Core Viewpoint - Stryker Corporation is expected to report strong second-quarter 2025 results, with earnings and revenue growth driven by robust product demand and new launches [1][9]. Q2 Estimates - The Zacks Consensus Estimate for earnings is $3.06 per share, reflecting an 8.9% year-over-year increase [2]. - Revenue is projected at $5.96 billion, indicating a 9.9% growth compared to the previous year [2]. Factors to Note - Stryker achieved 10.1% organic revenue growth in Q1 2025, supported by procedural momentum and successful new product launches [3]. - Full-year organic growth is anticipated to be between 8.5% and 9.5%, with Q2 performance expected to remain strong due to consistent capital demand and new product adoption [3]. Segment Performance - The Mako robotic-assisted surgery segment is expected to continue its momentum, particularly in hips and knees, with record installations noted in Q1 [4]. - Orthopaedics, especially hips and knees, are projected to maintain high-single-digit growth, while trauma and extremities are benefiting from strong demand for the Pangea plating system [4]. - The MedSurg and Neurotechnology segments are anticipated to sustain double-digit growth, driven by strong capital orders and demand for specific devices [5]. New Product Impact - Recent product launches, including Mako 4 and LIFEPAK 35, are likely to have significantly contributed to revenue momentum [6]. - Other new products, such as Artix, AlphaVent Knotless, and Oculan, are building sales pipelines with potential for growth in the latter half of 2025 [6]. Cost and Margin Insights - In Q1, Stryker's gross margin expanded by 190 basis points to 65.5%, and operating margin increased by 100 basis points to 22.9% [7]. - The company anticipates cost pressures in H2 2025 due to new tariffs on imported components, estimating a $200 million annual impact [7]. Earnings Outlook - Adjusted EPS is expected to remain strong in Q2, although growth may moderate slightly due to higher interest expenses and early tariff impacts [8]. - Full-year 2025 EPS is projected to be in the range of $13.20 to $13.45 [8]. Revenue Breakdown - Estimated sales for the MedSurg and Neurotechnology segments are $3.75 billion, while Orthopaedics & Spine segments are pegged at $2.57 billion [10]. - U.S. sales are estimated at $4.74 billion, with international sales at $1.59 billion [10].

Core Insights - Intuitive Surgical's da Vinci 5 (dV5) system is gaining traction, with 147 units placed and over 32,000 procedures performed in Q1 2025, indicating strong customer response [1][8] - The innovative Force Feedback technology is showing clinical potential by enhancing surgical precision and improving post-operative recovery times [2][8] - Additional upgrades, including real-time 3D model review and integrated simulation software, are expected to launch mid-year, enhancing procedural insight and surgeon performance [3][4] Company Developments - Intuitive Surgical is aligning its innovations with surgeon training needs and operational efficiency, positioning dV5 as a cornerstone for future growth [4] - The company is scaling its supply chain to support a broader launch of the dV5 system, with expectations for steady growth in the adoption of force feedback instruments through 2025 [3][4] Competitive Landscape - Stryker introduced its fourth-generation Mako SmartRobotics system, enhancing surgical planning and execution capabilities across various procedures [5] - Globus Medical showcased its ExcelsiusFlex robotic navigation system, designed to enhance surgical precision and accommodate diverse patient needs [6] Financial Performance - Intuitive Surgical's shares have gained 0.2% year-to-date, contrasting with a 4.3% decline in the industry [7] - The company trades at a forward price-to-earnings ratio of 36.05, above the industry average but lower than its five-year median of 52.54 [9] - The Zacks Consensus Estimate for Intuitive Surgical's 2025 earnings suggests a 2.8% increase from the previous year [10]