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]

Financial Performance - In Q1 2025, Stryker Corporation achieved sales growth of 11.9% compared to Q1 2024, with net sales reaching $5,866 million[78]. - Adjusted net earnings per diluted share increased by 13.6% to $2.84, while net earnings per diluted share decreased by 17.6% to $1.69[78][86]. - MedSurg and Neurotechnology segment sales grew by 13.4% to $3,511 million, while Orthopaedics segment sales increased by 9.7% to $2,355 million[87][92]. - Stryker's total net sales in constant currency increased by 12.8%, with a 9.4% increase attributed to unit volume growth[90]. - Total sales for the three months of 2025 were reported at $3,744 million, up from $3,333 million in 2024, indicating a growth in sales[111]. Operating Income and Expenses - Operating income for the three months of 2025 was $837 million, a decrease from $972 million in 2024, resulting in a percentage of net sales decline from 18.5% to 14.3%[103]. - Selling, general, and administrative expenses increased by 25.2% to $2,300 million, primarily due to higher acquisition-related costs[96]. - Research, development, and engineering expenses rose by 10.1% to $405 million, remaining stable at 6.9% of net sales[95]. - MedSurg and Neurotechnology operating income as a percentage of net sales increased to 27.6% in 2025 from 27.3% in 2024, driven by lower manufacturing costs and higher unit volumes[104]. - Orthopaedics operating income as a percentage of net sales increased to 27.2% in 2025 from 26.2% in 2024, primarily due to higher unit volumes and lower manufacturing costs[99]. Cash Flow and Liquidity - Cash provided by operating activities increased to $250 million in Q1 2025 from $204 million in Q1 2024, primarily due to higher net earnings[117]. - Cash used in investing activities surged to $4,136 million in Q1 2025 compared to $408 million in Q1 2024, driven by the acquisition of Inari and capital expenditures[118]. - Cash provided by financing activities was $2,534 million in Q1 2025, significantly up from cash used of $418 million in Q1 2024, mainly due to proceeds from senior unsecured notes[119]. - Total liquidity, including cash, cash equivalents, short-term investments, and marketable securities, decreased to $2,409 million as of March 31, 2025, from $4,493 million at the end of 2024[120]. - Current assets exceeded current liabilities by $5,093 million as of March 31, 2025, down from $7,231 million at the end of 2024[120]. Acquisitions and Investments - The acquisition of Inari was completed in Q1 2025 for a total consideration of $4,745 million[79]. - The company maintained strong investment-grade ratings, facilitating potential refinancing of debt as needed[121]. Tax and Impairments - The effective tax rates were 14.4% in 2025 and 14.6% in 2024, reflecting lower effective income tax rates from European operations[101]. - Goodwill and other impairments increased to $35 million in 2025 from $3 million in 2024[102]. - Adjustments to net earnings included a charge of $19 million related to tax matters in Q1 2025, compared to a charge of $41 million in Q1 2024[115]. - Goodwill and other impairments amounted to $34 million in Q1 2025, up from $3 million in Q1 2024[113]. - The company anticipates future tax law changes could increase tax expenses in upcoming periods due to new regulations being enacted in various countries[104]. Macroeconomic Environment - The overall macroeconomic environment, including new tariffs, poses risks that could impact Stryker's business and results of operations[81]. - The percentage of cash and cash equivalents held outside the United States increased to 29% as of March 31, 2025, from 20% at the end of 2024[121].

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].

Investors with an interest in Medical - Products stocks have likely encountered both AdaptHealth Corp. (AHCO) and Stryker (SYK) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates ...