Stryker Corp.

Strong Q2 performance; broad-based growth despite cyber recovery - Organic sales grew 9% YoY (pricing flat, FX +0.4% favorable); growth led by MedSurg & Neuro +9.2% and Orthopedics +8.6%. - Capital/procedural demand stayed strong: US procedural environment described as stable; demand remains supported by “aging population / chronic disease / workforce productivity” tailwinds. - Adjusted EPS = $3.69, up 17.9% YoY (+ $0.56), driven by gross margin improvement and tariff-related net benefit.

Guidance narrowed; confidence in 2H driven by capital backlog + production ramp - Full-year 2026 organic net sales growth guidance narrowed to 8.3%–9.3% (investors asked about why the top end wasn’t raised; management said visibility is best they can get with current info). - Full-year adjusted EPS guidance = $14.95–$15.10. - Management repeatedly emphasized that the second half is strong because of elevated backlog, continued procedure demand, and production ramping after the cybersecurity incident. - Despite a Q2 EPS beat, management noted offsetting cyber-related remediation/remediation costs and lost absorption/idle costs that will weigh on later periods.

Key negative: Peripheral Vascular supply disruption created meaningful backorders (lost sales) - US Vascular organic sales declined -6.7% YoY due to peripheral vascular operational disruption (described as backorders tied to a single plant in the Inari business). - Management expects backorders to fall to manageable levels by end of Q3, and still expects Vascular franchise growth longer-term, including benefits from the AVS acquisition (closed in the quarter). - Risk/uncertainty acknowledged: procedures can’t be delayed (so lost sales occurred), and recovery timing depends on how quickly the backlog clears.