Stryker reports $859 million net income for Q3 2025

Cover page 3 changes

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For the quarterly period ended June September 30, 2025

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There were 382,307,298 382,423,648 shares of Common Stock, $0.10 par value, on June September 30, 2025 .

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2025 Second Third Quarter Form 10-Q

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Note 1: BASIS OF PRESENTATION 29 changes

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June 30, 2025 and the results of operations for the three and six months 2025 . The results of operations included in these

Consolidated Financial Statements may not necessarily be

September 30, 2025 and the results of operations for the three and nine months 2025 . The results of operations included in these Consolidated Financial Statements may not necessarily be indicative of our annual results. These statements should be read in conjunction with our Annual Report on Form 10-K for 2024 .

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(Subtopic 220-40): Income Statement - Reporting

Comprehensive Income - Expense Disaggregation Disclosures

which requires disaggregation of certain expense captions into specified categories in disclosures within the Notes to the

Consolidated Financial Statements. The new disclosure

requirements are effective for fiscal years beginning after

December 15, 2026 and interim periods within fiscal years

beginning after December 15, 2027. Early adoption is permitted.

We are currently evaluating these new expanded disclosure

In December 2023 the FASB issued ASU 2023-09 (Topic 740):

Income Taxes: Improvements to Income Tax Disclosures which

expands the existing rules on income tax disclosures. This

update requires entities to disclose specific categories in the tax rate reconciliation, provide additional information for reconciling items that meet a quantitative threshold and disclose additional information about income taxes paid on an annual basis. The new disclosure requirements are effective for fiscal years beginning after December 15, 2024 and we will adopt this ASU in the fourth quarter 2025.

We evaluate all ASUs issued by the FASB for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial

In November 2024 September 2025 the Financial Accounting Standards Board

(FASB) issued Accounting Standards Update (ASU) 2024-03 2025-07

(Topics 815 and 606): Derivatives and Hedging: Derivatives

Scope Refinements and Revenue from Contracts with

Customers: Scope Clarification for Share-Based Noncash

Consideration from a Customer in a Revenue Contract. This

update expands the scope exception in Topic 815 to certain non- exchange-traded contracts for which settlement is based on operations or activities specific to one of the parties to the contract. The update is effective for fiscal years beginning after

December 15, 2026 including interim periods within those fiscal years. Early adoption is permitted. We are evaluating if the ASU will have an impact on our Consolidated Financial Statements.

In September 2025 the FASB issued ASU 2025-06 (Subtopic

350-40): Intangibles - Goodwill and Other - Internal-Use

Software: Targeted Improvements to the Accounting for Internal-

Use Software. This update clarifies and modernizes the

accounting for costs related to internal-use software by removing all references to project stages and clarifying that the probable- to-complete threshold is not met if significant development uncertainty exists. The update is effective for fiscal years beginning after December 15, 2027 including interim periods within those fiscal years. Early adoption is permitted. We are evaluating if the ASU will have an impact on our Consolidated

Other information 26 changes

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Our outstanding balances of confirmed invoices in the supplier financing program were $ 64 75 and $ 71 at June September 30, 2025 and

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We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. In the six nine months 2025 and 2024 cash paid for acquisitions, net of cash acquired was $ 4,814 4,950 and $ 334 1,598 .

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Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Second Quarter Form 10-Q

acquisition and a charge of $ 139 was recorded in selling, general and administrative expenses in the six nine months 2025 .

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$ 303 306 and $ 848 845 was recorded within our Orthopaedics and our

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Orthopaedics. The purchase price allocation for certain of our acquisitions are based on preliminary valuations, primarily related to developed technology and customer relationships. Goodwill attributable to the acquisitions reflects the strategic benefits of expanding our market presence, diversifying our product portfolio and advancing innovations. This goodwill is not deductible for tax purposes.

The purchase price allocations for Inari and the acquisitions completed in the six months 2025 and full year 2024 are:

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September 30, 2025 .

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principal amount of the facility by $ 750 to $ 3,000 and extending the maturity date to February 25, 2030. On June September 30, 2025 there were no borrowings outstanding under our revolving credit facility or our commercial paper program which allows for maturities up to 397 days from the date of issuance. The maximum amount of our commercial paper that can be outstanding at any time is $ 3,000 .

