Intuitive Surgical Inc. (NASDAQ:ISRG)

Current assets exhibited a generally increasing trend over the five-year period, though with some fluctuation. Initial growth was followed by a decrease and then a substantial increase. Adjusted current assets mirrored this pattern, consistently reporting slightly higher values than reported current assets.

Overall Trend

Reported current assets increased from US$5,844,900 thousand in 2021 to US$6,253,000 thousand in 2022, representing a growth of approximately 7.0%. A decrease was then observed in 2023, falling to US$7,111,000 thousand, before a significant increase to US$9,779,500 thousand in 2025. Adjusted current assets followed a similar trajectory, beginning at US$5,865,100 thousand in 2021 and reaching US$9,809,400 thousand in 2025.

Year-over-Year Changes

The largest percentage increase in reported current assets occurred between 2023 and 2025, with a growth of approximately 37.3%. The decrease between 2022 and 2023 was approximately 12.2%. Adjusted current assets experienced similar percentage changes over the same periods.

Difference Between Reported and Adjusted Values

The difference between reported current assets and adjusted current assets remained relatively consistent throughout the period, ranging from approximately US$20,200 thousand to US$22,400 thousand. This suggests that the adjustments made to current assets are systematic and do not represent large, one-time changes. The adjustments consistently increase the reported value of current assets.

The fluctuations in current assets, particularly the decrease in 2023, warrant further investigation to understand the underlying drivers. The consistent positive adjustment to current assets suggests potential differences in accounting treatment or valuation methods.

Total assets and adjusted total assets both demonstrate an overall upward trend from 2021 to 2025. However, the magnitude of growth differs between the two figures, and a decrease is observed in 2022 for both metrics.

Overall Trend

From 2021 to 2025, total assets increased from US$13,555,000 thousand to US$20,458,700 thousand, representing a cumulative growth of approximately 50.7%. Adjusted total assets followed a similar pattern, rising from US$13,133,800 thousand to US$19,470,000 thousand, a cumulative increase of roughly 48.2% over the same period.

Year-over-Year Changes

A decline in both total assets and adjusted total assets is evident between 2021 and 2022. Total assets decreased by approximately 4.3% while adjusted total assets decreased by approximately 6.1%. Following 2022, both metrics experienced year-over-year increases. The largest percentage increase in total assets occurred between 2022 and 2023, at approximately 18.9%. The largest percentage increase in adjusted total assets occurred between 2023 and 2024, at approximately 21.6%.

Difference Between Metrics

The difference between total assets and adjusted total assets remained relatively consistent throughout the period, generally ranging between US$400,000 thousand and US$1,000,000 thousand. This suggests that the adjustments made to total assets represent a consistent portion of the overall asset base. The gap narrowed slightly in 2025, indicating a smaller adjustment relative to total assets.

The consistent upward trajectory of both total assets and adjusted total assets suggests a period of growth for the entity. The adjustments made to total assets, while consistent, warrant further investigation to understand the nature of these adjustments and their impact on the reported financial position.

Current liabilities exhibited a consistent upward trend over the five-year period. Simultaneously, adjusted current liabilities also increased, but at a notably different rate. A comparison of the two liability figures reveals a significant portion of reported current liabilities is subject to adjustment.

Overall Trends

Reported current liabilities increased from US$1,149,800 thousand in 2021 to US$2,006,200 thousand in 2025, representing a growth of approximately 74.3%. Adjusted current liabilities also rose, moving from US$772,600 thousand to US$1,499,500 thousand over the same period, an increase of roughly 94.4%. While both figures demonstrate growth, the adjusted liabilities grew at a faster percentage rate.

Growth Rate Differences

The difference between reported and adjusted current liabilities widened over time. In 2021, the unadjusted portion represented approximately 32.6% of total current liabilities. By 2025, this difference had increased, with the unadjusted portion accounting for approximately 37.8% of total current liabilities. This suggests an increasing reliance on adjustments to the initially reported current liability figure.

Year-over-Year Changes

The largest year-over-year increase in reported current liabilities occurred between 2021 and 2022 (23.6% growth). The largest year-over-year increase in adjusted current liabilities also occurred between 2021 and 2022 (32.4% growth). Growth rates decelerated in subsequent years for both reported and adjusted figures, although adjusted liabilities consistently showed higher percentage increases.

The consistent adjustments to current liabilities warrant further investigation to understand the nature of these adjustments and their impact on the company’s short-term financial position. The increasing gap between reported and adjusted figures suggests a potential need for enhanced disclosure or a review of current liability classification policies.

