Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Mar 31, 2024

Current quarter revenue was stable compared to the prior quarter, while cost of revenue decreased slightly, resulting in a slightly lower gross profit and gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin all improved.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

The most observable margin driver is the flat revenue combined with a modest reduction in cost of revenue, which together led to a slight decline in gross margin sequentially.
Sequentially, gross margin weakened from the prior quarter. Year over year, gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

65.9%

Gross profit

$1.2B

Revenue

$1.9B

Cost of revenue

$645.2M

Quarter-over-quarter change

-0.4 pts

Year-over-year change

+0.3 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
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%
Mar 31, 2024	$1.9B	$1.2B	$645.2M	65.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

-0.4 pts

Year-over-year change

Mar 31, 2023

+0.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most observable margin driver is the flat revenue combined with a modest reduction in cost of revenue, which together led to a slight decline in gross margin sequentially.

Sequentially, gross margin weakened from the prior quarter. Year over year, gross margin improved.

Monitor the trend in cost of revenue given its impact on gross margin.