ISRG · 8-K · 20261020PR000067

Gross Margin Drivers

INTUITIVE SURGICAL INC · 2026-10-20 · Importance 67 · Surprise 66

GAAP gross profit increased to $2.08 billion in the third quarter of 2026 from $1.66 billion in the prior-year quarter. GAAP gross margin expanded to 68.4% from 66.4%, while non-GAAP gross margin increased to 69.9% from 68.0%. Third-quarter gross profit included $27.8 million of tariff refunds, consisting of $25.7 million in product cost and $2.1 million in service cost. The company’s 2026 outlook estimates tariffs will reduce non-GAAP gross margin by 0.9% of revenue, excluding recognized tariff refunds.

Key facts

• Q3 2026 gross profit was $2,084.3 million and GAAP gross profit margin was 68.4%. source
• Non-GAAP gross profit for Q3 2026 was $2,129.6 million and non-GAAP gross profit margin was 69.9%. source
• Q3 2026 product cost of revenue was $797.7 million and service cost of revenue was $166.7 million. source