| Segment/Metric (USD Million) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **MedSurg and Neurotechnology** | **3,100**  **[0000310764-23-000005_sykex991earningsq42022.htm:0]**  | **2,690**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **2,860**  **[0000310764-23-000106_syk-20230630.htm:4]**  | **2,859**  **[0000310764-23-000116_syk-20230930.htm:4]**  | **3,427**  **[0000310764-24-000005_sykex991earningsq42023.htm:0]**  | **2,999**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **3,117**  **[0000310764-24-000098_syk-20240630.htm:5]**  | **3,224**  **[0000310764-24-000115_syk-20240930.htm:5]**  |
| Instruments                  | N/A     | **575**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **630**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **667**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **698**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| Endoscopy                    | N/A     | **698**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **705**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **778**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **768**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| Medical                      | N/A     | **778**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **841**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **864**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **908**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| Neurovascular                | N/A     | **284**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **311**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **310**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **327**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| Neuro Cranial                | N/A     | **355**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **373**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **380**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **416**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| **Orthopaedics and Spine**   | **2,200**  **[0000310764-23-000005_sykex991earningsq42022.htm:0]**  | **2,088**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **2,136**  **[0000310764-23-000106_syk-20230630.htm:4]**  | **2,050**  **[0000310764-23-000116_syk-20230930.htm:4]**  | **2,388**  **[0000310764-24-000005_sykex991earningsq42023.htm:0]**  | **2,244**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **2,305**  **[0000310764-24-000098_syk-20240630.htm:5]**  | **2,270**  **[0000310764-24-000115_syk-20240930.htm:5]**  |
| Knees                        | N/A     | **566**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **562**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **588**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **602**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| Hips                         | N/A     | **375**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **393**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **393**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **428**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| Trauma and Extremities       | N/A     | **769**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **766**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **830**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **832**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| Spine                        | N/A     | **284**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **296**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **300**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **307**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| Other                        | N/A     | **94**  **[0000310764-23-000067_syk-20230331.htm:4]**   | **119**  **[0000310764-23-000106_syk-20230630.htm:4]**  | N/A     | N/A     | **133**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **136**  **[0000310764-24-000098_syk-20240630.htm:5]**  | N/A     |
| **Total Net Sales**          | **5,200**  **[0000310764-23-000005_sykex991earningsq42022.htm:0]**  | **4,778**  **[0000310764-23-000067_syk-20230331.htm:4]**  | **4,996**  **[0000310764-23-000106_syk-20230630.htm:4]**  | **4,909**  **[0000310764-23-000116_syk-20230930.htm:4]**  | **5,815**  **[0000310764-24-000005_sykex991earningsq42023.htm:0]**  | **5,243**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **5,422**  **[0000310764-24-000098_syk-20240630.htm:5]**  | **5,494**  **[0000310764-24-000115_syk-20240930.htm:5]**  |

15b85875f2c44b64d6a9ce3e23b5c29c91adf9305930ced1a294612e626d239f

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

3a7d207db1740c004bc116a207a13dc4b3d1095464d823005ea8471e9769d903

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States        | **3,862**  **[0000310764-23-000005_sykex991earningsq42022.htm:6]**  | **3,512**  **[0000310764-23-000067_syk-20230331.htm:4]** **[0000310764-23-000065_sykex991earningsq12023.htm:4]**  | **3,711**  **[0000310764-23-000104_sykex991earningsq22023.htm:4]**  | **3,678**  **[0000310764-23-000116_syk-20230930.htm:4]**  | **4,356**  **[0000310764-24-000005_sykex991earningsq42023.htm:6]**  | **3,914**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **4,047**  **[0000310764-24-000098_syk-20240630.htm:5]**  | **4,109**  **[0000310764-24-000115_syk-20240930.htm:5]**  |
| International        | **1,340**  **[0000310764-23-000005_sykex991earningsq42022.htm:6]**  | **1,266**  **[0000310764-23-000067_syk-20230331.htm:4]** **[0000310764-23-000065_sykex991earningsq12023.htm:4]**  | **1,285**  **[0000310764-23-000104_sykex991earningsq22023.htm:4]**  | **1,231**  **[0000310764-23-000116_syk-20230930.htm:4]**  | **1,459**  **[0000310764-24-000005_sykex991earningsq42023.htm:6]**  | **1,329**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **1,375**  **[0000310764-24-000098_syk-20240630.htm:5]**  | **1,385**  **[0000310764-24-000115_syk-20240930.htm:5]**  |
| Total Revenue        | **5,202**  **[0000310764-23-000005_sykex991earningsq42022.htm:6]**  | **4,778**  **[0000310764-23-000067_syk-20230331.htm:4]** **[0000310764-23-000065_sykex991earningsq12023.htm:4]**  | **4,996**  **[0000310764-23-000104_sykex991earningsq22023.htm:4]**  | **4,909**  **[0000310764-23-000116_syk-20230930.htm:4]**  | **5,815**  **[0000310764-24-000005_sykex991earningsq42023.htm:6]**  | **5,243**  **[0000310764-24-000064_syk-20240331.htm:5]**  | **5,422**  **[0000310764-24-000098_syk-20240630.htm:5]**  | **5,494**  **[0000310764-24-000115_syk-20240930.htm:5]**  |

68a2c11a823af35f2e39d3f3e1f174bc94e1c724f705b0cc4fb9e0015fb6b2ec

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

25e444cc780074e2369aa461f6cc4518a1c94eded2ecd48aa28fdc0a4f219025

cdb7ee29fbd94646f661235c3d2086e60d3a9b7f56d6974ff9caf41eece652a5

d8396eded68c59dc455bcdf69eed1327926d0bbf7c091355eb63968a06b5ab7d

Stryker Corporation is a global leader in medical technologies, providing innovative products and services aimed at enhancing patient and healthcare outcomes **[0000310764-24-000024_syk-20231231.htm:3]** **[0000310764-24-000024_syk-20231231.htm:62]** **[0000310764-24-000115_syk-20240930.htm:14]**. The company operates through two main business segments: MedSurg and Neurotechnology, and Orthopaedics and Spine **[0000310764-24-000024_syk-20231231.htm:3]** **[0000310764-24-000115_syk-20240930.htm:14]**. Stryker's offerings include a wide range of medical instruments, endoscopic devices, and orthopedic solutions **[0000310764-24-000024_syk-20231231.htm:3]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:4]**.

1. **MedSurg and Neurotechnology** - Offers a diverse range of products including Instruments, Endoscopy, Medical, Neurovascular, and Neuro Cranial solutions, contributing significantly to the company's revenue **[0000310764-24-000024_syk-20231231.htm:3]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:4]**.
   - **Instruments** - Provides surgical tools and equipment for various medical procedures **[0000310764-24-000024_syk-20231231.htm:4]**.
   - **Endoscopy** - Develops advanced endoscopic devices for minimally invasive surgeries **[0000310764-24-000024_syk-20231231.htm:4]**.
   - **Medical** - Supplies a variety of medical devices and equipment for healthcare facilities **[0000310764-24-000024_syk-20231231.htm:4]**.
   - **Neurovascular** - Specializes in products for the treatment of neurovascular conditions **[0000310764-24-000024_syk-20231231.htm:4]**.
   - **Neuro Cranial** - Focuses on solutions for cranial surgeries and treatments **[0000310764-24-000024_syk-20231231.htm:4]**.

