Oct 29, 2026 earnings call — Ortho slowdown and M&A updates
Organic sales grew 7.7% in Q3 and company expects similar organic growth in Q4.
Revenue $6.5B (est $6.6B) · EPS $3.52 (est $3.55)
Key quotes
"Beginning with Hips and Knees, it is now clear that there is a market slowdown."
"The third quarter included onetime revenue from our Peripheral Vascular joint venture in China, as a result of achieving a regulatory approval milestone in September."
"With its new Versius Plus system, approved indications, technology and growing global clinical experience, we believe now is the right time to partner with CMR and begin scaling the U.S. market through a thoughtful and disciplined approach."
Analyst Q&A 16
orthopedics market slowdown
Q (Robert Marcus · JPMorgan): Analyst asked where ortho market growth is, whether extremities are affected, and what to expect for margins and guidance into 2027.
A: Management said the slowdown is in hip and knee, not extremities, with extremities—especially upper—still high growth. They estimated market growth around 2.5% this year and said the slowdown surprised them and is reflected in guidance. They also said they are working on operational improvements to protect margins.
"What we saw was really a slowdown in the hip and knee portion of the market, not really extremities." — Kevin Lobo (CEO·CHAIR)
CMR surgical robot and product roadmap
Q (Larry Biegelsen · Wells Fargo): Analyst asked why CMR is the right partner, how it will compete, whether Stryker might acquire it, and what other product drivers are coming next year.
A: Management said the Versius Plus robot is attractive because it is modular and fits both ASCs and hospitals; they plan to commercialize in the U.S. as an investor and hope to purchase it later. They listed upcoming platforms: Neptune, ABS (FDA expected end of this year), System 10, 1888, Sonopet, plus Mako RPS and Triathlon Gold as ongoing growth drivers.
"We feel it is the best robot on the market to be able to succeed in multiple sites of care." — Kevin Lobo (CEO·CHAIR)
what ends past orthopedic slowdowns
Q (Joanne Wuensch · Citi): Analyst asked what historically brought prior ortho recoveries and what lessons apply now.
A: Management said past recoveries often tied to economic activity; when consumers are less strained they proceed with surgery. They emphasized the market is not gone but temporarily delayed and timing of recovery is hard to predict.
"Well, in the past, sometimes it's been tied to economic activity." — Kevin Lobo (CEO·CHAIR)
which businesses will offset weakness
Q (Ryan Zimmerman · U.S. Bancorp BTIG): Analyst asked which areas will offset ortho and peripheral weakness and asked about hospital capital demand trends.
A: Management said trauma and extremities, medical, and instruments should have strong quarters and help offset softness. On capital, they said order book demand remains strong but execution and capacity to meet that demand is their focus.
"I think we'll be looking at areas like trauma and extremities, as you mentioned." — Preston Wells (CFO)
data behind slowdown call
Q (Travis Steed · BofA): Analyst asked what data shows slowdown versus win rate and whether cyber events affected visibility; also asked about 2027 floor.
A: Management said visibility into the quarter came late because SAP order entry delays, and the slowdown wasn’t a September-only drop. They said the market is slow, they are not losing major business to competitors, and distraction from SAP and cyber reduced their recent share gains. On cyber, they said much recovery has been made back at different times and they will anniversary the incident in 1Q when planning 2027.
"we only gained visibility to the quarter kind of in the September time frame because there was huge delays in order entry given the change to SAP." — Kevin Lobo (CEO·CHAIR)
vascular business status and IVL plans
Q (Matthew O'Brien · Piper Sandler): Analyst asked whether hip and knee slowdown could be short, and for state of Vascular business and IVL plans for 2027.
A: Management declined to predict a quick snapback and said they assume the market stays where it is for planning. On Vascular, they said the sales organization is stable now, manufacturing backorders improved, customer excitement for AVS is strong, and they are preparing for FDA approval and launch.
"The state of the business is we have a very stable and high-performing sales organization, which was last year's challenge." — Kevin Lobo (CEO·CHAIR)
AI use in med tech
Q (Matthew Taylor · Jefferies): Analyst asked why AI hasn’t been credited in med tech and what benefits Stryker expects from AI.
A: Management said med tech adoption is slower because of regulation but they are investing in AI for innovation and productivity. They noted they have 3 FDA-approved AI products and said most enabling products will include some AI elements over time.
"We have 3 FDA-approved AI products and you referenced a couple of them when you were speaking in your question." — Kevin Lobo (CEO·CHAIR)
capital allocation and buybacks
Q (Vijay Kumar · Evercore): Analyst asked about buyback philosophy versus M&A and how opportunistic repurchases fit capital strategy.
