UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2025~~2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-13149

STRYKER CORPORATION

(Exact name of registrant as specified in its charter)


Michigan			38-1239739
(State of incorporation)			(I.R.S. Employer Identification No.)

1941 Stryker Way	Portage,	Michigan	49002
(Address of principal executive offices)			(Zip Code)

	(269)	385-2600
(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.10 Par Value	SYK	New York Stock Exchange
2.125% Notes due 2027	SYK27	New York Stock Exchange
3.375% Notes due 2028	SYK28	New York Stock Exchange
0.750% Notes due 2029	SYK29	New York Stock Exchange
2.625% Notes due 2030	SYK30	New York Stock Exchange
1.000% Notes due 2031	SYK31	New York Stock Exchange
3.375% Notes due 2032	SYK32	New York Stock Exchange
3.625% Notes due 2036	SYK36	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days.Yes ☒No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant

to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant

was required to submit such files).Yes ☒No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting

company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting

company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐	Small reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐No ☒

There were ~~382~~383,~~423~~360,~~648~~762 shares of Common Stock, $0.10 par value, on ~~September~~March 3031, ~~2025~~2026.


Dollar amounts are in millions except per share amounts or as otherwise specified.	1

STRYKER CORPORATION ~~2025~~2026 ~~Third~~First Quarter Form 10-Q

PART I – FINANCIAL INFORMATION


ITEM 1.	FINANCIAL STATEMENTS

Stryker Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

	Three Months		~~Nine Months~~
	2025	2024	2025	2024
	2026	2025
Net sales	$6,~~057~~020	$5,~~494~~866	~~$17,945~~	~~$16,159~~
Cost of sales	2,~~205~~210	12,~~977~~122	~~6,508~~	~~5,893~~
Gross profit	$3,~~852~~810	$3,~~517~~744	~~$11,437~~	~~$10,266~~
Research, development and engineering expenses	~~410~~413	~~377~~405	~~1,222~~	~~1,108~~
Selling, general and administrative expenses	2,~~045~~281	12,~~894~~300	~~6,424~~	~~5,562~~
Amortization of intangible assets	~~189~~180	~~159~~167	~~543~~	~~467~~
Goodwill and other impairments	73—	235	~~163~~	21
Total operating expenses	$2,~~717~~874	$2,~~432~~907	~~$8,352~~	~~$7,158~~
Operating income	$~~1,135~~936	$~~1,085~~837	~~$3,085~~	~~$3,108~~
Other income (expense), net	(106)	(42)	(276)	(144)
Interest expense	(148)	(137)
Earnings before income taxes	$1,029	$1,043	$2,809	$2,964
Other income	62	64
Income taxes	170	209	412	517
Earnings before income taxes	$850	$764
Net earnings	$859	$834	$2,397	$2,447
Income taxes	105	110
Net earnings per share of common stock:
Net earnings	$745	$654
Basic	$2.25	$2.18	$6.27	$6.42
Net earnings per share of common stock:
Diluted	$2.22	$2.16	$6.20	$6.35
Basic	$1.95	$1.71
Weighted-average shares outstanding (in millions):
Diluted	$1.93	$1.69
Basic	382.4	381.1	382.1	380.9
Weighted-average shares outstanding (in millions):
Effect of dilutive employee stock compensation	4.3	4.5	4.4	4.5
Basic	382.9	381.7
Diluted	386.7	385.6	386.5	385.4
Effect of dilutive employee stock compensation	3.6	4.7
Cash dividends declared per share of common stock	$0.84	$0.80	$2.52	$2.40
Diluted	386.5	386.4
Cash dividends declared per share of common stock	$0.88	$0.84

Anti-dilutive shares excluded from the calculation of dilutive employee stock options were de minimis in all periods.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months		~~Nine Months~~
	2025	2024	2025	2024
	2026	2025
Net earnings	$~~859~~745	$~~834~~654	~~$2,397~~	~~$2,447~~
Other comprehensive income (loss), net of tax:
Marketable securities	—	—	—	—
Pension plans	—(1)	~~(2)~~—	2	~~(1)~~
Unrealized gains (losses) on designated hedges	8(18)	(2714)	11	~~(28)~~
Financial statement translation	~~(12)~~123	(~~161~~102)	~~(486)~~	~~(100)~~
Total other comprehensive income (loss), net of tax	$~~(4)~~104	$(~~190~~116)	~~$(473)~~	~~$(129)~~
Comprehensive income	$~~855~~849	$~~644~~538	~~$1,924~~	~~$2,318~~

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.	2

STRYKER CORPORATION ~~2025~~2026 ~~Third~~First Quarter Form 10-Q

CONSOLIDATED BALANCE SHEETS

	September 30	December 31
	March 31	December 31
	2025	2024
	2026	2025
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$32,~~256~~878	$34,~~652~~011
Short-term investments	—	~~750~~—
Marketable securities	87	9189
Accounts receivable, less allowance of $223 ($213 in 2024)	3,643	3,987
Accounts receivable, less allowance of $225 ($216 in 2025)	3,571	4,039
Inventories:
Materials and supplies	1,~~371~~473	1,~~147~~349
Work in process	~~442~~435	~~336~~415
Finished goods	3,~~557~~511	3,~~291~~546
Total inventories	$5,~~370~~419	$45,~~774~~310
Prepaid expenses and other current assets	1,~~355~~383	1,~~593~~306
Total current assets	$13,~~711~~338	$14,~~847~~755
Property, plant and equipment:
Land, buildings and improvements	1,~~783~~795	1,~~627~~793
Machinery and equipment	5,~~622~~835	5,~~056~~744
Total property, plant and equipment	$7,~~405~~630	$67,~~683~~537
Less allowance for depreciation	3,~~671~~743	3,~~235~~661
Property, plant and equipment, net	$3,~~734~~887	$3,~~448~~876
Goodwill	19,~~256~~188	1519,~~855~~291
Other intangibles, net	5,~~845~~516	45,~~395~~681
Noncurrent deferred income tax assets	1,~~374~~193	1,~~742~~098
Other noncurrent assets	3,~~137~~169	23,~~684~~143
Total assets	$4746,~~057~~291	$4247,~~971~~844
Liabilities and shareholders' equity
Current liabilities
Accounts payable	$1,~~498~~592	$1,~~679~~799
Accrued compensation	~~1,306~~885	1,~~403~~595
Income taxes	~~118~~476	~~539~~418
Dividends payable	~~321~~337	~~320~~337
Accrued expenses and other liabilities	2,~~421~~526	2,~~266~~645
Current maturities of debt	~~1,750~~499	1,~~409~~000
Total current liabilities	$76,~~414~~315	$7,~~616~~794
Long-term debt, excluding current maturities	14,~~845~~224	1214,~~188~~859
Income taxes	~~400~~403	~~349~~402
Other noncurrent liabilities	2,~~613~~370	2,~~184~~369
Total liabilities	$2523,~~272~~312	$2225,~~337~~424
Shareholders' equity
Common stock, $0.10 par value	38	38
Additional paid-in capital	2,~~553~~646	2,~~361~~597
Retained earnings	1920,~~960~~878	1820,~~528~~472
Accumulated other comprehensive loss	(~~766~~583)	(~~293~~687)
Total shareholders' equity	$2122,~~785~~979	$2022,~~634~~420
Total liabilities and shareholders' equity	$4746,~~057~~291	$4247,~~971~~844

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.	3

STRYKER CORPORATION ~~2025~~2026 ~~Third~~First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

	Three Months		~~Nine Months~~
	2025	2024	2025	2024
	2026	2025
Common stock shares outstanding (in millions)
Beginning	382.35	381.14	~~381.4~~	~~380.1~~
Issuance of common stock under stock compensation and benefit plans	0.19	0.17	~~1.0~~	~~1.1~~
Ending	~~382~~383.4	~~381~~382.21	~~382.4~~	~~381.2~~
Common stock
Beginning	$38	$38	~~$38~~	~~$38~~
Issuance of common stock under stock compensation and benefit plans	—	—	—	—
Ending	$38	$38	~~$38~~	~~$38~~
Additional paid-in capital
Beginning	$2,~~492~~597	$2,~~305~~361	~~$2,361~~	~~$2,200~~
Issuance of common stock under stock compensation and benefit plans	(138)	(36)	~~(3)~~	~~(31)~~
Share-based compensation	6287	5184	~~195~~	~~184~~
Ending	$2,~~553~~646	$2,~~353~~439	~~$2,553~~	~~$2,353~~
Retained earnings
Beginning	$1920,~~423~~472	$1718,~~774~~528	~~$18,528~~	~~$16,771~~
Net earnings	~~859~~745	~~834~~654	~~2,397~~	~~2,447~~
Cash dividends declared	(~~322~~339)	(~~305~~320)	~~(965)~~	~~(915)~~
Ending	$1920,~~960~~878	$18,~~303~~862	~~$19,960~~	~~$18,303~~
Accumulated other comprehensive income (loss)
Beginning	$(~~762~~687)	$(~~355~~293)	~~$(293)~~	~~$(416)~~
Other comprehensive income (loss)	~~(4)~~104	(~~190~~116)	~~(473)~~	~~(129)~~
Ending	$(~~766~~583)	$(~~545~~409)	~~$(766)~~	~~$(545)~~
Total shareholders' equity	$2122,~~785~~979	$20,~~149~~930	~~$21,785~~	~~$20,149~~

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.	4

STRYKER CORPORATION ~~2025~~2026 ~~Third~~First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months
	Three Months
	2025	2024
	2026	2025
Operating activities
Net earnings	$~~2,397~~745	$~~2,447~~654
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	~~334~~120	~~319~~105
Amortization of intangible assets	~~543~~180	~~467~~167
Asset impairments	~~163~~—	2135
Share-based compensation	~~195~~87	~~184~~84
Sale of inventory stepped-up to fair value at acquisition	~~160~~—	3834
Deferred income tax (benefit) expense	~~191~~(33)	~~(21)~~14
Changes in operating assets and liabilities:
Accounts receivable	~~524~~444	67144
Inventories	(~~373~~127)	(~~362~~93)
Accounts payable	(~~205~~198)	(~~203~~309)
Accrued expenses and other liabilities	(78654)	(~~224~~504)
Income taxes	~~(577)~~42	~~(236)~~49
Other, net	(~~373~~25)	(~~186~~130)
Net cash provided by operating activities	$~~2,901~~581	$~~2,311~~250
Investing activities
Acquisitions, net of cash acquired	(~~4,950~~22)	(14,~~598~~749)
Purchases of marketable securities	(325)	(4111)
Proceeds/(Purchases) of short-term investments	~~750~~—	(750)
Proceeds from sales of marketable securities	407	4017
Purchases of property, plant and equipment	(~~493~~166)	(~~489~~123)
Proceeds from settlement of net investment hedges	—	99
Other investing, net	1	(20)
Proceeds from the sale of the Spinal Implants business	165	—
Net cash used in investing activities	$(185)	$(4,136)
Other investing, net	(41)	42
Net cash used in investing activities	$(4,561)	$(2,697)
Financing activities
Proceeds (payments) on short-term borrowings, net	1	(32)
Proceeds from issuance of long-term debt	—	2,979
Proceeds from issuance of long-term debt	2,979	3,011
Payments on long-term debt	(1,000)	—
Payments on long-term debt	(650)	(601)
Payments of dividends	(337)	(320)
Payments of dividends	(963)	(914)
Cash paid for taxes from withheld shares	(139)	(101)
Cash paid for taxes from withheld shares	(132)	(146)
Other financing, net	(34)	(24)
Other financing, net	(29)	(49)
Net cash provided by (used in) financing activities	$(1,510)	$2,534
Net cash provided by (used in) financing activities	$1,206	$1,269
Effect of exchange rate changes on cash and cash equivalents	(19)	20
Effect of exchange rate changes on cash and cash equivalents	58	(4)
Change in cash and cash equivalents	$(1,133)	$(1,332)
Change in cash and cash equivalents	$(396)	$879
Cash and cash equivalents at beginning of period	4,011	3,652
Cash and cash equivalents at beginning of period	3,652	2,971
Cash and cash equivalents at end of period	$2,878	$2,320
Cash and cash equivalents at end of period	$3,256	$3,850

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.	5

STRYKER CORPORATION ~~2025~~2026 ~~Third~~First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

General Information

Management believes the accompanying unaudited Consolidated

Financial Statements contain all adjustments, including normal

recurring items, considered necessary to fairly present the

financial position of Stryker Corporation and its consolidated

subsidiaries ("Stryker," the "Company," "we," "us" or "our") on

~~September~~March 3031, ~~2025~~2026 and the results of operations for the three

~~and nine~~ months ~~2025~~2026. The results of operations included in these

~~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~~2025.

In the first quarter 2026 we announced a change in our

organizational structure. Our new Ortho Tech business combines

the orthopaedic instruments portfolio from our Instruments

business with the Mako and enabling technologies portfolio from

our Other Orthopaedics business. By bringing Mako, power tools,

cutting accessories, enabling technologies and the teams behind

these products together under one business, we are simplifying

the customer experience and striving to increase our speed to

market through focused innovation. We are reporting under this

new structure beginning with this Quarterly Report on Form 10-Q

for the period ended March 31, 2026.

