Intuitive Surgical, Inc. stock research
FY2024 Q3
Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Sep 30, 2024
For the current quarter, gross profit was the difference between revenue and cost of revenue, yielding a gross margin that was lower than the prior quarter but higher than the same quarter last year. The company's filing noted that liquidity increased from operations and stock proceeds, partially offset by capital expenditures and taxes.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
For the current quarter, gross profit was the difference between revenue and cost of revenue, yielding a gross margin that was lower than the prior quarter but higher than the same quarter last year. The company's filing noted that liquidity increased from operations and stock proceeds, partially offset by capital expenditures and taxes.
- The change in cost of revenue relative to revenue was the strongest observable driver: cost of revenue increased sequentially while revenue held steady, compressing the margin, yet year over year revenue grew more than cost of revenue, expanding the margin.
- Compared to the prior quarter, revenue was stable, gross profit slightly lower, cost of revenue higher, and gross margin weakened. Compared to the same quarter a year ago, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.4%
Gross profit
$1.4B
Revenue
$2.0B
Cost of revenue
$664.2M
Quarter-over-quarter change
-0.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $2.0B | $1.4B | $664.2M | 67.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.9 pts
Year-over-year change
Sep 30, 2023
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in cost of revenue relative to revenue was the strongest observable driver: cost of revenue increased sequentially while revenue held steady, compressing the margin, yet year over year revenue grew more than cost of revenue, expanding the margin.
Compared to the prior quarter, revenue was stable, gross profit slightly lower, cost of revenue higher, and gross margin weakened. Compared to the same quarter a year ago, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Inventory levels, which increased per the balance sheet in the filing, are a concrete item to monitor for potential impact on future cost of revenue.