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$ 650 M of 1.150 % senior unsecured notes.

Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Third Quarter Form 10-Q

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including required fees incurred, that were included in other income (expense), net, totaled $ 159 157 and $ 96 98 for the three months 2025 and 2024 and $ 296 453 and $ 194 292 for the six nine months

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2025 tax benefit related to the sale of the Spinal Implants

business. The effective tax rates for the three and six months

Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Second Quarter Form 10-Q

Our effective tax rates were 13.0 16.5 % and 13.6 14.7 % in the three and six nine months 2025 and 17.3 20.0 % and 16.0 17.4 % in the three and six nine months 2024 . The effective income tax rate for the three and six months 2025 decreased from three and six months 2024 due to

2025 decreased from three months 2024 due to certain discrete tax items. The effective tax rate for the nine months 2025 decreased from nine months 2024 due to the 2025 tax benefit related to the sale of the Spinal Implants business and certain discrete tax items. The effective tax rates for the three and nine months 2025 and 2024 reflect the continued lower effective income tax rates as a result of our European operations. and certain discrete tax items.

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Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Third Quarter Form 10-Q

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Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Second Quarter Form 10-Q

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Viscogliosi Brothers, LLC. I n In the six months first half of 2025 we recognized immaterial impairment charges to recor d record the disposal group at its fair value less cost to sell within goodwill and other impairments in our Consolidated Statements of Earnings. The fair value of the disposal group and consideration received was measured using a discounted cash flow analysis based upon the selling price and unobservable inputs, such as market conditions and the rate used to discount the estimated future cash flows to their present value based on factors including the disposal group's cost of equity and market yield rates, which are Level 3 inputs.

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2025 Second Third Quarter Form 10-Q

MD&A 70 changes

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Overview of the Three and Six Nine Months

In the three months 2025 we achieved sales growth of 11.1% 10.3%

from 2024 . Excluding the impact of acquisitions and divestitures, sales grew 10.2% 9.5% in constant currency. We reported operating income margin of 18.5% 18.7% , net earnings of $884 $859 and net earnings per diluted share of $2.29 $2.22 . Excluding the impact of certain items, adjusted operating income margin (1) increased by 110 90 basis points to 25.7% 25.6% , with adjusted net earnings (1) of $1,211 $1,233 and adjusted net earnings per diluted share (1) of $3.13 $3.19 , an increase of 11.1% from 2024 .

In the six nine months 2025 we achieved sales growth of 11.5% 11.1% from

2024 . Excluding the impact of acquisitions and divestitures, sales grew 10.2% 10.0% in constant currency. We reported operating income margin of 16.4% 17.2% , net earnings of $1,538 $2,397 and net earnings per diluted share of $3.98 $6.20 . Excluding the impact of certain items, adjusted operating income margin (1) increased by 100 basis points to 24.3% 24.7% , with adjusted net earnings (1) of $2,308 $3,541 and adjusted net earnings per diluted share (1) of $5.97 $9.16 , an increase of

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397 days from the date of issuance. The maximum amount of our commercial paper that can be outstanding at any time is $2,250 .

principal amount of the facility by $750 to $3,000 and extend the maturity date to February 25, 2030. On June September 30, 2025 there were no borrowings outstanding under our revolving credit facility or our commercial paper program which allows for maturities up to 397 days from the date of issuance. The maximum amount of our commercial paper that can be outstanding at any time is $3,000 .

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2025 Second Third Quarter Form 10-Q

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Note: In the first quarter 2025 we changed the name of our Neurovascular business to Vascular due the acquisition of Inari. In the fourth quarter 2024 we reorganized our Spine business to align with certain updates to our internal reporting structure. The spine enabling technologies portfolio (Enabling Technologies) was reclassified to Other Orthopaedics, the interventional spine portfolio was reclassified to Neuro Cranial and the remaining Spine business was renamed to Spinal Implants. Neuro Cranial includes sales related to interventional spine of $129 and $98 $100 for the three months 2025 and 2024 and $247 and $196 $296 for the six nine months 2025 and 2024 . Other Orthopaedics includes sales related to

Orthopaedics includes sales related to Enabling Technologies of $34 and $31 $32 for the three months 2025 and 2024 and $63 and $62 $94 for the six nine months 2025 and 2024 . We have reflected these changes in all historical periods presented.

