Intuitive Q3: Revenue Up 22% to $3.05B, But $450M Antitrust Settlement Cuts Operating Income 22%
ISRG sits 30% above its 52-week low of $328.57 on elevated volume (1.9× avg).
Summary
Intuitive beat on Q3 revenue ($3.05B, +22%) but booked a $450M antitrust settlement charge that cut operating income 22%. The 10-Q also details coming 3%-5% per-procedure instrument pricing reductions.
Key Events · Earnings and Guidance · ISRG
-
Q3 Revenue Up 22% to $3.05B
Total revenue rose to $3,048.7 million from $2,505.1 million, with instruments and accessories up 18% and systems up 30%. Gross margin improved to 68.4% from 66.4%.
-
$450M Antitrust Settlement Charge
A one-time $450 million charge for the da Vinci antitrust class action settlement cut operating income 22% to $592.6 million and net income to $522.8 million ($1.49 diluted EPS). The settlement, reached in October 2026, still needs preliminary and final court approval.
-
Instrument Pricing Cuts Coming
Management expects 3%-5% lower da Vinci instruments and accessories revenue per procedure once fully implemented, including China NHSA-driven price reductions starting Q4 2026 and extended-use instruments plus volume pricing in the first half of 2027.
-
Procedure and Placement Growth
Q3 da Vinci procedures grew 14% to ~906,000 and Ion procedures 31% to ~49,700. 546 da Vinci systems were placed (+28%), lifting the installed base to 12,094 (+12%).
Analysis · ISRG · Industrial Applications And Services
Revenue grew 22% to $3.05 billion and gross margin improved to 68.4%, but a one-time $450 million antitrust class action settlement charge pushed operating income down 22% to $592.6 million and net income to $522.8 million ($1.49 diluted EPS). The settlement, reached in October 2026 after mediation and still subject to court approval, removes a long-running overhang but is a real cash cost. More consequential for the thesis is the newly detailed pricing guidance: management expects instrument and accessory revenue per procedure to fall 3%-5% once fully implemented, including China price cuts starting Q4 2026 and extended-use instruments and volume pricing beginning in the first half of 2027. That is a direct hit to the recurring razor-blade economics that drive the model.
How filings like this one have moved
In the 30 days to Oct 21, 2026, 28.9% of the 1511 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.54%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ISRG was trading at $427.26 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $151.2B. The 52-week trading range was $328.57 to $603.88. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.