A: Management said they will use buybacks opportunistically given M&A timing but that M&A remains the #1 capital priority. They said strong cash generation gives flexibility to repurchase shares while pursuing deals.
"As we said last quarter, given the timing of when we have our deal flow from an M&A standpoint that we would look at more opportunistic share buyback opportunities." — Preston Wells (CFO)
pricing and share loss in vascular
Q (Christopher Pasquale · Barclays): Analyst asked about price competition in orthopedics and whether vascular share losses from disruption are temporary.
A: Management said they expect modest price across the portfolio, slightly negative in ortho but similar to last year, and that reported price noise from bulk sales does not apply to Stryker. They believe any vascular share loss from disruptions is temporary and can be recovered with launches like ABS.
"As we look at the market, we typically not tend to over-index on one specific quarter." — Nick Mead
Smart Care and shoulder strength
Q (Patrick Andrew Wood · UBS): Analyst asked for update on Smart Care (Vocera and care.ai) and why shoulder is holding up vs hips/knees.
A: Management said Smart Care had its best quarter ever, integrations are smooth, and orders are picking up; virtual nursing adoption is driving momentum. For shoulder, they said it’s a newer joint with better outcomes, many product innovations (including Mako shoulder), and growing market awareness driving higher growth.
"Smart Care had its best quarter in our history this past quarter." — Kevin Lobo (CEO·CHAIR)
clarify 2.5% ortho growth comment
Q (Michael Matson · Needham & Company): Analyst asked whether the 2.5% ortho figure was year-to-date or Q3 and whether Q3 slowed versus H1.
A: Management said the 2.5% figure is their year-to-date read on the market and that they avoid over-interpreting one quarter. They confirmed the market slowed a bit more in Q3 versus earlier periods.
"But that's our read on the market kind of year-to-date is that -- call it roughly 2.5% is what we're assuming growing." — Preston Wells (CFO)
OrthoTec, Mako RPS, Mako shoulder
Q (Elaine Cui · Raymond James): Analyst asked why OrthoTec outperformed despite ortho softness and for progress on Mako shoulder and Mako RPS.
A: Management said OrthoTec benefit came from strong Mako growth, a balance of upgrades and new installations, and strong orthopedic instruments and capital sales. They said Mako RPS had good feedback but a slow start due to sales distraction and incentives are planned; Mako shoulder is receiving very positive feedback and aiding shoulder growth.
"And then Mako RPS is off to a slow start, really good customer feedback, but we've got to get our sales force playing offense and a bit distracted last quarter." — Kevin Lobo (CEO·CHAIR)
price expectations and vascular recovery
Q (Leerink Partners): Analyst asked about pricing pressure in orthopedics and expectations for 2027; also asked how temporary vascular share loss might be.
A: Management said they expect modest price overall, with slight negative pressure in ortho similar to last year, and that they don't expect major changes. They believe vascular share impacts are temporary and that new product launches, like ABS, will help regain share.
"From a price perspective, we've maintained kind of our same expectations through the year." — Preston Wells (CFO)
why partner with CMR, not buy now
Q (Richard Newitter · Truist): Analyst asked why Stryker structured the CMR deal as a partnership and why not buy it outright, and asked about orthopedic robotics competition.
A: Management said buying outright would add high risk and cost; they prefer derisking by investing and running U.S. commercialization first, with the plan to possibly acquire later after proving U.S. success. On competitor robotics, they said they like their multi-application Mako platform and will reserve judgment until rivals show market performance.
"An outright purchase comes with a lot of risk and then huge cost for continued ongoing development." — Kevin Lobo (CEO·CHAIR)
CMR biggest opportunity and China JV impact
Q (Andrew Ranieri · TD Cowen): Analyst asked which procedures offer biggest opportunity for CMR and whether tower/camera integration is planned; also asked to quantify a China JV revenue hit for Vascular.
A: Management said the biggest opportunity is converting laparoscopic and open procedures to robotic surgery and that they will explore tower synergies with CMR but can't detail integration until ownership changes. They also said the China JV gave a onetime benefit and that the underlying Vascular business is in line with prior comments.
"Definitely, the biggest opportunity is conversion of laparoscopic and open to robotic." — Kevin Lobo (CEO·CHAIR)
ZuriMED FiberLocker and timing
Q (Vikramjeet Chopra · BMO): Analyst asked how FiberLocker expands soft tissue augmentation, and for revenue and timing details.
A: Management said it's early to share revenue or timelines but described FiberLocker as a differentiated augmentation product with an open system and a clever applicator. They said it addresses rotator cuff failures, fits well with recent shoulder launches, and they expect it to be a market winner.
"Look, it's a little early for us to share much on revenue and time lines." — Kevin Lobo (CEO·CHAIR)