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

Intuitive Surgical (NASDAQ:ISRG) released its 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. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. The business had revenue of $3.05 billion during the quarter, compared to the consensus estimate of $2.91 billion. During the same quarter last year, the firm earned $2.40 earnings per share. The firm’s revenue for the quarter was up 21.7% compared to the same quarter last year.

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 Trading Up 1.1%

Shares of ISRG opened at $438.00 on Wednesday. The company’s fifty day simple moving average is $392.96 and its 200 day simple moving average is $409.06. Intuitive Surgical has a 1-year low of $328.57 and a 1-year high of $603.88. The company has a market cap of $154.74 billion, a price-to-earnings ratio of 50.17, a PEG ratio of 3.27 and a beta of 1.46.

Trending Headlines about Intuitive Surgical

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

• Positive Sentiment: Q3 results exceeded expectations: Revenue rose 21.7% year over year to $3.05 billion, above the approximately $2.91 billion consensus, while adjusted earnings reached $3.00 per share versus estimates of roughly $2.61–$2.65. Intuitive Surgical Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Underlying demand remained healthy: Worldwide procedures increased approximately 15%, including 14% growth for da Vinci procedures and 31% for Ion procedures. Intuitive placed 546 robotic systems, up from 427 a year earlier. Intuitive Announces Third Quarter Earnings
• Positive Sentiment: Potentially broader adoption: Intuitive plans to extend instrument life and reduce per-procedure costs in 2027. Although this could pressure near-term revenue per procedure, management views it as a way to make robotic surgery more affordable and expand the installed base. Why ISRG Is Lowering Instrument Costs Despite Strong Profitability
• Neutral Sentiment: Leasing is supporting placements: Operating leases represented 54% of second-quarter da Vinci placements, up from 49% a year earlier. Leasing may accelerate hospital adoption, but it can also make Intuitive’s returns more dependent on future procedure volume. Does Leasing Make Growth More Durable or More Capital Intensive?
• Negative Sentiment: Large antitrust settlement charge hurt GAAP earnings: Intuitive recorded a $450 million pre-tax charge, or $347 million after tax, related to a proposed settlement. GAAP net income fell to $523 million, or $1.49 per share, from $704 million, or $1.95 per share, a year earlier; court approval is still required. Antitrust Settlement Charge Overshadows Strong Q3 Growth
• Negative Sentiment: 2026 procedure-growth guidance was narrowed to 14%–15%: The tighter outlook, along with planned pricing actions targeting a 3%–5% reduction in instrument and accessory costs per procedure, raised concerns that growth and margins may moderate. Intuitive Narrows 2026 Procedure Growth Outlook

Insider Activity

In other news, Director Amy Ladd sold 72 shares of Intuitive Surgical stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $393.10, for a total value of $28,303.20. Following the completion of the transaction, the director owned 179 shares of the company’s stock, valued at $70,364.90. This trade represents a 28.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Brosius sold 77 shares of Intuitive Surgical stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $375.57, for a total transaction of $28,918.89. Following the completion of the transaction, the executive vice president directly owned 881 shares of the company’s stock, valued at approximately $330,877.17. This trade represents a 8.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 12,370 shares of company stock valued at $4,891,989. 0.60% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ISRG. Piper Sandler restated an “overweight” rating on shares of Intuitive Surgical in a research note on Friday, August 21st. Robert W. Baird decreased their price objective on Intuitive Surgical from $525.00 to $500.00 and set an “outperform” rating for the company in a report on Friday, July 17th. Raymond James Financial reaffirmed an “outperform” rating and issued a $480.00 target price on shares of Intuitive Surgical in a research report on Wednesday. KeyCorp reiterated an “overweight” rating on shares of Intuitive Surgical in a report on Wednesday, August 12th. Finally, Leerink Partners dropped their target price on Intuitive Surgical from $573.00 to $454.00 and set an “outperform” rating on the stock in a report on Friday, July 17th. Twenty-five equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Intuitive Surgical currently has an average rating of “Moderate Buy” and an average price target of $498.72.

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.