2. **Orthopaedics and Spine** - Delivers comprehensive orthopedic and spine solutions, including Knees, Hips, Trauma and Extremities, Spine, and Other products **[0000310764-24-000024_syk-20231231.htm:3]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:4]**.
   - **Trauma and Extremities** - Provides implants and devices for trauma care and extremity surgeries **[0000310764-24-000024_syk-20231231.htm:69]**.
   - **Knees** - Offers knee replacement and repair solutions **[0000310764-24-000024_syk-20231231.htm:69]**.
   - **Spine** - Develops products for spinal surgeries and treatments **[0000310764-24-000024_syk-20231231.htm:69]**.
   - **Hips** - Supplies hip replacement and repair solutions **[0000310764-24-000024_syk-20231231.htm:69]**.
   - **Other** - Includes various additional orthopedic products **[0000310764-24-000024_syk-20231231.htm:69]**.

c01f0e56dae0d4749b255fbeb6721f37bba1898321a71af5ea9c74c09ec05a46

Unit Volume Growth for MedSurg and Neurotechnology (percentage)

Unit Volume Growth for Orthopaedics and Spine (percentage)

Unit Volume Growth (Consolidated) (percentage)

26a3120e8ad5f92fcd3c39b543e064054aa4d39232d9b197dab2111372572d4d

1. Given the significant margin expansion required in the second half to meet your goal of 100 basis points operating margin growth for 2024, what specific actions are you implementing to achieve this, and how confident are you in the visibility of both gross margin improvements and SG&A leverage?

2. The Foot & Ankle market has been unexpectedly soft for two consecutive quarters; what proactive measures are you taking to address this downturn, and what strategies do you have in place if the anticipated rebound does not occur as quickly as expected?

3. Recent supply chain disruptions, particularly in flow diverters within your Neurovascular business, have impacted performance; can you detail the underlying causes, your timeline for resolution, and how these issues might influence your growth outlook in this segment?

4. Despite recognizing the potential in the tissue surgical robotics market, Stryker has not made a definitive move into this space; what are the key obstacles or strategic considerations preventing you from entering, and how do you plan to remain competitive as the market advances?

5. With recent acquisitions like Heartland in Extremities and Moly in Breast Care, how do these additions fit into your broader strategic vision, and what are your plans to effectively integrate and expand these businesses to contribute significantly to growth?

555bed598cc32b4c0e82b50097a91637d33dc5ea532929fc9faac625136ff91a

**Annual guidance for FY 2024:**
- **Full Year Organic Sales Growth**: 9.5% to 10%  **[SYK_3404420_0]**  (raised from 9% to 10%  **[SYK_3395049_3]** **[SYK_3395049_0]** )  
- **Adjusted EPS**: $12.00 to $12.10  **[SYK_3404420_0]**  (raised from $11.90 to $12.10  **[SYK_3395049_3]** **[SYK_3395049_0]** )  
- **Adjusted Effective Tax Rate**: High end of 14% to 15%  **[SYK_3404420_3]**  (no change from 14% to 15%  **[SYK_3395049_3]** )  
- **Margin Expansion**: 200 basis points by the end of 2025 (with 100 basis points in 2024)  **[SYK_3404420_0]**  (no prior guidance)  
- **Net Adjusted Income and Expense**: $230 million to $240 million  **[SYK_3404420_3]**  (no prior guidance)  
- **Foreign Exchange Impact**: Negative $0.10 on EPS  **[SYK_3404420_3]**  (raised from negative $0.10 to $0.15  **[SYK_3395049_3]** )  

264a3a602483040aa7a6826f1adaa7a7ccab7984e13e19a6c8e8e44b4aeaecd9

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Full Year Organic Sales Growth**: Expected to be in the range of **9% to 10%**  **[SYK_3395049_3]** **[SYK_3395049_0]** .
  - **Adjusted Earnings Per Share (EPS)**: Expected to be in the range of **$11.90 to $12.10** per share  **[SYK_3395049_3]** **[SYK_3395049_0]** .
  - **Full Year Effective Tax Rate**: Expected to be in the range of **14% to 15%**  **[SYK_3395049_3]** .
  - **Impact of Foreign Exchange Rates**: Anticipated to have a moderately unfavorable impact on full-year sales, with EPS negatively impacted in the range of **$0.10 to $0.15**  **[SYK_3395049_3]** .
  - **Free Cash Flow Conversion**: Targeted between **70% and 80%**  **[SYK_3395049_20]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Organic Sales Growth**: Expected to be in the range of **8.5% to 9.5%** for the full year 2024  **[SYK_3381568_4]** **[SYK_3381568_0]** .
  - **Adjusted Net Earnings Per Diluted Share (EPS)**: Expected to be in the range of **$11.85 to $12.05**  **[SYK_3381568_4]** **[SYK_3381568_0]** .
  - **Adjusted Effective Tax Rate**: Expected to be in the range of **14% to 15%** for the full year 2024  **[SYK_3381568_4]** .
  - **Operating Margin Expansion**: Targeting **200 basis points** of operating margin expansion over the next two years (2024 and 2025)  **[SYK_3381568_23]** .
  - **Foreign Exchange Impact**: Sales are anticipated to be moderately unfavorably impacted for the full year, with EPS negatively impacted at the higher end of the previously guided range of **$0.05 to $0.10**  **[SYK_3381568_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Organic Sales Growth**: Expected to be in the range of **7.5% to 9%**  **[SYK_3371285_3]** **[SYK_3371285_5]** **[SYK_3371285_0]** .
  - **Adjusted Net Earnings per Diluted Share**: Expected to be in the range of **$11.70 to $12.00**  **[SYK_3371285_4]** **[SYK_3371285_0]** .
  - **Full Year Effective Tax Rate**: Expected to be in the range of **14% to 15%**  **[SYK_3371285_3]** .
  - **Capital Spending**: Anticipated to be **$650 million to $700 million**  **[SYK_3371285_3]** .
  - **Other Income and Expense**: Expected to be approximately **$250 million** for the full year  **[SYK_3371285_3]** .
  - **Impact of Foreign Exchange Rates**: Sales are anticipated to be modestly unfavorably impacted, with EPS negatively impacted by **$0.05 to $0.10**  **[SYK_3371285_4]** .
  - **Selling Days**: There is one additional selling day in 2024 compared to 2023, with one less day in Q1 and one more day in both Q3 and Q4  **[SYK_3371285_3]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**: The documents do not contain information about the guidance provided in the Q3 2024 earnings call for Stryker (SYK). The available information is from the Q2 2024 earnings call.

