INTUITIVE SURGICAL INCISRG

INTUITIVE SURGICAL INC Revenue Disclosure

10-KFiled Feb 3, 20263 min read
REVENUE
Revenue from external customers is attributed to individual countries based on customer location. The following table presents revenue disaggregated by geography and type (in millions):
Year Ended December 31,
U.S.202520242023
Instruments and accessories$4,203.4 $3,626.4 $3,059.8 
Systems1,581.8 1,122.6 865.5 
Services1,030.6 840.4 763.3 
Total U.S. revenue$6,815.8 $5,589.4 $4,688.6 
OUS
Instruments and accessories$1,815.5 $1,452.6 $1,216.8 
Systems891.9 843.4 814.2 
Services541.5 466.7 404.5 
Total OUS revenue$3,248.9 $2,762.7 $2,435.5 
Total
Instruments and accessories$6,018.9 $5,079.0 $4,276.6 
Systems2,473.7 1,966.0 1,679.7 
Services1,572.1 1,307.1 1,167.8 
Total revenue$10,064.7 $8,352.1 $7,124.1 
Remaining Performance Obligations
The transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which revenue has not yet been recognized. A significant portion of these performance obligations relate to service obligations in the Company’s system sale and lease arrangements that will be satisfied and recognized as revenue in future periods. The transaction price allocated to the remaining performance obligations was $3.0 billion as of December 31, 2025. The remaining performance obligations are expected to be satisfied over the term of the system sale, lease, and service arrangements. Approximately half of the remaining performance obligations are expected to be recognized in the next 12 months with the remainder recognized thereafter over the term of the system sale, lease, and service arrangements, which are generally up to 5 years.
Contract Assets and Liabilities
The following information summarizes the Company’s contract assets and liabilities (in millions):
December 31,
20252024
Contract assets$15.3 $13.9 
Deferred revenue$598.1 $522.9 
Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the arrangements. The Company did not have significant impairment losses on its contract assets for any of the periods presented.
The Company invoices its customers based on the billing schedules in its sales arrangements. Payments are generally due 30 to 60 days from the date of invoice.
Deferred revenue for the periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to those services having been performed. The associated deferred revenue is generally recognized over the term of the service period.
During the year ended December 31, 2025, the Company recognized $459 million of revenue that was included in the deferred revenue balance as of December 31, 2024. During the year ended December 31, 2024, the Company recognized $422 million of revenue that was included in the deferred revenue balance as of December 31, 2023.
Intuitive System Leasing
The following table presents product revenue from Intuitive System Leasing arrangements (in millions):
Year Ended December 31,
202520242023
Sales-type lease revenue$97.3 $163.1 $78.4 
Operating lease revenue*$874.3 $654.2 $500.5 
*Variable lease revenue related to usage-based arrangements included within operating lease revenue
$530.9 $338.4 $216.5 
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Historical Timeline

Fiscal YearFiled
2025Feb 3, 2026Showing above
2024Jan 31, 2025
2023Jan 31, 2024
2022Feb 10, 2023
2021Feb 3, 2022
2020Feb 10, 2021
2019Feb 7, 2020

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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