Surgical narrows procedure growth outlook to 14%–15%, books settlement provision
Key Facts
Intuitive Surgical narrowed its forecast for worldwide da Vinci procedure growth in 2026 to about 14%–15%, according to its third-quarter earnings release. The company said it still expects growth to be near the midpoint of the range. Its outlook published with second-quarter results had projected growth of between 13.5% and 15.5% for the same year. The company thus raised the lower end of its forecast while lowering the upper end, retaining its previous expectation of growth near the midpoint. The revision combines a reduction in potential growth at the upper end with an increase in the level the company expects at the lower end. Intuitive Surgical had also said in its second-quarter filing with the U.S. Securities and Exchange Commission that it expected growth near the midpoint of its previous range.
Worldwide da Vinci procedures grew about 14% year on year in the third quarter of 2026, according to the company. That followed growth of about 15% year on year in the second quarter, according to its previous earnings disclosure. In the United States, procedure growth was about 10% in the third quarter, as shown in the procedure table in the company's quarterly report. U.S. procedures had grown 16% in the corresponding period of 2025. The comparisons showed a slowdown in worldwide procedure growth from the previous quarter and in U.S. procedure growth from the corresponding period a year earlier. The company said in its quarterly report that U.S. procedure growth "was modestly negatively impacted by the expiration of enhanced health insurance premium subsidies." It linked that impact to the expiration of enhanced subsidies provided under the Affordable Care Act.
Meanwhile, Intuitive Surgical's revenue rose to $3.05 billion in the third quarter of 2026, an increase of 22% year on year, according to the earnings release. Revenue in the corresponding period of 2025 was about $2.51 billion. The company attributed the increase to procedure growth, higher operating lease revenue and an expanding installed base of systems. The drivers cited by the company thus included surgical activity, lease revenue and its installed system base. Second-quarter revenue in 2026 was $2.89 billion, according to the disclosure published with that quarter's results. The company reported year-on-year revenue growth of 19% at the time. Annual revenue growth accelerated in the third quarter from the previous quarter, despite a slowdown in worldwide da Vinci procedure growth between the periods.
Third-quarter results included a $450 million pretax provision to settle an antitrust class action, according to the company's release. Intuitive Surgical recorded the provision within selling, general and administrative expenses for the period. It said the settlement agreement involved no admission of liability or wrongdoing. GAAP net income attributable to the company, including the settlement provision, was $523 million in the third quarter of 2026. That represented GAAP diluted earnings per share of $1.49. Adjusted diluted earnings per share were $3.00, according to the company's reported results for the same period. The settlement remains subject to preliminary and final court approval, Intuitive Surgical confirmed in its release.
For the remainder of 2026, the company raised its adjusted gross margin forecast to between 68.7% and 69.3% of revenue. The previous range, published with second-quarter results, was between 68.0% and 69.0% of revenue. The increase covered both ends of the expected margin range, alongside the narrowing of its procedure growth forecast. The previous margin outlook included an estimated tariff impact equivalent to 1.0% of revenue, according to the second-quarter disclosure. The company included that estimate in its outlook for 2026. On spending, Intuitive Surgical said it expects adjusted operating expenses to grow between 11% and 13% year on year during the same year.