6fd076a09f116f65fc9930a62287e947adb78d166b8ef4f08bec122a8b93aea9

| Name                | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|---------------------|-----------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Kevin A. Lobo       | Chair, Chief Executive Officer, and President | 2011               | Kevin A. Lobo has been serving as the **Chair, Chief Executive Officer, and President** of Stryker Corporation since **2011**. He held various leadership roles within the company, including Group President of Stryker Orthopaedics  **[0000310764-24-000024_syk-20231231.htm:9]** **[0000310764-23-000051_syk-20230328.htm:9]** . |
| Yin C. Becker       | Vice President, Chief Corporate Affairs Officer| 2016               | Yin C. Becker is the **Vice President, Chief Corporate Affairs Officer** at Stryker Corporation. She first became an executive officer in **2016**  **[0000310764-24-000024_syk-20231231.htm:9]** .                                                                                         |
| William E. Berry Jr.| Vice President, Chief Accounting Officer      | 2014               | William E. Berry Jr. is the **Vice President and Chief Accounting Officer** at Stryker Corporation. He first became an executive officer in **2014**  **[0000310764-24-000024_syk-20231231.htm:9]** .                                                                                       |
| Glenn S. Boehnlein  | Vice President, Chief Financial Officer       | 2016               | Glenn S. Boehnlein is the **Vice President and Chief Financial Officer** of Stryker Corporation. He first became an executive officer in **2016**  **[0000310764-24-000024_syk-20231231.htm:9]** .                                                                                           |
| M. Kathryn Fink     | Vice President, Chief Human Resources Officer | 2016               | M. Kathryn Fink is the **Vice President, Chief Human Resources Officer** at Stryker Corporation. She first became an executive officer in **2016**  **[0000310764-24-000024_syk-20231231.htm:9]** .                                                                                         |
| Robert S. Fletcher  | Vice President, Chief Legal Officer           | 2019               | Robert S. Fletcher is the Vice President and Chief Legal Officer at Stryker Corporation. He became an executive officer in **2019**. Before joining Stryker, he held various legal leadership roles at Johnson & Johnson  **[0000310764-24-000024_syk-20231231.htm:9]** **[0000310764-23-000017_syk-20221231.htm:9]** .               |
| Viju S. Menon       | Group President, Global Quality and Operations| 2018               | Viju S. Menon is the **Group President, Global Quality and Operations** at Stryker Corporation. He became an executive officer in **2018**. Before joining Stryker, he held senior supply chain roles at Verizon Communications Inc.  **[0000310764-24-000024_syk-20231231.htm:9]** **[0000310764-23-000017_syk-20221231.htm:9]** .    |
| J. Andrew Pierce    | Group President, MedSurg and Neurotechnology  | October 1, 2021    | J. Andrew Pierce is the **Group President, MedSurg and Neurotechnology** at Stryker Corporation. He became an executive officer of the company on **October 1, 2021**  **[0000310764-24-000024_syk-20231231.htm:9]** **[0000310764-23-000017_syk-20221231.htm:9]** .                                                                    |
| Spencer S. Stiles   | Group President, Orthopaedics and Spine       | October 1, 2021    | Spencer S. Stiles is the **Group President, Orthopaedics and Spine** at Stryker Corporation. He became an executive officer of the company on **October 1, 2021**  **[0000310764-24-000024_syk-20231231.htm:9]** **[0000310764-24-000054_syk-20240326.htm:27]** .                                                                        |

0e86e63f842c580a48276db4070df3aeea9e16d2b3e2714946cd237d83132f50

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | March 2015  **[0000310764-24-000115_syk-20240930.htm:33]**   |
| End Date/Duration        | Not specified  **[0000310764-24-000115_syk-20240930.htm:33]**  |
| Total Additional Amount  | **$2,000 million**  **[0000310764-24-000115_syk-20240930.htm:33]**  |
| Remaining Authorization  | **$1,033 million**  **[0000310764-24-000115_syk-20240930.htm:33]**  |
| Details                  | Purchases can be made from time to time in the open market, in privately negotiated transactions, or otherwise. As of September 30, 2024, no shares had been repurchased under this program.  **[0000310764-23-000017_syk-20221231.htm:69]** **[0000310764-24-000115_syk-20240930.htm:33]**  |

a86db2cc6baf9cdd2d0593ca07ee6e6c3cb457b9445db87921412a4dc9470bf1

United States

International

- Europe, Middle East, Africa

- Asia Pacific

- Other countries

Total Revenue

cdad2446dffbe6f34cec8a461e9caf198b71f1b2d9a744caa912e0828b50d82f

2d696f5125eaf5aff93fdd056f0d1b0bd4d706b4d70a109821cbc1ea95d90a78

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1974  **[0000310764-24-000024_syk-20231231.htm:56]**    | Present  | Current auditor   |

b69fd2bb35998038c1a9a9692dd48a6d1704a618d65f8741aff41cfada3cdb64

c3628025c8b1ee5178c2f16249352b7d806e10ee5b9c1acf7e7b6da746e5a76a

65d987021bf4ac654e748cdba646af995b9aa02ce497ec3cee4ab4a7b541ae35

705aa80ed8cf2f9a14cad931f77a1a075bb8917a260147e13819fe6f6187b19a

- The company's **Medical division** is expected to achieve another year of **double-digit growth** in 2025, driven by **tremendous growth drivers** and strong momentum across the portfolio.  **[SYK_3413404_15]**
- Management expresses confidence in **exceeding guidance** if current momentum continues, with potential for **delivering above the current guidance**, indicating conservative guidance and potential upside.  **[SYK_3413404_19]**
- The company has **multiple opportunities to expand operating margins**, including through **low-cost manufacturing**, **leveraging shared services**, and **successful price increases**, which can drive **earnings growth**.  **[SYK_3413404_27]**

e8a5cfde4bd7ee09a189b0807fd05967107dea765ec0428406feb0c470d8a032

- **Potential uncertainty in the latter part of 2025**: Kevin Lobo mentioned that while they feel good about the business and have good visibility for the first 6-8 months, "**things can change**," indicating potential risk for the second half performance.  **[SYK_3413404_19]**
- **Margin expansion relies on aggressive cost reductions**: Glenn Boehnlein stated that margin expansion will be driven by purchasing opportunities, expanding low-cost manufacturing footprints, and moving transactional activities to lower-cost locations. This heavy reliance on cost-cutting measures may face challenges or may not be sustainable long term.  **[SYK_3413404_8]**
- **Risks associated with the pending acquisition of Inari Medical**: The company acknowledged a **DOJ Civil Investigative Demand (CID)** related to Inari. Despite due diligence, this investigation poses risks that could impact the transaction or result in future liabilities.  **[SYK_3413404_17]**

025bbbe019e7bf90d18980583e01d131c87b29fe804586d2684dd34702b1b492

1. **Spine Business Divestiture**  
   **Q:** Why sell the spine business now?  
   **A:** We've decided to divest our Spine business for **$700 million** to the VEB Brothers because we have better opportunities to invest in other areas. We'll partner with them—providing enabling technologies like Mako Spine—and they'll focus on implants. The entire **$700 million** is expected to be divested to them.  **[SYK_3413404_6]** 

2. **Inari Acquisition and Impact**  
   **Q:** What's the outlook and impact of the Inari acquisition?  
   **A:** The Inari acquisition fits our model, targeting a return on invested capital back to our weighted average cost of capital in **5 to 7 years**. We're excited about their high double-digit sales growth, which will accrete to our own growth. The maximum dilution impact on operating margin expansion will be **20 basis points**, and the deal will result in additional borrowings and interest expense.  **[SYK_3413404_7]** **[SYK_3413404_16]** **[SYK_3413404_18]** 

3. **Guidance on Organic Revenue Growth**  
   **Q:** Can you sustain the **8%-9%** organic revenue growth?  
   **A:** Yes, we're confident about achieving **8% to 9%** organic growth in 2025, with robust pipelines across all businesses. We feel bullish and don't see any slowdown ahead. We believe there's minimal risk on the downside and potential to exceed our guidance if momentum continues.  **[SYK_3413404_11]** **[SYK_3413404_19]** 