Total liabilities exhibited a consistent upward trend from December 31, 2021, to December 31, 2025. Simultaneously, adjusted total liabilities also demonstrated an increasing pattern over the same period, though at a different magnitude. A comparison of the two liability measures reveals a significant difference throughout the observed timeframe.

Total Liabilities Trend

Total liabilities increased from US$1,603.5 million in 2021 to US$2,517.0 million in 2025, representing a cumulative growth of approximately 57.0%. The year-over-year increases were US$257.9 million (16.1%) from 2021 to 2022, US$182.8 million (9.8%) from 2022 to 2023, US$169.4 million (8.3%) from 2023 to 2024, and US$303.4 million (13.7%) from 2024 to 2025. The rate of increase appears to have accelerated in the final period.

Adjusted Total Liabilities Trend

Adjusted total liabilities rose from US$1,188.9 million in 2021 to US$1,918.9 million in 2025, a cumulative increase of approximately 61.0%. Year-over-year changes were US$234.1 million (19.7%) from 2021 to 2022, US$129.5 million (9.1%) from 2022 to 2023, US$138.2 million (8.9%) from 2023 to 2024, and US$228.2 million (13.4%) from 2024 to 2025. Similar to total liabilities, the growth rate in adjusted total liabilities also increased in the last observed year.

Difference Between Measures

The difference between total liabilities and adjusted total liabilities widened over the period. In 2021, the difference was US$414.6 million. By 2025, this difference had grown to US$598.1 million. This suggests that the adjustments made to total liabilities are becoming increasingly substantial and potentially represent a growing portion of the overall liability structure. The magnitude of the adjustments relative to total liabilities increased from approximately 25.9% in 2021 to 23.8% in 2025.

The consistent increases in both total and adjusted liabilities warrant further investigation to understand the underlying drivers. The growing disparity between the two measures suggests a need to analyze the nature of the adjustments being made and their impact on the company’s financial position.

Total stockholders’ equity exhibited a fluctuating pattern over the five-year period. Initially, a decrease is observed, followed by substantial growth, culminating in continued, albeit moderating, increases. A comparison with adjusted stockholders’ equity reveals consistent differences throughout the period, suggesting systematic adjustments are being applied.

Overall Trend in Stockholders’ Equity

Total stockholders’ equity decreased from US$11,901,100 thousand in 2021 to US$11,041,900 thousand in 2022, representing a decline of approximately 7.2%. A significant increase then occurred, with equity rising to US$13,307,600 thousand in 2023, and further to US$16,433,700 thousand in 2024. Growth continued into 2025, reaching US$17,824,000 thousand, though at a slower pace than the prior year’s increase.

Adjusted Stockholders’ Equity Trend

Adjusted total stockholders’ equity mirrored the trend of total stockholders’ equity, decreasing from US$11,944,900 thousand in 2021 to US$10,908,800 thousand in 2022, a decrease of roughly 8.7%. It then increased to US$13,005,600 thousand in 2023, US$16,038,100 thousand in 2024, and US$17,551,100 thousand in 2025. The magnitude of the increases in adjusted equity generally tracked closely with those of total equity.

Difference Between Total and Adjusted Equity

A consistent difference exists between the reported total stockholders’ equity and the adjusted total stockholders’ equity. In each year, the adjusted value is slightly higher than the total value. The difference ranged from approximately US$43,000 thousand in 2021 to US$72,900 thousand in 2025. This suggests the adjustments consistently add value to the reported equity figure, and the magnitude of this addition is increasing over time.

The consistent application of adjustments to stockholders’ equity warrants further investigation to understand the nature of these adjustments and their impact on the overall financial position. The growth in equity from 2023 onwards is notable, and the continued, though moderating, increase in 2025 suggests sustained positive performance.

The capitalization structure of the entity under review demonstrates notable shifts between 2021 and 2025. While reported total capital and stockholders’ equity initially decreased, then increased over the period, adjustments to these figures reveal a different dynamic, particularly concerning debt levels. A consistent pattern emerges when comparing reported and adjusted figures, indicating a significant underreporting of debt in the initially published financial statements.

Total Capital

Reported total capital experienced a decrease from US$11,901.1 million in 2021 to US$11,041.9 million in 2022, followed by a substantial increase to US$17,824.0 million by 2025. However, adjusted total capital shows a similar trend, beginning at US$12,031.9 million in 2021, dipping to US$11,002.6 million in 2022, and rising to US$17,722.0 million in 2025. The adjusted figures are consistently higher than the reported figures, highlighting the impact of debt adjustments.

Stockholders’ Equity

Reported stockholders’ equity mirrored the trend in total capital, declining from US$11,901.1 million in 2021 to US$11,041.9 million in 2022, and then increasing to US$17,824.0 million in 2025. Adjusted stockholders’ equity followed a similar pattern, starting at US$11,944.9 million, decreasing to US$10,908.8 million, and increasing to US$17,551.1 million. The difference between reported and adjusted equity is relatively small, suggesting the primary adjustment impact is on the debt side.

