Company: ISRG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0001035267-25-000109
Chunk: 97

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 2
Chunk 97
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7 35 %645.2 34 %Product gross profit1,219.7 54 %1,022.7 54 %Service gross profit238.0 11 %222.7 12 %Gross profit1,457.7 65 %1,245.4 66 %Operating expenses:Selling, general and administrative563.4 25 %491.5 26 %Research and development316.2 14 %284.5 15 %Total operating expenses879.6 39 %776.0 41 %Income from operations578.1 26 %469.4 25 %Interest and other income, net90.4 4 %69.1 4 %Income before taxes668.5 30 %538.5 29 %Income tax benefit(35.2)(1)%(8.9)— %Net income703.7 31 %547.4 29 %Less: net income attributable to noncontrolling interest in joint venture5.3 — %2.5 — %Net income attributable to Intuitive Surgical, Inc.$698.4 31 %$544.9 29 %

Total Revenue

Total revenue increased by 19% to $2.25 billion for the three months ended March 31, 2025, compared to $1.89 billion for the three months ended March 31, 2024, resulting from 18% higher instruments and accessories revenue, 25% higher systems revenue, and 16% higher service revenue.

We generally sell our products and services in local currencies where we have direct distribution channels. Revenue denominated in foreign currencies as a percentage of total revenue was approximately 25% and 26% for the three months ended March 31, 2025, and March 31, 2024, respectively. Fluctuations in foreign currency exchange rates had an unfavorable impact on OUS total revenue of $8 million and $11 million for the three months ended March 31, 2025, and 2024, respectively. The impact of fluctuations in foreign currency exchange rates was determined by comparing current period revenue converted to USD using exchange rates that were effective in the comparable prior year period, net of the impacts from foreign currency hedging.

Revenue generated in the U.S. accounted for 68% and 66% of total revenue in