4. **Operating Margin Expansion**  
   **Q:** How will you achieve operating margin expansion?  
   **A:** We see many opportunities, such as expanding low-cost manufacturing in places like Poland and Tijuana, leveraging shared services, gaining price worldwide, and benefiting from natural leverage by growing sales **8% to 9%**. We expect over **100 basis points** of operating margin expansion before Inari dilution, and the Spine divestiture will be absorbed without impacting our EPS guidance of **$13.45 to $13.70**.  **[SYK_3413404_8]** **[SYK_3413404_10]** **[SYK_3413404_16]** 

5. **Capital Allocation and M&A Strategy**  
   **Q:** What's your M&A focus post-Inari and spine sale?  
   **A:** Even after acquiring Inari, with debt-to-equity around **3x**, we have capacity for tuck-in deals. We're still on offense, looking at adjacencies like Peripheral Vascular, Urology, Neuromodulation, Soft Tissue Robotics, and Healthcare IT. The majority of our deals will continue to be tuck-ins within existing businesses.  **[SYK_3413404_10]** **[SYK_3413404_30]** 

6. **Sustainability of Growth**  
   **Q:** Is high revenue growth sustainable?  
   **A:** We believe our growth is durable, powered by strong pipelines and commercial execution across businesses. We're launching new products before older ones taper off, ensuring continued momentum. We don't expect any material slowdown and plan to maintain or even accelerate growth.  **[SYK_3413404_11]** **[SYK_3413404_21]** 

7. **Mako Shoulder Rollout**  
   **Q:** How will Mako Shoulder impact the market?  
   **A:** We're extremely excited about Mako Shoulder. Surgeons find it compelling, especially since shoulder surgery is complex. While it requires change management, we expect significant impact in the future. It's currently in limited launch to refine training protocols, with broader adoption expected in 2026. Our shoulder business is already growing at strong double digits even without the robot.  **[SYK_3413404_13]** **[SYK_3413404_22]** 

8. **Medical Division Growth**  
   **Q:** What's driving growth in the Medical division?  
   **A:** The Medical division, often underappreciated, continues to deliver double-digit growth. Drivers include products like Sage, emergency care, acute care, beds, wireless stretchers, and Vocera. We anticipate another strong year of double-digit growth in 2025.  **[SYK_3413404_15]** 

9. **ASC Infrastructure Build-Out**  
   **Q:** How is ASC expansion affecting your business?  
   **A:** We're in early innings of ASC growth, which benefits multiple business units. In Q4, **17%** of our knees and **14%** of hips were done in ASCs—a record high. This trend is expected to continue gradually over time, positively impacting businesses like hips, knees, sports medicine, and more.  **[SYK_3413404_29]** 

10. **Capital Expenditure Environment**  
    **Q:** Any concerns about capital spending amid policy changes?  
    **A:** We see the capital environment as very positive and don't have any reason to believe it will change this year, despite any potential healthcare policy discussions. We're aligned with the outlook that markets remain healthy and stable globally.  **[SYK_3413404_27]** **[SYK_3413404_9]** 

11. **R&D Investment and Productivity**  
    **Q:** How are you approaching R&D spending?  
    **A:** Our innovation engine is crucial, and we invest **6% to 7%** of sales in R&D. We don't plan to reduce this commitment. We're excited about opportunities in areas like software programming and AI, ensuring a steady cadence of new product launches to sustain growth.  **[SYK_3413404_31]** 

12. **Impact of Spine Divestiture on Earnings**  
    **Q:** How does spine sale affect EPS seasonality?  
    **A:** When we remove Spine, it's not material to our overall numbers. The seasonality you've seen in 2024 will generally carry forward into 2025. Spine's divestiture will be absorbed in our EPS guidance of **$13.45 to $13.70**.  **[SYK_3413404_14]** **[SYK_3413404_16]** 

13. **Mako and Enabling Technologies Post-Spine Sale**  
    **Q:** How will Mako and enabling tech work after spine sale?  
    **A:** Mako Spine remains compelling. Surgeons using our spine implants will continue with similar sales support. While we're no longer investing in implant innovation, we'll provide the enabling technology like Mako, partnering with VEB Spine. We don't expect significant differences for customers.  **[SYK_3413404_23]** 

14. **Foot & Ankle Performance**  
    **Q:** How did Foot & Ankle fare in Q4?  
    **A:** The Foot & Ankle market was soft in early 2024 but started picking up around September. Our business improved in Q4. However, the standout in Trauma and Extremities was driven by our shoulder business and core trauma, boosted by products like Pangea.  **[SYK_3413404_26]** 

15. **ASC Trend and Procedure Mix**  
    **Q:** Which businesses benefit from ASC growth?  
    **A:** ASC expansion positively impacts multiple business units, including hips, knees, sports medicine, orthopedic instruments, and more. Each ASC deal varies, involving at least **six** of our business units on average. We expect the trend to continue without an end in sight.  **[SYK_3413404_29]** 

16. **Capital Spending and Geographic Outlook**  
    **Q:** Do you agree that markets remain healthy globally?  
    **A:** Yes, we agree that orthopedic markets are healthy and stable, volumes are robust, pricing pressures are lessening, and capital equipment markets remain healthy worldwide. We feel very aligned with this outlook as we enter 2025.  **[SYK_3413404_9]** 

17. **Sales from Recent Acquisitions**  
    **Q:** How are recent acquisitions contributing to sales?  
    **A:** We're extremely excited about our recent acquisitions; all are at or above our deal models. We confidently expect them to contribute at least **$300 million** this year, possibly surpassing that figure. Integrations have been simple, as they tuck into existing call points.  **[SYK_3413404_12]** 

18. **Manufacturing Footprint and Tariffs**  
    **Q:** Are potential tariffs on Mexico a concern?  
    **A:** We have **around 40** manufacturing plants globally, with just **one** in Mexico. We're monitoring the situation closely but given the small exposure, it's not a significant concern at this time.  **[SYK_3413404_24]** 

19. **Due Diligence on Inari Acquisition**  
    **Q:** How did you perform due diligence on Inari quickly?  
    **A:** Being a publicly traded company, Inari's information was largely available. We had done our homework on public data and knew where to look during due diligence. This timeframe is typical for public company deals.  **[SYK_3413404_28]** 

20. **Capital Allocation Post-Inari**  
    **Q:** Will you enter other cardiovascular sectors?  
    **A:** Initially, we'll focus on integrating Inari and may expand within the peripheral space. We don't expect to make a near-term jump into the broader cardiovascular sector, choosing to concentrate on areas where we can add value.  **[SYK_3413404_30]** 

0a9c2c9da3aa6268eeb269370e8c8a9857bf311b28d314364c9734d1579e31dc

Stryker forecasts 8–9% organic growth, double-digit Medical division gains, and ≥100bps margin expansion in 2025. With $700M from its spine divestiture, leadership sees potential upside to the $13.45–$13.70 EPS guidance if momentum persists.

