Total Revenue (Net Sales)

+11.9% (from $5,243M to $5,866M)

Total Revenue increased due to higher unit shipments, pricing improvements, and the favorable impact of acquisitions that built on the previous year’s lower base, reflecting strong underlying demand across all business segments. " "

U.S. Revenue

+26% (from $3,512M to $4,440M)

U.S. Revenue surged as domestic markets experienced robust product demand—driven by strong performance in MedSurg and Neurotechnology segments and effective product line reclassifications—contrasting with the previous year’s lower growth and benefiting from market expansion. " " "

Operating Income

~–14% (from $972M to $837M)

Operating Income declined due to increased SG&A expenses associated with acquisitions (notably Inari), higher goodwill impairments (rising from $3M to $35M), and overall elevated operating costs relative to Q1 2024, reducing margins despite higher revenue volumes. " "

Net Earnings

~–17% (from $788M to $654M)

Net Earnings fell as a result of the lower operating income and increased interest expense, which, along with higher acquisition-related costs and integration expenses, weighed more heavily in Q1 2025 compared to Q1 2024. " "

Basic EPS

Declined from $2.07 to $1.71

Basic EPS dropped in line with reduced net earnings and slight dilution from an increased share count, coupled with higher costs associated with recent acquisitions, thereby impacting the earnings attributable to each share compared to the previous period. " "

Net Cash Used in Investing Activities

Widened from –$408M to –$4,136M

Cash used in investing activities increased sharply due to a substantial jump in acquisition spending—$4,749M for the Inari acquisition—along with higher capital expenditures such as increased property, plant, and equipment investments, contrasting with the modest investment outlays in Q1 2024. " "

Financing Activities

Swung from –$418M outflow to +$2,534M

Financing activities improved because of strong proceeds from the issuance of senior unsecured notes, which more than offset dividend payments and other outflows; this change contrasts with the previous period’s net outflows and reflects a strategic use of financing to support recent growth initiatives. " "

Organic Sales Growth

FY 2025

8% to 9% " " "

8.5% to 9.5% " " "

raised

Adjusted EPS

FY 2025

$13.45 to $13.70 " " "

$13.20 to $13.45 " " "

lowered

Tariff Impact

FY 2025

no prior guidance

$200 million " " "

no prior guidance

Foreign Exchange Impact (EPS)

FY 2025

$0.10 to $0.15 "

$0 to $0.10 " " "

lowered

Effective Tax Rate

FY 2025

15% to 16% "

15% to 16% " " "

no change

Adjusted Other Income and Expense

FY 2025

$260 million "

$430 million " " "

raised

Robust Demand & Order Backlog

In Q4 2024, executives noted a healthy capital order book, robust demand across segments, and strong performance from products like LIFEPAK 35 and capital products with healthy hospital CapEx. " " In Q2 2024, strong demand was highlighted with an elevated backlog across Endoscopy and Medical divisions and best-ever second‐quarter Mako installations. " " "

In Q1 2025, Stryker reported its best-ever quarter for Mako installations, robust demand for capital products including LIFEPAK 35, and an elevated order backlog with no slowdown or cancellations. " "

Consistently strong demand that remains robust; sentiment is bullish with improved Q1 momentum.

Margin Management & Operating Margin Expansion

In Q4 2024, Stryker reported improved operating margins driven by pricing, manufacturing efficiencies, and optimized manufacturing footprint, while Q2 2024 detailed 200bps of margin expansion targets through SG&A leverage and gross margin improvements. " " " "

In Q1 2025, the adjusted gross margin improved by 190 basis points and the operating margin expanded by 100bps, though challenges such as tariffs and higher SG&A spending (from the Inari acquisition) were noted. " " "

Ongoing focus on margin expansion with consistently positive drivers now coupled with emerging tariff headwinds that need mitigation.

Global Expansion & International Growth

Q4 2024 highlighted solid international organic sales growth in key regions (Canada, emerging markets, Europe) along with expanded low‐cost manufacturing footprints, and Q2 2024 noted accelerated international sales growth in Europe, Japan, and emerging markets with supportive segment performance. " " " "

Q1 2025 continued to report healthy international organic sales growth in regions like Australia, New Zealand, Japan, and Europe, and noted significant expansion potential (e.g. opportunities from Inari). " "

Steady, positively viewed international growth with consistent organic sales increases and broad global expansion.

