Company: ISRG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001035267-25-000209
Chunk: 76

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 76
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 intangible asset-related charges of $1.4 million and $9.2 million, respectively, compared with $0.5 million and $1.7 million for the three and nine months ended September 30, 2024, respectively.

Research and development expenses fluctuate with project timing. Based upon our broader set of product development initiatives and the stage of the underlying projects, we expect to continue to make substantial investments in research and development and anticipate that research and development expenses will continue to increase in the future.

47

Interest and Other Income, Net

Interest and other income, net, for the three months ended September 30, 2025, increased by 2% to $95.5 million, compared to $93.7 million for the three months ended September 30, 2024. The increase in interest and other income, net, for the three months ended September 30, 2025, was primarily driven by unrealized gains on strategic investments (compared to unrealized losses during the three months ended September 30, 2024) and higher interest income earned due to higher average cash and investment balances, partially offset by foreign exchange losses, net of the impacts of derivatives and hedging (compared to foreign exchange gains during the three months ended September 30, 2024).

Interest and other income, net, for the nine months ended September 30, 2025, increased by 10% to $275 million, compared to $250 million for nine months ended September 30, 2024. The increase in interest and other income, net, for the nine months ended September 30, 2025, was primarily driven by higher interest income earned due to higher average cash and investment balances and an increase in average interest rates, partially offset by foreign exchange losses, net of the impacts of derivatives and hedging (compared to foreign exchange gains during the nine months ended September 30, 2024), and unrealized losses on strategic investments (compared to unrealized gains during the nine months ended September 30, 2024).

Income Tax Expense

Income tax expense for the three months ended September 30, 2025, was $146.0 million, or 17.1% of income before taxes, compared to $100.4 million, or 15.0% of income before taxes, for the three months ended September 30, 2024. Income tax expense for the nine months ended September 30, 2025, was