Following this reorganization we will continue to have two

business segments - (i) MedSurg and Neurotechnology and (ii)

Orthopaedics, each of which comprise a reportable segment. All

historical segment financial information has been recast to

conform to this new reporting structure in our financial statements

and accompanying notes.

New Accounting Pronouncements Not Yet Adopted

In September 2025 the Financial Accounting Standards Board

(FASB) issued Accounting Standards Update (ASU) 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

Financial Statements.

In July 2025 the FASB issued ASU 2025-05 (Topic 326):

Financial Instruments - Credit Losses: Measurement of Credit

Losses for Accounts Receivable and Contract Assets. This

update provides a practical expedient allowing entities to assume

that current conditions as of the balance sheet date will remain

unchanged for the remaining life of the asset when estimating

expected credit losses for current accounts receivable and

current contract assets arising from transactions accounting for

under Accounting Standards Codification 606, Revenue from

Contracts with Customers. The update is effective for fiscal years

beginning after December 15, 2025 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 November 2024 the FASB issued ASU 2024-03 (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 evaluating these new

expanded disclosure requirements.

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

Statements.

Accounting Pronouncements Recently Adopted

On January 1, 2026 we adopted ASU 2025-05 (Topic 326):

Financial Instruments - Credit Losses: Measurement of Credit

Losses for Accounts Receivable and Contract Assets. This

update provides a practical expedient allowing entities to assume

that current conditions as of the balance sheet date will remain

unchanged for the remaining life of the asset when estimating

expected credit losses for current accounts receivable and

current contract assets arising from transactions accounting for

under Accounting Standards Codification 606, Revenue from

Contracts with Customers. The adoption of this update did not

have a material impact on our Consolidated Financial

Statements.

NOTE 2 - REVENUE RECOGNITION

Our policies for recognizing sales have not changed from those

described in our Annual Report on Form 10-K for ~~2024~~2025.

We disaggregate our net sales by business and geographic

location for each of our segments as we believe it best depicts

how the nature, amount, timing and certainty of our net sales and

cash flows are affected by economic factors.

In the first quarter ~~2025~~2026 we ~~changed~~announced ~~the~~a ~~name~~change ofin our

~~Neurovascular~~organizational ~~business~~structure. toOur ~~Vascular~~new ~~due~~Ortho ~~the~~Tech ~~acquisition~~business ofcombines ~~Inari~~

~~Medical,~~the ~~Inc.~~orthopaedic instruments portfolio (~~Inari~~Orthopaedic Instruments).

Infrom ~~the~~Instruments ~~fourth~~with ~~quarter~~Other ~~2024~~Orthopaedics. weIn ~~reorganized~~addition, ~~our~~Neuro ~~Spine business to~~

~~align~~Cranial ~~with~~and ~~certain~~the ~~updates~~spine toenabling ~~our~~technologies ~~internal~~portfolio ~~reporting~~(Enabling ~~structure. The~~

~~spine~~Technologies) ~~enabling~~from ~~technologies~~Other ~~portfolio~~Orthopaedics ~~(Enabling~~was ~~Technologies)~~combined with the

~~was~~remaining ~~reclassified~~Instruments business to ~~Other~~align ~~Orthopaedics~~with ~~and~~our ~~Spine,~~internal ~~the~~

~~interventional~~reporting ~~spine~~structure. ~~(IVS)~~Ortho ~~portfolio~~Tech ~~was~~includes ~~reclassified~~sales related to ~~Neuro~~

~~Cranial~~Orthopaedic ~~and~~Instruments ~~the~~of ~~remaining~~$489 ~~Spine~~and ~~business~~$484 ~~was~~and ~~renamed~~Other ~~to Spinal~~

~~Implants.~~Orthopaedics Inof ~~addition~~$157 weand ~~changed~~$133. ~~the~~Instruments ~~name~~includes ofsales ~~our "Orthopaedics~~

~~and~~related ~~Spine" operating segment~~ to ~~"Orthopaedics."~~ Neuro Cranial of $606 and $563 and Enabling

~~includes~~Technologies ~~sales related to IVS~~ of $~~100~~26 and $~~296~~29 for the three months 2026 and

~~nine~~2025. ~~months~~We ~~2024.~~have ~~Other~~reflected ~~Orthopaedics~~these ~~includes~~changes ~~sales~~in ~~related~~all tohistorical periods

~~Enabling Technologies of $32 and $94 for the three and nine~~ presented.

months 2024. We have reflected these changes in all historical


Net Sales by Business
	Three Months
	2026	2025
MedSurg and Neurotechnology:
Instruments	$920	$838
Endoscopy	868	867
Medical	902	945
Vascular	517	406
	$3,207	$3,056
Orthopaedics:
Knees	$670	$639
Hips	460	443
Trauma and Extremities	1,035	945
Ortho Tech	646	617
Spinal Implants	2	166
	$2,813	$2,810
Total	$6,020	$5,866

periods presented.

Net Sales by Business
	Three Months		Nine Months
	2025	2024	2025	2024
MedSurg and Neurotechnology:
Instruments	$760	$679	$2,258	$2,044
Endoscopy	896	837	2,662	2,383
Medical	985	938	2,920	2,710
Vascular	525	329	1,429	966
Neuro Cranial	637	541	1,816	1,533
	$3,803	$3,324	$11,085	$9,636
Orthopaedics:
Knees	$628	$570	$1,907	$1,760
Hips	457	420	1,366	1,241
Trauma and Extremities	960	849	2,862	2,511
Spinal Implants	6	172	177	521
Other	203	159	548	490
	$2,254	$2,170	$6,860	$6,523
Total	$6,057	$5,494	$17,945	$16,159


Dollar amounts are in millions except per share amounts or as otherwise specified.	6

STRYKER CORPORATION ~~2025~~2026 ~~Third~~First Quarter Form 10-Q

Net Sales by Geography
	Three Months 2025		Three Months 2024
	Three Months 2026		Three Months 2025
	United States	International	United States	International
MedSurg and Neurotechnology:
Instruments	$~~606~~766	$154	$~~544~~702	$~~135~~136
Endoscopy	~~743~~701	~~153~~167	~~689~~710	~~148~~157
Medical	~~827~~747	~~158~~155	~~783~~802	~~155~~143
Vascular	~~283~~280	~~242~~237	~~121~~203	~~208~~203
Neuro Cranial	524	113	448	93
	$2,494	$713	$2,417	$639
	$2,983	$820	$2,585	$739
Orthopaedics:
Knees	$~~452~~472	$~~176~~198	$~~417~~464	$~~153~~175
Hips	~~279~~276	~~178~~184	~~256~~269	~~164~~174
Trauma and Extremities	~~703~~767	~~257~~268	~~621~~713	~~228~~232
Spinal Implants	—	6	119	53
Ortho Tech	467	179	459	158
Other	154	49	111	48
Spinal Implants	—	2	118	48
	$1,588	$666	$1,524	$646
	$1,982	$831	$2,023	$787
Total	$4,~~571~~476	$1,~~486~~544	$4,~~109~~440	$1,~~385~~426

Net Sales by Geography
	Nine Months 2025		Nine Months 2024
	United States	International	United States	International
MedSurg and Neurotechnology:
Instruments	$1,814	$444	$1,640	$404
Endoscopy	2,195	467	1,948	435
Medical	2,469	451	2,261	449
Vascular	754	675	369	597
Neuro Cranial	1,496	320	1,255	278
	$8,728	$2,357	$7,473	$2,163
Orthopaedics:
Knees	$1,376	$531	$1,279	$481
Hips	831	535	768	473
Trauma and Extremities	2,118	744	1,842	669
Spinal Implants	118	59	361	160
Other	394	154	347	143
	$4,837	$2,023	$4,597	$1,926
Total	$13,565	$4,380	$12,070	$4,089

Costs to Obtain or Fulfill a Contract

We typically do not incur costs to fulfill a contract before a

product or service is provided to a customer due to the nature of

our products and services. Our costs to obtain contracts are

typically in the form of sales commissions paid to employees or

third-party agents. Certain sales commissions paid to employees

prior to recognition of sales are recorded as deferred contract

costs. We expense sales commissions associated with obtaining

a contract at the time of the sale or as incurred as the

amortization period is generally less than one year. These costs

have been presented within selling, general and administrative

expenses. On ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025 deferred

~~deferred~~ contracts costs recorded in our Consolidated Balance Sheets

~~Sheets~~ were not significant.

Contract Assets and Liabilities

Our contract assets primarily relate to conditional rights to

consideration for work completed but not billed at the reporting

date. On ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025 contract

assets recorded in our Consolidated Balance Sheets were not

significant.

Our contract liabilities arise as a result of consideration received

from customers at inception of contracts for certain businesses or

where the timing of billing for services precedes satisfaction of

our performance obligations. This occurs primarily when payment

is received upfront for certain multi-period extended service

contracts. Our contract liabilities of $~~939~~1,035 and $~~978~~1,024 on

~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025 are classified within

accrued expenses and other liabilities and other noncurrent

liabilities in our Consolidated Balance Sheets based on the timing

of when we expect to complete our performance obligations.

Changes in contract liabilities during the ~~nine~~three months ~~2025~~2026 were

as follows:

	September 30
	March 31
	2025
	2026
Beginning contract liabilities	$~~978~~1,024
Revenue recognized from beginning of year contract liabilities	(~~492~~288)
Net advance consideration received during the period	~~453~~299
Ending contract liabilities	$~~939~~1,035

Transfers and Servicing of Financial Assets

We sell certain customer lease agreements and the related

leased assets to third-party financial institutions to accelerate our

cash collection cycle. The lease receivables are sold without

recourse and are derecognized from our Consolidated Balance

Sheets at the time of sale. Under the terms of our arrangements,

we collect lease payments on behalf of the financial institutions

but maintain no other form of continuing involvement. Sales of

these lease agreements are classified as operating activities in

our Consolidated Statements of Cash Flows. Fees earned for our

servicing activities are immaterial. Revenue related to customer

lease agreements sold under these arrangements represented

less than 4% of our total revenue for the three ~~and~~months ~~nine~~2026 ~~months~~and

2025 ~~and 2024~~.

NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE (LOSS)

INCOME (AOCI)

Three Months 2025	Marketable Securities	Pension Plans	Hedges	Financial Statement Translation	Total
Three Months 2026	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$—70	$642	$34(799)	$(~~802~~687)	~~$(762)~~
OCI	—(1)	—(7)	19134	~~(4)~~126	15
Income taxes	—1	—1	(3)	—(1)	~~(3)~~
Reclassifications to:
Cost of sales	—	—(13)	~~(8)~~—	—(13)	~~(8)~~
Other (income) expense, net	—	—	(1)	(11)	(12)
Interest expense	—	(1)	—	(1)
Income taxes	—	—	1	3	4
Other income	(1)	—	(10)	(11)
Net OCI	$—	$—	$8	$(12)	$(4)
Income taxes	—	2	2	4
Ending	$—	$6	$42	$(814)	$(766)
Net OCI	$(1)	$(18)	$123	$104
Ending	$69	$24	$(676)	$(583)

Three Months 2024	Marketable Securities	Pension Plans	Hedges	Financial Statement Translation	Total
Three Months 2025	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$—4	$~~(27)~~31	$38(328)	$(~~366~~293)	~~$(355)~~
OCI	—	(116)	(28160)	(~~221~~176)	~~(250)~~
Income taxes	—	~~(1)~~4	766	6670	72
Reclassifications to:
Cost of sales	—	—(2)	~~(8)~~—	—(2)	~~(8)~~
Other (income) expense, net	—	—	—	(8)	(8)
Interest expense	—	(1)	—	(1)
Income taxes	—	—	2	2	4
Other income	—	—	(11)	(11)
Net OCI	$—	$(2)	$(27)	$(161)	$(190)
Income taxes	—	1	3	4
Ending	$—	$(29)	$11	$(527)	$(545)
Net OCI	$—	$(14)	$(102)	$(116)
Ending	$4	$17	$(430)	$(409)

Dollar amounts are in millions except per share amounts or as otherwise specified. 7

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

Nine Months 2025	Marketable Securities	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$—	$4	$31	$(328)	$(293)
OCI	—	3	25	(589)	(561)
Income taxes	—	(1)	(2)	128	125
Reclassifications to:
Cost of sales	—	—	(13)	—	(13)
Other (income) expense, net	—	—	(2)	(33)	(35)
Income taxes	—	—	3	8	11
Net OCI	$—	$2	$11	$(486)	$(473)
Ending	$—	$6	$42	$(814)	$(766)

Nine Months 2024	Marketable Securities	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$—	$(28)	$39	$(427)	$(416)
OCI	—	(1)	(4)	(91)	(96)
Income taxes	—	—	—	9	9
Reclassifications to:
Cost of sales	—	—	(28)	—	(28)
Other (income) expense, net	—	—	(3)	(24)	(27)
Income taxes	—	—	7	6	13
Net OCI	$—	$(1)	$(28)	$(100)	$(129)
Ending	$—	$(29)	$11	$(527)	$(545)

NOTE 4 - DERIVATIVE INSTRUMENTS

We use operational and economic hedges, foreign currency

exchange forward contracts, net investment hedges (both

derivative and non-derivative financial instruments) and interest

rate derivative instruments to manage the impact of currency

exchange and interest rate fluctuations on earnings, cash flow

and equity. We do not enter into derivative instruments for

speculative purposes. We are exposed to potential credit loss in

the event of nonperformance by counterparties on our

outstanding derivative instruments but do not anticipate

nonperformance by any of our counterparties. Should a

counterparty default, our maximum loss exposure is the asset

balance of the instrument. We have not changed our hedging

strategies, accounting practices or objectives from those

disclosed in our Annual Report on Form 10-K for ~~2024~~2025.

