Intuitive Surgical, Inc. stock research
FY2023 Q3
Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Sep 30, 2023
Revenue declined from the prior quarter yet gross profit remained steady, lifting gross margin slightly. Compared with the same quarter last year, revenue and gross profit were higher but gross margin was lower.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue declined from the prior quarter yet gross profit remained steady, lifting gross margin slightly. Compared with the same quarter last year, revenue and gross profit were higher but gross margin was lower.
- The sequential improvement in gross margin, despite lower revenue, was the strongest observable driver, as cost of revenue decreased at a faster relative pace.
- Gross margin improved slightly from the preceding quarter but weakened compared to the same quarter one year earlier. Revenue and gross profit were higher year over year but lower sequentially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.9%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$576.5M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-0.6 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% |
| Sep 30, 2023 | $1.7B | $1.2B | $576.5M | 66.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.2 pts
Year-over-year change
Sep 30, 2022
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin, despite lower revenue, was the strongest observable driver, as cost of revenue decreased at a faster relative pace.
Gross margin improved slightly from the preceding quarter but weakened compared to the same quarter one year earlier. Revenue and gross profit were higher year over year but lower sequentially.
Monitor the relationship between revenue and cost of revenue in future quarters for signs of margin pressure.