In This Article:
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Organic Sales Growth: 10.1% in Q1 2025.
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Adjusted EPS: $2.84, up 13.6% from Q1 2024.
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US Organic Sales Growth: 10.7%.
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International Organic Sales Growth: 8.5%.
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MedSurg and Neurotechnology Organic Sales Growth: 10.7%.
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Orthopaedics Organic Sales Growth: 9.3%.
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Adjusted Gross Margin: 65.5%, up 190 basis points from Q1 2024.
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Adjusted Operating Margin: 22.9% of sales, up 100 basis points from Q1 2024.
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Cash from Operations: $250 million year-to-date.
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Full Year Organic Sales Growth Guidance: 8.5% to 9.5%.
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Full Year Adjusted EPS Guidance: $13.20 to $13.45.
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Adjusted Effective Tax Rate: 13.7% for Q1 2025.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Stryker Corp (NYSE:SYK) reported robust organic sales growth of 10.1% in Q1 2025, with strong performances in MedSurg, neurotechnology, and orthopedics.
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The company achieved double-digit organic growth in the US across several business segments, including trauma and extremities, neurocranial, medical, endoscopy, and instruments.
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International markets showed healthy growth, particularly in Australia, New Zealand, Japan, and Europe, indicating significant future growth potential.
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Stryker Corp (NYSE:SYK) completed the acquisition of Inari Medical, which is integrating well and expected to contribute positively to the vascular division.
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The company raised its full-year organic sales growth guidance to 8.5% to 9.5% and expects adjusted EPS of $13.20 to $13.45, reflecting strong commercial execution and innovation pipelines.
Negative Points
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Stryker Corp (NYSE:SYK) faces a $200 million impact from tariffs in 2025, which they are working to mitigate through sales momentum and cost management.
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The company experienced supply chain disruptions affecting its medical business, which are expected to continue through Q2.
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Foreign currency had a 0.9% unfavorable impact on sales, affecting overall financial performance.
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The US Spinal Implant business was flat organically, and the US other ortho business declined 1.9% organically due to changes in Mako deal mix and a decline in bone cement.
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Higher SG&A spending, driven by the Inari acquisition and other growth investments, partially offset the gross margin favorability.
Q & A Highlights
Q: How is Stryker planning to absorb the $200 million impact from tariffs, and what mitigation strategies are in place? A: Preston Wells, CFO, explained that the $200 million tariff impact is based on current conditions and does not include paused items. Stryker plans to offset this through strong sales momentum, pricing strategies, discretionary spending adjustments, and supply chain optimization. Positive foreign exchange impacts will also help mitigate the tariff costs.