Intuitive Surgical Inc. (NASDAQ:ISRG)

The income statement reveals a consistent pattern of growth across key metrics from 2021 to 2025. Revenue demonstrates a robust upward trend, driven by increases in both product and service revenue. While cost of revenue also increases, the company maintains a healthy gross profit margin, contributing to overall profitability. Operating expenses are also increasing, but at a rate that allows for significant growth in income from operations.

Revenue Growth

Total revenue increased from US$5,710.1 million in 2021 to US$10,064.7 million in 2025, representing a compound annual growth rate of approximately 15.3%. Product revenue consistently constitutes the majority of total revenue, while service revenue demonstrates a similar growth trajectory, albeit from a smaller base. The growth in service revenue suggests a successful strategy of recurring revenue streams.

Profitability Analysis

Gross profit increased from US$3,958.5 million in 2021 to US$6,642.3 million in 2025. Although cost of revenue increased substantially, the growth in revenue outpaced this increase, resulting in improved gross profit. Income from operations experienced fluctuations, decreasing in 2022 before recovering and demonstrating strong growth in subsequent years, reaching US$2,945.5 million in 2025. Net income attributable to Intuitive Surgical, Inc. followed a similar pattern, increasing from US$1,704.6 million in 2021 to US$2,856.0 million in 2025.

Expense Management

Selling, general and administrative expenses, and research and development expenses both increased year-over-year. The increase in research and development is particularly notable, suggesting a continued commitment to innovation. While these expenses contribute to overall operating expenses, the company’s revenue growth has allowed it to maintain a positive income from operations.

Net Income and Taxes

Net income attributable to Intuitive Surgical, Inc. shows a positive trend, despite fluctuations in income tax expense. The effective tax rate varies across the period, with a higher rate observed in 2022 and 2024. Net income attributable to noncontrolling interest in joint venture remains relatively stable, decreasing slightly over the period.

Overall, the income statement indicates a financially healthy and growing company. The consistent revenue growth, coupled with effective expense management and a commitment to research and development, positions the company for continued success. The fluctuations in income from operations and income tax expense warrant further investigation, but do not appear to significantly detract from the overall positive trend.