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Consolidated net sales increased 11.1% 10.3% in the three months

2025 as reported and 10.3% 9.6% in constant currency, as foreign

currency exchange rates positively impacted net sales by 0.8% 0.7% .

Excluding the 0.1% impact of acquisitions and divestitures, net sales in constant currency increased by 9.7% 9.1% from increased unit volume and 0.5% 0.4% due to higher prices. The unit volume increase was due to higher product shipments across all MedSurg and

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0.6% due to higher prices. The unit volume increase was due to higher product shipments across all MedSurg and

Consolidated net sales increased 11.5% 11.1% in the six nine months 2025 as reported and 11.5% 10.9% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.2% . Excluding the 1.3% 0.9% impact of acquisitions and divestitures, net sales in constant currency increased by 9.6% 9.5% from increased unit volume and 0.5% due to higher prices. The unit volume increase was due to higher product shipments across all MedSurg and

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MedSurg and Neurotechnology net sales increased 17.3% 14.4% in the three months 2025 as reported and 16.7% 13.9% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.6% 0.5% . Excluding the 5.7% 5.5% impact of acquisitions and divestitures, net sales in constant currency increased by 10.2% 7.6% from increased unit volume and 0.8% from higher prices. The unit volume increase was due to higher shipments across all

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MedSurg and Neurotechnology net sales increased 15.4% in the six months 2025 as reported and 15.5% in constant currency, as foreign currency exchange rates negatively impacted net sales by

MedSurg and Neurotechnology net sales increased 15.0% in the nine months 2025 as reported and 14.9% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.1% . Excluding the 4.7% 5.0% impact of acquisitions and divestitures, net sales in constant currency increased by 9.8% 9.0% from increased unit volume and 1.0% 0.9% from higher prices. The unit volume

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2025 Second Third Quarter Form 10-Q

volume increase was due to higher shipments across all MedSurg and

MedSurg and Neurotechnology businesses.

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The unit volume increase was due to higher shipments across

most Orthopaedics businesses.

Orthopaedics businesses.

Orthopaedics net sales increased 2.0% 3.9% in the three months 2025 as reported and 1.1% 3.1% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.9% 0.8% . Excluding the (7.9)% 8.3% impact of acquisitions and divestitures, net sales in constant currency increased 9.0% 11.7% from increased unit volume partially offset by 0.3% from lower prices. The unit volume increase was due to higher shipments across most Orthopaedics businesses.

Orthopaedics net sales increased 5.8% 5.2% in the six nine months 2025 as reported and 5.8% 4.9% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.2% . Excluding the (3.4)% 5.0% impact of acquisitions and divestitures, net sales in constant currency increased 9.2% 10.0% from increased unit volume partially offset by 0.1% from lower prices . The unit volume increase was due to higher shipments across most Orthopaedics businesses.

Gross profit was $3,841 $3,852 and $3,416 $3,517 in the three months 2025

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Gross profit was $7,585 and $6,749 in the six months 2025 and

Gross profit was $11,437 and $10,266 in the nine months 2025 and 2024 . The key components of the change were:

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While segment mix was not a significant driver of the change in gross profit as a percent of net sales between the six nine months

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$44 or 12.1% in the three months 2025 . Expenses as a

percentage of net sales in the three months 2025 of 6.8%

remained relatively flat with 6.7% in 2024 .

Research, development and engineering expenses increased

$81 $33 or 11.1% 8.8% in the six three months 2025 and $114 or 10.3% in the nine months 2025 . Expenses as a percentage of net sales in the six three and nine months 2025 of 6.8% remained relatively flat with 6.9% in 2024 .

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Selling, general and administrative expenses increased $248 $151 or

13.5% 8.0% in the three months 2025 . As a percentage of net sales, expenses increased decreased to 34.5% from 33.8% from 34.5% in 2024 , primarily due to higher acquisition-related costs and continued investments to support our growth. spend discipline.

