Company: ISRG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001035267-25-000192
Chunk: 29

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 29
---
, except per share amounts): SharesWeighted-AverageGrant Date Fair Value Per ShareUnvested balance as of December 31, 20240.3 $306.94 Granted0.1 $580.93 Vested(0.1)$299.32 Performance change— $267.23 Forfeited— $— Unvested balance as of June 30, 20250.3 $367.92 Employee Stock Purchase PlanUnder the Employee Stock Purchase Plan (“ESPP”), employees purchased approximately 0.2 million shares for $75.5 million and approximately 0.3 million shares for $68.4 million during the six months ended June 30, 2025, and 2024, respectively.

21

Share-Based Compensation ExpenseThe following table summarizes share-based compensation expense (in millions): Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Cost of revenue – product (before capitalization)$33.1 $25.4 $64.0 $48.2 Amounts capitalized into inventory(31.3)(23.7)(59.8)(45.1)Amounts recognized in income for amounts previously capitalized in inventory28.5 21.9 56.3 43.2 Cost of revenue – product$30.3 $23.6 $60.5 $46.3 Cost of revenue – service8.6 7.6 16.8 14.6 Total cost of revenue38.9 31.2 77.3 60.9 Selling, general, and administrative86.3 79.6 168.6 147.8 Research and development74.7 65.6 143.7 123.3 Share-based compensation expense before income taxes199.9 176.4 389.6 332.0 Income tax benefit39.3 36.1 76.3 68.5 Share-based compensation expense after income taxes$160.6 $140.3 $313.3 $263.5 The fair value of each right to acquire stock granted under the ESPP was estimated using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions: Three Months Ended June 30,Six Months Ended June 30, 202520242025202