Stryker(US:SYK)2025-10-31 14:39Financial Performance - In Q3 2025, Stryker Corporation achieved net sales of $6,057 million, representing a 10.3% increase from Q3 2024[90]. - For the first nine months of 2025, sales grew by 11.1% to $17,945 million compared to the same period in 2024[83]. - Net earnings for Q3 2025 were $859 million, with adjusted net earnings of $1,233 million, reflecting an 11.1% increase from 2024[82]. - Consolidated net sales increased by 10.3% in Q3 2025, reaching $6,057 million, with a 9.6% increase in constant currency[93]. - The company reported adjusted net earnings of $4,439 million for the nine months ended 2025, with an adjusted effective tax rate of 14.6%[129]. Operating Income and Margins - The operating income margin for Q3 2025 was reported at 18.7%, while the adjusted operating income margin increased by 90 basis points to 25.6%[82]. - Operating income for Q3 2025 was $1,135 million, with a decrease in operating margin to 18.7% from 19.7% in Q3 2024[103]. - The company reported a 20.4% increase in adjusted operating income compared to the previous year[124]. Segment Performance - In Q3 2025, the MedSurg and Neurotechnology segment reported sales of $3,803 million, a 14.4% increase from Q3 2024[91]. - The Orthopaedics segment achieved sales of $2,254 million, marking a 3.9% increase from the previous year[91]. - Orthopaedics net sales rose by 3.9% in Q3 2025, totaling $2,248 million, with a 11.7% increase in constant currency excluding acquisitions[97]. - MedSurg and Neurotechnology net sales increased by 14.4% in Q3 2025, amounting to $2,254 million, with a 7.6% increase in constant currency excluding acquisitions[95]. Expenses - Research, development, and engineering expenses for Q3 2025 were $410 million, an increase of 8.8% from Q3 2024[90]. - Selling, general, and administrative expenses rose by 8.0% in Q3 2025, amounting to $2,046 million, with a decrease in percentage of net sales to 33.8%[108]. - Research, development, and engineering expenses increased by 8.8% in Q3 2025, totaling $406 million, remaining flat as a percentage of net sales[107]. Tax and Other Income - The effective tax rate for Q3 2025 was 16.5%, down from 20.0% in Q3 2024, due to discrete tax items and benefits from European operations[114]. - Other income (expense), net was ($106) million in Q3 2025, primarily due to higher interest expenses compared to ($42) million in Q3 2024[113]. - Adjustments related to tax matters resulted in a net benefit of $71 million for the nine months ended 2025, compared to $135 million in 2024[132]. Cash Flow and Liquidity - The company experienced an increase in cash provided by operating activities to $2,901 million in 2025 from $2,311 million in 2024, primarily due to the timing of payments and collections[134]. - Cash used in investing activities rose significantly to $4,561 million in 2025 from $2,697 million in 2024, driven by the acquisition of Inari and capital expenditures[135]. - Cash provided by financing activities was $1,206 million in 2025, slightly down from $1,269 million in 2024, with proceeds primarily from the issuance of senior unsecured notes[136]. - As of September 30, 2025, cash, cash equivalents, short-term investments, and marketable securities totaled $3,343 million, down from $4,493 million at the end of 2024[137]. - Current assets exceeded current liabilities by $6,297 million as of September 30, 2025, compared to $7,231 million at the end of 2024, indicating a decrease in liquidity[137]. Acquisitions - The company completed the acquisition of Inari in Q1 2025 for a total consideration of $4,810 million[86]. - Acquisition and integration-related costs included $61 million for inventory stepped-up to fair value and $39 million for other integration-related activities[124]. Legal and Regulatory Matters - The company is involved in various ongoing legal proceedings related to product, labor, and intellectual property matters[142]. - The company anticipates that new tax laws could increase tax expenses in future periods, with a global corporate minimum tax rate of 15% being implemented[117]. Forward-Looking Statements - The report contains forward-looking statements based on current projections about operations and financial conditions, which are subject to risks and uncertainties[143]. - The company has expressed no intention to update or revise any forward-looking statements unless necessary[143]. - The company emphasizes that actual results could differ materially from forward-looking statements due to various factors[143].