Selling, general and administrative expenses increased $711 $862 or

19.4% 15.5% in the six nine months 2025 . As a percentage of net sales, expenses increased to 36.8% 35.8% from 34.4% in 2024 , primarily due to higher acquisition-related costs and continued investments to support our growth . Expenses in the six nine months 2025 included a charge of $139 for share-based awards for Inari employees that vested upon our acquisition.

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Amortization of intangible assets was $187 $189 and $155 $159 in the three months and $354 $543 and $308 $467 and six nine months 2025 and 2024 .

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months and $90 and $19 in the six months 2025 and 2024 .

Goodwill and other impairments was $55 $73 and $16 $2 in the three

months and $163 and $21 in the nine months 2025 and 2024 .

Operating income was $1,113 $1,135 and $1,051 $1,085 in the three months

2025 and 2024 . Operating income as a percentage of net sales in the three months 2025 decreased to 18.5% 18.7% from 19.4% 19.7% in 2024 .

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Operating income was 1,950 and 2,023 in the six months 2025

Operating income was $3,085 and $3,108 in the nine months

2025 and 2024 . Operating income as a percentage of net sales in the six nine months 2025 decreased to 16.4% 17.2% from 19.0% 19.2% in 2024 . Refer to the discussion above for the primary drivers of the change.

Refer to the discussion above for the primary drivers of the change.

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percentage of net sales increased decreased to 28.3% 29.0% in the three months

2025 from 28.1% 29.1% in 2024 . Orthopaedics operating income as a percentage of net sales increased to 30.1% 28.8% in the three months

2025 from 28.7% 27.7% in 2024 . The key components of the change

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The decrease in MedSurg and Neurotechnology operating

The increase in MedSurg and Neurotechnology operating income as a percentage of net sales for the three months was primarily driven by lower manufacturing and supply chain costs and higher unit volumes and prices offset by higher selling, general and administrative expenses primarily due to the acquisition of Inari and continued investments to support our growth. spend discipline.

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percentage of net sales increased to 28.0% 28.3% in the six nine months

2025 from 27.7% 28.2% in 2024 . Orthopaedics operating income as a percentage of net sales increased to 28.6% 28.7% in the six nine months

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2025 Second Third Quarter Form 10-Q

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The increased in MedSurg and Neurotechnology operating

income as a percentage of net sales for the nine months was

The increase in MedSurg and Neurotechnology operating income as a percentage of net sales for the six months was primarily driven by lower manufacturing and supply chain costs and higher unit volumes and prices offset by higher selling, general and administrative expenses primarily due to the acquisition of Inari and continued investments to support our growth. spend discipline.

The increase in Orthopaedics operating income as a percentage of net sales for the six nine months was primarily driven by higher unit volumes, lower research, development and engineering expenses and lower selling, general and administrative expenses partially offset by higher manufacturing and supply chain costs.

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Other income (expense), net was ($97) ($106) and ($53) ($42) in the three months and ($170) ($276) and ($102) ($144) in the six nine months 2025 and

2024 . The increase in net expense in the three months and six nine months 2025 from 2024 was primarily due to higher interest expense in 2025 .

Our effective tax rates were 13.0% 16.5% and 13.6% 14.7% in the three and six nine months 2025 and 17.3% 20.0% and 16.0% 17.4% in the three and six nine months 2024 . The effective income tax rate for the three and six months 2025 decreased from the three and six months 2024 due to the 2025 tax benefit related to the sale of the Spinal Implants business. The effective tax rates for the three and six months

2025 decreased from three months 2024 due to certain discrete tax items. The effective tax rate for the nine months 2025 decreased from nine months 2024 due to the 2025 tax benefit related to the sale of the Spinal Implants business and certain discrete tax items. The effective tax rates for the three and nine months 2025 and 2024 reflect the continued lower effective income tax rates as a result of our European operations. and certain discrete tax items.

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enacted into United States law. We are currently evaluating the impact of the OBBBA and do not expect the tax-related provisions to have a material impact on our Consolidated

enacted into United States law. We evaluated the impact of the

OBBBA and recorded the tax-related provisions in the three

months 2025. The impact was not material to the Consolidated

Financial statements 32 changes

Net earnings decreased to $1,538 or $3.98 per diluted share in six months 2025 from $1,613 or $4.19 per diluted share in 2024 .

