10-Q · July 21, 2026
Intuitive delivered a strong Q2, with revenue up 19% year over year to $2.892 billion, gross margin up 150 basis points to 67.8%, and operating income up 31% to $972.0 million. Growth was broad-based across instruments…
Earnings analysis · 10-Q
ISRG earnings analysis
Filed October 21, 2026 · Our reading of the company's report
The latest report
Intuitive Surgical delivered strong Q3 operating momentum, with revenue of $3.0487 billion, up 21.5% year over year, and non-GAAP EPS of $3.00, up 25% year over year and ahead of consensus. GAAP EPS was only $1.49…
Read full summary
Intuitive Surgical delivered strong Q3 operating momentum, with revenue of $3.0487 billion, up 21.5% year over year, and non-GAAP EPS of $3.00, up 25% year over year and ahead of consensus. GAAP EPS was only $1.49 because of the $450 million antitrust settlement charge. Management reiterated 2026 procedure-growth and margin ranges, but the filing provides limited new balance-sheet, cash-flow, or segment detail; substantial repurchases and the newly highlighted unauthorized-product risk temper the positive operating trends.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.49
What stood out
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Revenue growth accelerated
Q3 revenue was $3.0487 billion, up approximately 5.5% from $2.89 billion in Q2 2026 and 21.5% from $2.51 billion in Q3 2025. Revenue also exceeded the $2.9014 billion consensus estimate by 5.1%.
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Underlying EPS beat estimates
Non-GAAP diluted EPS was $3.00 versus $2.40 a year earlier, an increase of approximately 25%. The result exceeded the $2.54 consensus estimate by 18.1%.
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Procedure growth outlook reiterated
Management reiterated expected 2026 da Vinci procedure growth of approximately 14%–15%, together with a 68.7%–69.3% non-GAAP gross-margin range.
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Share repurchases remained substantial
The company repurchased 7,797,708 shares during the quarter at an average price of $377.01 per share, while $1.8 billion remained available under the repurchase program at September 30, 2026.
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Controls remained effective
Disclosure controls were assessed as effective at the reasonable-assurance level, and the filing reported no changes in internal control that materially affected or were reasonably likely to materially affect financial reporting.
What to watch
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Antitrust settlement reduced GAAP earnings
GAAP diluted EPS was $1.49, materially below the $3.00 non-GAAP figure, primarily reflecting a $450 million antitrust settlement charge. The settlement creates a substantial one-time earnings impact and highlights ongoing litigation exposure.
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Unauthorized third-party products and service
The 10-Q added or updated a risk factor regarding third parties selling remanufactured or unauthorized instruments and providing unauthorized service for da Vinci and Ion systems. The filing states these offerings could reduce revenue, create patient-safety risks, and cause negative publicity; the company repurchased 7,797,708 shares during the quarter, increasing the importance of protecting recurring instrument and service economics.
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Liquidity pressure from repurchases
The company spent approximately $2.94 billion on the quarter's repurchases, based on 7,797,708 shares at an average $377.01 per share, leaving $1.8 billion under the authorization. Continued capital returns could reduce liquidity available for investment, particularly alongside litigation payments and capital spending.
Management's outlook
Management reiterated 2026 outlook ranges of approximately 14%–15% da Vinci procedure growth, 68.7%–69.3% non-GAAP gross margin, and 11%–13% non-GAAP operating-expense growth. No numerical revenue or EPS outlook was provided, and the prior outlook was not disclosed for comparison.
Earlier filings 4
10-Q · April 22, 2026
Intuitive Surgical reported Q1 2026 revenue of $2,770.8 million, up $517.4 million (23.0%) versus Q1 2025 but down $99.2 million (3.5%) versus the prior quarter. Gross profit was $1,830.5 million (≈66.1% margin) and…
10-K · February 3, 2026
Intuitive Surgical’s 10-K emphasizes continued commercialization of next-generation products (notably the da Vinci 5) and a comprehensive ecosystem of systems, instruments, and digital offerings. The company delivered…
10-Q · April 23, 2025
Intuitive reported a strong quarter: revenue of $2,253.4M (+19.2% YoY vs $1,890.6M) and diluted EPS of $1.92 (vs $1.51 YoY), with operating cash flow of $581.6M and free cash flow of $465.0M. Gross margin was 64.7% and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.