Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Intuitive Surgical delivered a strong FY2025 with revenue surging 20.5% to $10.1B, net income rising 23.0% to $2.86B, and the company initiating a $2.3B share buyback program, reflecting robust demand for its da Vinci surgical systems.
Revenue
$10.06B
+20.51% YoY
EPS (Diluted)
$7.87
+22.59% YoY
Gross Margin
66.0%
-1.5 pts YoY
Operating Income
$2.95B
+25.40% YoY
Source: SEC XBRL
Intuitive Surgical (ISRG) reported FY2025 revenue of $10.06B, up 20.5% year over year. Operating margin was 29.3%, up 1.2 points from 28.1% a year earlier. Operating cash flow was $3.03B, up 25.5% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.80 | 2.55 | Beat +9.8% |
| Mar 2026 | 2.50 | 2.14 | Beat +16.8% |
| Dec 2025This filing | 2.53 | 2.30 | Beat +9.9% |
| Sep 2025 | 2.40 | 2.02 | Beat +18.7% |
Reported EPS of $2.53 versus the $2.30 analyst consensus — a +9.9% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue grew 20.5% year-over-year to $10.06B in FY2025 (from $8.35B in FY2024), reflecting strong procedure adoption and expanded da Vinci system installations globally. This growth rate accelerated meaningfully and demonstrates continued penetration of robotic-assisted surgery.
Source: 10-K Income Statement (XBRL Financial Data)
Operating income rose 25.4% to $2.95B, outpacing revenue growth, which expanded operating margin by approximately 110 basis points to 29.3%. This improvement came despite cost of revenue growing faster than revenue (+25.9%), suggesting strong operating expense discipline in SG&A (+11.4%) and R&D (+14.5%).
Source: 10-K Income Statement (XBRL Financial Data)
Gross margin declined approximately 146 basis points to 66.0% (from 67.5% in FY2024), as cost of revenue grew 25.9%—faster than the 20.5% revenue growth. This likely reflects a higher mix of system sales (which carry lower margins than recurring instruments and services) or supply chain cost pressures.
Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
The company initiated a $2.30B share buyback program in FY2025 (versus $0 in FY2024), driving financing cash outflows of $2.36B. This signals management confidence in the business and a shift toward returning capital to shareholders.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Cash and equivalents jumped 66.1% to $3.37B, and current assets rose 37.5% to $9.78B, while total liabilities remain modest at $2.52B. The current ratio of 4.87 and debt-to-equity of 0.14 reflect an exceptionally strong and conservatively financed balance sheet.
Source: 10-K Balance Sheet (XBRL Financial Data)
Compiled by AI from this SEC filing · 3 high, 1 medium, 1 low
Cost of revenue grew 25.9% versus revenue growth of 20.5%, compressing gross margin by ~146 bps to 66.0%. If system placements (lower-margin hardware) continue to outpace higher-margin recurring revenue streams like instruments, accessories, and services, gross margins could face further pressure.
Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Intuitive Surgical's growth depends heavily on regulatory approvals for new indications and procedures, as well as favorable reimbursement policies from insurers and government payers. Any adverse changes in coverage decisions or delays in regulatory clearances could slow procedure adoption and revenue growth.
Source: 10-K Risk Factors (inferred from business model)
The robotic-assisted surgery market is attracting new entrants including Medtronic (Hugo), Johnson & Johnson (Ottava), and CMR Surgical, which could erode Intuitive's dominant market position over time. Increased competition may pressure pricing on systems and consumables, impacting revenue and margins.
Source: 10-K Risk Factors (inferred from industry dynamics)
The vast majority of ISRG's revenue is derived from its da Vinci robotic surgical system ecosystem. Any product liability issues, safety recalls, or technological failures associated with this platform could materially disrupt revenue and damage the company's reputation.
Source: 10-K Business Description (inferred from financial data)
The company deployed $2.30B in share repurchases in FY2025, a significant shift from zero buybacks in FY2024. While this reflects financial strength, aggressive buybacks reduce cash available for R&D investment or strategic acquisitions at a time when competitive intensity is increasing.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 10.06 $B | 8.35 $B | +20.51% |
Cost of Revenue $B | 3.42 $B | 2.72 $B | +25.92% |
Gross Profit $B | 6.64 $B | 5.63 $B | +17.89% |
Operating Income $B | 2.95 $B | 2.35 $B | +25.40% |
Net Income $B | 2.86 $B | 2.32 $B | +22.97% |
EPS (Basic) $ | 8.00 $ | 6.54 $ | +22.32% |
EPS (Diluted) $ | 7.87 $ | 6.42 $ | +22.59% |
R&D Expense $B | 1.31 $B | 1.15 $B | +14.54% |
SG&A Expense $B | 2.39 $B | 2.14 $B | +11.45% |
Answers draw on this SEC filing and the data on this page
Intuitive Surgical delivered robust Q2 FY2026 results, with double-digit revenue and earnings growth propelled by da Vinci 5 adoption and higher procedure volumes, while navigating tariff and regulatory challenges.
Intuitive Surgical delivered a strong Q1 FY2026 with revenue of $2.77B (+23.0% YoY), operating income surging 48.0% to $855.3M, and operating cash flow jumping 56.8% to $911.9M, reflecting robust procedure volume growth and expanding margins.
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