bf0d784838deb2ac6793aa6fae8911fee7b62fc9553ebddfdae63b9206d78f7e

e1506ce7066db01d32f31b1711a242fa05027e94053a2cc8f1236941c45b61ca

**Annual guidance for FY 2025:**  
- **Organic Net Sales Growth**: 8% to 9%  **[SYK_3413404_5]**  (lowered from 9.5% to 10%  **[SYK_3404420_0]** )  
- **Adjusted Net Earnings Per Share (EPS)**: $13.45 to $13.70  **[SYK_3413404_5]**  (raised from $12.00 to $12.10  **[SYK_3404420_0]** )  
- **Adjusted Operating Margin**: 26.3%  **[SYK_3413404_5]**  (no prior guidance)  
- **Impact of Foreign Exchange Rates**: Sales unfavorably impacted by ~1% for the full year; Adjusted EPS negatively impacted by $0.10 to $0.15  **[SYK_3413404_5]**  (lowered from ~$0.10  **[SYK_3404420_3]** )  
- **Effective Tax Rate**: 15% to 16%  **[SYK_3413404_4]**  (raised from the high end of 14% to 15%  **[SYK_3404420_3]** )  
- **Other Income and Expense**: $260 million  **[SYK_3413404_4]**  (raised from $230 million to $240 million  **[SYK_3404420_3]** )  
- **Capital Spending**: $800 million to $850 million  **[SYK_3413404_5]**  (no prior guidance)  
- **Share Buybacks**: None  **[SYK_3413404_5]**  (no prior guidance)  
- **Selling Days**: Q1 2025 has 1 fewer day than Q1 2024; remaining quarters unchanged  **[SYK_3413404_5]**  (no prior guidance)  
- **Inari Acquisition Impact**:  
  - Sales contribution: $590 million on a constant currency basis  **[SYK_3413404_5]**  (no prior guidance)  
  - Dilutive impact to Adjusted Operating Margin: 0–20 bps  **[SYK_3413404_5]**  (no prior guidance)  
  - Dilutive impact to Adjusted EPS: $0.20 to $0.30  **[SYK_3413404_5]**  (no prior guidance)  
- **Spine Implants Divestiture**: Impact to net sales, margin, and EPS is absorbed in current guidance  **[SYK_3413404_5]**  (no prior guidance)  

cc510e1d158b55f8402055dad591ccffc4828766912d00459432ef6613ebb3e8

1. **Margin Expansion**
   **Q:** How will you achieve margin expansion in H2?
   **A:** We remain committed to our **200 basis points** operating margin expansion—**100 basis points** this year and another **100 basis points** next year, inclusive of M&A.  **[SYK_3395049_4]**  In the second half, we expect more leverage from SG&A than gross margin.  **[SYK_3395049_5]**  We'll control hiring, travel, and meetings, and benefit from natural leverage as we grow off a fixed cost base.  **[SYK_3395049_13]** 

2. **Guidance Raise Confidence**
   **Q:** Why raise guidance despite an in-line quarter?
   **A:** We're pleased with the quarter and have strong reasons to raise our guidance to a potential **10%** organic growth at the high end.  **[SYK_3395049_6]**  We have a significant capital backlog, strong demand for Mako installations, and positive feedback on new products like **Pangea** and **LifePak 35**.  **[SYK_3395049_6]**  July is off to a strong start, especially in joint replacement.  **[SYK_3395049_6]** 

3. **Sustaining High Growth**
   **Q:** Can high growth rates continue next year?
   **A:** Yes, we've demonstrated sustained high growth—**9.7%** two years ago, **11.5%** last year, and targeting up to **10%** this year.  **[SYK_3395049_11]**  Next year, Pangea and LifePak 35 will have a bigger impact, and products like Mako Spine and CoPilot are coming.  **[SYK_3395049_11]**  Our innovation pipeline and M&A strategy support continued high growth.  **[SYK_3395049_11]** 

4. **M&A Activity**
   **Q:** What's the outlook for M&A in 2024?
   **A:** We have a very active deal pipeline, mostly in the tuck-in variety.  **[SYK_3395049_4]**  While most deals aren't large, we'll be very active in both halves of the year.  **[SYK_3395049_4]**  Our strong balance sheet enables us to pursue these opportunities while remaining committed to our margin targets.  **[SYK_3395049_4]** 

5. **Pricing Power**
   **Q:** How long can you sustain pricing improvements?
   **A:** We're seeing positive pricing outcomes, with **0.7%** in Q1 and **1.1%** in Q2.  **[SYK_3395049_8]**  We expect this trend to continue throughout 2024, driven by innovation in our MedSurg and NeuroTech businesses.  **[SYK_3395049_8]**  In Orthopedics, we're less negative on pricing than before, and our sales force incentives support margin improvements.  **[SYK_3395049_8]** 

6. **Record Mako Growth**
   **Q:** What's driving record Mako placements each quarter?
   **A:** International expansion is a major contributor, with markets like Japan and India picking up pace.  **[SYK_3395049_9]**  In the U.S., demand remains strong as customers prefer our technology.  **[SYK_3395049_9]**  The upcoming addition of spine and shoulder applications to Mako will further drive growth.  **[SYK_3395049_9]** **[SYK_3395049_10]** 

7. **New Product Launches**
   **Q:** How will Pangea and LifePak 35 impact growth?
   **A:** Both are significant contributors to future growth.  **[SYK_3395049_23]**  LifePak 35 will ramp up quickly, impacting the second half of this year and having a big year next year.  **[SYK_3395049_23]**  Pangea, though launching more gradually, will provide sustained and consistent growth once fully launched in H2 next year.  **[SYK_3395049_23]** 

8. **Segment Softness**
   **Q:** Why is the Foot & Ankle market soft?
   **A:** The market has softened due to factors like OR time being prioritized for other procedures and patient co-pays leading to delays.  **[SYK_3395049_14]** **[SYK_3395049_34]**  We've seen such lulls before, but patients will return as conditions persist.  **[SYK_3395049_34]**  We're confident in our product pipeline, including innovations like Footprint for total ankle replacement.  **[SYK_3395049_14]** 

9. **Ambulatory Surgery Centers**
   **Q:** What's your outlook on procedures shifting to ASCs?
   **A:** The shift to ASCs is a positive trend that's exceeding our expectations.  **[SYK_3395049_25]** **[SYK_3395049_28]**  Currently, **10–15%** of hips and knees are done in ASCs, and we expect this to surpass **15%** next year, potentially reaching **30–40%** in five years.  **[SYK_3395049_28]**  We are well-positioned to benefit from this shift due to our broad product offering.  **[SYK_3395049_27]** 

10. **Margin Drivers**
    **Q:** Where will margin improvements come from?
    **A:** In 2024, margin expansion leans more on SG&A leverage.  **[SYK_3395049_37]**  We control expenses like hiring and travel, and benefit from low-cost manufacturing in Poland and Mexico.  **[SYK_3395049_13]**  As we grow, we gain natural leverage from a fixed cost base, contributing to our confident outlook on margins.  **[SYK_3395049_13]** **[SYK_3395049_37]** 