Foreign Currency Hedges
September 2025	Cash Flow	Net Investment	Non-Designated	Total
Gross notional amount	$1,235	$2,643	$3,483	$7,361
Maximum term in years				9.0
Fair value:
Other current assets	$34	$—	$9	$43
Other noncurrent assets	1	—	—	1
Other current liabilities	(8)	(54)	(47)	(109)
Other noncurrent liabilities	—	(119)	—	(119)
Total fair value	$27	$(173)	$(38)	$(184)


Dollar amounts are in millions except per share amounts or as otherwise specified.	7

December 2024	Cash Flow	Net Investment	Non-Designated	Total
Gross notional amount	$1,588	$2,338	$5,164	$9,090
Maximum term in years				9.7
Fair value:
Other current assets	$43	$24	$119	$186
Other noncurrent assets	4	35	—	39
Other current liabilities	(29)	—	(41)	(70)
Other noncurrent liabilities	(3)	(4)	—	(7)
Total fair value	$15	$55	$78	$148


STRYKER CORPORATION		2026 First Quarter Form 10-Q

We had €2.3 billion at September 30, 2025 and December 31,


Foreign Currency Hedges
March 2026	Cash Flow	Net Investment	Non- Designated	Total
Gross notional amount	$1,242	$2,583	$3,744	$7,569
Maximum term in years				8.5
Fair value:
Other current assets	$24	$—	$49	$73
Other noncurrent assets	—	9	—	9
Other current liabilities	(16)	(47)	(10)	(73)
Other noncurrent liabilities	(1)	(28)	—	(29)
Total fair value	$7	$(66)	$39	$(20)

2024 in certain forward currency contracts designated as net


December 2025	Cash Flow	Net Investment	Non- Designated	Total
Gross notional amount	$1,738	$2,647	$4,391	$8,776
Maximum term in years				8.7
Fair value:
Other current assets	$33	$—	$11	$44
Other noncurrent assets	2	—	—	2
Other current liabilities	(10)	(71)	(21)	(102)
Other noncurrent liabilities	(2)	(66)	—	(68)
Total fair value	$23	$(137)	$(10)	$(124)

~~investment~~We ~~hedges,~~had ~~for~~€2.3 ~~which~~billion ~~the~~at ~~maximum~~March 31, ~~term~~2026 isand ~~9.0 years~~December 31, to2025 in

~~hedge~~certain aforward ~~portion~~currency ofcontracts ~~our~~designated ~~investments~~as innet ~~certain~~investment ~~of our entities with~~

~~functional~~hedges, ~~currencies~~for ~~denominated~~which inthe ~~Euros.~~maximum Interm ~~addition~~is 8.5 years, to ~~these~~hedge a

~~derivative~~portion ~~financial~~of ~~instruments~~our ~~designated~~investments asin ~~net~~certain ~~investment~~of our entities with functional

~~hedges,~~currencies wedenominated ~~had~~in €5Euros.~~0 billion~~ atIn ~~September 30,~~addition ~~2025~~to ~~and~~these derivative

~~December 31,~~financial ~~2024~~instruments ~~of senior unsecured notes~~ designated as net investment hedges, we

~~investment~~had ~~hedges~~€5.0 billion toat ~~selectively~~March 31, ~~hedge~~2026 ~~portions~~and ofDecember 31, ~~our~~2025 of

~~investment~~senior inunsecured ~~certain~~notes ~~international~~designated ~~subsidiaries.~~as ~~The~~net ~~currency~~investment hedges to

~~effects~~selectively hedge portions of our ~~Euro-denominated~~investment ~~senior~~in ~~unsecured~~certain ~~notes are~~

~~reflected~~international insubsidiaries. ~~AOCI~~The ~~within~~currency ~~shareholders'~~effects ~~equity~~of ~~where~~our ~~they offset~~ Euro-

~~gains~~denominated ~~and~~senior ~~losses~~unsecured ~~recorded~~notes onare ~~our~~reflected ~~net investment~~ in ~~international~~AOCI within

~~subsidiaries.~~shareholders' equity where they offset gains and losses recorded

Inon ~~the~~our ~~nine~~net ~~months~~investment ~~2024~~in weinternational ~~settled certain foreign currency~~ subsidiaries.

forward contracts designated as net investment hedges resulting

in cash proceeds of $99. The amounts in AOCI related to settled

net investment hedges will remain in AOCI until the hedged

investment is either sold or substantially liquidated.

The total after-tax gain (loss) recognized in OCI related to

designated net investment hedges was ($~~709)~~154 in the ~~nine~~three months

~~2025~~2026.

Currency Exchange Rate Gains (Losses) Recognized in Net

Earnings

		Three Months		~~Nine Months~~
Derivative Instrument	Recognized in:	~~2025~~2026	~~2024~~2025	~~2025~~	~~2024~~
Cash Flow	Cost of sales	$813	$82	~~$13~~	~~$28~~
Net Investment	Other income ~~(expense), net~~	1110	811	33	24
Non-Designated	Other income ~~(expense), net~~	3(1)	2013	31	33
	Total	$22	$3626	~~$77~~	~~$85~~

Pretax gains (losses) on derivatives designated as cash flow

hedges of $3923 and net investment hedges of $3534 recorded in

AOCI are expected to be reclassified to cost of sales and other

income ~~(expense), net~~ in earnings within 12 months of March 31, 2026. This

~~September 30, 2025. This~~ cash flow hedge reclassification is primarily due to the sale of

~~primarily due to the sale of~~ inventory that includes previously hedged purchases. A

~~hedged purchases. A~~ component of the AOCI amounts related to net investment

~~net investment~~ hedges is reclassified over the life of the hedge instruments as

~~instruments as~~ we elected to exclude the initial value of the component related to

~~component related to~~ the spot-forward difference from the effectiveness assessment.

effectiveness assessment.

Interest Rate Hedges

Pretax gains ~~(losses)~~ of $56 recorded in AOCI related to interest rate

~~rate~~ hedges closed in conjunction with debt issuances are expected to

~~expected to~~ be reclassified to ~~other~~interest ~~income (~~expense), ~~net~~ in earnings within 12 months

~~earnings within 12 months~~ of ~~September~~March 3031, ~~2025~~2026. The cash flow effect of interest rate hedges is

~~effect of interest rate hedges is~~ recorded in cash flow from operations.

operations.

Dollar amounts are in millions except per share amounts or as otherwise specified. 8

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

NOTE 5 - FAIR VALUE MEASUREMENTS

Our policies for managing risk related to foreign currency, interest

rates, credit and markets and our process for determining fair

value have not changed from those described in our Annual

Report on Form 10-K for ~~2024~~2025.

In ~~the nine months~~ 2025 we assumed contingent consideration liabilities with a fair

~~liabilities with a fair~~ value of $90 related to previous acquisitions made by Inari

~~made~~Medical, byInc. (Inari). Refer to Note 7 for further information on the

acquisition of Inari.

In 2024 we recorded $208 of contingent consideration related to

various acquisitions described in Note 7.

There were no significant transfers into or out of any level of the

fair value hierarchy in ~~2025~~2026.

Assets Measured at Fair Value
	September 30	December 31
	March 31	December 31
	2025	2024
	2026	2025
Cash and cash equivalents	$32,~~256~~878	$34,~~652~~011
Short-term investments	—	~~750~~—
Trading marketable securities	~~301~~299	~~259~~307
Level 1 - Assets	$3,~~557~~177	$4,~~661~~318
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$5048	$5352
United States agency debt securities	—	1
United States treasury debt securities	39	37
United States treasury debt securities	36	34
Total available-for-sale marketable securities	$87	$89
Certificates of deposit	1	3
Foreign currency exchange forward contracts	82	46
Total available-for-sale marketable securities	$87	$91
Level 2 - Assets	$169	$135
Foreign currency exchange forward contracts	44	225
Total assets measured at fair value	$3,346	$4,453
Level 2 - Assets	$131	$316
Total assets measured at fair value	$3,688	$4,977

Liabilities Measured at Fair Value
	September 30	December 31
	March 31	December 31
	2025	2024
	2026	2025
Deferred compensation arrangements	$~~301~~299	$~~259~~307
Level 1 - Liabilities	$~~301~~299	$~~259~~307
Foreign currency exchange forward contracts	$~~228~~102	$77170
Level 2 - Liabilities	$~~228~~102	$77170
Contingent consideration:
Beginning	$~~452~~518	$~~289~~452
Additions	~~123~~—	~~208~~123
Change in estimate and foreign exchange	152	824
Settlements	(7639)	(5381)
Ending	$~~514~~481	$~~452~~518
Level 3 - Liabilities	$~~514~~481	$~~452~~518
Total liabilities measured at fair value	$~~1,043~~882	$~~788~~995

Fair Value of Available for Sale Securities by Maturity
	September 30	December 31
	March 31	December 31
	2025	2024
	2026	2025
Due in one year or less	$5039	$4741
Due after one year through three years	$3748	$4448

On ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025 the aggregate

difference between the cost and fair value of available-for-sale

marketable securities was nominal. Interest income on cash and

cash equivalents and short-term investments and income from

marketable securities was $2834 and $3038 in the three months ~~2025~~2026

and ~~2024~~2025, ~~and~~which ~~$90~~was ~~and~~recorded ~~$92~~ in ~~the~~other ~~nine months 2025 and 2024,~~ income.

which was recorded in other income (expense), net.

Our investments in available-for-sale marketable securities had a

minimum credit quality rating of A2 (Moody's), A (Standard &

Poor's) and A (Fitch). We do not plan to sell the investments, and

it is not more likely than not that we will be required to sell the

investments before recovery of their amortized cost basis, which

may be maturity.

NOTE 6 - CONTINGENCIES AND COMMITMENTS

We are involved in various ongoing proceedings, legal actions

and claims arising in the normal course of business, including

proceedings related to product, labor, tax, intellectual property ~~and~~

~~other~~Dollar ~~matters,~~amounts ~~the~~are ~~most~~in ~~significant~~millions ofexcept ~~which~~per ~~are~~share ~~more~~amounts ~~fully~~or as otherwise specified. 8

~~described~~STRYKER ~~below.~~CORPORATION ~~The~~2026 ~~outcomes~~First ofQuarter ~~these~~Form ~~matters will generally~~ 10-Q

and other matters. The outcomes of these matters will generally

not be known for prolonged periods of time. In certain of the legal

proceedings the claimants seek damages as well as other

compensatory and equitable relief that could result in the

payment of significant claims and settlements and/or the

imposition of injunctions or other equitable relief. For legal

matters for which management had sufficient information to

reasonably estimate our future obligations, a liability representing

management's best estimate of the probable loss, or the

minimum of the range of probable losses when a best estimate

within the range is not known, is recorded. The estimates are

based on consultation with legal counsel, previous settlement

experience and settlement strategies. If actual outcomes are less

favorable than those estimated by management, additional

expense may be incurred, which could unfavorably affect future

operating results. We are self-insured for certain claims and

expenses. The ultimate cost to us with respect to product liability

claims could be materially different than the amount of the current

estimates and accruals and could have a material adverse effect

on our financial position, results of operations and cash flows.

We are currently investigating whether certain business activities


Leases
	March 31	December 31
	2026	2025
Right-of-use assets	$529	$519
Lease liabilities, current	$161	$153
Lease liabilities, non-current	$350	$348

Other information:
Weighted-average remaining lease term (years)	4.7	5.0
Weighted-average discount rate	3.77%	3.77%

in certain foreign countries violated provisions of the Foreign


	Three Months
	2026	2025
Operating lease cost	$56	$53

Corrupt Practices Act (FCPA) and have engaged outside counsel

to conduct these investigations. We have been contacted by the

United States Securities and Exchange Commission, United

States Department of Justice (DOJ) and certain other regulatory

authorities and are cooperating with these agencies. On April 1,

2025 we were informed by the DOJ that it had closed its inquiry

into potential FCPA violations without further action. At this time

we are unable to predict the outcome of the remaining

investigations or the potential impact, if any, on our financial

statements.

