Intuitive Surgical, Inc. stock research
FY2025 Q4
Intuitive Surgical (ISRG) Gross Margin — Quarter Ended Dec 31, 2025
For the current quarter, revenue and gross profit both increased compared to the prior quarter, while the gross margin remained stable. Year over year, revenue and gross profit were higher, but the gross margin weakened as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
For the current quarter, revenue and gross profit both increased compared to the prior quarter, while the gross margin remained stable. Year over year, revenue and gross profit were higher, but the gross margin weakened as cost of revenue grew at a faster pace than revenue.
- The most notable margin driver is the relationship between cost of revenue and revenue growth. Sequentially, cost of revenue increased roughly in line with revenue, keeping the margin unchanged. Year over year, cost of revenue increased relatively more than revenue, leading to a lower gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with the gross margin unchanged. Compared to the same quarter one year earlier, revenue and gross profit were higher, but the gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.4%
Gross profit
$1.9B
Revenue
$2.9B
Cost of revenue
$961.9M
Quarter-over-quarter change
+0.1 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $2.9B | $1.9B | $961.9M | 66.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.1 pts
Year-over-year change
Dec 31, 2024
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver is the relationship between cost of revenue and revenue growth. Sequentially, cost of revenue increased roughly in line with revenue, keeping the margin unchanged. Year over year, cost of revenue increased relatively more than revenue, leading to a lower gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with the gross margin unchanged. Compared to the same quarter one year earlier, revenue and gross profit were higher, but the gross margin was lower.
Monitor the trend in cost of revenue growth relative to revenue growth for any further margin compression.