Larry Beagleson

Larry Beagleson (Simran on for Larry) asked for confirmation on the resolution of G7 performance issues and whether any 'noise' during the quarter had disrupted new starts or prescribing patterns in Q3, with expectations for Q4 and 2026.

Answer

Jake Leach, President and Interim CEO, confirmed confidence in G7 sensor quality, having addressed deployment challenges. Jereme Sylvain, CFO, acknowledged that while complaint rates were stable, the frustrating nature of certain complaints likely had a slight impact on Q3 new starts, though performance remained strong. They anticipate improvements in Q4 and beyond.

Larry Beagleson inquired about Stryker's strategy for maintaining its 10% organic growth momentum into the next year and the potential for margin expansion given increasing tariff impacts. He also asked for an update on Stryker's M&A areas of interest, deal sizes, and capital allocation priorities.

Answer

Kevin Lobo (Chair and CEO, Stryker) stated that the long-term outlook would be shared at the upcoming Investor Day, but emphasized that Stryker's high-growth business is sustainable. He reiterated that M&A priorities remain unchanged, focusing on adjacencies, with a strong balance sheet allowing for larger, value-creating deals, and confirmed M&A as the number one use of capital.

Larry Beagleson inquired about Stryker's strategy for maintaining 10% organic growth momentum into next year, the potential for margin expansion given increasing tariff impacts, and any changes to M&A areas of interest or deal sizes.

Answer

Kevin Lobo, Chair and Chief Executive Officer, stated that 10% organic growth is sustainable and durable, deferring detailed margin outlook to the upcoming Investor Day. He confirmed no change in M&A strategy, emphasizing continued exploration of adjacencies and a willingness to pursue larger, value-creating deals as the primary use of capital.