We have conducted voluntary recalls of certain products,

including our Rejuvenate and ABG II Modular-Neck hip stems

and certain lot-specific sizes and offsets of LFIT Anatomic CoCr

V40 Femoral Heads. Additionally, we are responsible for certain

product liability claims, primarily related to certain hip products

sold by Wright Medical Group N.V. prior to its 2014 divestiture of

the OrthoRecon business.

We have incurred, and expect to incur in the future, costs

associated with the defense and settlement of claims and

lawsuits. Based on the information that has been received related

to the matters discussed above, our accrual for these matters

was $147 at September 30, 2025, representing our best estimate

of probable loss. The final outcomes of these matters are

dependent on many factors that are difficult to predict.

Accordingly the ultimate cost related to these matters may be

materially different than the amount of our current estimate and

accruals and could have a material adverse effect on our results

of operations and cash flows.

Dollar amounts are in millions except per share amounts or as otherwise specified. 9

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

Leases
	September 30	December 31
	2025	2024
Right-of-use assets	$539	$516
Lease liabilities, current	$161	$144
Lease liabilities, non-current	$377	$379
Other information:
Weighted-average remaining lease term (years)	4.8	5.1
Weighted-average discount rate	3.91%	3.87%

	Three Months		Nine Months
	2025	2024	2025	2024
Operating lease cost	$48	$47	$153	$144

Other Contractual Obligations and Commitments

Our outstanding balances of confirmed invoices in the supplier

financing program were $7570 and $7175 at ~~September~~March 3031, ~~2025~~2026 and

December 31, ~~2024~~2025 and are included within accounts payable in

our Consolidated Balance Sheets.

NOTE 7 - ACQUISITIONS

We acquire stock in companies and various assets that continue

to support our capital deployment and product development

strategies. In the ~~nine~~three months ~~2025~~2026 and ~~2024~~2025 cash paid for

acquisitions, net of cash acquired was $~~4,950~~22 and $14,~~598~~749.

In February 2025 we completed the acquisition of Inari for $80

per share, or an aggregate purchase price of $4,810, net of cash

acquired. Inari's product portfolio includes minimally invasive

products for the treatment of venous thromboembolism. Inari is

part of our Peripheral Vascular business within MedSurg and

Neurotechnology. ~~The~~Goodwill ~~purchase~~attributable ~~price~~to ~~allocation~~the ~~for~~acquisition ~~Inari~~reflects ~~is based~~

onthe ~~preliminary~~strategic ~~valuations,~~benefits ~~primarily~~of ~~related~~expanding toour ~~developed~~market presence,

technology and customer relationships. Goodwill attributable to

the acquisition reflects the strategic benefits of expanding our

market presence, diversifying our product portfolio and advancing

innovations. This goodwill is not deductible for tax purposes.

Share-based awards for Inari employees vested upon our

acquisition and a charge of $139 was recorded in selling, general

and administrative expenses in the nine months 2025.

In 2024 we completed various acquisitions for total consideration

that includes $1,628 in upfront payments, net of cash acquired,

and $400 contingent upon the achievement of certain commercial

or clinical milestones. The combined acquisition-date fair values

of the contingent milestone payments totaled $208. Goodwill of

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

MedSurg and Neurotechnology segments respectively. The

acquired companies expand the product portfolios of our

Instruments, Endoscopy, Medical and Neuro Cranial businesses

within MedSurg and Neurotechnology and our Trauma and

Extremities and Joint Replacement businesses within

Orthopaedics. The purchase price allocation for certain of our

acquisitions are based on preliminary valuations, primarily related

to 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. Share-based awards

~~The~~for ~~purchase~~Inari ~~price~~employees ~~allocations~~vested ~~for~~upon ~~Inari~~our acquisition and ~~the~~a ~~acquisitions~~charge of

~~completed~~$139 was recorded in ~~the~~selling, ~~full~~general ~~year~~and ~~2024~~administrative ~~are:~~

Purchase Price Allocation of Acquired Net Assets
	2025	2024
	Inari	Total
Tangible assets acquired:
Accounts receivable	$78	$40
Inventory	218	99
Deferred income tax assets	59	45
Other assets	84	26
Debt	—	(32)
Deferred income tax liabilities	(486)	(205)
Other liabilities	(191)	(107)
Intangible assets:
Developed technology	1,458	596
Customer relationships	330	215
Patents	—	6
Trademarks	—	2
Other intangibles	72	—
Goodwill	3,188	1,151
Purchase price, net of cash acquired of $64 and $56	$4,810	$1,836
Weighted average amortization period at acquisition (years):
Developed technologies	13	12
Customer relationships	13	14
Patents	—	12
Trademarks	—	5
Other intangibles	9	—

expenses in the three months 2025.

Consolidated Estimated Amortization Expense
Remainder of 2025	2026	2027	2028	2029
$190	$697	$710	$630	$616

The purchase price allocation for Inari is:


Purchase Price Allocation of Acquired Net Assets
		2025
		Inari
Tangible assets acquired:
Accounts receivable		$78
Inventory		215
Deferred income tax assets		134
Other assets		84
Deferred income tax liabilities		(489)
Other liabilities		(189)
Intangible assets:
Developed technologies		1,458
Customer relationships		330
Other intangibles		72
Goodwill		3,117
Purchase price, net of cash acquired of $64		$4,810
Weighted average amortization period at acquisition (years):
Developed technologies		13
Customer relationships		13
Other intangibles		9

On May 7, 2026 we acquired Amplitude Vascular Systems, Inc.

(AVS) for approximately $435 in cash and up to $400 in future

milestone payments. AVS is developing a next-generation

intravascular lithotripsy platform designed to treat complex

peripheral arterial disease. We plan to integrate AVS into our

Vascular business within MedSurg and Neurotechnology.


Consolidated Estimated Amortization Expense
Remainder of 2026	2027	2028	2029	2030
$557	$682	$634	$618	$599

NOTE 8 - DEBT AND CREDIT FACILITIES

We have lines of credit issued by various financial institutions that

are available to fund our day-to-day operating needs. Certain of

our credit facilities require us to comply with financial and other

covenants. We were in compliance with all covenants on

~~September~~March 3031, ~~2025~~2026.

InOn ~~February~~March 31, ~~2025~~2026 wethere ~~entered~~were ~~into~~no aborrowings ~~new~~outstanding ~~revolving~~under ~~credit~~

~~agreement~~our ~~that~~revolving ~~replaces~~credit ~~our~~facility ~~previous~~or ~~agreement~~our ~~dated~~commercial ~~October~~paper program

~~2021.~~which ~~The~~allows ~~primary~~for ~~changes~~maturities ~~included~~up ~~increasing~~to 397 days from the ~~aggregate~~date of

~~principal~~issuance. The maximum amount of ~~the~~our ~~facility~~commercial bypaper ~~$750~~that ~~to $3,000 and extending~~

~~the~~can ~~maturity~~be ~~date~~outstanding toat ~~February~~any ~~25,~~time ~~2030.~~is ~~On September 30~~$3, ~~2025~~ 000.

~~there~~In ~~were~~March no2026 ~~borrowings~~we ~~outstanding~~repaid ~~under~~$1,000 ~~our~~of ~~revolving~~3.500% ~~credit~~senior unsecured

~~facility~~notes. orThe ~~our~~following ~~commercial~~table ~~paper~~summarizes ~~program~~our ~~which~~total ~~allows~~debt ~~for~~at March 31:

~~maturities~~Dollar upamounts toare ~~397~~in ~~days~~millions ~~from~~except ~~the~~per ~~date~~share ofamounts ~~issuance.~~or ~~The~~as otherwise specified. 9

~~maximum~~STRYKER ~~amount~~CORPORATION of2026 ~~our~~First ~~commercial~~Quarter ~~paper~~Form ~~that can be~~ 10-Q

outstanding at any time is $3,000.


Summary of Total Debt
			March 31	December 31
	Rate	Due	2026	2025
Senior unsecured notes:
	3.500%	March 15, 2026	—	1,000
	4.550%	February 10, 2027	499	498
	2.125%	November 30, 2027	860	881
	4.700%	February 10, 2028	697	697
	3.650%	March 7, 2028	599	599
	4.850%	December 8, 2028	597	597
	3.375%	December 11, 2028	687	704
	0.750%	March 1, 2029	916	939
	4.250%	September 11, 2029	745	744
	4.850%	February 10, 2030	794	794
	1.950%	June 15, 2030	995	995
	2.625%	November 30, 2030	741	759
	1.000%	December 3, 2031	855	876
	3.375%	September 11, 2032	911	934
	4.625%	September 11, 2034	741	741
	5.200%	February 10, 2035	990	990
	3.625%	September 11, 2036	679	695
	4.100%	April 1, 2043	393	393
	4.375%	May 15, 2044	396	396
	4.625%	March 15, 2046	985	984
	2.900%	June 15, 2050	643	643
Other			—	—
Total debt			$14,723	$15,859
Less current maturities			499	1,000
Total long-term debt			$14,224	$14,859

			March 31	December 31
			2026	2025
Unamortized debt issuance costs			$67	$70
Borrowing capacity on existing facilities			$2,907	$2,911
Fair value of senior unsecured notes			$13,975	$15,344

In February 2025 we issued $500 of 4.550% senior unsecured

notes due February 10, 2027, $700 of 4.700% senior unsecured

notes due February 10, 2028, $800 of 4.850% senior unsecured

notes due February 10, 2030 and $1,000 of 5.200% senior

unsecured notes due February 10, 2035. In June 2025 we repaid

$650 of 1.150% senior unsecured notes.

Dollar amounts are in millions except per share amounts or as otherwise specified. 10

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

Summary of Total Debt
			September 30	December 31
	Rate	Due	2025	2024
Senior unsecured notes:
	1.150%	June 15, 2025	$—	$649
	3.375%	November 1, 2025	750	750
	3.500%	March 15, 2026	999	998
	4.550%	February 10, 2027	498	—
	2.125%	November 30, 2027	879	777
	4.700%	February 10, 2028	696	—
	3.650%	March 7, 2028	599	598
	4.850%	December 8, 2028	596	596
	3.375%	December 11, 2028	703	621
	0.750%	March 1, 2029	937	828
	4.250%	September 11, 2029	744	743
	4.850%	February 10, 2030	793	—
	1.950%	June 15, 2030	994	993
	2.625%	November 30, 2030	758	669
	1.000%	December 3, 2031	875	772
	3.375%	September 11, 2032	932	824
	4.625%	September 11, 2034	741	740
	5.200%	February 10, 2035	990	—
	3.625%	September 11, 2036	694	613
	4.100%	April 1, 2043	393	393
	4.375%	May 15, 2044	396	396
	4.625%	March 15, 2046	984	984
	2.900%	June 15, 2050	643	643
Other			1	10
Total debt			$16,595	$13,597
Less current maturities			1,750	1,409
Total long-term debt			$14,845	$12,188
			September 30	December 31
			2025	2024
Unamortized debt issuance costs			$74	$63
Borrowing capacity on existing facilities			$2,913	$2,160
Fair value of senior unsecured notes			$16,077	$12,780

The fair value of the senior unsecured notes was estimated using

quoted interest rates, maturities and amounts of borrowings

based on quoted active market prices and yields that took into

account the underlying terms of the debt instruments.

Substantially all of our debt is classified within Level 2 of the fair

value hierarchy.

Interest expense on outstanding debt and credit facilities,

including required fees incurred, ~~that~~totaled ~~were~~$142 ~~included~~and in$132 ~~other~~for the

~~income~~three ~~(expense),~~months ~~net,~~2026 ~~totaled $157~~ and ~~$98 for the three~~ 2025.

months 2025 and 2024 and $453 and $292 for the nine months

2025 and 2024.

NOTE 9 - INCOME TAXES

Our effective tax rates were 1612.54% and 14.74% in the three ~~and~~

~~nine~~ months ~~2025~~2026 and 202025.0% ~~and~~The ~~17.4%~~effective intax ~~the~~rates for the three ~~and nine~~

months ~~2024.~~2026 ~~The~~and ~~effective~~2025 ~~income~~reflect ~~tax rate for~~ the ~~three~~continued ~~months~~lower effective

~~2025~~income ~~decreased~~tax ~~from~~rates ~~three~~as ~~months~~a ~~2024~~result ~~due~~of toour ~~certain~~European ~~discrete~~operations and

certain discrete tax items. ~~The~~ ~~effective tax rate for the nine months 2025~~

~~decreased~~Income ~~from~~tax ~~nine~~authorities ~~months~~in ~~2024~~various ~~due~~jurisdictions toglobally ~~the~~conduct ~~2025 tax benefit~~

~~related~~routine toaudits ~~the~~of ~~sale~~our ofincome ~~the~~tax ~~Spinal~~returns ~~Implants~~to ~~business~~determine ~~and~~if ~~certain~~they agree

~~discrete~~with ~~tax~~our ~~items.~~interpretations ~~The~~of ~~effective~~income tax ~~rates~~regulations. ~~for~~Any ~~the~~audit ~~three and nine~~

~~months~~assessment, ~~2025~~draft ~~and~~audit ~~2024~~assessment, ~~reflect~~or ~~the~~final ~~continued~~audit ~~lower~~report ~~effective~~received

~~income~~is ~~tax~~reviewed ~~rates~~for asnew ainformation ~~result~~and ofevaluated ~~our~~for ~~European~~proper ~~operations.~~financial

Instatement ~~the~~treatment. ~~normal course of business, income tax authorities in~~

various income tax jurisdictions both within the United States and

internationally conduct routine audits of our income tax returns

filed in prior years. These audits are generally designed to

determine if individual income tax authorities are in agreement

with our interpretations of complex income tax regulations

regarding the allocation of income to the various income tax

jurisdictions. Any income tax audit assessment or draft income

tax audit assessment received at the conclusion of an audit is

reviewed and evaluated for proper financial statement treatment.

