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ISRG Nasdaq· Intuitive Surgical Inc
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ISRG Nasdaq· Intuitive Surgical Inc
Earnings report Q4 2023

Intuitive Surgical Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Intuitive Surgical (ISRG) reported total revenue of $7.1 billion, representing a 14% increase compared to the same quarter last year. This growth was primarily driven by a 22% increase in instruments and accessories revenue, as well as a 14% increase in service revenue.

Strengths

Intuitive Surgical's strong revenue performance in the latest quarter can be attributed to several factors. Firstly, the company experienced a larger installed base of systems, which contributed to higher service revenue. Additionally, the increase in instruments and accessories revenue indicates a growing demand for the company's products. This suggests that Intuitive Surgical's robotic surgical systems continue to gain traction in the market, highlighting the company's technological leadership and competitive advantage.

Challenges

While Intuitive Surgical's revenue growth is impressive, there are a few challenges worth noting. The company's product gross profit margin decreased slightly from 67.3% to 65.7% in the latest quarter. This decline may be attributed to higher product revenue being partially offset by increased costs. It will be important for Intuitive Surgical to closely monitor and manage its costs to maintain profitability.

Noteworthy

It is noteworthy that Intuitive Surgical's total revenue has consistently increased over the past few years, demonstrating the company's ability to sustain growth. The 14% revenue growth in the latest quarter is particularly notable, as it outperformed the 9% growth reported in the same quarter of the previous year. This indicates that Intuitive Surgical's business is continuing to thrive and gain momentum.

Summary

Intuitive Surgical delivered a strong performance in the latest quarter, with total revenue increasing by 14% to $7.1 billion. The company's revenue growth was driven by higher instruments and accessories revenue, as well as increased service revenue due to a larger installed base of systems. While there are some challenges, such as a slight decrease in product gross profit margin, Intuitive Surgical's consistent revenue growth and market leadership position make it a promising investment opportunity.

Source documents

Form 10-K  filed on Jan 31, 2024
96 pages scanned

Reference data

Company financials Q4 revenue 1.93B
Analyst estimates Q4 EPS beat by 7.72%
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