Intuitive Surgical, Inc. stock research
FY2025 Q2
Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin improved versus the prior quarter but was lower than the same quarter a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin improved versus the prior quarter but was lower than the same quarter a year ago.
- The sequential improvement in gross margin was driven by revenue growing faster than cost of revenue, while the year-over-year decline reflected that cost of revenue increased more rapidly than revenue over the longer period.
- Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.3%
Gross profit
$1.6B
Revenue
$2.4B
Cost of revenue
$822.1M
Quarter-over-quarter change
+1.6 pts
Year-over-year change
-2.0 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, 2024 | $2.0B | $1.4B | $664.2M | 67.4% |
| Dec 31, 2024 | $2.4B | $1.6B | $771.3M | 68.0% |
| Mar 31, 2025 | $2.3B | $1.5B | $795.7M | 64.7% |
| Jun 30, 2025 | $2.4B | $1.6B | $822.1M | 66.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.6 pts
Year-over-year change
Jun 30, 2024
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by revenue growing faster than cost of revenue, while the year-over-year decline reflected that cost of revenue increased more rapidly than revenue over the longer period.
Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the relative growth rates of revenue and cost of revenue, as changes in their relationship drove the margin movement.