We have not received any audit assessments or draft

assessments that have not been reviewed and evaluated.

NOTE 10 - SEGMENT INFORMATION

We segregate our operations into two reportable business

segments: (i) MedSurg and Neurotechnology and (ii)

Orthopaedics which aligns to our internal reporting structure and

how our Chief Operating Decision Maker (CODM) assesses the

performance of and allocates resources. The CODM is the Chief

Executive Officer. The CODM makes decisions on resource

allocation, assesses performance of the business, and monitors

budget versus actual results using segment operating income.

~~Our~~Information ~~reportable~~about ~~segments~~total ~~and~~assets ~~related~~by ~~disclosures~~segment ~~reflect~~is ~~certain~~not disclosed

~~reclassifications~~because ofsuch ~~prior~~information ~~year~~is ~~amounts~~not ~~from~~regularly ~~our~~provided ~~Orthopaedics~~to, or used by,

~~segment to~~ our ~~MedSurg~~CODM. ~~and Neurotechnology segment due to~~

changes in our internal reporting structure.


Segment Results
	Three Months
	2026	2025
MedSurg and Neurotechnology	$3,207	$3,056
Orthopaedics	2,813	2,810
Net sales	$6,020	$5,866
MedSurg and Neurotechnology	$1,291	$1,175
Orthopaedics	823	775
Cost of sales	$2,114	$1,950
MedSurg and Neurotechnology	$231	$208
Orthopaedics	146	158
Segment research, development and engineering expenses	$377	$366
MedSurg and Neurotechnology	$930	$859
Orthopaedics	880	925
Segment selling, general and administrative expenses	$1,810	$1,784
MedSurg and Neurotechnology	$55	$48
Orthopaedics	119	107
Segment depreciation and amortization	$174	$155
Corporate and Other	$43	$39
Amortization of intangible assets	180	167
Total depreciation and amortization	$397	$361
MedSurg and Neurotechnology	$700	$757
Orthopaedics	846	854
Segment operating income	$1,546	$1,611
Items not allocated to segments:
Corporate and Other	$(275)	$(267)
Inventory stepped up to fair value	—	(34)
Acquisition and integration-related charges	(19)	(185)
Amortization of intangible assets	(180)	(167)
Structural optimization and other special charges	(118)	(41)
Goodwill and other impairments	—	(35)
Medical device regulation	(5)	(12)
Recall-related matters	(10)	(33)
Regulatory and legal matters	(3)	—
Consolidated operating income	$936	$837

Segment Results
Segment Capital Spending	Three Months
	Three Months		Nine Months
	2026	2025
	2025	2024	2025	2024
Purchases of property, plant and equipment:
MedSurg and Neurotechnology	$~~3,803~~58	$~~3,324~~33	~~$11,085~~	~~$9,636~~
Orthopaedics	~~2,254~~41	~~2,170~~49	~~6,860~~	~~6,523~~
Net sales	$6,057	$5,494	$17,945	$16,159
Total segment purchases of property, plant and equipment	$99	$82
MedSurg and Neurotechnology	$1,426	$1,313	$4,162	$3,838
Corporate and Other	67	41
Orthopaedics	620	561	1,848	1,728
Total purchases of property, plant and equipment	$166	$123
Cost of sales	$2,046	$1,874	$6,010	$5,566
MedSurg and Neurotechnology	$247	$205	$718	$594
Orthopaedics	132	136	399	406
Segment research, development and engineering expenses	$379	$341	$1,117	$1,000
MedSurg and Neurotechnology	$972	$780	$2,893	$2,318
Orthopaedics	742	760	2,332	2,267
Segment selling, general and administrative expenses	$1,714	$1,540	$5,225	$4,585
MedSurg and Neurotechnology	$56	$60	$171	$170
Orthopaedics	111	112	313	325
Segment depreciation and amortization	$167	$172	$484	$495
Corporate and Other	$48	$40	$127	$118
Amortization of intangible assets	189	159	543	467
Total depreciation and amortization	$404	$371	$1,154	$1,080
MedSurg and Neurotechnology	$1,102	$966	$3,141	$2,716
Orthopaedics	649	601	1,968	1,797
Segment operating income	$1,751	$1,567	$5,109	$4,513
Items not allocated to segments:
Corporate and Other	$(202)	$(211)	$(670)	$(676)
Inventory stepped up to fair value	(61)	(29)	(160)	(38)
Acquisition and integration-related charges	(39)	(48)	(302)	(49)
Amortization of intangible assets	(189)	(159)	(543)	(467)
Structural optimization and other special charges	(41)	(22)	(93)	(92)
Goodwill and other impairments	(73)	(2)	(163)	(21)
Medical device regulation	(11)	(13)	(30)	(41)
Recall-related matters	(1)	—	(56)	(22)
Regulatory and legal matters	—	1	(7)	1
Consolidated operating income	$1,134	$1,084	$3,085	$3,108

Dollar amounts are in millions except per share amounts or as otherwise specified. 1110

STRYKER CORPORATION ~~2025~~2026 ~~Third~~First Quarter Form 10-Q

Segment Assets
	September 30	December 31
	2025	2024
Assets:
MedSurg and Neurotechnology	$27,280	$23,115
Orthopaedics	18,192	18,507
Total segment assets	$45,472	$41,622
Corporate and Other	1,585	1,349
Total assets	$47,057	$42,971

Segment Capital Spending	Nine Months
	2025	2024
Purchases of property, plant and equipment:
MedSurg and Neurotechnology	$153	$136
Orthopaedics	169	171
Total segment purchases of property, plant and equipment	$322	$307
Corporate and Other	171	182
Total purchases of property, plant and equipment	$493	$489

NOTE 11 - SALE OF SPINAL IMPLANTS BUSINESS

During the fourth quarter 2024 management committed to a plan

to sell certain assets associated with the Spinal Implants

business (disposal group) and such assets were classified as

held for sale beginning November 2024. As a result we recorded

a valuation allowance of $362 to record the disposal group at its

fair value less cost to sell.

In April 2025 we completed the sale of the disposal group to the

Viscogliosi Brothers, LLC. InThe ~~the~~fair ~~first~~value ~~half~~ of ~~2025~~the weconsideration ~~recognized~~

~~immaterial~~received ~~impairment~~of ~~charges~~$245 towas ~~record~~measured ~~the~~using ~~disposal~~a ~~group~~discounted atcash ~~its~~flow

~~fair~~analysis ~~value~~based ~~less~~upon ~~cost~~the toselling ~~sell~~price ~~within goodwill~~ and ~~other~~unobservable ~~impairments~~inputs,

insuch ~~our~~as ~~Consolidated~~market ~~Statements~~conditions ofand ~~Earnings.~~the ~~The~~rate ~~fair~~used ~~value~~to ofdiscount the

~~disposal~~estimated ~~group~~future ~~and~~cash ~~consideration~~flows ~~received~~to ~~was~~their ~~measured~~present ~~using~~value abased on

~~discounted~~factors ~~cash~~including ~~flow~~the ~~analysis~~disposal ~~based~~group’s ~~upon~~cost ~~the~~of ~~selling~~equity ~~price~~ and market

~~unobservable~~yield ~~inputs~~rates, ~~such~~which asare ~~market~~Level ~~conditions~~3 ~~and the rate~~ inputs.

~~used~~Deferred toconsideration ~~discount~~receivable ~~the~~was ~~estimated~~$269 ~~future~~at ~~cash~~March 31, ~~flows~~2026. ~~to their present~~

~~value~~Other ~~based~~amounts ondue ~~factors~~from ~~including~~Viscogliosi ~~the~~Brothers, ~~disposal~~LLC ~~group’s~~are ~~cost~~not of

~~equity and market yield rates, which are Level 3 inputs~~material.

~~Consideration~~Amounts ~~could~~due ~~increase~~from bypurchasers upin toconnection ~~$57~~with ordivestitures, ~~decrease by up to~~

~~$245~~including ~~based~~deferred onconsideration, ~~the~~are ~~amount~~assessed ~~received.~~periodically for

~~The~~collectability. ~~assets~~This ~~associated~~assessment ~~with~~involves ~~the~~significant ~~disposal~~judgment ~~group~~and ~~are reported in our~~

~~Orthopaedics~~considers, ~~segment~~among atother ~~December 31~~factors, ~~2024.~~the ~~The~~purchaser’s ~~assets~~financial ~~and~~

~~liabilities~~condition, ~~held~~operating ~~for~~performance ~~sale~~and atability ~~December 31,~~to ~~2024~~meet ~~are~~its ~~classified within~~

~~prepaid~~contractual ~~expenses~~obligations. ~~and~~The ~~other~~carrying ~~current~~value ~~assets~~of ~~and~~such ~~accrued~~amounts may

~~expenses~~be ~~and~~adjusted ~~other~~if, ~~liabilities~~based inon ~~our~~the ~~Consolidated~~facts ~~Balance~~and circumstances available,

~~Sheets.~~collection ~~The~~is ~~assets~~no ~~and~~longer ~~liabilities~~considered ~~of the disposal group at the~~ probable.

~~date~~NOTE of12 ~~sale~~- ~~and~~GOODWILL atAND ~~December 31,~~OTHER ~~2024~~INTANGIBLE ~~were as follows:~~ASSETS

		Held for Sale
	Date of Sale	December 31
	2025	2024
Accounts receivable, net	$56	$62
Total inventories	195	183
Prepaid expenses and other current assets	27	10
Property, plant and equipment, net	53	51
Other intangibles, net	323	326
Noncurrent deferred income tax assets	9	9
Other noncurrent assets	179	171
Valuation allowance	(395)	(362)
Total assets	$447	$450
Accounts payable	$41	$28
Accrued compensation	20	26
Accrued expenses and other liabilities	24	29
Other noncurrent liabilities	27	21
Total liabilities	$112	$104

We test goodwill annually for impairment at October 31 or

~~Dollar~~whenever ~~amounts~~events ~~are~~or incircumstances ~~millions~~indicate ~~except~~that ~~per~~goodwill ~~share~~may ~~amounts~~be ~~or as otherwise specified. 12~~

~~STRYKER~~impaired. ~~CORPORATION~~When ~~2025~~it ~~Third~~is ~~Quarter~~unlikely ~~Form~~that ~~10-Q~~goodwill of a reporting unit is

impaired, we perform a qualitative assessment that may be

periodically supplemented with a corroborative quantitative

analysis.

In the first quarter 2026 we changed our organizational structure.

Our new Ortho Tech business combines the orthopaedic

instruments portfolio from our Instruments business with the

Mako and enabling technologies portfolios from our Other

Orthopaedics business.

Following this reorganization we will continue to have two

reportable segments, MedSurg and Neurotechnology and

Orthopaedics. The reorganization impacts the composition of the

Instruments and Joint Replacement reporting units and results in

a new reporting unit representing the Ortho Tech business.

We assessed goodwill for impairment for the impacted reporting

units immediately before and after the reorganization and

concluded that there was no impairment of goodwill for any of the

reporting units impacted by the reorganization.

In connection with this reorganization we reallocated the goodwill

associated with the impacted businesses using the relative fair

value approach, resulting in a reallocation of $518 of goodwill

from the MedSurg and Neurotechnology segment to the

Orthopaedics segment.


