Ryan Zimmerman

Kevin downplayed the proposal based on 15 years of precedent and pointed to the ASC shift as a positive for Stryker.

Reaffirmed the three-year margin commitment and walked through cyber idle costs, remediation spend and raw material pressure.

Kevin highlighted strong M&A pipeline with 2.1x gross debt/EBITDA providing firepower, referenced AVS deal, and said to expect active M&A through year-end and into next year.

Kevin was emphatic that there was no pause in orders, only shipments. Hospital balance sheets remain healthy with a strong order book. Mako would have had an even higher record Q1.

Kevin Lobo wasn't familiar with the specific case but cited international precedent for robotic reimbursement. Referenced Australian peer-reviewed data showing Mako outperforms other systems. Doesn't foresee any reduction in reimbursement.

Preston Wells confirmed same confidence in 150bps+ margin expansion through 2028. Cited operational excellence, lean, and shared services as key drivers, with 2026 guidance showing healthy margin trajectory.

Kevin Lobo highlighted multi-year momentum in knees from cementless leadership and Mako adoption. Preston Wells addressed pricing: still positive and above historic levels, now compounding year-over-year.

Kevin Lobo said international expansion has started but hasn't taken off yet. Expects meaningful impact in second half of 2026, leveraging Stryker's existing international infrastructure.

Kevin noted most U.S. sites have multiple Makos. 5,000 hospitals with many ORs remain targets. International is where U.S. was 5 years ago. May provide installed base number at year-end.

Preston explained China benefit offset by EU going to 15%. Kevin added that smaller China exposure and large European manufacturing footprint explain the differential vs peers.

Kevin noted SERF acquisition benefit but strong underlying organic growth. Insignia hip stem not yet launched in Europe, suggesting more growth ahead.

Kevin highlighted Pangea as primary driver plus upper extremities delivering strong double-digit growth quarter after quarter since acquisition.

Bryan said Solventum is not seeing procedure softness despite market noise; on proceeds, management biased to shareholder returns with some debt paydown and no large M&A.

CFO holding $100-120M tariff estimate; no refunds booked; Q1 at high end quarterly. Gross margin expected closer to 56% for remaining quarters after strong Q1 slightly above 56%.

CFO clarified 70bps was mostly SKU/separation timing (registration cutovers), not ERP-driven; Asia Pacific ERP successful and in rearview; U.S. ERP not until Q3.

CEO confirmed Acera is in $1B market growing 10%, positioned in faster-growing synthetics subcategory; healthy double-digit grower with strong profitability; force multiplier with existing commercial infrastructure.

CEO cited multi-year contracts, switching costs, compliance risk of errors, trust factor, and proprietary rules/algorithms as moats; views AI competitors as risking autonomous coding quality.

CFO declined to provide cadence detail; spend will be dictated by multiple projects across the program's timeline.

CFO clarified Q4 at ~2.5% includes residual IPSS order timing reversal; normalized for that, it's in line with prior quarters.

Pete explained AIS builds on AVS model success. Primary goal is higher growth profile through better clinical/technical differentiation at street level and R&D allocation efficiency across cardiac/oncology pathways. Fewer organizational layers speeds decision-making. Near-term benefits expected in commercial execution; longer-term benefits from integrated product development.

Jay confirmed priorities unchanged: organic R&D investment first, disciplined M&A (Intelerad as example of strong ROIC), then share repurchase at attractive valuations. $100M repurchased in Q1. Pricing and new product momentum supporting long-term conviction. Good progress on working capital in the quarter.

Jay outlined: NPIs plus Flyrcado expected to add 1-2pp of additional sales growth medium-term. Heartbeat driving higher-margin NPIs and SG&A optimization for 17-20%+ margin. Pete emphasized tariffs moved timeline back 1-2 years but aggressive mitigation underway. All new products carry higher gross margins than predicates.

Jay highlighted services grew 6% driven by price and volume. Enterprise agreements include multiyear service elements. AI remote fix improving capture rates. High equipment utilization driving service demand. Pete added new sophisticated products with higher-priced service contracts create flywheel effect.

Ivan said 20 quarters of the same pricing question have not materialized worse, the implant is only ~14-15% of ASC cost so the conversation is about the care episode not implant price, and 85% of the book is contracted with visibility into H2 and 2027.

Ivan noted Paragon 28 came in ~20bps behind 270bps full-year target. Both quarters delivered upper single-digit organic growth. EPS dilution better than expected (~3% committed, came in slightly better). Committed to double-digit growth in 2026 with eight new product launches. Just held sales meeting in San Diego with high excitement.

Ivan cited 150bps Q1-to-Q2 acceleration in U.S. Knees with July stronger still. Investments in DTP campaigns, leadership changes, territory restructuring, and evolved incentive plans. International knees impacted by EMEA tender shift to Q3. Expects strong international knee number in Q3. Additional upside from Oxford Partial Cementless and Persona Revision in 2026.

Ivan attributed growth to new products (organic and inorganic), specialized dedicated resources, and ASC investments. Upon Paragon closing, S.E.T. will be larger than Hips franchise.

Karleen confirmed $25M is simply three quarters of Gynesonics sales, consistent with $28M trailing annual run rate.

Steve expects both unit improvement and mix-driven price increases in FY2026 with the new gantry. Not ready to guide '26 but has clear line of sight to acceleration.

Jamie noted about half of US placements were trades, so installed base expansion moderated, while utilization grew a healthy 3%.

Gary acknowledged Medicaid is in the procedure mix but not dominant, saying it's too soon to speculate on impact. Jamie noted it's too early for specific comments.