Intuitive Surgical Reports $3.05 Billion Revenue in Q3 2026, Net Income Declines Due to Litigation Charge

Intuitive Surgical, Inc. reported significant financial performance for the third quarter of 2026, with total revenue reaching $3.05 billion, a 22% increase from $2.51 billion in the same period last year. This growth was driven by a 30% rise in systems revenue, totaling $769 million, and an 18% increase in instruments and accessories revenue, which amounted to $1.80 billion. The company also noted a 22% increase in service revenue, reaching $482 million. Despite the revenue growth, net income attributable to Intuitive Surgical decreased to $522.8 million, down from $704.4 million in the prior year, largely due to a $450 million charge related to an antitrust class action litigation settlement.

Compared to the previous fiscal period, Intuitive Surgical experienced notable changes in operational metrics. Approximately 906,000 da Vinci procedures were performed in the third quarter, reflecting a 14% increase from 797,000 procedures in the same quarter of 2025. The company also reported a 31% increase in Ion procedures, with around 49,700 procedures performed. The installed base of da Vinci surgical systems grew to approximately 12,094 systems, a 12% increase from 10,763 systems a year earlier, while the Ion system installed base rose by 21% to 1,152 systems.

Strategically, Intuitive Surgical completed the acquisition of the da Vinci and Ion distribution businesses from ab medica, Abex, and Excelencia Robótica for approximately $533.1 million in cash. This acquisition allows the company to assume direct distribution responsibilities in Italy, Spain, Portugal, and Malta, enhancing its market presence in these regions. The company also continued to expand its product offerings, with the da Vinci 5 surgical system now installed in 2,023 locations, including 177 systems outside the U.S.

Operationally, Intuitive Surgical's workforce increased, contributing to higher selling, general, and administrative expenses, which rose by 10% to $633.4 million for the quarter. The company reported a gross profit margin of 68.4%, up from 66.4% in the previous year, attributed to IEEPA tariff refunds and improved fixed overhead leverage. However, the overall operating income decreased by 22% to $592.6 million, impacted by the litigation settlement charge. Looking ahead, Intuitive Surgical anticipates continued growth in procedure volumes and system placements, although it remains cautious about potential macroeconomic challenges, including inflation and geopolitical factors that could affect its operations and financial performance.