Matt Miksic

Preston confirmed Ortho Tech includes power tools, pull-through items, and Mako but declined to break out recurring vs capital components, pointing to previously disclosed overall capital mix ratios.

Kevin said RPS is finding a sweet spot in ASCs, targeting surgeons who found full Mako too intimidating. It's additive and not slowing Mako momentum, going after customers who would have been left on the sideline.

Kevin Lobo explained U.S. growth leadership is due to earlier product launch timing, not structural differences. EU MDR delays Insignia, Pangaea, LIFEPAK approvals. International opportunity significant as products reach those markets. Jason Beach noted ~75% of revenue is procedurally driven recurring.

Preston Wells confirmed upside revenue drops additional profit but noted offsetting costs from tariffs and reinvestment. Kevin Lobo pointed to 2025 as a good proxy, both top and bottom line moved up.

Kevin Lobo emphasized Stryker benefits from the ASC trend by leveraging its full portfolio including capital, disposables and implants. Shoulders and total ankles increasingly moving to ASC expands their addressable market.

Kevin cited Blueprint AI, Gout surgical hemoglobin quantification. New Chief Digital Officer hired. Deferred detailed discussion to Investor Day.

Kevin described IVS as a gem, consistent strong double-digit growth. OptaBlate, OptaBlate-BVN, Vertos acquisition, CareFusion balloon, SpineJack all contributing. No slowdown expected.

Jason confirmed hospitals doing well, double-digit capital growth. Kevin detailed shoulder growth drivers: Perform system, reverse stemless, Shoulder iD custom glenoid, pyrocarbon hemiarthroplasty, Blueprint AI software.

Kevin explained product launches are timed to prevent gaps, citing system 8 to 9 to 10 progression. R&D pipeline fully stocked.

Kevin highlighted Blueprint AI planning software, Shoulder iD custom patient-match glenoid, and comprehensive implant portfolio. Mixed reality potential for 2026-2027.

Hider confirmed no material chip shortages or supply disruptions. Taking proactive approach through disciplined forecasting, supplier engagement, and dual sourcing. Acknowledged Baxter is not immune to macro trends but is actively taking countermeasures.

Hider described innovation as base hits, not grand slams, constant drive to listen to customers and deliver solutions that simplify their workflow. Decentralized business structure with QBRs for innovation leaders. Early wins include Connex 360, Dynamo, IV Verified Line labeling, and XR spine surgical table. AI being embedded in Connected Care and frontline care.

Joel reinforced this is a buying pattern and conservation issue, not competitive share loss. Cited external articles where hospital CEOs confirmed continued fluid conservation focus. Reiterated medium and longer-term confidence in IV solutions while acknowledging recovery has been slower than expected.

Heather confirmed low end now assumes -20% conservation maintained through year-end, down from prior -10% assumption. Described as modest and prudent approach given utilization backdrop.

Heather confirmed the prior-year government order is not assumed to repeat in 2025 based on recent government ordering trends.

Joel confirmed healthy capital environment with 15% full-year order growth, continued competitive wins. Brent added significant improvement in U.S. commercial organization.

Joel highlighted Novum IQ pump, 10+ pharma product launches annually, and upcoming HST innovations. Heather added connected hospital ecosystem, Progressive Plus, and alternate site nutrition expansion.

Tom highlighted 2,000+ Kaizens this year with BD Excellence expanding into commercial (Mike Feld as CRO) and R&D (average 10-month time-to-launch reduction on first five projects). On resin, hedging covers FY26 but management preparing FY27 assuming oil stays high with pricing actions planned.

Tom highlighted active launches (Pyxis Pro, HemoSphere Stream) with strong competitive results. FY27 and FY28 are big launch years. BD Excellence applied to R&D through Kaizens has accelerated timelines by 6-12 months across several programs.

Tom outlined AI applications across expense reviews, manufacturing scheduling, inventory management, and R&D. Taking a moderate invest-learn-proceed approach.

Tom reiterated maximizing shareholder value as the key criterion but did not provide specifics on what factors favor one transaction form over another.

Tom detailed extensive AI applications from autonomous microbiology to narcotic diversion detection to hemodynamic monitoring, with a new AI platform launching with Pyxis.

Daveen said M3 is only a quarter into launch, starting with clinical-trial centers and expanding to large mitral centers over time.

Larry Wood confirmed typical Q3 seasonality expected, factored into guidance. Japan focused on share recapture and market reacceleration. Bernard noted TAVR is a global business growing well in rest of world beyond U.S., Europe and Japan.

Daveen described multiple growth layers: new technology launches, new geographies for PASCAL/EVOQUE/M3, new clinical data (ENCIRCLE at TCT), market access, physician training. Each layer compounds as catalysts stack.

Daveen set upper bound at the ~850 structural heart programs but noted exact number depends on each center's readiness. Linear growth trajectory expected.

Daveen described typical learning curve: early centers doing 3-5 cases per day, new centers start with 1-2. Not unusual for new structural heart therapy.

Pieton noted CAS is a fantastic business at the operating margin level despite slight gross margin dilution from capital mix. Expects inflection in H2 FY27 as catheter share increases, with CAS driving year-over-year gross margin improvement as early as FY27. Martha described still being relatively early in launch with long runway in high-volume academic centers, mapper hiring staying ahead of need.

Pieton deferred specific quantification to Investor Day in mid-2026. Noted CAS $1B incremental and Ardian as 'macro level' growth impacts. Growth drivers are incremental to underlying business improvements, not substitutes.

Pieton confirmed 7% op profit ex-tariffs inclusive of all investments. Martha highlighted AiBLE ecosystem with 10,000+ installed capital units creating durable competitive advantage, noting competitors exiting spine market.

Martha attributed Peripheral Vascular decline to China volume-based procurement dynamics, noting most VBP impact has worked through with some remaining volatility.

Geoff acknowledged Affera ramping but didn't break out specifics. Ardian CMS coverage timing described as hard to predict despite constructive conversations. No patch pump timing given. Gary confirmed FX dime in back half.

Ivan reported Paragon 28 nearly double-digit in Q1, accelerating to teens in early Q2–200bps sequential acceleration from Q4 2025. Driven by focus, investments, new product launches, and rep hiring. Expects strong double-digit exit in 2026. Next deal paused while integrating Paragon, launching Monogram, and executing U.S. salesforce transformation.

Ivan detailed U.S. knee drivers: Oxford Partial Cementless (only FDA-approved partial cementless knee, strong ASC adoption), Persona OsseoTi at ~35% penetration. International: Persona Revision in Europe gaining traction. Iodine hip launched in Japan Q1 2026 with 40% price uplift, expected meaningful 2026 revenue contribution. Clinical data from 10-year University of Yokohama trial.

Ivan confirmed iodine products will command premium pricing in both Japan (already happening with significant price uplift) and U.S. (via Breakthrough Designation). On restorative therapies: ~$110-120M annual HA injection business. Miss driven by inadequate budgeting, diverted commercial focus, and lingering CMS reimbursement changes. Will be more measured in 2026 expectations.

Ivan reported zero management turnover and no departures among sales reps or distributors. Albert DaCosta (former CEO) is Global President. Recently integrated ZBH foot and ankle portfolio into Paragon sales channel. Lower-than-expected acquisition costs improving FCF. Confirmed this is a 'rinse and repeat' M&A model for future deals.

Ivan noted ZBH already runs exclusive 1099 salesforces in CMFT, so integration model is familiar. No duplicate territory issues since ZBH lacks dedicated foot & ankle sales. No disruption expected in total ankle.