Stryker (SYK) Q3 2026 Earnings Call: Q&A Summary

Q: Robert Marcus of JPMorgan asked where market growth is currently and if the industry can do anything to help.

A: Kevin Lobo stated the slowdown is in hips and knees, not extremities, with market growth around 2.5%. He attributed the delay in recognizing this to the cyber incident and SAP implementation.

Q: Joanne Wuensch of Citi asked what brought the orthopedics market out of previous slumps.

A: Kevin Lobo explained that historical slumps were tied to economic activity and patient deductibles, and the market will eventually recover as these conditions improve.

Q: Travis Steed of Bank of America asked how to distinguish between a market slowdown and a win rate issue.

A: Kevin Lobo clarified that the slowdown is market-related, not due to losing major business, and visibility was delayed by SAP implementation.

Q: Matthew O'Brien of Piper Sandler asked if the ortho slowdown is a short-term blip.

A: Kevin Lobo stated he has no crystal ball and is assuming the market stays as it is for now.

Q: Chris Pascal of Barclays asked about knee performance and competitiveness.

A: Nick Mead noted no notable share movement and that they are playing offense with the hip impactor.

Q: Mike Matson of Needham asked if the 2.5% growth estimate is for the year-to-date or the third quarter.

A: Preston Wells clarified that 2.5% is the year-to-date read on market growth.

Q: Elaine Cui of Raymond James asked if MedSurg volumes are seeing similar dynamics.

A: An executive confirmed MedSurg is insulated from the ortho slowdown.

Q: Elaine Cui of Raymond James asked what enabled the Q3 organic beat and for an update on Mako shoulder and RPS.

A: Kevin Lobo noted strong OrthoTec and Mako performance, with Mako RPS off to a slow start but showing good feedback.

Q: Sam of Leerink Partners asked about pricing competition in orthopedics.

A: Preston Wells expects modest price across the portfolio, with ortho slightly negative. Kevin Lobo added that Stryker does not do bulk sales.

Q: Richard Newitter of Truist asked about orthopedic robotics competition.

A: Kevin Lobo said he will reserve judgment on competitors until they hit the market, noting that robots are hard.

Q: Robert Marcus of JPMorgan asked about the weighted average end market growth and margin puts and takes.

A: Preston Wells noted market growth is a tick down from 6% and the goal is to perform at the high end of markets while maintaining margin improvement plans.

Q: Joanne Wuensch of Citi asked for parameters regarding the high end of market growth.

A: Preston Wells declined to provide detailed business-by-business guidance but reiterated the expectation to grow faster than the market.

Q: Ryan Zimmerman of BTIG asked about Q4 organic growth drivers.

A: Preston Wells expects trauma, extremities, medical, and instruments to drive Q4 performance.

Q: Ryan Zimmerman of BTIG asked about capital demand and the impact of 340B.

A: Nick Mead said the order book remains strong and elevated, with a focus on capacity execution.

Q: Travis Steed of Bank of America asked about the cyber impact on 2027 and if 6% is the growth floor.

A: Preston Wells noted they will anniversary cyber impacts and are not setting a floor for 2027 yet.

Q: Chris Pascal of Barclays asked about mitigating execution risk in capital equipment.

A: Preston Wells explained the guidance revision is a conservative view to ensure supply matches strong demand.

Q: Sam of Leerink Partners asked if vascular share loss is temporary.

A: Preston Wells believes share loss is temporary and the ABS launch will help.

Q: Geron of TD Cowen asked about the China JV revenue impact.

A: Preston Wells confirmed a one-time benefit from the China JV but declined to quantify it.

Q: Larry Biegelsen of Wells Fargo asked why CMR is the right partner and about acquisition plans.

A: Kevin Lobo stated soft tissue robotics is appealing and Versius is the best platform for multiple sites of care, with a plan to eventually acquire.

Q: Vijay Kumar of Evercore ISI asked about the buyback philosophy.

A: Preston Wells stated buybacks are opportunistic, but M&A remains the number one priority.

Q: Richard Newitter of Truist asked for details on the CMR Surgical deal.

A: Kevin Lobo reiterated that the partnership is a derisked approach and the plan is to eventually acquire the company.

Q: Geron of TD Cowen asked where the biggest opportunity lies with CMR.

A: Kevin Lobo identified the conversion of laparoscopic and open surgery to robotic as the biggest opportunity.

Q: Vikramjeet Chopra of BMO asked about the Zurumed fiber locker technology.

A: Kevin Lobo described the fiber locker technology as a differentiated, clever design that will be a winner.

Q: Larry Biegelsen of Wells Fargo asked about the new product super cycle and other growth drivers.

A: Kevin Lobo highlighted Neptune, ABS, System 10, and 1888 endoscopy as key upcoming launches.

Q: Matthew Taylor of Jefferies asked why MedTech has not received credit for AI.

A: Kevin Lobo explained that MedTech innovation takes longer due to regulation, but they have 3 FDA-approved AI products and are investing in AI for data-driven decisions.

Q: Vijay Kumar of Evercore ISI asked if 2027 is a super cycle for new products.

A: Kevin Lobo said innovation is ongoing with platforms like 1888 and System 10, and medical products have long replacement cycles.

Q: Matthew O'Brien of Piper Sandler asked about the state of the vascular business.

A: Kevin Lobo said the sales organization is stable and manufacturing backorders are improving, with high excitement for AVS.

Q: Patrick Wood of UBS asked for an update on the SmartCare business.

A: Kevin Lobo reported the best quarter in history for SmartCare, with smooth integration of Kari and Vocera.

Q: Patrick Wood of UBS asked why the shoulder business is distinct and strong.

A: Kevin Lobo attributed shoulder strength to great outcomes and innovation like Mako shoulder and stemless implants.