Intuitive Surgical, Inc. stock research
FY2024 Q2
Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Jun 30, 2024
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher year over year. The relationship shows that gross profit grew faster than revenue, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher year over year. The relationship shows that gross profit grew faster than revenue, leading to an improved gross margin.
- The strongest observable margin driver is the sequential and year-over-year improvement in gross margin, supported by revenue growth outpacing the change in cost of revenue.
- Compared to the preceding quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in an improved gross margin. Versus the same quarter one year earlier, both revenue and gross profit were higher, cost of revenue was higher, but gross margin still improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.3%
Gross profit
$1.4B
Revenue
$2.0B
Cost of revenue
$637.2M
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $2.0B | $1.4B | $637.2M | 68.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+2.4 pts
Year-over-year change
Jun 30, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential and year-over-year improvement in gross margin, supported by revenue growth outpacing the change in cost of revenue.
Compared to the preceding quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in an improved gross margin. Versus the same quarter one year earlier, both revenue and gross profit were higher, cost of revenue was higher, but gross margin still improved.
Monitor whether cost of revenue continues to decline sequentially while revenue sustains growth, as this dynamic directly supports gross margin.