Financial Data and Key Metrics Changes - Stryker reported crossing $20 billion in sales in February 2023 and is now moving towards $30 billion with another year of double-digit organic sales growth in February 2024 [27] Business Line Data and Key Metrics Changes - The company completed seven tuck-in acquisitions in 2024, strengthening its category leadership across various business areas [28] - Stryker has two FDA-approved AI solutions in the market and a robust pipeline of digital solutions being launched or planned for the future [34] Market Data and Key Metrics Changes - Stryker impacted over 150 million patients in 2024, indicating a strong market presence and commitment to healthcare [29] Company Strategy and Development Direction - The company emphasizes innovation as a key driver for consistent high growth and has maintained its mission and values for over eleven years [27][28] - Stryker is focusing on advanced digital healthcare to improve operational and clinical outcomes, leveraging data and new technologies like AI [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong performance for 2025 and beyond, highlighting the company's position for continued growth [37] - The leadership team acknowledged the importance of employee efforts and customer collaboration in driving innovation and service excellence [36] Other Important Information - The company announced leadership transitions, including the appointment of a new Chief Communications Officer and a new Chief Financial Officer [12] Q&A Session Summary Question: How does the compensation committee use the compensation actually paid total compensation figures in its calculation of the CEO target total compensation award for the upcoming year? - The CEO explained that realized pay is based on stock performance over time, and the compensation committee uses an outside adviser to help set compensation, emphasizing that most of the CEO's pay is at risk [21][22][23] Question: How is Stryker leveraging data and new technologies like AI to drive product innovations and improve patient outcomes? - The CEO stated that Stryker has two FDA-approved AI solutions and a strong pipeline of digital solutions, which are crucial for future product offerings [34]

Core Insights - Stryker reported revenue of $5.87 billion for the quarter ended March 2025, reflecting an 11.9% increase year-over-year and surpassing the Zacks Consensus Estimate of $5.7 billion by 2.88% [1] - The company's EPS for the quarter was $2.84, up from $2.50 in the same quarter last year, exceeding the consensus estimate of $2.73 by 4.03% [1] Financial Performance - Net sales in the United States reached $4.44 billion, exceeding the average analyst estimate of $4.25 billion, representing a year-over-year increase of 13.4% [4] - International net sales totaled $1.43 billion, slightly below the average estimate of $1.44 billion, with a year-over-year growth of 7.3% [4] - Orthopaedics net sales amounted to $2.36 billion, surpassing the average estimate of $2.31 billion, marking a 5% increase year-over-year [4] Segment Performance - MedSurg and Neurotechnology sales were reported at $3.51 billion, exceeding the average estimate of $3.41 billion, with a significant year-over-year increase of 17.1% [4] - Orthopaedics- Trauma and Extremities sales reached $945 million, above the average estimate of $902.89 million, reflecting a 13.9% year-over-year increase [4] - Orthopaedics- Spinal Implants sales were $166 million, falling short of the average estimate of $172.83 million, showing a substantial year-over-year decline of 44.7% [4] Stock Performance - Stryker's shares have returned +1.6% over the past month, contrasting with a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Stryker Corporation reported first-quarter 2025 adjusted EPS of $2.84, exceeding the Zacks Consensus Estimate of $2.73 by 4% and showing a year-over-year improvement of 13.6% [1] - Total revenues reached $5.87 billion, surpassing the Zacks Consensus Estimate by 2.9% and reflecting an 11.9% year-over-year increase [2] Revenue Details - U.S. revenues amounted to $4.44 billion, up 13.4% year over year, while international sales increased 7.3% to $1.43 billion, driven by strong performances in Australia, New Zealand, Japan, and Europe [3] - The growth in revenues was attributed to effective pricing initiatives [2] Segmental Analysis - Stryker signed an agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, LLC, with the divestment expected to be completed by the first half of 2025 [4] - The MedSurg and Neurotechnology segment reported sales of $3.51 billion, up 9.4% year over year, with organic sales growth of 10.7% [5][6] Margins - Adjusted gross profit totaled $3.85 billion, a 15.2% increase from the previous year, with adjusted gross margin expanding by 190 basis points to 65.5% [12] - Adjusted operating income was $1.34 billion, up 17.3% year over year, with an adjusted operating margin of 22.9% [12] Financial Update - Stryker ended the first quarter with cash and cash equivalents of $2.32 billion, down from $3.65 billion at the end of the previous quarter [13] - Cumulative net cash provided by operating activities was $250 million, compared to $204 million a year ago [13] 2025 Guidance - The company updated its 2025 revenue growth guidance to 8.5-9.5% on an organic basis, with total revenues expected to reach $24.54 billion [14] - EPS guidance was lowered to $13.20-$13.45, reflecting the dilutive impact of the Inari Medical acquisition [14] Operational Highlights - Stryker's Mako robotic systems saw record installations in the first quarter, with the launch of the next-generation Mako 4 system expected to enhance adoption [17] - The company completed the Inari Medical acquisition in February, which is anticipated to contribute significantly to future performance [18] Challenges and Mitigation - Despite supply disruptions and the impact of tariffs, Stryker plans to offset a projected $200 million tariff impact in 2025 through sales growth and cost control measures [19]

