Guidance & Supply
Q: Why raise guidance amid supply issues?
A: Management raised guidance based on strong procedural demand and robust capital orders, even as supply challenges in medical products persist, expecting continued double‐digit growth. " "

Margin Drivers
Q: What fuels margin improvement?
A: Improved pricing, operational efficiencies, and disciplined cost controls delivered roughly 100 bps better margins, underscoring a sound, steady business. "

Robotics Growth
Q: What is the potential for robotic expansion?
A: With nearly every operating room performing hip and knee procedures, the expanded Mako platform offers significant room for installation growth and greenfield opportunities. " "

Tariff Impact
Q: How are tariffs affecting earnings?
A: Tariff impacts have eased from $200M to about $175M, though the full effect is expected to materialize later as inventory flows through the P&L. " "

Inari Integration
Q: How is the Inari integration progressing?
A: Despite early destocking and sales team transitions, the integration is proceeding well with sustained double-digit procedural demand supporting its near-term performance. " "

OB VBA & Tax
Q: What are the OB VBA and tax effects?
A: Minor cash tax benefits are anticipated from OB VBA, while the effective tax rate is expected to hover near 15–16%, keeping overall margins intact. "

China Growth
Q: How is the China market evolving?
A: Although a smaller segment, China remains a long-term growth target with cautious, localized investments yielding modest progress despite historical challenges. "

M&A Pipeline
Q: What is the view on future deals?
A: The pipeline remains robust—with primarily tuck-in acquisitions expected—and the team retains the financial bandwidth to execute on larger opportunities when the right fit appears. "

Capital Environment
Q: How is the capital segment performing?
A: Both small and large capital product sales are strong, backed by a healthy order backlog that reflects consistent procedural demand across the hospital environment. "

Interventional Spine & Digital
Q: How are spine and digital efforts progressing?
A: Rapid growth in interventional spine—evidenced by new products like OptiBlade—coupled with active AI and digital initiatives, bodes well for future contribution, even if results will build over time. "

Hip Competition
Q: How are hips faring amid competition?
A: Despite competitive pressures, advanced offerings like Insignia and new software have driven double-digit growth, with continued improvements in robotic adoption for hips. "

Remanufactured Instruments
Q: Thoughts on remanufactured instruments for robotics?
A: Management is cautious; they may explore remanufactured instruments if market demand clearly justifies it, but no concrete plans have been disclosed. "

ASC Build-out
Q: What progress is seen in ASC expansion?
A: The shift toward ambulatory surgery centers is advancing steadily, with improved reimbursement trends and infrastructure investments reinforcing the strategy. "

Medicaid & Knee Market
Q: Any concerns regarding Medicaid or knee demand?
A: Medicaid procedures remain a small part of the mix, and while knee volumes showed slight quarterly variation, overall demand continues to exceed market levels. "

Guidance Breakdown
Q: What drove the EPS and guidance upgrade?
A: Strong top-line performance—helped by pricing, favorable FX, and efficient cost management—translated into upgraded EPS guidance despite minor tariff headwinds. "

Inari Sales Impact
Q: Has Inari’s reorganization affected its revenue?
A: Despite a choppy transition with destocking and rep turnover, Inari is expected to achieve its near-term target of about $590M over the coming months. "

Tariff Cadence
Q: When will full tariff impacts show?
A: Although Q2 impacts were modest, the full effects will appear in the back half as tariff costs flow from inventory to the P&L. "

Mako & Trauma
Q: Can a single Mako form factor support trauma growth?
A: By continuously adding new applications, management believes the single-form Mako platform will sustain robust trauma and extremity growth despite tougher comp sets. "

Autonomous Robotics
Q: Is Stryker pursuing autonomous robotics?
A: Although the system has autonomous capability, management is focusing on expanding application features rather than pushing full automation due to regulatory and cost considerations. "

Neurovascular Products
Q: How are the new catheter and shoulder pricing working?
A: The newly launched large bore catheter is cleared for aspiration, and while shoulder procedures in ASCs face slight pricing adjustments, strong demand keeps growth solid. "

Second Half & 2026 Outlook
Q: How does guidance taper and 2026 look?
A: Guidance for the back half is set conservatively due to higher comps, and while 2026 specifics remain pending, long-term prospects are supported by consistent procedural demand. "

International Inorganic
Q: How is international growth balanced?
A: The strategy focuses on deepening existing market penetration and selective acquisitions—like SURF—to drive both organic and inorganic growth internationally. "

Capital Sales Structure
Q: Any change in capital sales financing?
A: The model remains stable overall, with a modest trend toward financing robotic systems in ASCs while maintaining strong outright purchase segments. "