Stryker (SYK) Wells Fargo 21st Annual Healthcare Conference summary

Second half outlook and guidance

• Organic growth guidance remains at 8.3%-9.3%, with 8.8% as the midpoint, despite ongoing challenges in peripheral vascular and joint replacement segments.

• Peripheral vascular business continues to face supply constraints, impacting growth by 70-80 basis points in Q2 and expected to persist into Q3.

• Joint replacement, especially hips, underperformed due to European market softness and typical summer seasonality in the U.S.

• Capital products and trauma/extremities businesses remain robust, with strong order books and demand.

• No change to guidance yet, but management acknowledges increased pressure for a strong second half.

Peripheral vascular and supply chain recovery

• Supply issues in peripheral vascular stem from manufacturing disruptions, exacerbated by a cyber event earlier in the year.

• Inventory prioritization is focused on top customers, limiting ability to win new business.

• Market opportunity remains strong, with expectations for recovery and growth post-supply resolution and new product launches.

• Recent AVS acquisition and upcoming IVL product approval expected to boost momentum into 2027.

• Short-term share loss acknowledged, but confidence in regaining share as supply normalizes.

Orthopedics and market dynamics

• Joint replacement softness attributed to European challenges, longer patient wait times, and inflation-driven consumer hesitancy.

• U.S. market saw normal seasonality, with anticipated September rebound.

• Competitive landscape is shifting, with new product launches and organizational changes among peers.

• Mako and Mako RPS technologies, along with new products like Hip Impactor and Triathlon Gold, are expected to drive above-market growth.

• Long-term expectation is to grow 200-300 basis points above market, with mid-single digit market growth.