Changes in the Net Carrying Value of Goodwill by Segment
	MedSurg and Neurotechnology	Orthopaedics	Total
December 31, 2025	$12,556	$6,735	$19,291
Reallocation of goodwill	(518)	518	—
Additions and adjustments	(74)	—	(74)
Foreign exchange and other	(19)	(10)	(29)
March 31, 2026	$11,945	$7,243	$19,188


Dollar amounts are in millions except per share amounts or as otherwise specified.	11


STRYKER CORPORATION		2026 First Quarter Form 10-Q


ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ABOUT STRYKER

Stryker Corporation ("we" or the "Company") is a global leader in ~~medical technologies and, together~~

medical technologies and, together with our customers, we are ~~driven to make healthcare better. We~~

~~offer~~driven ~~innovative~~to ~~products~~make ~~and~~healthcare ~~services~~better. inWe ~~MedSurg,~~offer innovative products

~~Neurotechnology,~~ and ~~Orthopaedics~~services ~~that~~in ~~help~~MedSurg, ~~improve~~Neurotechnology, ~~patient~~and Orthopaedics

that help improve patient and healthcare outcomes. Alongside ~~our customers around the~~

our customers around the world, we impact more than 150 million ~~patients annually.~~

Wepatients ~~segregate~~annually. ~~our~~Our ~~operations~~goal ~~into~~is ~~two~~to ~~reportable~~achieve ~~business~~sales growth at the high-

~~segments:~~end ~~(i)~~of ~~MedSurg~~the ~~and~~medical ~~Neurotechnology~~technology ~~and~~ (iiMedTech) industry and maintain

~~Orthopaedics.~~our ~~MedSurg~~long-term ~~and~~capital ~~Neurotechnology~~allocation ~~products~~strategy ~~include~~that prioritizes: (1)

~~surgical~~Acquisitions, ~~equipment~~(2) Dividends and ~~navigation systems~~ (~~Instruments~~3), Share repurchases.

~~endoscopic~~In ~~and~~the ~~communications~~first ~~systems~~quarter ~~(Endoscopy),~~2026 ~~patient~~we announced a change in our

~~handling,~~organizational ~~emergency~~structure. ~~medical~~Our ~~equipment~~new ~~and~~Ortho ~~intensive~~Tech ~~care~~business combines

~~disposable~~the ~~products~~orthopaedic ~~(Medical),~~instruments ~~minimally~~portfolio ~~invasive~~from ~~products~~our ~~for~~Instruments

~~the~~business ~~treatment~~with ofour ~~acute~~Mako ~~ischemic~~ and ~~hemorrhagic~~enabling ~~stroke~~technologies ~~and~~portfolio from

~~venous~~our ~~thromboembolism~~Other ~~(Vascular),~~Orthopaedics abusiness. ~~comprehensive~~By ~~line~~bringing ofMako, power tools,

~~products~~cutting ~~for~~accessories, ~~traditional~~enabling ~~brain~~technologies and ~~open~~the ~~skull~~teams ~~based~~behind ~~surgical~~

~~procedures;~~these ~~orthobiologic~~products ~~and~~together ~~biosurgery~~under ~~products~~one business, ~~including~~we are simplifying

~~synthetic~~the ~~bone~~customer ~~grafts~~experience and ~~vertebral~~striving ~~augmentation~~to ~~products~~increase our speed to

~~(Neuro~~market ~~Cranial).~~through ~~Orthopaedics~~focused ~~products consist primarily of~~ innovation.

~~implants~~Following ~~used~~this inreorganization ~~hip~~we ~~and~~will ~~knee~~continue ~~joint~~to ~~replacements~~have ~~and~~two ~~trauma and~~

~~extremity~~business ~~surgeries.~~segments - (i) MedSurg and Neurotechnology and (ii)

Orthopaedics, each of which comprise a reportable segment. All

historical financial segment information has been recast to

conform to this new presentation.

MedSurg and Neurotechnology products include surgical

equipment, patient and caregiver safety technologies, and a

comprehensive line of products for traditional brain and open

skull-based surgical procedures orthobiologic and biosurgery

products, including synthetic bone grafts and vertebral

augmentation (Instruments), endoscopic and communications

systems (Endoscopy), patient handling, emergency medical

equipment, intensive care disposable products, clinical

communication and artificial intelligence-assisted virtual care

platform technology (Medical), and minimally invasive products

for the treatment of acute ischemic and hemorrhagic stroke and

venous thromboembolism (Vascular). Orthopaedics products

include implants and surgical equipment such as navigation

systems and robotics used in total joint replacements, such as

hip, knee and shoulder, ankle and trauma and extremities

surgeries. We bring patients and physicians advanced implant

designs and specialized instrumentation that make orthopaedic

surgery and recovery simpler, faster and more effective. We

support surgeons with technologies, products and services they

need to support each patient’s clinical challenge.

Macroeconomic Environment

~~Beginning~~In in 2025, the United States government ~~has~~ announced new tariffs on

~~new tariffs on~~ goods imported into the United States from dozens of countries,

~~of countries,~~ including China and the European Union member states. In 2026

~~states.~~the InUnited ~~response,~~States ~~governments~~Supreme ~~have~~Court ~~threatened~~issued ora ~~imposed~~ruling in Learning

~~reciprocal~~Resources, ~~tariffs~~Inc. orv. ~~taken~~Trump ~~other~~striking ~~measures,~~down ~~and~~certain ~~the~~tariffs ~~United~~previously ~~States~~

isimposed inunder the ~~process~~International ofEmergency ~~negotiating~~Economic ~~with~~Powers ~~certain governments. We~~

~~continue~~Act. toWhile ~~monitor~~this ~~and~~ruling ~~evaluate~~may ~~the~~lead ~~situation.~~to ~~Tariffs~~potential ~~are~~refunds for tariffs paid

~~expected~~during to2025, ~~result~~and inthe anUnited ~~increase~~States ingovernment ~~certain~~subsequently ~~product costs or have~~

~~adverse~~announced ~~impacts~~a ~~on,~~process ~~among~~for ~~other~~seeking ~~things~~such refunds, ~~demand~~the ~~for~~availability, ~~our~~

~~products~~timing, and ~~supply~~amount ~~chains.~~of ~~The~~such ~~overall~~refunds ~~macroeconomic~~remain uncertain and subject

~~geopolitical~~to ~~environment,~~further ~~including~~legal ~~tariffs~~and oradministrative ~~changes~~developments. inFollowing ~~trade~~this

~~policies,~~decision ~~slower~~the ~~economic~~United ~~growth~~States oradministration ~~recession,~~announced ~~market~~the ~~volatility~~

~~and~~invocation ~~inflation,~~of ~~and~~alternative ~~uncertainty~~authorities, ~~regarding~~including ~~all~~Section 122 of the ~~foregoing, pose~~

~~risks~~Trade ~~that~~Act ~~could~~of ~~impact~~1974, ~~our~~to ~~business~~impose ~~and~~new ~~results~~tariffs ofon ~~operations~~imports. These further

~~For~~actions ~~more~~may ~~information~~increase ~~about~~costs ~~these~~and ~~risks,~~impact ~~see~~our ~~Item~~operational 1Aresults. ~~"Risk~~

~~Factors"~~We incontinue ~~our~~to ~~Annual~~monitor ~~Report~~and onevaluate ~~Form~~the ~~10-K~~situation. ~~for~~The ~~2024.~~overall

~~Overview~~macroeconomic ofand ~~the~~geopolitical ~~Three~~environment, ~~and~~including ~~Nine~~tariffs ~~Months~~or

Inchanges ~~the~~in ~~three~~trade ~~months~~policies, ~~2025~~slower weeconomic ~~achieved sales~~ growth ofor ~~10.3%~~recession,

~~from~~market ~~2024.~~volatility ~~Excluding~~and ~~the~~inflation, ~~impact~~and ofuncertainty ~~acquisitions~~regarding ~~and~~all ~~divestitures,~~of the

~~sales~~foregoing, ~~grew~~pose ~~9.5%~~risks inthat ~~constant~~could ~~currency.~~impact Weour ~~reported~~business ~~operating~~and results

~~income margin~~ of 18operations.~~7%,~~ ~~net~~For ~~earnings~~more ofinformation ~~$859~~about ~~and~~these ~~net~~risks, ~~earnings~~see Item

~~per~~1A. ~~diluted~~"Risk ~~share~~Factors" ofin ~~$2.22.~~our ~~Excluding~~Annual ~~the~~Report ~~impact~~on ofForm ~~certain~~10-K ~~items,~~for 2025.

~~adjusted~~Overview ~~operating~~of ~~income~~the ~~margin(1)~~Three ~~increased by 90 basis points~~ Months

toIn ~~25.6%,~~the ~~with~~three ~~adjusted~~months ~~net~~2026 ~~earnings(1)~~we ofachieved ~~$1,233~~sales ~~and~~growth ~~adjusted~~of 2.6% from

~~net~~2025. ~~earnings~~Excluding ~~per~~the ~~diluted~~impact ~~share(1)~~ of ~~$3.19,~~acquisitions anand ~~increase~~divestitures, ofsales ~~11.1%~~

~~from~~grew ~~2024~~1.0% in constant currency. We reported operating income

Inmargin ~~the~~of ~~nine~~15.5%, ~~months~~net ~~2025~~earnings weof ~~achieved~~$745 ~~sales~~and ~~growth~~net ofearnings ~~11.1%~~per ~~from~~

~~2024~~diluted share of $1.93. Excluding the impact of ~~acquisitions~~certain ~~and divestitures~~items, ~~sales~~

~~grew~~adjusted ~~10.0%~~operating inincome ~~constant~~margin(1) ~~currency.~~contracted Weby ~~reported~~180 ~~operating~~basis ~~income~~

~~margin~~points ofto 1721.21%, with adjusted net earnings(1) of $21,~~397~~004 and ~~net earnings per~~

adjusted net earnings per diluted share(1) of $62.~~20.~~60, ~~Excluding~~a ~~the~~decrease ~~impact~~ of ~~certain items,~~

~~adjusted~~8.5% ~~operating~~from ~~income~~2025. ~~margin(1) increased by 100 basis~~

points to 24.7%, with adjusted net earnings(1) of $3,541 and

adjusted net earnings per diluted share(1) of $9.16, an increase of

12.0% from 2024.

Recent Developments

In the first quarter ~~2025~~2026 we ~~completed~~identified ~~the~~a ~~acquisition~~cybersecurity ofincident ~~Inari for~~

~~total~~which caused ~~consideration~~disruptions ofto ~~$4,810,~~our inbusiness ~~upfront~~operations. ~~payments,~~We ~~net~~worked ~~of cash~~

~~acquired.~~diligently, ~~Refer~~together towith ~~Note~~third-party 7experts toand ~~our~~law ~~Consolidated~~enforcement, ~~Financial~~

~~Statements~~to ~~for~~contain ~~further~~and ~~information.~~neutralize the impact of the incident and restore

Inoperations. ~~February~~Our ~~2025~~investigation weof ~~entered~~the ~~into~~incident aremains ~~new~~ongoing. ~~revolving~~For ~~credit~~

~~agreement~~more ~~that~~information ~~replaces~~about ~~our~~risks ~~previous~~relating ~~agreement~~to ~~dated~~the ~~October~~impact of the

~~2021.~~cybersecurity ~~The~~incident ~~primary~~to ~~changes~~our ~~were~~business, tofinancial ~~increase~~condition ~~the~~and ~~aggregate~~

~~principal~~results ~~amount~~ of ~~the~~operations, ~~facility~~see byItem ~~$750~~1A. to“Risk ~~$3,000~~Factors” ~~and~~in ~~extend~~Part ~~the~~II of this

~~maturity~~Form ~~date to February 25, 2030~~10-Q. ~~On 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.

In February 2025 we issued $500 of 4.550% senior unsecured

notes due February 10, 2027, $700 of 4.700% senior unsecured

notes due February 10, 2028, $800 of 4.850% senior unsecured

notes due February 10, 2030 and $1,000 of 5.200% senior

unsecured notes due February 10, 2035. In June 2025 we repaid

$650M of 1.150% senior unsecured notes.

(1) Refer to "Non-GAAP Financial Measures" for a discussion of non-

GAAP financial measures used in this report and a reconciliation to the

most directly comparable GAAP financial measure.