| UNITED STATES | | --- | | SECURITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | | FORM 10-Q | | ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | For the quarterly period ended March 31, 2025 | | OR | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | Commission file number: 001-13149 | | STRYKER CORPORATION | | (Exact name of registrant as specified in its charter) | | Michigan 38-1239739 | | 1941 Stryker ...

Stryker (SYK) came out with quarterly earnings of $2.84 per share, beating the Zacks Consensus Estimate of $2.73 per share. This compares to earnings of $2.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.03%. A quarter ago, it was expected that this medical device maker would post earnings of $3.87 per share when it actually produced earnings of $4.01, delivering a surprise of 3.62%.Over the last four quarters, the compan ...

Financial Data and Key Metrics Changes - The company reported robust organic sales growth of 10.1% in Q1 2025, with adjusted EPS of $2.84, reflecting a 13.6% increase compared to Q1 2024 [5][6][16] - The adjusted gross margin improved to 65.5%, up 190 basis points year-over-year, while the adjusted operating margin was 22.9%, an increase of 100 basis points [23][27] - The company anticipates full-year organic sales growth of 8.5% to 9.5% and adjusted EPS in the range of $13.2 to $13.45 [7][26][27] Business Line Data and Key Metrics Changes - MedSurg and Neurotechnology achieved organic sales growth of 10.7%, with U.S. growth at 11.4% and international growth at 8.2% [16][19] - The Instruments segment saw U.S. organic sales growth of 10.4%, while Endoscopy reported 11.1% growth driven by core portfolios [17][18] - Orthopedics had organic sales growth of 9.3%, with U.S. knee business growing 8.3% and trauma and extremities growing 15.2% [19][20][21] Market Data and Key Metrics Changes - U.S. organic sales growth was 10.7%, while international organic sales growth was 8.5%, with notable strength in Australia, New Zealand, Japan, and Europe [15][19] - The company noted a favorable pricing impact of 0.7%, while foreign currency had a 0.9% unfavorable impact on sales [14][15] Company Strategy and Development Direction - The company completed the acquisition of Inari Medical, with integration going well and expected to contribute positively to the vascular division [7][12][50] - The company continues to focus on innovation and product launches, including the Mako robotic system and the Pangaea plating system, which are expected to drive future growth [10][11][12][58] - The company is addressing tariff impacts through pricing strategies, operational efficiencies, and leveraging its manufacturing footprint [27][33][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, citing strong demand and no significant red flags in the operating environment [35][40] - Supply chain disruptions were acknowledged, particularly in the medical segment, but these were factored into the guidance [40] - The company remains optimistic about maintaining strong sales momentum and achieving its margin improvement targets despite tariff challenges [27][44][68] Other Important Information - The company has been recognized for the fifteenth consecutive year on Great Place to Work's list of 100 Best Companies to Work For, highlighting its strong corporate culture [8] - The company expects a tariff impact of approximately $200 million in 2025, with ongoing efforts to mitigate this through various strategies [27][33] Q&A Session Summary Question: How is the company planning to absorb the estimated $200 million tariff impact? - Management indicated that the absorption will come from strong sales momentum, pricing strategies, and optimizing operational expenditures [30][32] Question: What is the outlook for the orthopedics market and the company's positioning? - Management noted that the orthopedics market remains healthy, with expectations for growth above the market average due to strong demand and successful product launches [34][35] Question: Can you provide insights on the gross margin expectations for the rest of the year? - Management expects a balanced contribution to margin improvement from both gross margin and operational expenditures, despite potential tariff impacts in the latter half of the year [42][44] Question: How is the integration of Inari progressing? - The integration is going well, with positive early performance and alignment with the company's culture [50] Question: What are the expectations for capital expenditures in 2026? - Management indicated that it is too early to provide a detailed outlook for 2026, but they remain optimistic about capital needs tied to strong procedural volumes [102]

