Stryker reports second quarter 2025 operating results

Core Insights - Stryker reported a consolidated net sales of $6.0 billion for Q2 2025, reflecting an 11.1% increase compared to the previous year, with organic net sales growing by 10.2% [2][14][24] - The company experienced strong growth in its MedSurg and Neurotechnology segments, with net sales increasing by 17.3% to $3.8 billion, while Orthopaedics saw a modest growth of 2.0% to $2.2 billion [2][3][24] - Adjusted net earnings for the quarter reached $1.2 billion, marking an 11.6% increase, with adjusted earnings per diluted share rising to $3.13, up 11.4% [4][14][24] Sales Performance - Total net sales growth was driven by a combination of increased unit volume and higher prices, with organic net sales growth of 10.2% attributed to 9.7% from unit volume and 0.5% from price increases [2][24] - MedSurg and Neurotechnology segment's organic net sales increased by 11.0%, while Orthopaedics' organic net sales grew by 9.0% [2][3][24] - The U.S. market contributed significantly, with reported sales of $4.6 billion, reflecting a 12.5% increase, while international sales grew by 6.8% [24][28] Earnings Analysis - Reported net earnings for the quarter were $884 million, a 7.2% increase, with a diluted earnings per share of $2.29, up 7.0% [4][14][24] - Adjusted gross profit margin was reported at 65.4%, while adjusted operating income margin increased to 25.7%, up 110 basis points [4][14][24] - The company raised its full-year 2025 guidance, expecting organic net sales growth of 9.5% to 10.0% and adjusted net earnings per diluted share in the range of $13.40 to $13.60 [5][6] Market Outlook - Stryker anticipates a modestly favorable pricing impact and a slight positive effect from foreign exchange rates on sales and adjusted net earnings per diluted share [6][7] - The estimated net impact from tariffs in 2025 is approximately $175 million, reflecting recent updates in trade policies [7]