CONSOLIDATED RESULTS OF OPERATIONS
	Three Months					Nine Months
			Percent Net Sales		Percentage			Percent Net Sales		Percentage
	2025	2024	2025	2024	Change	2025	2024	2025	2024	Change
Net sales	$6,057	$5,494	100.0%	100.0%	10.3%	$17,945	$16,159	100.0%	100.0%	11.1%
Gross profit	3,852	3,517	63.6	64.0	9.5	11,437	10,266	63.7	63.5	11.4
Research, development and engineering expenses	410	377	6.8	6.9	8.8	1,222	1,108	6.8	6.9	10.3
Selling, general and administrative expenses	2,045	1,894	33.8	34.5	8.0	6,424	5,562	35.8	34.4	15.5
Amortization of intangible assets	189	159	3.1	2.9	18.9	543	467	3.0	2.9	16.3
Goodwill and other impairments	73	2	1.2	—	nm	163	21	0.9	0.1	nm
Other income (expense), net	(106)	(42)	(1.8)	(0.8)	152.4	(276)	(144)	(1.5)	(0.9)	91.7
Income taxes	170	209	nm	nm	(18.7)	412	517	nm	nm	(20.3)
Net earnings	$859	$834	14.2%	15.2%	3.0%	$2,397	$2,447	13.4%	15.1%	(2.0)%
Net earnings per diluted share	$2.22	$2.16			2.8%	$6.20	$6.35			(2.4)%
Adjusted net earnings per diluted share(1)	$3.19	$2.87			11.1%	$9.16	$8.18			12.0%


Dollar amounts are in millions except per share amounts or as otherwise specified.	12


STRYKER CORPORATION		2026 First Quarter Form 10-Q


CONSOLIDATED RESULTS OF OPERATIONS
	Three Months
			Percent Net Sales		Percentage
	2026	2025	2026	2025	Change
Net sales	$6,020	$5,866	100.0%	100.0%	2.6%
Gross profit	3,810	3,744	63.3	63.8	1.8
Research, development and engineering expenses	413	405	6.9	6.9	2.0
Selling, general and administrative expenses	2,281	2,300	37.9	39.2	(0.8)
Amortization of intangible assets	180	167	3.0	2.8	7.8
Goodwill and other impairments	—	35	—	0.6	nm
Interest expense	(148)	(137)	(2.5)	(2.3)	8.0
Other income	62	64	1.0	1.1	(3.1)
Income taxes	105	110	nm	nm	(4.5)
Net earnings	$745	$654	12.4%	11.1%	13.9%

Net earnings per diluted share	$1.93	$1.69			14.2%
Adjusted net earnings per diluted share(1)	$2.60	$2.84			(8.5)%

nm - not meaningful


Geographic and Segment Net Sales
	Three Months
			Percentage Change
	2026	2025	As Reported	Constant Currency
Geographic:
United States	$4,476	$4,440	0.8%	0.8%
International	1,544	1,426	8.3	1.5
Total	$6,020	$5,866	2.6%	1.0%
Segment:
MedSurg and Neurotechnology	$3,207	$3,056	5.0%	3.6%
Orthopaedics	2,813	2,810	0.1	(1.8)
Total	$6,020	$5,866	2.6%	1.0%


Supplemental Net Sales Growth Information
	Three Months
			Percentage Change
					United States	International
	2026	2025	As Reported	Constant Currency	As Reported	As Reported	Constant Currency
MedSurg and Neurotechnology:
Instruments	$920	$838	9.9%	8.7%	9.1%	14.0%	7.0%
Endoscopy	868	867	0.1	(1.0)	(1.2)	6.0	—
Medical	902	945	(4.6)	(5.6)	(6.9)	8.3	1.1
Vascular	517	406	27.5	24.0	37.9	17.0	10.5
	$3,207	$3,056	5.0%	3.6%	3.2%	11.7%	5.1%
Orthopaedics:
Knees	$670	$639	4.7%	2.8%	1.4%	13.5%	6.1%
Hips	460	443	3.7	1.2	2.3	6.0	(0.3)
Trauma and Extremities	1,035	945	9.5	7.4	7.6	15.3	6.8
Ortho Tech	646	617	4.8	3.2	2.0	12.9	6.5
	$2,811	$2,644	6.3%	4.3%	4.0%	12.2%	4.9%
Spinal Implants	2	166	(98.9)	(99.0)	(100.0)	(96.2)	(96.6)
	$2,813	$2,810	0.1%	(1.8)%	(2.0)%	5.5%	(1.3)%
Total	$6,020	$5,866	2.6%	1.0%	0.8%	8.3%	1.5%

Note: In the first quarter 2026 we announced a change in our organizational structure. Our new Ortho Tech business combines the

orthopaedic instruments portfolio (Orthopaedic Instruments) from Instruments with Other Orthopaedics. In addition, Neuro Cranial and

the spine enabling technologies portfolio (Enabling Technologies) from Other Orthopaedics was combined with the remaining

Instruments business to align with our internal reporting structure. Ortho Tech includes sales related to Orthopaedic Instruments of $489

and $484 and Other Orthopaedics of $157 and $133. Instruments includes sales related to Neuro Cranial of $606 and $563 and

Enabling Technologies of $26 and $29 for the three months 2026 and 2025. We have reflected these changes in all historical periods

presented.


Dollar amounts are in millions except per share amounts or as otherwise specified.	13

STRYKER CORPORATION ~~2025~~2026 ~~Third~~First Quarter Form 10-Q

Geographic and Segment Net Sales
	Three Months				Nine Months
			Percentage Change				Percentage Change
	2025	2024	As Reported	ConstantCurrency	2025	2024	As Reported	ConstantCurrency
Geographic:
United States	$4,571	$4,109	11.4%	11.4%	$13,565	$12,070	12.4%	12.4%
International	1,486	1,385	6.9	4.3	4,380	4,089	7.1	6.4
Total	$6,057	$5,494	10.3%	9.6%	$17,945	$16,159	11.1%	10.9%
Segment:
MedSurg and Neurotechnology	$3,803	$3,324	14.4%	13.9%	$11,085	$9,636	15.0%	14.9%
Orthopaedics	2,254	2,170	3.9	3.1	6,860	6,523	5.2	4.9
Total	$6,057	$5,494	10.3%	9.6%	$17,945	$16,159	11.1%	10.9%

Supplemental Net Sales Growth Information
	Three Months							Nine Months
			Percentage Change							Percentage Change
					United States	International						United States	International
	2025	2024	As Reported	Constant Currency	As Reported	As Reported	Constant Currency	2025	2024	As Reported	Constant Currency	As Reported	As Reported	Constant Currency
MedSurg and Neurotechnology:
Instruments	$760	$679	11.9%	11.4%	11.5%	13.9%	11.2%	$2,258	$2,044	10.5%	10.3%	10.6%	9.8%	8.9%
Endoscopy	896	837	7.0	6.7	7.9	2.6	0.8	2,662	2,383	11.7	11.7	12.7	7.2	7.1
Medical	985	938	5.1	4.7	5.6	2.8	0.3	2,920	2,710	7.8	7.7	9.2	0.7	0.3
Vascular	525	329	59.6	58.9	136.9	14.3	12.4	1,429	966	48.0	47.9	104.4	13.2	12.6
Neuro Cranial	637	541	17.6	17.0	17.3	19.0	15.5	1,816	1,533	18.4	18.2	19.2	15.0	13.7
	$3,803	$3,324	14.4%	13.9%	15.7%	10.1%	7.7%	$11,085	$9,636	15.0%	14.9%	16.8%	9.0%	8.4%
Orthopaedics:
Knees	$628	$570	10.2%	9.6%	8.4%	14.9%	12.7%	$1,907	$1,760	8.4%	8.3%	7.6%	10.3%	10.0%
Hips	457	420	8.9	7.9	8.7	9.2	6.8	1,366	1,241	10.1	9.7	8.1	13.2	12.3
Trauma and Extremities	960	849	13.0	11.9	13.2	12.5	8.5	2,862	2,511	14.0	13.5	15.0	11.1	9.4
Other	203	159	28.1	27.5	38.5	3.6	1.3	548	490	11.9	11.8	13.5	8.1	7.8
	$2,248	$1,998	12.5%	11.7%	12.9%	11.5%	8.6%	$6,683	$6,002	11.3%	11.1%	11.4%	11.2%	10.2%
Spinal Implants	6	172	(96.7)	(96.9)	(100.0)	(89.3)	(89.7)	177	521	(66.1)	(65.9)	(67.4)	(63.1)	(62.4)
	$2,254	$2,170	3.9%	3.1%	4.1%	3.2%	0.5%	$6,860	$6,523	5.2%	4.9%	5.2%	5.0%	4.2%
Total	$6,057	$5,494	10.3%	9.6%	11.4%	6.9%	4.3%	$17,945	$16,159	11.1%	10.9%	12.4%	7.1%	6.4%

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 $100 for the three months 2024 and $296 for the nine months 2024. Other Orthopaedics includes sales related to

Enabling Technologies of $32 for the three months 2024 and $94 for the nine months 2024. We have reflected these changes in all

historical periods presented.

Consolidated Net Sales

Consolidated net sales increased 102.36% in the three months 2026

~~2025~~ as reported and 91.60% in constant currency, as foreign currency

~~currency~~ exchange rates positively impacted net sales by 01.76%. Excluding

~~Excluding~~ the 0.1.4% impact of acquisitions and divestitures, net sales in

~~sales in~~ constant currency increased by 92.1% from increased unit volume

~~volume~~ and 0.43% due to higher prices. The unit volume increase was due

~~was due~~ to higher product shipments across ~~all~~most MedSurg and

Neurotechnology businesses and ~~most~~all Orthopaedics businesses.

Consolidated net sales increased 11.1% in the nine months 2025

as reported and 10.9% in constant currency, as foreign currency

exchange rates positively impacted net sales by 0.2%. Excluding

the 0.9% impact of acquisitions and divestitures, net sales in

constant currency increased by 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

Neurotechnology businesses and most Orthopaedics businesses.

MedSurg and Neurotechnology Net Sales

MedSurg and Neurotechnology net sales increased 145.40% in the

three months ~~2025~~2026 as reported and 133.96% in constant currency, as

as foreign currency exchange rates positively impacted net sales by

~~by 0~~1.54%. Excluding the 52.57% impact of acquisitions and divestitures,

~~divestitures,~~ net sales in constant currency increased by 70.63% from increased

~~from increased~~ unit volume and 0.86% from higher prices. The unit volume

~~volume~~ increase was due to higher shipments across ~~all~~the Instruments

~~MedSurg~~ and ~~Neurotechnology~~Vascular businesses.

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 5.0% impact of acquisitions and

divestitures, net sales in constant currency increased by 9.0%

from increased unit volume and 0.9% from higher prices. The unit

Dollar amounts are in millions except per share amounts or as otherwise specified. 14

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

volume increase was due to higher shipments across all

MedSurg and Neurotechnology businesses.

Orthopaedics Net Sales

Orthopaedics net sales increased 30.91% in the three months ~~2025~~2026

as reported ~~and~~but 3.decreased 1.8% in constant currency, as foreign ~~currency~~

currency exchange rates positively impacted net sales by 01.89%. ~~Excluding~~

Excluding the 85.39% impact of acquisitions and divestitures, net ~~sales in~~

sales in constant currency increased 114.71% from increased unit ~~volume~~

~~partially~~volume. ~~offset~~The byunit ~~0.3%~~volume ~~from~~increase ~~lower~~was ~~prices.~~due ~~The~~to ~~unit~~higher ~~volume~~shipments

~~increase was due to higher shipments~~ across ~~most~~all Orthopaedics businesses.

businesses.

Orthopaedics net sales increased 5.2% in the nine months 2025

as reported and 4.9% in constant currency, as foreign currency

exchange rates positively impacted net sales by 0.2%. Excluding

the 5.0% impact of acquisitions and divestitures, net sales in

constant currency increased 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

Gross profit was $3,~~852~~810 and $3,~~517~~744 in the three months ~~2025~~2026

and ~~2024~~2025. The key components of the change were:

	Gross Profit Percent Net Sales
Three Months 2024	64.0%
Three Months 2025	63.8%
Sales pricing	10 bps
Volume and mix	7010 bps
Manufacturing and supply chain costs	(30200) bps
Structural optimization and other special charges	~~(10)~~70 bps
Inventory stepped up to fair value	~~(80)~~60 bps
Three Months 2025	63.6%
Three Months 2026	63.3%

Gross profit as a percentage of net sales in the three months

~~2025~~2026 ~~remained~~decreased ~~relatively~~to ~~flat~~63.3% ~~with~~from ~~2024~~63.8% in 2025 driven by higher

~~Gross~~manufacturing ~~profit was $11,437~~ and ~~$10,266~~supply inchain ~~the~~costs ~~nine~~primarily ~~months~~due ~~2025~~to idle

~~and~~production ~~2024.~~time ~~The~~related ~~key~~to ~~components of~~ the ~~change~~cybersecurity ~~were:~~incident.

	Gross Profit Percent Net Sales
Nine Months 2024	63.5%
Sales pricing	20 bps
Volume and mix	70 bps
Manufacturing and supply chain costs	30 bps
Structural optimization and other special charges	(20) bps
Inventory stepped up to fair value	(80) bps
Nine Months 2025	63.7%

While segment mix was not a significant driver of the change in

gross profit as a percent of net sales between the nine months

2025 and 2024, we generally expect segment mix to have an

unfavorable impact for the foreseeable future as we anticipate

more rapid sales growth in our lower gross margin MedSurg and

Neurotechnology segment than our Orthopaedics segment.

Research, Development and Engineering Expenses

Research, development and engineering expenses increased $8

~~$33~~ or 82.80% in the three months ~~2025~~2026. ~~and~~Expenses ~~$114~~as ora ~~10.3%~~percentage inof ~~the~~

~~nine~~net ~~months~~sales ~~2025~~of 6.9% ~~Expenses~~in asthe athree ~~percentage~~months of2026 ~~net~~remained ~~sales~~flat inwith ~~the~~

~~three and nine months~~ 2025 ~~of 6~~.~~8% remained relatively flat with~~

6.9% in 2024.

