Stryker Corporation

- The company ended the quarter with a gross debt to EBITDA ratio of 2.1, indicating a strong cash position and capacity for additional acquisitions. - They expressed eagerness and capacity to deploy capital and expect to be active in M&A through the end of this year and into next year. - There is no explicit mention of plans for new fundraising through debt or equity in the current quarter. - Adjusted other income and expense increased due to higher interest expense from debt issued in 2025 (to fund the acquisition of Inari), but no new debt issuance was indicated for 2026. - The company is financially positioned to continue investments and acquisitions within their existing guidance without changes to earnings or margin targets.

- The company plans to make some investments related to recovery from the recent cyber incident; these investments are already factored into their current guidance. (Page 14) - There is a creation of a new business unit called SmartCare aimed at "Smart Hospital" integration, which is expected to receive focused and increased investment moving forward. (Page 14) - The company is actively evaluating M&A opportunities, especially in soft tissue robotics and sustainment solutions, which could be a form of strategic investment; they also recently completed the AVS acquisition to boost Peripheral Vascular business. (Pages 11, 6) - Capital order book remains elevated, with hospital CapEx environment steady, supporting optimism about demand for capital products throughout the year. (Page 2) - Procurement efforts are underway to mitigate higher input costs from geopolitical and inflationary pressures, which can be seen as operational investment to maintain margins. (Page 5)

- Full-year 2026 organic net sales growth is expected in the range of 8% to 9.5%, despite the cyber incident disruption. - The company anticipates recovering most of the Q1 lost sales throughout the rest of the year, with rescheduled procedures and order fulfillment spreading into H2, especially for MedSurg capital products. - Procedural volumes remain healthy, supported by favorable demographics and robotic-assisted surgery adoption. - Hospital capital expenditure environment is steady, with an elevated capital order book expected to support growth. - Mako installations hit a record Q1, with sustained momentum from installations and utilization projected to drive joint replacement business growth. - Continued double-digit growth in Orthopaedics, with positive launches expected to accelerate growth in H2. - No impact seen from GLP-1 drugs on demand; surgery schedules remain full. - International markets show reaccelerated growth, driven by cumulative efforts in Europe and Japan.

- Full-year 2026 guidance maintained despite Q1 cyber incident; organic net sales growth expected at 8% to 9.5%. - Adjusted net earnings per share guidance range: $14.90 to $15.10 for 2026. - Operating margin expected to increase by approximately 50 basis points year-over-year in 2026, with some quarter-to-quarter variability. - Margin pressures from tariffs and input cost inflation are anticipated but expected to be mitigated through procurement efforts and operational excellence. - Sales recovery from the cyber incident expected to occur progressively through the year, with Q2 showing some recovery and additional catch-up in the second half. - Continued investments factored into guidance, with confidence in achieving profit and EPS targets. - Ongoing strong underlying demand and healthy hospital capital expenditures support growth and earnings outlook.

- The company has a very healthy order book despite shipment pauses caused by the cyber incident. - There was no pause in orders during Q1; the shipment pause was due to inability to produce product for nearly 3 weeks. - Hospitals maintain strong interest and healthy balance sheets, supporting continued orders. - Capital order book remains elevated entering the remainder of the year. - The company expects most lost sales from Q1 to be realized throughout the rest of 2026. - Recovery of deferred procedures and order fulfillment will occur gradually, primarily in Q3 and Q4. - Inventory replenishment is underway, with manufacturing back on track since early April. - MedSurg products with make-to-order production will have a delayed recovery spread into the second half of the year.