Net earnings increased to $884 $859 or $2.29 $2.22 per diluted share in the three months 2025 from $825 $834 or $2.14 $2.16 per diluted share in 2024 .

Net earnings decreased to $2,397 or $6.20 per diluted share in nine months 2025 from $2,447 or $6.35 per diluted share in

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Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Third Quarter Form 10-Q

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Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Second Quarter Form 10-Q

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2025 Second Third Quarter Form 10-Q

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Termination of sales relationships

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Stock compensation payments upon a change in control

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2025 Second Third Quarter Form 10-Q

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Adjustments related to the transfer of certain intellectual properties between tax jurisdictions (2) (10)

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Charges / benefits for certain tax audit settlements

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2025 Second Third Quarter Form 10-Q

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Cash provided by operating activities was $1,361 $2,901 and $837 $2,311 in the six nine months 2025 and 2024 . The increase was primarily due to the timing of payments and collections in working capital accounts.

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information on acquisitions.

Cash used in investing activities was $4,240 $4,561 and $525 $2,697 in the six nine months 2025 and 2024 . The six nine months 2025 included cash paid to acquire Inari and purchases of property, plant and equipment partially offset by proceeds from the sale of short-term investments and the sale of the Spinal Implants business. The six nine months 2024 included cash paid for the Serf acquisition. Refer to

Refer to Note 7 to our Consolidated Financial Statements for further information on acquisitions.

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Cash provided by financing activities was $1,545 $1,206 in the six nine months 2025 and cash provided by financing activities was

months 2025 and cash used in financing activities was $1,384 $1,269 in the six nine months 2024 . In 2025 , cash provided was primarily driven by proceeds from the issuance of various senior unsecured notes as described in Note 8 to our Consolidated Financial Statements.

Financial Statements. This was partially offset by dividend debt payments, and cash paid for taxes on withheld shares. Cash used in 2024 was primarily driven by dividend payments and cash paid for taxes on withheld shares. We did not repurchase any shares in the six months

Cash provided by 2024 was primarily driven by proceeds from

the issuance of various senior unsecured notes. This was

partially offset by debt payments, dividend payments and cash paid for taxes on withheld shares. We did not repurchase any shares in the nine months 2025 and 2024 .

Cash, cash equivalents, short-term investments and marketable securities were $2,464 $3,343 and $4,493 on June September 30, 2025 and

December 31, 2024 . Current assets exceeded current liabilities by $5,715 $6,297 and $7,231 on June September 30, 2025 and December 31, 2024 .

2024 . We anticipate being able to support our short-term liquidity and operating needs from a variety of sources including cash from operations, commercial paper and existing credit lines.

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marketable securities held in locations outside the United States was 43% 35% on June September 30, 2025 compared to 20% on December 31,

Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Third Quarter Form 10-Q

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Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Second Quarter Form 10-Q

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Controls and procedures 3 changes

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amended) on June September 30, 2025 . Based on that evaluation, the

Certifying Officers concluded the Company's disclosure controls and procedures were effective as of June September 30, 2025 .

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reporting during the six nine months 2025 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Unregistered sales of stock 6 changes

We issued 3,045 shares of our common stock In the three

months 2025 as performance incentive awards to employees.

In the three months 2025 we did not issue shares of our common stock as performance incentive awards to employees. When issued, these shares are not registered under the Securities Act of 1933 based on the conclusion that the awards would not be events of sale within the meaning of Section 2(a)(3) of the Act.

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Dollar amounts are in millions except per share amounts or as otherwise specified.

2025 Second Quarter Form 10-Q

In the six nine months 2025 we did not repurchase any shares of our common stock under our authorized repurchase program. The total dollar value of shares of our common stock that could be acquired under our authorized repurchase program was $1,033 as of June September 30, 2025 .

Exhibits 4 changes

Form of grant notice and terms and conditions for

restricted stock units granted in 2025 under the 2011

Long-Term Incentive Plan to non-employee

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2025 Second Third Quarter Form 10-Q

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