Common-Size Income Statement
Quarterly Data
Intuitive Surgical Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The common-size income statement reveals a period of relative stability in revenue composition coupled with significant fluctuations in operational efficiency and profitability margins between March 2021 and June 2026. While the revenue mix remains consistent, the company has experienced a notable shift in its expense structure, particularly regarding selling, general, and administrative costs, which has positively impacted operating margins in the latter half of the analyzed period.
- Revenue Composition
- Revenue is consistently dominated by product sales, which typically fluctuate between 83% and 85% of total revenue. Service revenue comprises the remainder, generally ranging from 14% to 17%. This stable ratio indicates a consistent business model where the primary value driver remains product sales, supported by a steady stream of service-based income.
- Gross Profitability
- Gross profit margins exhibited a gradual decline from approximately 70% in early 2021 to a low of 64.69% in March 2025. This compression is attributed to a corresponding increase in the cost of revenue, which rose from roughly 30% to a peak of 35.31% in March 2025. However, a recovery is evident toward the end of the period, with gross margins returning to 67.78% by June 2026.
- Operating Expense Trends
- Selling, general, and administrative (SG&A) expenses showed significant volatility, peaking at 29.87% of revenue in December 2022 before entering a sustained downward trend to reach 21.36% by June 2026. Research and development (R&D) spending remained more stable, generally oscillating between 11% and 15% of revenue, suggesting a consistent commitment to innovation regardless of short-term margin fluctuations.
- Operating and Net Income
- Income from operations followed a U-shaped trajectory, declining from 32.26% in March 2021 to a trough of 22.51% in December 2022, before recovering to a period high of 33.60% by June 2026. Net income margins were influenced by volatile tax expenses and benefits, notably a significant tax benefit in December 2023 that drove net income to 31.67%. Despite these fluctuations, net income attributable to the parent company generally stabilized between 26% and 30% in the final two years of the period.
- Non-Operating Factors
- Interest and other income as a percentage of revenue trended upward from 2021 levels, stabilizing between 2.8% and 4.6% from 2024 onwards. This suggests an increase in the company's ability to generate non-operational income, providing a supplementary buffer to the overall bottom line.
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