Company: ISRG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001035267-25-000209
Chunk: 30

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 30
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 product (before capitalization)$33.0 $27.5 $97.0 $75.7 Amounts capitalized into inventory(31.1)(25.6)(90.9)(70.7)Amounts recognized in income for amounts previously capitalized in inventory29.6 23.0 85.9 66.2 Cost of revenue – product$31.5 $24.9 $92.0 $71.2 Cost of revenue – service8.8 7.9 25.6 22.5 Total cost of revenue40.3 32.8 117.6 93.7 Selling, general, and administrative88.1 77.6 256.7 225.4 Research and development77.6 65.4 221.3 188.7 Share-based compensation expense before income taxes206.0 175.8 595.6 507.8 Income tax benefit42.5 36.9 118.8 105.4 Share-based compensation expense after income taxes$163.5 $138.9 $476.8 $402.4 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 September 30,Nine Months Ended September 30, 2025202420252024ESPPRisk-free interest rate3.8%4.6%4.0%4.6%Expected term (in years)1.21.21.21.2Expected volatility32%29%31%29%Fair value at grant date$142.19$131.01$154.69$130.00

NOTE 11.    INCOME TAXES

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 $278.7 million, or 11.8% of income before taxes, compared to $214.5 million, or 11.5% of income before taxes, for the nine months ended