Intuitive Surgical (ISRG) Financials

Intuitive Surgical (NASDAQ: ISRG) has exhibited consistent financial growth and operational strength over the past four years, as reflected in its quarterly financial statements through Q2 2025. Here is a summary of key trends and highlights drawn from the detailed cash flow statements, income statements, and balance sheets:

• Strong and growing revenue: Operating revenue increased from approximately $1.7 billion in Q1 2023 to $2.44 billion in Q2 2025, reflecting solid demand for the company's products and services.
• Consistent profitability: Net income has steadily grown from $360.8 million in Q1 2023 to $664.2 million in Q2 2025, with earnings per share rising correspondingly (diluted EPS of $1.00 in Q1 2023 to $1.81 in Q2 2025).
• Robust operating cash flow: Net cash from continuing operating activities increased substantially from $265 million in Q1 2024 to $715 million in Q2 2025, showing strong cash generation from core operations.
• Healthy balance sheet: Total assets have grown meaningfully over the period, reaching over $20 billion in Q2 2025. Cash and equivalents increased to more than $3.4 billion, providing ample liquidity.
• Investments in growth: Substantial investments in property, plant, and equipment (e.g., $155 million in Q2 2025) and strategic purchases of investments indicate commitment to expanding capabilities and market reach.
• Decreasing long-term debt: Long-term debt levels have remained manageable and decreased slightly over recent quarters, improving financial leverage.

• Stable operating expenses: Selling, general, and administrative (SG&A) and research & development expenses have increased moderately but remain well-controlled relative to revenue growth, supporting healthy operating income margins.
• Minor fluctuations in deferred tax assets and goodwill: The company maintains consistent goodwill and intangible assets with minor quarter-to-quarter changes, related to acquisitions or amortization.
• Modest share issuance and buybacks: Equity issuance and repurchases fluctuate but generally show balance, with shareholder equity rising over time.

• Increased investments occasionally constrain free cash flow: Large one-time purchases of investments and property expenditures sometimes lead to negative net cash from investing activities, such as a $1.26 billion outflow in Q4 2024.
• Seasonal or periodic swings in changes in operating assets and liabilities: These swings can temporarily reduce operating cash flow, evident in some quarters (e.g., Q4 2023 saw a -$659 million change).

Summary: Intuitive Surgical continues to demonstrate strong revenue growth, profitability, and cash flow generation with a solid and improving balance sheet. The company invests regularly in growth while maintaining disciplined expense management. While investing activities occasionally reduce free cash flow, the overall financial health and operational performance appear robust, suggesting a positive outlook for investors.