ISRG · Earnings call · 2026Q3T · Full report

Guidance / Outlook

INTUITIVE SURGICAL INC · 2026-10-20 · Importance 78 · Surprise 76 · No source text

Management narrowed its 2026 full-year da Vinci procedure growth forecast to 14%–15%, expecting results closer to the midpoint. It forecast 2026 non-GAAP gross margin of 68.7%–69.3% of revenue, including an estimated 90-basis-point impact from tariffs and related refunds, and maintained non-GAAP operating expense growth guidance of 11%–13%. The company expects Q4 2026 non-GAAP effective tax rate of 22%, plus or minus 50 basis points; non-GAAP other income guidance was reduced to $300 million–$310 million, primarily due to Q3 share repurchases.

Key facts

• Intuitive estimates 2026 noncash stock compensation expense of $860 million to $870 million.
• Intuitive forecasts 2026 non-GAAP other income of $300 million to $310 million, primarily due to Q3 share repurchase activity.
• Intuitive does not expect to contribute to the Intuitive Foundation in 2026, after making a $70 million multiyear contribution in Q4 2025.
• Intuitive narrowed its 2026 full-year da Vinci procedure growth forecast from 13.5%–15.5% to 14%–15%, expecting results closer to the midpoint.
• Intuitive's 2026 non-GAAP gross margin forecast is 68.7%–69.3% of revenue, including an estimated 90-basis-point impact from tariffs and related refunds.
• Intuitive expects to begin rolling out extended-use pricing in the U.S. later in Q1 after clearance, with Europe following in the second half of 2027 and other markets around that time; full impact is not expected until year-end.
• The China I&A price reduction takes effect in Q4 2026, while extended-life instruments will roll out by country beginning in the first half of 2027, with the remaining pricing impact building progressively through 2027.
• Intuitive continues to expect 2026 non-GAAP operating expense growth of 11% to 13%.

Impact estimates