Intuitive Surgical, Inc. stock research
FY2023 Q2
Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue increased at a slower pace. As a result, gross margin improved from the prior quarter but weakened relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue increased at a slower pace. As a result, gross margin improved from the prior quarter but weakened relative to the same quarter one year earlier.
- The higher gross profit relative to cost of revenue was the strongest observable margin driver in the current quarter, leading to an improved gross margin compared to the immediate prior quarter.
- Compared to the prior quarter, gross margin was higher, reflecting a favorable movement between revenue and cost of revenue. Compared to the same quarter one year earlier, gross margin was lower, as cost of revenue rose more relative to the year-ago revenue increase.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.7%
Gross profit
$1.2B
Revenue
$1.8B
Cost of revenue
$584.0M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
-0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.7B | $1.1B | $583.2M | 65.6% |
| Jun 30, 2023 | $1.8B | $1.2B | $584.0M | 66.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.1 pts
Year-over-year change
Jun 30, 2022
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The higher gross profit relative to cost of revenue was the strongest observable margin driver in the current quarter, leading to an improved gross margin compared to the immediate prior quarter.
Compared to the prior quarter, gross margin was higher, reflecting a favorable movement between revenue and cost of revenue. Compared to the same quarter one year earlier, gross margin was lower, as cost of revenue rose more relative to the year-ago revenue increase.
Monitor whether the trend in cost of revenue relative to revenue continues to show the sequential improvement observed this quarter.