Intuitive Surgical, Inc. stock research
FY2023 Q4
Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while gross margin weakened slightly as cost of revenue rose faster than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while gross margin weakened slightly as cost of revenue rose faster than revenue.
- The most observable driver is the relationship between cost of revenue and revenue: cost increased at a higher rate than revenue, compressing gross margin despite absolute profit growth.
- Compared with both the prior quarter and the same quarter last year, revenue and gross profit were higher, but gross margin was lower, indicating a relative shift in cost structure.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.2%
Gross profit
$1.3B
Revenue
$1.9B
Cost of revenue
$650.9M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-0.9 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% |
| Dec 31, 2023 | $1.9B | $1.3B | $650.9M | 66.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.7 pts
Year-over-year change
Dec 31, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the relationship between cost of revenue and revenue: cost increased at a higher rate than revenue, compressing gross margin despite absolute profit growth.
Compared with both the prior quarter and the same quarter last year, revenue and gross profit were higher, but gross margin was lower, indicating a relative shift in cost structure.
Monitor the trend in cost of revenue relative to revenue, as a continued faster cost growth could further pressure gross margin.