Debt Levels

The most significant observation is the substantial difference between reported and adjusted total debt. Reported debt is not provided for the entire period, but adjusted total debt reveals a consistent, and increasing, presence. Starting at US$87.0 million in 2021, adjusted debt rose to US$170.9 million by 2025. The increase is particularly pronounced between 2023 and 2024, jumping from US$89.8 million to US$146.0 million. This indicates that a material amount of debt was not initially reflected in the reported financial position, and is being accounted for through these adjustments.

The consistent divergence between reported and adjusted figures suggests a systematic difference in how debt is being recognized. The increasing trend in adjusted debt warrants further investigation to understand the nature of these liabilities and the reasons for their initial omission from the reported financial statements. The adjustments significantly alter the capital structure, impacting key financial ratios and potentially influencing assessments of the entity’s financial risk and leverage.

Revenue and adjusted revenue both demonstrate a consistent upward trend over the five-year period from 2021 to 2025. The magnitude of the increase appears to be accelerating over time, with larger absolute increases observed in later years compared to earlier ones. While both metrics move in the same direction, a consistent difference exists between reported revenue and adjusted revenue.

Overall Growth

Revenue increased from US$5,710.1 million in 2021 to US$10,064.7 million in 2025, representing a growth of approximately 76.1% over the period. Adjusted revenue grew from US$5,741.8 million in 2021 to US$10,139.9 million in 2025, a growth of approximately 76.8%.

Year-over-Year Growth

The year-over-year growth rate for revenue was approximately 8.9% from 2021 to 2022, 14.3% from 2022 to 2023, 17.1% from 2023 to 2024, and 20.4% from 2024 to 2025. Adjusted revenue exhibited similar growth rates: 8.8% from 2021 to 2022, 14.7% from 2022 to 2023, 17.4% from 2023 to 2024, and 21.0% from 2024 to 2025. The accelerating growth suggests increasing market acceptance or expansion.

Revenue Adjustments

A consistent positive adjustment to revenue is present in each year. The adjustment amounts to approximately US$31.7 million in 2021, US$24.3 million in 2022, US$53.4 million in 2023, US$31.2 million in 2024, and US$75.2 million in 2025. The magnitude of the adjustment is not consistently correlated with the level of revenue, suggesting the adjustments may relate to specific, non-recurring items or changes in accounting practices. The increasing adjustment amount in 2025 warrants further investigation.

The consistent difference between revenue and adjusted revenue indicates the presence of items that are being added back to the initially reported revenue figure. Understanding the nature of these adjustments is crucial for a complete assessment of the company’s financial performance.

Net income attributable to Intuitive Surgical, Inc. and adjusted net income both demonstrate overall positive trends between 2021 and 2025. However, the magnitude of growth differs between the two metrics, and a notable divergence occurred in 2022. Initial growth was followed by a decline in 2022 for both measures, then resumed with increasing momentum through 2025.

Overall Trend

From 2021 to 2025, net income attributable to Intuitive Surgical, Inc. increased from US$1,704.6 million to US$2,856.0 million. Adjusted net income followed a similar trajectory, rising from US$1,647.8 million to US$3,067.1 million over the same period. This indicates a consistent underlying profitability improvement.

2022 Decline

A decrease is observed in both net income and adjusted net income in 2022. Net income fell to US$1,322.3 million, and adjusted net income decreased to US$1,043.7 million. This represents a significant contraction compared to the prior year, suggesting potential headwinds impacting financial performance during that period.

Relationship Between Metrics

The difference between net income attributable to Intuitive Surgical, Inc. and adjusted net income varied over the period. In 2021, the difference was US$56.8 million. This gap widened in 2022 to US$278.6 million, indicating larger adjustments were made to arrive at the adjusted figure. The difference narrowed in subsequent years, reaching US$98.9 million in 2025. This suggests that the nature or magnitude of items requiring adjustment changed over time.

Growth Rates

The growth from 2023 to 2024 was more pronounced for net income attributable to Intuitive Surgical, Inc. (approximately 21.7%) than for adjusted net income (approximately 26.3%). The largest percentage increase occurred between 2024 and 2025 for both metrics, with adjusted net income experiencing a growth of approximately 39.2% and net income growing by approximately 22.7%.

The consistent growth in adjusted net income, particularly the acceleration in later years, suggests effective management of underlying business operations and potentially successful implementation of strategic initiatives. The adjustments made to net income warrant further investigation to understand the specific items impacting the reported figures.