Intuitive Surgical, Inc.

Shortcut’s reasoning.

The model estimates revenue of $2.942 billion from procedure volumes, instruments and accessories, system placements and service revenue. It applies a 68.5% non-GAAP gross margin and $819.53 million of operating expenses, producing $1.196 billion of non-GAAP operating income.

After $80 million of other income, a 22.5% non-GAAP tax rate and $5 million attributable to noncontrolling interests, forecast non-GAAP net income is $983.94 million. Dividing by 356.63 million diluted shares gives normalized EPS of $2.758965, compared with the frozen Street estimate of $2.64.

The share forecast retains $500 million of repurchases at $375 per share, issuance and dilution assumptions. The separate experimental beat-probability estimate does not multiply or otherwise adjust the EPS forecast.