Financial Data and Key Metrics Changes - The company reported robust organic sales growth of 10.1% in Q1 2025, with adjusted EPS of $2.84, reflecting a 13.6% increase compared to Q1 2024 [5][6][16] - The adjusted gross margin improved to 65.5%, up 190 basis points year-over-year, while the adjusted operating margin was 22.9%, an increase of 100 basis points [24][25] Business Line Data and Key Metrics Changes - MedSurg and Neurotechnology achieved organic sales growth of 10.7%, with U.S. growth at 11.4% and international growth at 8.2% [16][20] - Orthopedics saw organic sales growth of 9.3%, with U.S. knee business growing 8.3% and hip business growing 7.6% [20][21] - Trauma and Extremities businesses grew 15.2% organically, driven by strong performance in core trauma and upper extremities [22][58] Market Data and Key Metrics Changes - U.S. organic sales growth was 10.7%, while international organic sales growth was 8.5%, with notable strength in Australia, New Zealand, Japan, and Europe [15][20] - The company anticipates continued strength in procedural demand, particularly in robotic-assisted surgery [9][10] Company Strategy and Development Direction - The company completed the acquisition of Inari Medical, with integration going well and expected to contribute positively to the vascular division [6][12][51] - The company is focused on maintaining double-digit organic sales growth, with guidance for 2025 set at 8.5% to 9.5% [6][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, citing strong demand and no major red flags in the operating environment [41][42] - The company is taking measures to mitigate the estimated $200 million impact from tariffs through pricing strategies and operational efficiencies [27][34] Other Important Information - The company is recognized for the fifteenth consecutive year on Great Place to Work's list of 100 Best Companies to Work For [7] - The company expects to launch Mako Spine in the second half of 2025 and Mako Shoulder in Q1 2026 [10][12] Q&A Session Summary Question: How is the company absorbing the $200 million tariff impact? - The company plans to offset the tariff impact through strong sales momentum, pricing strategies, and optimizing the supply chain [31][34] Question: What is the outlook for the orthopedics market? - The orthopedics market remains healthy, with strong demand and expectations for growth above the market average [36][37] Question: How is the launch of LifePack 35 progressing? - The launch is going well, with strong order pipelines and positive market reception [68][70] Question: What are the expectations for capital expenditures in 2026? - Early conversations suggest continued strength in capital demand, particularly tied to procedural needs [100][101] Question: How is the integration of Inari going? - The integration is progressing well, with strong early performance and alignment with Stryker's culture [51][52]

Exhibit 99.1 STRYKER REPORTS FIRST QUARTER 2025 OPERATING RESULTS Portage, Michigan - May 1, 2025 - Stryker (NYSE:SYK) reported operating results for the first quarter of 2025: First Quarter Results | | | First Quarter Net Sales Growth Overview | | | | --- | --- | --- | --- | --- | | | Foreign Currency | | Acquisitions / | | | | Reported Exchange | Constant Currency | Divestitures | Organic | | MedSurg and Neurotechnology | 13.4 % (0.8)% | 14.2 % | 3.5 % | 10.7 % | | Orthopaedics | 9.7 (1.0) | 10.7 | 1.4 | ...