622f5a737a168717b3589ec27b8d5a49adad6938f21463ba5fd3eaf48c13da8e

- Total Revenue: $6,436 million (+11% YoY)  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   
- MedSurg and Neurotechnology: $4,178 million (+22% YoY)  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   
- Orthopaedics and Spine: $2,258 million (-5% YoY)  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   
- Select Sub-Segments (YoY):  
  • Instruments: -89%  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   
  • Neurovascular: **+969%**  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   
  • Neuro Cranial: +106%  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   
  • Knees: **+992%**  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   
  • Trauma & Extremities: **+1058%**  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   
  • Spine: -164%  **[0000310764-24-000024_syk-20231231.htm:39]** **[0000310764-24-000024_syk-20231231.htm:69]** **[0000310764-24-000024_syk-20231231.htm:87]** **[0000310764-24-000024_syk-20231231.htm:57]** **[0000310764-25-000005_sykex991earningsq42024.htm:8]**   

d2a8ccb038781235b7ea32a9d0548a852ef8dfe64736a14becf83b65761f7cbe

| Year | Amount Due (in millions) | Debt Type               | Interest Rate (%) | % of Total Debt                     |
|----------|------------------------------|-----------------------------|-----------------------|------------------------------------------|
| 2024     | $559                         | Floating Rate Notes         | Floating Rate         | 3.6% = (559 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2024     | $951                         | 0.250% Senior Unsecured Notes | 0.250%               | 6.1% = (951 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2025     | $649                         | 1.150% Senior Unsecured Notes | 1.150%               | 4.2% = (649 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2025     | $749                         | 3.375% Senior Unsecured Notes | 3.375%               | 4.8% = (749 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2026     | $997                         | 3.500% Senior Unsecured Notes | 3.500%               | 6.4% = (997 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2027     | $837                         | 2.125% Senior Unsecured Notes | 2.125%               | 5.4% = (837 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2028     | $1,862                       | Multiple Notes (3.650%, 4.850%, 3.375%) | Various            | 12.0% = (1,862 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]** |
| 2029     | $1,635                       | Multiple Notes (0.750%, 4.250%) | Various              | 10.6% = (1,635 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]** |
| 2030     | $1,712                       | Multiple Notes (1.950%, 2.625%) | Various              | 11.1% = (1,712 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]** |
| 2031     | $832                         | 1.000% Senior Unsecured Notes | 1.000%               | 5.4% = (832 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2032     | $887                         | 3.375% Senior Unsecured Notes | 3.375%               | 5.7% = (887 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2034     | $740                         | 4.625% Senior Unsecured Notes | 4.625%               | 4.8% = (740 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2036     | $660                         | 3.625% Senior Unsecured Notes | 3.625%               | 4.3% = (660 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2043     | $393                         | 4.100% Senior Unsecured Notes | 4.100%               | 2.5% = (393 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2044     | $396                         | 4.375% Senior Unsecured Notes | 4.375%               | 2.6% = (396 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2046     | $983                         | 4.625% Senior Unsecured Notes | 4.625%               | 6.3% = (983 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |
| 2050     | $642                         | 2.900% Senior Unsecured Notes | 2.900%               | 4.1% = (642 / 15,484) * 100 **[0000310764-24-000115_syk-20240930.htm:12]**     |

3752e6222b7af6f6bb3eff33907599121fe7b4f32e67d37cec4c2ee12a3d2958

4e3654469140b241d21666f8cdd22d3fcc21875f7c225ef0d0b547c414c5e51a

- **Stryker’s "super cycle" of innovation is driving growth**, with multiple impactful new products launching, including the **Pangea plating system**, new **camera systems**, and upcoming **Mako applications for spine and shoulder**, which are expected to fuel growth and outperform the market.  **[SYK_3363739_4]** **[SYK_3363739_13]** **[SYK_3363739_10]**
- **Strong international growth**, with international sales growing faster than the U.S. for five consecutive years, driven by the **Mako robotic system gaining traction in markets like Japan, India, and Europe**, indicating significant potential for continued expansion.  **[SYK_3363739_27]** **[SYK_3363739_25]**
- **Healthy demand in the capital equipment environment**, with robust **Mako placements**, especially internationally, and expectations of **strong performance in hips and knees returning to normal seasonality**, indicating potential revenue growth in Q4 and beyond.  **[SYK_3363739_6]** **[SYK_3363739_7]**

ab7a0dd149fb9c1f550ad9bf80893e7ede787ebae5ee3e871be149961bdf4297

- **Strong procedural volumes and robust demand for capital equipment**, including record **Mako robotic system installations**, penetrating competitive accounts, indicating continued growth in core businesses  **[SYK_3381568_5]** ,  **[SYK_3381568_11]** ,.  **[SYK_3381568_18]**
- **Exceptional growth in key divisions**, such as **Instruments (up 18%)** fueled by products like **smoke evacuation (up almost 50%)**, and strong performance in **Upper Extremities**, driven by new product launches, indicating strong market position and innovation pipeline  **[SYK_3381568_11]** ,.  **[SYK_3381568_25]**
- **Upcoming product launches** like **Pangea plating system** in Trauma and **LIFEPAK 35 defibrillator** in Medical division expected to contribute to growth in the coming quarters, demonstrating strong future growth catalysts.  **[SYK_3381568_24]**

7ca601ca859ddf4b9db5dbce036e388959dd7b3f1b2f1a5925d4b3e8223e8305

1. **2024 Sales Guidance**
   **Q:** What's driving your 7.5%-9% organic sales growth guidance?
   **A:** Kevin Lobo expressed strong confidence in the **7.5% to 9%** organic sales growth for 2024, citing robust procedure volumes, healthy capital markets, and hospitals actively spending. He highlighted that they exited the year with more backlog than they began, and emphasized a strong pipeline of innovation with new launches planned for 2024.  **[SYK_3371285_5]** 

2. **Operating Margin Expansion**
   **Q:** Are you still committed to 200bps margin expansion by 2025?
   **A:** Glenn Boehnlein affirmed their commitment to achieving **200 basis points** of operating margin expansion by the end of 2025, getting back to pre-COVID levels. He noted that while expansion will be more back-half loaded, they have opportunities in both gross margin improvements and operating expenses leverage due to their strong growth.  **[SYK_3371285_6]** **[SYK_3371285_8]** 

3. **M&A Strategy**
   **Q:** What's your approach to M&A in 2024?
   **A:** Kevin Lobo stated that Stryker is back on M&A offense, focusing on smaller tuck-in deals but remaining open to larger acquisitions. With their leverage back to desired levels, they plan to be active in pursuing opportunities and have a long list of targets prepared by their business development teams.  **[SYK_3371285_7]** 

4. **Orthopaedics and Mako Growth**
   **Q:** How confident are you in continued orthopaedics growth?
   **A:** Kevin Lobo is very confident, highlighting that **60%** of U.S. knee procedures are now performed using the Mako robot. Hips are also climbing, fueled by the launch of the 4.0 software, and cementless procedures continue to grow. Mako remains the growth engine in both hospitals and ASCs, and the company is excited about upcoming innovations like Mako Spine and Mako Shoulder.  **[SYK_3371285_9]** **[SYK_3371285_13]** **[SYK_3371285_20]** 

5. **Medical Segment Outlook**
   **Q:** Can Medical maintain its strong growth?
   **A:** Kevin Lobo expects the Medical segment to continue growing above Stryker's average growth rate for the next five years. Despite tougher comps, he emphasized the strength in areas like Sage, AEDs, Vocera, and their bed business, all supported by ongoing innovation and a strong leadership team.  **[SYK_3371285_10]** 

6. **Healthcare Utilization Trends**
   **Q:** Are there capacity constraints for procedure growth?
   **A:** Kevin Lobo noted that hospitals are busy but have largely resolved staffing issues. With aging demographics and increasing activity levels among the elderly, demand remains strong. ASCs are contributing to growth, and he doesn't foresee capacity constraints impacting procedure volumes in the near term.  **[SYK_3371285_14]** **[SYK_3371285_21]** 

7. **Ambulatory Surgery Centers (ASCs)**
   **Q:** How significant are ASCs in your strategy?
   **A:** ASCs play a crucial role, with **12%-15%** of hips and knees now performed in these centers. Stryker is well-positioned, offering a comprehensive suite of products for orthopaedic ASCs, including capital equipment and implants across various specialties. This has contributed to winning ASC deals and is expected to drive future growth.  **[SYK_3371285_28]** 

