Margin Expansion Initiatives
Q: How sustainable is margin expansion into 2025?
A: Management is committed to delivering 100 basis points of operating margin expansion next year, building on initiatives like low-cost manufacturing, in-sourcing, site rationalization, freight optimization, R&D cost savings, direct sourcing negotiations, shared services expansion, IT system rationalization, and office space optimization. They have confidence these efforts will continue to improve leverage into 2025. "

Sustainability of Orthopedic Growth
Q: Is orthopedic growth sustainable, or temporary?
A: The strong orthopedic growth is seen as sustainable, reflecting a new normal driven by factors such as surgery schedules, aging demographics, and positive outcomes from procedures. Management expects market growth to be mid-single-digit, with Stryker outperforming through innovation and sales execution. "

Medical Division Growth
Q: What's driving Medical's strong growth? Is it sustainable?
A: The Medical division grew nearly 20% this quarter, propelled by innovation and momentum in products like ProCuity beds, wireless stretchers, LIFEPAK 35, Sage, Vocera, and the recent care.ai acquisition. Management expects continued double-digit growth in this division for the long term. "

Hip Growth and Sustainability
Q: What drove strong hip growth internationally?
A: Robust hip growth, especially outside the U.S., was fueled by the global rollout of the Insignia hip system, increased adoption of Mako hip robotics, additional reimbursement in Japan, and the SURF acquisition in Europe. Management sees tremendous momentum in the hip business both internationally and in the U.S. "

Software and Digital Strategy
Q: How are Vocera and care.ai integrating? What's the software strategy?
A: Stryker is expanding into connected services, software, and digital solutions like Vocera and care.ai, focusing on high-growth areas that solve customer problems. The care.ai virtual nursing solution addresses hospital staffing challenges and integrates with Vocera. The company plans to grow organically and through acquisitions, extending these technologies into areas like emergency departments. "

Q4 Guidance and Impact of Hurricanes
Q: Are hurricanes affecting Q4 sales guidance?
A: Management expects no impact from hurricanes on fourth-quarter sales, as any delayed procedures are anticipated to be made up within the quarter. They aim to finish at the high end of guidance, closer to 10% organic growth, despite tough comps from last year's 11.5% growth in Q4. "

Early Feedback on Mako Spine
Q: What is the early feedback on Mako Spine?
A: Initial cases of Mako Spine have begun with positive feedback, though it's still early. The company is also excited about Co-Pilot, which launched ahead of Mako Spine. They are taking a cautious approach to ensure proper training and execution before scaling up. "