Core Insights - Stryker reported a consolidated net sales of $5.9 billion for Q1 2025, reflecting an increase of 11.9% compared to the previous year, with a constant currency growth of 12.8% [2][13] - The company achieved organic net sales growth of 10.1%, driven by a 9.4% increase in unit volume and a 0.7% increase in prices [2][13] - Adjusted net earnings increased by 14.0% to $1.1 billion, with adjusted earnings per diluted share rising by 13.6% to $2.84 [4][13] Sales Performance - MedSurg and Neurotechnology segment net sales reached $3.5 billion, up 13.4% year-over-year, with organic growth of 10.7% [2][3] - Orthopaedics segment net sales were $2.4 billion, reflecting a 9.7% increase, with organic growth of 9.3% [3][21] - The U.S. market contributed $4.44 billion in sales, a 13.4% increase, while international sales grew by 7.3% to $1.426 billion [22] Earnings Analysis - Reported net earnings decreased by 17.0% to $654 million, with diluted earnings per share falling by 17.6% to $1.69 [4][13] - The reported gross profit margin was 63.8%, while the adjusted gross profit margin improved to 65.5% [4][13] - Operating income margin was reported at 14.3%, with an adjusted operating income margin of 22.9%, an increase of 100 basis points [4][13] 2025 Outlook - The company raised its full-year 2025 organic net sales growth guidance to a range of 8.5% to 9.5%, reflecting strong demand for capital products [5][6] - Adjusted net earnings per diluted share guidance is now projected to be between $13.20 and $13.45, inclusive of dilution from the Inari Medical acquisition [6][5]

Core Viewpoint - Stryker Corporation is expected to report its first-quarter 2025 results on May 1, with earnings estimated at $2.73 per share, reflecting a year-over-year increase of 9.2% and revenues projected at $5.70 billion, indicating an 8.8% growth from the previous year [1][2]. Group 1: Performance Drivers - The anticipated strong performance in the first quarter is attributed to robust sales in the U.S. market across various segments, including Instruments, Medical, Endoscopy, Trauma and Extremities, and Mako [3]. - The MedSurg and Neurotechnology segment experienced significant sales growth in the previous quarter, driven by the Surgical Technologies and orthopedic implants businesses, which is expected to continue [4]. - Recent product launches, including the next generation of SurgiCount+ and the Oculan Lighting Platform, are likely to contribute to additional sales in the first quarter [5]. Group 2: Product Portfolio and Acquisitions - The commercialization of the Pangea Plating system and strong sales of the LIFEPAK 35 defibrillator are expected to have positively impacted first-quarter results [6]. - New products like the Osteotomy Truss System and Ankle Truss System are anticipated to enhance the Foot & Ankle portfolio, improving surgical precision and patient outcomes [7]. - Stryker has completed five acquisitions in the latter half of 2024, which are expected to be accretive to quarterly results, enhancing its product offerings in various medical fields [8]. Group 3: Sales Estimates - Sales estimates for the MedSurg and Neurotechnology segments are projected at $3.75 billion, while Orthopaedics & Spine segments are estimated at $2.57 billion. U.S. sales are expected to be $4.74 billion, with international sales at $1.59 billion [9]. Group 4: Market Challenges - Ongoing challenges in China due to volume-based procurement policies and rising tariffs may partially offset international growth, although Stryker is addressing inflationary pressures and has recognized improved pricing and reduced cost pressures [10].