8. **Pricing Strategy**
   **Q:** What's the outlook for pricing in 2024?
   **A:** Glenn Boehnlein indicated that while pricing is expected to be flat on average in 2024, they continue to implement price increases in certain segments, particularly in MedSurg and Neurotech. They haven't backed off their pricing strategy and aim to maximize benefits where possible.  **[SYK_3371285_16]** **[SYK_3371285_32]** 

9. **Gross Margin Improvement**
   **Q:** What drove gross margin expansion in Q4?
   **A:** The primary driver of gross margin improvement was favorable mix, with strong growth in higher-margin products. Solid price performance also contributed, along with operational efficiencies gained from increased sales volumes in the quarter.  **[SYK_3371285_15]** 

10. **Mako Shoulder Launch**
    **Q:** Is Mako Shoulder still set for 2024?
    **A:** Kevin Lobo confirmed that Mako Shoulder is expected to launch at the end of 2024 but won't have a significant revenue impact until 2025. The technology aims to simplify complex procedures, making them easier for surgeons and improving patient outcomes.  **[SYK_3371285_18]** **[SYK_3371285_30]** 

11. **Neurovascular Business Outlook**
    **Q:** What's your plan for Neurovascular growth?
    **A:** Kevin Lobo acknowledged challenges due to China's VBP impact but remains positive about the neurovascular market. He mentioned that the SERF acquisition has strengthened their hemorrhagic portfolio internationally and they are exploring opportunities in areas like liquid embolics to enhance their product offerings.  **[SYK_3371285_24]** 

12. **Tax Rate and PILLAR II Impact**
    **Q:** How will PILLAR II affect your tax rate?
    **A:** Glenn Boehnlein stated that while there is an impact from PILLAR II in 2024, they have fully offset it through tax planning strategies, as reflected in their effective tax rate guidance. It's too early to comment on the impact for 2025.  **[SYK_3371285_32]** 

13. **Spine Market Dynamics**
    **Q:** Are you capitalizing on competitor disruptions in Spine?
    **A:** Kevin Lobo indicated that their improved performance in Spine is due to internal efforts, particularly in enabling technologies like Q Guidance, rather than competitor disruptions. While they anticipate some market disruption in 2024, their focus remains on their own growth strategies.  **[SYK_3371285_29]** 

14. **Soft Tissue Robotics**
    **Q:** What's your stance on soft tissue robotics?
    **A:** Kevin Lobo expressed interest in the soft tissue robotics space but emphasized respect for the dominant incumbent. While it's an area of exploration, they are cautious about entering the market and would consider making a move if it aligns strategically without directly challenging the incumbent.  **[SYK_3371285_36]** 

15. **Vocera Integration**
    **Q:** How is Vocera expanding within Stryker?
    **A:** Kevin Lobo highlighted successful integrations of Vocera with their beds and wireless stretchers. There's growing interest from third-party companies to connect with their ecosystem, and they see significant potential in automating workflows and reducing cognitive load on nurses, enhancing hospital operations.  **[SYK_3371285_37]** 

16. **Sports Medicine Growth**
    **Q:** Is Sports Medicine meeting your expectations?
    **A:** Kevin Lobo affirmed that Sports Medicine is a significant growth area, describing it as a "rocket ship." With multiple shoulder product launches planned, the business has become integral in winning ASC deals and continues to contribute positively to the company's performance.  **[SYK_3371285_34]** 

17. **Leverage and M&A Capacity**
    **Q:** What's your current leverage ratio for M&A?
    **A:** Glenn Boehnlein stated that they aim to maintain a leverage ratio between **2.5 to 3**, currently sitting at the lower end. This provides room for acquisitions without the need for additional borrowing for typical tuck-in deals. Kevin Lobo added that they could consider going above this range for the right strategic opportunity.  **[SYK_3371285_33]** 

1a2b20cc80b4311ddc1f0d8fcdb75b7e52418d2fe47559cc813cdabbca569f5a

- **Potential impact of China's Volume-Based Procurement (VBP) on sales growth, particularly in the Neurovascular segment, where China VBP has already hurt performance and may continue to affect sales**  **[SYK_3371285_25]** ,.  **[SYK_3371285_12]**
- **Flat pricing expected for 2024, despite prior favorable pricing trends, which could limit future margin expansion**  **[SYK_3371285_16]** ,.  **[SYK_3371285_17]**
- **Possible margin dilution from future M&A activity, especially if larger deals are pursued, which could impact earnings and the company's ability to meet margin expansion targets**  **[SYK_3371285_39]** ,.  **[SYK_3371285_7]**

577d1b8f0a47e8e9190212e1721b2ed651818317ca18ce2cf4fae3c4cd5e3e4e

1. **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.  **[SYK_3404420_6]** 

2. **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.  **[SYK_3404420_8]** 

3. **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.  **[SYK_3404420_4]** 

4. **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.  **[SYK_3404420_7]** 

5. **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.  **[SYK_3404420_9]** 

6. **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.  **[SYK_3404420_5]** 

7. **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.  **[SYK_3404420_8]** 

442b42b124df166147345146e896391a0e55a3a9e7a004e8ff71ec3a65629034

- **Management's cautious approach to raising guidance** indicates potential uncertainties ahead, which may limit upside in future quarters. "There's a lot of uncertainties out there in the marketplace. We feel very good about our business. ... Let's see how things go at the end of the second quarter, and we can update you further on the outlook for the year."  **[SYK_3381568_9]**
- **Foreign exchange headwinds are expected to negatively impact earnings**, with EPS anticipated to be adversely affected at the higher end of the guided range of **$0.05 to $0.10**, potentially pressuring profitability. "If foreign exchange rates hold near current levels, we anticipate sales will be moderately unfavorable impacted for the full year, being more negative in the first half of the year. **EPS will be negatively impacted at the higher end of our previously guided range of $0.05 to $0.10.**"  **[SYK_3381568_7]**
- Persistent **pockets of supply constraints** could pose risks to meeting demand and sustaining growth momentum. "And while pockets of supply constraints remain, our supply continues to be stable overall."  **[SYK_3381568_1]**

7c3cd3ce65e54daa6b646ff03809434653cbb96ba2285b630d39b89d8e3a8699

- **Stryker has demonstrated sustained high organic growth**, with **9.7% growth two years ago, 11.5% last year, and 9% to 10% expected this year**, showcasing their ability to maintain high growth over multiple years. This is driven by new product launches like **Pangea** and **LifePak 35**, continued expansion of **Mako**, and a strong pipeline including **Mako Spine**, **CoPilot**, and **Mako Shoulder**, which are expected to contribute to future growth.  **[SYK_3395049_11]**
- **Record Mako installations quarter after quarter** are driving growth, with significant contributions from international markets such as **Japan**, **India**, and **Europe**. The percentage of hips and knees performed using Mako robots is increasing every quarter, indicating strong adoption. Upcoming additions of **spine and shoulder procedures** to Mako further enhance growth prospects.  **[SYK_3395049_9]**
- **Positive market dynamics and tailwinds**, including a **robust and healthy market**, strong procedure volumes, and backlog, particularly in **endoscopy** and **medical**, are contributing to growth. Stryker has achieved higher-than-expected **pricing improvements**, which are expected to continue, and growth in **ambulatory surgery centers (ASCs)** is accretive to their overall growth, favoring them due to the breadth of their offerings.  **[SYK_3395049_6]** **[SYK_3395049_25]**

