Intuitive Surgical, Inc. stock research
FY2025 Q3
Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Cost of revenue also rose, resulting in a gross margin that was slightly higher than the prior quarter but lower than the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Cost of revenue also rose, resulting in a gross margin that was slightly higher than the prior quarter but lower than the year-ago period.
- Sequentially, the increase in revenue outpaced the increase in cost of revenue, contributing to the marginal improvement in gross margin. Year-over-year, cost of revenue grew at a higher rate relative to revenue, which compressed the margin.
- Gross margin improved slightly from the prior quarter but weakened compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.4%
Gross profit
$1.7B
Revenue
$2.5B
Cost of revenue
$842.7M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-1.1 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, 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% |
| Sep 30, 2025 | $2.5B | $1.7B | $842.7M | 66.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.1 pts
Year-over-year change
Sep 30, 2024
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Sequentially, the increase in revenue outpaced the increase in cost of revenue, contributing to the marginal improvement in gross margin. Year-over-year, cost of revenue grew at a higher rate relative to revenue, which compressed the margin.
Gross margin improved slightly from the prior quarter but weakened compared to the same quarter one year earlier.
Monitor the trend in cost of revenue relative to revenue, as the year-over-year margin decline indicates a shift in the relationship.