Robotics & Mako Installations Growth

In Q4 2024, record Mako installations were reported both in the U.S. and globally, with significant adoption in knee and hip procedures and early traction for Mako Spine and Shoulder, and in Q2 2024, best‐ever Mako installation performance was noted globally and domestically with new software enhancements and milestone achievements. " " " "

Q1 2025 emphasized a best-ever quarter for Mako installations worldwide, strong U.S. adoption in robotics-assisted procedures, and announced product expansion (Mako 4 SmartRobotics system, Spine, and Shoulder launch plans). " " "

Consistently strong robotics performance with ongoing innovation and product expansion driving robust growth.

New Product Launches & Execution Risks

In Q4 2024, Stryker detailed a robust pipeline including Mako Spine/Shoulder, Pangea plating, and LIFEPAK 35 launches with a cautious phased rollout and acknowledged execution risks related to smooth product introductions. " " " " Q2 2024 emphasized new launches (e.g. LifePak 35, Pangea, Spine Guidance 5 software) along with potential production and capacity challenges. " " "

In Q1 2025, new product launches (Mako 4 SmartRobotics, Mako Spine and Shoulder, LIFEPAK 35, Pangea) were highlighted along with execution risks such as supply chain disruptions and tariff impacts affecting rollout. " " " "

Robust pipeline remains intact but execution risks (supply chain and tariffs) are more prominent in Q1 2025, signaling careful management moving forward.

Supply Chain Disruptions

Q2 2024 discussions acknowledged isolated supply issues (neurovascular, medical outside the U.S.) with expectations of resolution and overall supply chain being in good shape, while Q4 2024 did not mention any disruptions. "

Q1 2025 brought forward notable supply chain disruptions in the Medical business, with impacts expected to persist into Q2 2025, highlighting emerging challenges despite overall business strength. " " "

An emerging area of concern in Q1 2025 compared to previous periods, requiring continued mitigation despite resolution of earlier localized issues.

Tariff Headwinds

In Q4 2024, tariff concerns were mentioned in the context of potential impacts in Mexico and Canada with limited exposure due to low manufacturing footprint there; Q2 2024 did not include discussions on tariffs. "

In Q1 2025, tariffs were explicitly quantified as having a $200 million impact for 2025 with clear mitigation strategies in place, indicating heightened focus on this risk. " " "

Increasing emphasis on tariffs in Q1 2025 compared to minimal or no discussion earlier, signifying a growing headwind that the company is actively addressing.

Acquisition Integration & Regulatory Risks

In Q4 2024, integration of acquisitions (including Inari) was described as smooth and synergistic with minimal dilutive impact, and Q2 2024 mentioned active integration of tuck-in acquisitions without major regulatory concerns, aside from successful FDA clearances for new products. " " "

In Q1 2025, the integration of Inari Medical is highlighted as proceeding well with strong early performance, while regulatory delays in international markets (e.g. due to MDR in Europe) were acknowledged. " " "

Consistent integration success with regulatory risks remaining manageable; Q1 2025 notes slight delays in international launches due to regulatory processes.

Ambulatory Surgery Centers (ASCs) Market Dynamics

In Q4 2024, a detailed description showed early-stage ASC infrastructure growth benefiting multiple Stryker business units, with increasing percentages of knee and hip procedures in ASCs, and in Q2 2024, steady growth in ASC case percentages with competitive market dynamics and positive surgeon/patient preferences were noted. " " " "

Q1 2025 continued the trend with increasing percentages of procedures moving to ASCs, seen as a significant tailwind contributing to robust business performance. " "

Steady, linear growth in ASC adoption with consistent sentiment across periods; the ASC market remains a strategic growth area.

Hesitation in Entering New Growth Adjacencies

In Q4 2024, Stryker’s leadership underscored an offensive approach by actively exploring new adjacencies (e.g. Peripheral Vascular, Urology, Neuromodulation) alongside tuck-in acquisitions, and in Q2 2024, a cautious but open-minded stance was expressed regarding adjacencies. " " "

In Q1 2025, the focus has shifted more toward established businesses and tuck-in acquisitions, with adjacencies receiving lower priority compared to proven areas, reflecting a slight strategic caution. "

A subtle shift from proactive expansion to strategic caution; while adjacencies are still considered, the current emphasis is on consolidating core and tuck-in opportunities.