27f91319974cb68d7682dfaeeb42e5a61876f578b8472c9d32bfba565e8c0fd6

- **Strong leadership in robotic-assisted surgery with Mako**, achieving a **record quarter of installations globally** and increasing utilization, with **60% of U.S. knee and 34% of hip procedures performed using Mako** as of year-end.  **[SYK_3371285_1]**  This drives above-market growth, as Stryker continues to grow **roughly 300 basis points faster than the market** due to its **huge lead in robotic-assisted surgery and cementless implants**.  **[SYK_3371285_27]**
- **Robust pipeline of innovation and successful product launches**, including upcoming launches in **Sports Medicine, particularly in shoulder**, with **four new shoulder products** planned  **[SYK_3371285_35]** , and continuing momentum from **System 9, Neptune S, and the 1788 camera system**.  **[SYK_3371285_5]**  This sustained innovation supports **strong organic sales growth guidance of 7.5% to 9% for 2024**.  **[SYK_3371285_5]**
- **Favorable market dynamics**, including **strong procedural demand driven by aging demographics and increased activity levels** among elderly patients  **[SYK_3371285_14]** , leading to **busy hospitals, elevated capital spending, and growth in ambulatory surgery centers (ASCs)** where Stryker is **winning at spectacular rates**.  **[SYK_3371285_9]**  This is further supported by **healthy hospital CapEx budgets and an elevated capital order book** entering 2024.  **[SYK_3371285_1]**

0817e6434dcd9f74472391406879beb560ff302c27be6bd3a41ff6ed09597c93

- **Management refrained from providing specific guidance for 2024**, indicating uncertainty about sustaining the current high growth rates and possibly hinting at a slowdown in the coming year.  **[SYK_3363739_6]** **[SYK_3363739_4]** **[SYK_3363739_15]** **[SYK_3363739_9]**
- **Positive pricing trends may be difficult to maintain**, as the company anticipates tougher comparisons and acknowledges potential challenges in sustaining price increases in the future.  **[SYK_3363739_14]**
- **Gross margin improvements seen in Q3 might not be fully sustainable**, with expectations of moderation in Q4 due to mix issues, suggesting that margin expansion may slow down going forward.  **[SYK_3363739_12]** **[SYK_3363739_10]** **[SYK_3363739_1]**

57d9dfa50843e19d36bc4f3b16d1dd6266e4bb13bebc7b3e221d5fcf6b5a576b

1. **Procedure Volumes and Capital Equipment**  
   **Q:** Are you seeing any changes in procedure volumes or capital equipment demand?  
   **A:** Procedure volumes remain healthy globally, consistent with 2024 levels, and capital equipment demand is robust with a strong backlog, giving us confidence to raise our organic sales growth guidance for the full year.  **[SYK_3381568_5]** 

2. **EPS Raise Breakdown**  
   **Q:** What contributed to the $0.10 EPS raise at the midpoint?  
   **A:** The EPS raise is driven by robust top-line growth and operational leverage. Below-the-line items like OI&E and tax rate had some favorability this quarter, but we're still targeting **$250 million** in OI&E and a tax rate between **14% and 15%**, consistent with initial guidance. The combination of strong earnings and positive momentum gives us confidence in the **$0.10** EPS raise from the midpoint.  **[SYK_3381568_7]** 

3. **M&A Targets and Focus Areas**  
   **Q:** How are you thinking about M&A targets and areas of focus?  
   **A:** We have an incredibly healthy pipeline of mostly tuck-in deals that supplement our core businesses with new technology. The top five priority adjacencies remain of high interest, and most acquisitions will occur in the next couple of quarters. Our approach hasn't changed, and we're excited about the opportunities ahead.  **[SYK_3381568_10]** 

4. **Growth Beyond Current Innovation Cycle**  
   **Q:** What are the growth drivers beyond the current innovation cycle?  
   **A:** We're in a constant rhythm of innovation, with new products like LIFEPAK 35 and Pangea contributing more next year. We expect continued high growth with no end in sight, as long as market conditions remain similar and we keep investing roughly **7%** of our growing top line in new product innovation. Acquisitions of high-growth assets will also contribute to organic growth in the years ahead.  **[SYK_3381568_14]** 

5. **Mako Spine and Shoulder Launch Timing**  
   **Q:** Are Mako for Spine and Shoulder robots still on track for 2024 launches?  
   **A:** Yes, we're looking at a fourth-quarter launch for Mako Spine and CoPilot, and Mako Shoulder will be launched by the end of this year. Regulatory timelines can shift launch dates slightly, but there's no significant change in the timeline  **[SYK_3381568_15]** ,.  **[SYK_3381568_20]** 

6. **International Mako Installations**  
   **Q:** What trends are you seeing internationally with Mako installations?  
   **A:** International Mako installations are increasing, similar to where the U.S. was 5–6 years ago. Countries like India, Japan, Korea, and parts of Europe are showing strong uptake. This expansion is a leading indicator for significant high growth in implants, and we expect momentum to continue.  **[SYK_3381568_29]** 

7. **Margin Expansion Outlook**  
   **Q:** Can you provide an update on the operating margin expansion target?  
   **A:** Our target is **200 basis points** of expansion over 2024 and 2025. We're on track for roughly **100 basis points** this year, with stronger expansion expected in the second half. Margin improvements will come from operational leverage, gross margin, and operating expense efficiencies.  **[SYK_3381568_23]** 

8. **Pricing Trends in Orthopedics**  
   **Q:** What's the outlook on pricing pressure in Orthopedics and Spine?  
   **A:** Historically, we've had price declines of **3–5%** in Orthopedics. Through contract discipline and Mako's closed system, we've reduced negative pricing. While we don't expect positive pricing, we're confident about less negative pricing going forward.  **[SYK_3381568_27]** 

9. **Capital Spending Environment**  
   **Q:** How is the capital spending environment affecting your portfolio?  
   **A:** The capital environment is strong, with hospitals looking to increase CapEx spending. We see opportunities across the board, and our healthy backlog supports strong capital sales throughout the year.  **[SYK_3381568_13]** 

10. **Smoke Evacuation Growth**  
    **Q:** What's driving the strong growth in smoke evacuation sales?  
    **A:** Smoke evacuation grew almost **50%**, driven by great commercial execution, strong demand, and improved supply chain. High double-digit growth is expected to continue, especially as more states mandate smoke evacuation.  **[SYK_3381568_19]** 

57b16c742059271d2d5f045566e3c17090bf247f8f7d3abd257400f4f026d2b0

- **Supply chain disruptions**: The company experienced supply issues in its neurovascular business and medical business outside the United States, which could impact growth.  **[SYK_3395049_33]**
- **Challenges in existing ASCs**: Stryker faces difficulty displacing competitors in existing ambulatory surgical centers (ASCs) with entrenched surgeons using competitive products, potentially limiting market share gains in this growing channel.  **[SYK_3395049_27]**
- **Hesitation in entering growth adjacencies**: The company acknowledges the attractiveness of areas like neuromodulation and soft tissue surgical robotics but remains cautious about entering these spaces, which may limit future growth opportunities.  **[SYK_3395049_16]** **[SYK_3395049_12]**

433338ec926b1814b197ab0658d17391d0422890db91a50982a372b37f20bf04

Stryker Corp (SYK)

Financials