ISRG INTUITIVE SURGICAL INC

Overview and Growth

INTUITIVE SURGICAL INC generated $10.06B of revenue in fiscal 2025, with net income of $2.86B and an operating cash inflow of $3.03B. Revenue of $10.06B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 20.5% from $8.35B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $7.87, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 22.6% increase from fiscal 2024 diluted EPS of $6.42. Revenue equaled 0.49x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The first profit layer was $6.64B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 66.0%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $2.95B, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 29.3%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $2.86B, after the operating, financing, tax, and other items recognized for the period. Net margin was 28.4%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $3.31B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 32.9% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $434.80M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 13.1%, without assuming a statutory-rate comparison. Return on period-end equity was 15.9%, relating annual net income to the equity capital on the balance sheet.

Liquidity and Capital Structure

Total assets were $20.46B, supported by $2.52B of liabilities and $17.94B of shareholder equity. Current assets were $9.78B against $2.01B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 4.87x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Reported cash and equivalents were $3.37B, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 167.9%, excluding receivables and other current assets. Liabilities represented 12.3% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 16.5%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 9.2% higher than fiscal 2024 assets of $18.74B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

Cash flow from operations was $3.03B, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 1.06x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $539.80M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 17.8% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $2.49B, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 24.7%, showing how much sales converted into cash after investment. Free cash flow equaled 12.2% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.