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Earnings Callsⓘ
Q3 2026October 21, 2026
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### At a GlanceManagement reported strong Q3 results, with total procedure volume growing 15%, and announced a plan to reduce instrument pricing for high-volume benign procedures (expected to be implemented in the first half of 2027) aimed at expanding the addressable market.
### Key Data- Total revenue grew 22% year-over-year to approximately $3.0 billion, with 84% being recurring revenue.- Global da Vinci procedure volume increased 14%, and Ion procedure volume increased 31%.- Non-GAAP earnings per share grew 25% to $3.00.
### Business ProgressGlobal da Vinci system placements grew 28% in the quarter, with da Vinci 5 and SP systems accounting for 65% of global placements. U.S. da Vinci procedure volume grew 10%, while international markets grew 20%. The company announced a plan to reduce instrument pricing for high-volume benign procedures (expected to be implemented in the first half of 2027) and estimates this will lower da Vinci I&A revenue per procedure by approximately 3%-5%. Additionally, the company announced a settlement with U.S. customers involved in a class-action lawsuit regarding third-party instrument remanufacturing. On the clinical evidence front, the newly published benign COMPARE study showed that da Vinci procedures had a 54% lower rate of conversion to open surgery compared to laparoscopic surgery.
### Guidance & OutlookManagement narrowed its 2026 full-year da Vinci procedure volume growth guidance to 14%-15% (from 13.5%-15.5%) and expects results near the midpoint of this range. Non-GAAP gross margin guidance was raised to 68.7%-69.3% (from 68%-69%). Management plans to update its long-term market opportunity assessment for soft-tissue surgery in January 2027.
### Risk/Opportunity SignalsPositive factors explicitly mentioned by management include strong growth potential in benign procedures (especially in international markets) and portfolio optimization driven by the da Vinci 5 and SP platforms. On the risk side, management cited potential impacts from changes in U.S. ACA premium subsidies, increased competition in the Chinese market, and changes in pricing policies.