Intuitive Surgical (NASDAQ:ISRG) Releases Earnings Results, Beats Estimates By $0.35 EPS

Intuitive Surgical (NASDAQ:ISRG) announced its quarterly earnings results on Tuesday. The medical equipment provider reported $3.00 earnings per share for the quarter, beating analysts’ consensus estimates of $2.65 by $0.35, FiscalAI reports. The firm had revenue of $3.05 billion for the quarter, compared to analysts’ expectations of $2.91 billion. Intuitive Surgical had a net margin of 25.54% and a return on equity of 17.70%. Intuitive Surgical’s revenue was up 21.7% compared to the same quarter last year. During the same period in the previous year, the company posted $2.40 earnings per share.

Here are the key takeaways from Intuitive Surgical’s conference call:

• Q3 performance was strong: revenue grew 22% to just over $3 billion, total procedures rose 15%, system placements increased 28%, and non-GAAP EPS grew 25% to $3.00.
• Demand broadened across the portfolio, with da Vinci 5 and SP representing 65% of global placements, Ion procedures increasing 31%, and the installed base surpassing 13,200 systems worldwide.
• International and newer-market opportunities continued to expand, including 20% international da Vinci procedure growth, 55% SP procedure growth, accelerating benign-procedure adoption, and growing ASC activity in the U.S.
• Intuitive narrowed its 2026 da Vinci procedure-growth outlook to 14%-15% and raised its non-GAAP gross-margin forecast to 68.7%-69.3%, while continuing to prioritize R&D, AI, new imaging capabilities, and future Ion and GI applications.
• Planned instrument-pricing actions and China policy changes are expected to reduce da Vinci instrument-and-accessory revenue per procedure by approximately 3%-5% once fully implemented, while a proposed $450 million litigation settlement materially reduced Q3 GAAP earnings.

Intuitive Surgical Price Performance

Intuitive Surgical stock opened at $428.12 on Thursday. The firm has a 50 day simple moving average of $393.50 and a 200-day simple moving average of $408.89. The stock has a market capitalization of $151.25 billion, a PE ratio of 51.77, a price-to-earnings-growth ratio of 3.30 and a beta of 1.46. Intuitive Surgical has a 12-month low of $328.57 and a 12-month high of $603.88.

Key Stories Impacting Intuitive Surgical

Here are the key news stories impacting Intuitive Surgical this week:

• Positive Sentiment: Q3 revenue rose 21.7% year over year to $3.05 billion, exceeding the roughly $2.91 billion consensus estimate. Non-GAAP EPS was $3.00, well above expectations near $2.65 and up from $2.40 a year earlier. Intuitive Surgical Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Underlying demand remained healthy: worldwide procedures grew approximately 15%, including 14% growth for da Vinci and 31% growth for Ion. System placements also increased to 546 from 427 in the prior-year quarter, supporting future recurring instrument and service revenue. Antitrust Settlement Charge Overshadows Strong Q3 Growth
• Positive Sentiment: Several analysts remained constructive after the report. JPMorgan raised its price target to $475, while BofA maintained a Buy rating and a $470 target, citing the extended-use instrument opportunity and the 2027 product pipeline. Strong Q3 Beat and 2027 Pipeline Support Buy Rating
• Neutral Sentiment: Management plans to lower instrument costs and extend instrument life in 2027. The strategy could broaden robotic-surgery adoption and procedure volumes over time, but it is expected to reduce revenue per procedure by approximately 3% to 5% in the near term. Three Key Takeaways for Long-Term Investors
• Negative Sentiment: The proposed antitrust settlement resulted in a $450 million pretax charge, reducing GAAP net income to $523 million, or $1.49 per share, from $704 million, or $1.95, a year earlier. Court approval is still required, adding uncertainty. Q3 2026 Earnings Impacted by Antitrust Settlement
• Negative Sentiment: Intuitive narrowed its 2026 global da Vinci procedure-growth outlook to 14%–15%, while investors expressed concern about slowing U.S. momentum. Analysts also flagged the potential effect of pricing actions on 2027 growth and margins. Concerns Over da Vinci Procedure Growth Overshadow Q3 Beat
• Negative Sentiment: Valuation and elevated buy-side expectations amplified the negative reaction. Price-target changes were mixed, including RBC lowering its target to $550 and Mizuho cutting its target to $400 while retaining a Neutral rating. Elevated Expectations Hamper Solid Third-Quarter Report

Analyst Upgrades and Downgrades

Several research analysts have weighed in on ISRG shares. JPMorgan Chase & Co. raised their price objective on shares of Intuitive Surgical from $450.00 to $475.00 and gave the stock an “overweight” rating in a report on Wednesday. Mizuho decreased their price objective on Intuitive Surgical from $415.00 to $400.00 and set a “neutral” rating for the company in a report on Wednesday. TD Cowen restated a “buy” rating and issued a $485.00 target price on shares of Intuitive Surgical in a research report on Monday. BMO Capital Markets reiterated an “outperform” rating on shares of Intuitive Surgical in a research report on Monday, July 20th. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of Intuitive Surgical in a research note on Wednesday, August 12th. Twenty-five research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $500.13.

Insider Buying and Selling at Intuitive Surgical

In other Intuitive Surgical news, VP Fredrik Widman sold 1,089 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $374.44, for a total value of $407,765.16. Following the completion of the sale, the vice president directly owned 1,026 shares in the company, valued at $384,175.44. This represents a 51.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary S. Guthart sold 10,000 shares of the stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $400.00, for a total value of $4,000,000.00. Following the transaction, the director directly owned 1,245,679 shares of the company’s stock, valued at approximately $498,271,600. The trade was a 0.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 12,370 shares of company stock valued at $4,891,989. 0.60% of the stock is currently owned by company insiders.

About Intuitive Surgical

Intuitive Surgical, Inc develops and manufactures robotic-assisted systems and related technologies for minimally invasive surgery. Its products are designed to help surgeons perform procedures through small incisions while providing enhanced visualization, precision and control. The company’s primary platform is the da Vinci Surgical System, which is used across a range of specialties, including urology, gynecology, general surgery, cardiothoracic surgery and other procedures.

The company also offers the Ion endoluminal system, which is designed to support minimally invasive lung biopsy procedures.