Selling, General and Administrative Expenses

Selling, general and administrative expenses ~~increased~~decreased $~~151~~19 or

8.0.8% in the three months ~~2025~~2026. As a percentage of net sales,

expenses decreased to 3337.89% from 3439.52% in ~~2024~~2025, primarily due

to continued spend discipline. and lower acquisition and

~~Selling,~~integration-related ~~general~~charges. ~~and~~Expenses ~~administrative~~in ~~expenses~~the ~~increased~~three ~~$862~~months or2025

~~15.5%~~included ina ~~the~~charge ~~nine~~of ~~months~~$139 ~~2025.~~for Asshare-based aawards ~~percentage~~for ofInari ~~net sales,~~

~~expenses~~employees ~~increased~~that tovested ~~35.8%~~upon ~~from~~our 34acquisition.~~4% in 2024, primarily due~~

to higher acquisition-related costs and continued investments to

support our growth. Expenses in the nine months 2025 included

a charge of $139 for share-based awards for Inari employees that

vested upon our acquisition.

Amortization of Intangible Assets

Amortization of intangible assets was $~~189~~180 and $~~159~~167 in the three

months ~~and~~2026 ~~$543~~ and ~~$467~~2025. ~~and~~Refer ~~nine~~to ~~months~~Note ~~2025~~7 ~~and~~to ~~2024.~~our Consolidated

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

further information.

Goodwill and other impairments

Goodwill and other impairments was $7335 ~~and $2~~ in the three months

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

Operating Income

Operating income was $~~1,135~~936 and $~~1,085~~837 in the three months 2026

~~2025~~ and ~~2024~~2025. Operating income as a percentage of net sales in the

~~the~~ three months ~~2025~~2026 ~~decreased~~increased to 1815.75% from 1914.73% in ~~2024~~2025.

Refer to the discussion above for the primary drivers of the

change.

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 nine months 2025 decreased to 17.2% from 19.2% in 2024.

Refer to the discussion above for the primary drivers of the

change.

MedSurg and Neurotechnology operating income as a

percentage of net sales decreased to 2921.08% in the three months

~~2025~~2026 from 2924.18% in ~~2024~~2025. Orthopaedics operating income as a

percentage of net sales ~~increased~~decreased to 2830.81% in the three months

~~2025~~2026 from 2730.74% in ~~2024~~2025. The key components of the change

were:

	Operating IncomePercent Net Sales
	MedSurg and Neurotechnology	Orthopaedics
Three Months 2024	29.1%	27.7%
Three Months 2025	24.8%	30.4%
Sales pricing	3020 bps	~~(10)~~0 bps
Volume	9020 bps	20(10) bps
Manufacturing and supply chain costs	~~110~~(220) bps	(190) bps
Research, development and engineering expenses	(3040) bps	5040 bps
Selling, general and administrative expenses	(~~210~~80) bps	~~240~~130 bps
Three Months 2025	29.0%	28.8%
Three Months 2026	21.8%	30.1%

The decrease in MedSurg and Neurotechnology operating

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

primarily driven by ~~lower~~higher manufacturing and supply chain costs

~~and~~due ~~higher~~to ~~unit~~idle ~~volumes~~production ~~and~~time ~~prices~~related ~~offset~~to ~~by higher~~the ~~selling~~cybersecurity incident,

higher selling, general and administrative expenses, ~~primarily~~and ~~due~~higher ~~to the~~

~~acquisition~~research, ofdevelopment ~~Inari~~ and ~~continued spend~~engineering ~~discipline.~~expenses partially offset

~~The~~by ~~increase~~higher inunit ~~Orthopaedics~~volumes ~~operating~~and ~~income as a percentage~~ prices.

The decrease in Orthopaedics operating income as a percentage

of net sales for the three months was primarily driven by higher

~~unit~~manufacturing ~~volumes,~~and ~~lower~~supply ~~selling,~~chain ~~general~~costs ~~and~~due ~~administrative~~to ~~expenses~~idle production time

~~and~~related ~~lower~~to ~~research,~~the ~~development~~cybersecurity incident and ~~engineering~~lower ~~expenses~~unit volumes

partially offset by ~~higher~~lower ~~manufacturing~~selling, general and ~~supply~~administrative ~~chain costs.~~

~~MedSurg~~expenses and ~~Neurotechnology~~research, ~~operating~~development ~~income~~and asengineering a expenses.

~~percentage~~Interest ~~of net sales increased to 28.3% in the nine months~~ Expense

~~2025~~Interest ~~from~~expense ~~28.2%~~was in$148 ~~2024.~~and ~~Orthopaedics~~$137 ~~operating~~in ~~income~~the asthree amonths 2026

~~percentage~~and of2025. ~~net~~The ~~sales~~increase ~~increased~~in tointerest ~~28.7%~~expense in the ~~nine~~three months

~~2025~~2026 from ~~27.5%~~2025 inwas ~~2024.~~primarily ~~The~~due ~~key~~to ~~components~~2025 ofdebt ~~the change~~ issuances.

~~were:~~Other Income

~~Dollar~~Other ~~amounts~~income ~~are~~was in$62 ~~millions~~and ~~except~~$64 ~~per~~in ~~share~~the ~~amounts~~three ormonths as2026 ~~otherwise~~and ~~specified. 15~~

~~STRYKER~~2025. ~~CORPORATION~~The ~~2025~~decrease ~~Third~~in ~~Quarter~~other ~~Form~~income ~~10-Q~~in the three months 2026

	Operating IncomePercent Net Sales
	MedSurg and Neurotechnology	Orthopaedics
Nine Months 2024	28.2%	27.5%
Sales pricing	40 bps	0 bps
Volume	90 bps	30 bps
Manufacturing and supply chain costs	110 bps	(60) bps
Research, development and engineering expenses	(30) bps	50 bps
Selling, general and administrative expenses	(200) bps	100 bps
Nine Months 2025	28.3%	28.7%

from 2025 was primarily due to lower interest income in 2026.

The increased in MedSurg and Neurotechnology operating

income as a percentage of net sales for the nine 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 spend discipline.

The increase in Orthopaedics operating income as a percentage

of net sales for the 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.

Other Income (Expense), Net

Other income (expense), net was ($106) and ($42) in the three

months and ($276) and ($144) in the nine months 2025 and

2024. The increase in net expense in the three months and nine

months 2025 from 2024 was primarily due to higher interest

expense in 2025.

Income Taxes

Our effective tax rates were 1612.54% and 14.74% in the three ~~and~~

~~nine~~ months ~~2025~~2026 and 202025.0% ~~and~~The ~~17.4%~~effective intax rates for the three ~~and nine~~

months ~~2024.~~2026 ~~The~~and ~~effective~~2025 ~~income~~reflect ~~tax rate for~~ the ~~three~~continued ~~months~~lower effective

~~2025~~income ~~decreased~~tax ~~from~~rates ~~three~~as ~~months~~a ~~2024~~result ~~due~~of toour ~~certain~~European ~~discrete~~operations and

certain discrete tax items. ~~The effective tax rate for the nine months 2025~~

~~decreased~~Our ~~from~~future ~~nine~~results ~~months~~of ~~2024~~operations ~~due~~could tobe ~~the~~affected ~~2025~~by ~~tax~~changes ~~benefit~~in

~~related~~the toeffective ~~the~~tax ~~sale~~rate ofas ~~the~~a ~~Spinal~~result ~~Implants~~of ~~business~~changes ~~and~~in ~~certain~~tax laws,

~~discrete~~regulations ~~tax~~and ~~items~~judicial rulings. ~~The~~We ~~effective~~are ~~tax~~continuing ~~rates~~to ~~for~~evaluate the ~~three and nine~~

~~months~~impact ~~2025~~of ~~and~~tax ~~2024~~reform ~~reflect~~in the ~~continued~~countries ~~lower~~in ~~effective~~which we operate as new

~~income~~guidance ~~tax~~is ~~rates~~published asand anew ~~result~~regulations ofare ~~our European operations~~adopted.

~~The~~Dollar ~~Organisation~~amounts ~~for~~are ~~Economic~~in ~~Cooperation~~millions ~~and~~except ~~Development~~per share amounts or as otherwise specified. 14

~~(OECD),~~STRYKER ~~which~~CORPORATION ~~represents~~2026 aFirst ~~coalition~~Quarter ofForm ~~member countries, has~~ 10-Q

put forth two proposed base erosion and profit shifting

frameworks that revise the existing profit allocation and nexus

rules (Pillar One) and ensure a minimal level of taxation (Pillar

Two). On December 12, 2022 the European Union member

states agreed to implement the Inclusive Framework’s global

corporate minimum tax rate of 15%, and various countries within

and outside the European Union have either enacted or proposed

new tax laws implementing Pillar Two in 2024. The OECD

continues to release additional guidance and we anticipate more

countries will enact similar tax laws. Some of the new tax laws

became effective in 2024 while others will be effective in 2025

and future years. These tax law changes and any additional

contemplated tax law changes could increase tax expense in

future periods.

On July 4, 2025 the One Big Beautiful Bill Act (OBBBA) was

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.

Net Earnings

Net earnings increased to $~~859~~745 or $21.2293 per diluted share in the

three months ~~2025~~2026 from $~~834~~654 or $21.1669 per diluted share in ~~2024~~2025.

~~Net~~Refer ~~earnings~~to ~~decreased~~the todiscussion ~~$2,397~~above orfor ~~$6.20~~the ~~per~~primary ~~diluted~~drivers ~~share~~of inthe

~~nine months 2025 from $2,447 or $6~~change.~~35 per diluted share in~~

2024.

Non-GAAP Financial Measures

We supplement the reporting of our financial information

determined under accounting principles generally accepted in the

United States (GAAP) with certain non-GAAP financial measures,

including percentage sales growth in constant currency;

percentage organic sales growth; adjusted gross profit; adjusted

selling, general and administrative expenses; adjusted research,

development and engineering expenses; adjusted operating

income; adjusted other income (expense), net; adjusted income

taxes; adjusted effective income tax rate; adjusted net earnings;

and adjusted net earnings per diluted share (Diluted EPS). We

believe these non-GAAP financial measures provide meaningful

information to assist investors and shareholders in understanding

our financial results and assessing our prospects for future

performance. Management believes percentage sales growth in

constant currency and the other adjusted measures described

above are important indicators of our operations because they

exclude items that may not be indicative of or are unrelated to our

core operating results and provide a baseline for analyzing trends

in our underlying businesses. Management uses these non-

GAAP financial measures for reviewing the operating results of

reportable business segments and analyzing potential future

business trends in connection with our budget process and bases

certain management incentive compensation on these non-GAAP

financial measures. To measure percentage sales growth in

constant currency, we remove the impact of changes in foreign

currency exchange rates that affect the comparability and trend

of sales. Percentage sales growth in constant currency is

calculated by translating current and prior year results at the

same foreign currency exchange rate. To measure percentage

organic sales growth, we remove the impact of changes in

foreign currency exchange rates, acquisitions and divestitures,

which affect the comparability and trend of sales. Percentage

organic sales growth is calculated by translating current year and

prior year results at the same foreign currency exchange rates

excluding the impact of acquisitions and divestitures. To measure

earnings performance on a consistent and comparable basis, we

exclude certain items that affect the comparability of operating

results and the trend of earnings. The income tax effect of each

adjustment was determined based on the tax effect of the

jurisdiction in which the related pre-tax adjustment was recorded.

These adjustments are irregular in timing and may not be

indicative of our past and future performance. The following are

examples of the types of adjustments that may be included in a

period:

1.Acquisition and integration-related costs. Costs related to

integrating recently acquired businesses (e.g., costs

associated with the termination of sales relationships,

employee retention and workforce reductions, manufacturing

integration costs and other integration-related activities),

changes in the fair value of contingent consideration,

amortization of inventory stepped-up to fair value, specific

costs (e.g., deal costs and costs associated with legal entity

rationalization) related to the consummation of the

acquisition process and legal entity rationalization and

acquisition-related tax items.

Dollar amounts are in millions except per share amounts or as otherwise specified. 16

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

2.Amortization of purchased intangible assets. Periodic

amortization expense related to purchased intangible assets.

3.Structural optimization and other special charges. Costs

associated with employee retention and workforce

reductions, the closure or transfer of manufacturing and

other facilities (e.g., site closure costs, contract termination

costs and redundant employee costs during the work

transfers), product line exits (primarily inventory, long-lived

asset and specifically-identified intangible asset write-offs),

certain long-lived and intangible asset write-offs and

impairments and other charges.

4.Medical device regulations. Costs specific to updating our

quality system, product labeling, asset write-offs and product

remanufacturing to comply with the new medical device

reporting regulations and other requirements of the

European Union.

5.Recall-related matters. Changes in our best estimate of the

probable loss, or the minimum of the range of probable

losses when a best estimate within a range is not known, to

resolve the Rejuvenate, LFIT V40, Wright legacy hip

products and other product recalls.

6.Regulatory and legal matters. Changes in our best estimate

of the probable loss, or the minimum of the range of

probable losses when a best estimate within a range is not

known, to resolve certain regulatory or other legal matters

and the amount of favorable awards from settlements.

7.Tax matters. Impact of accounting for certain significant and

discrete tax items.

Because non-GAAP financial measures are not standardized, it

may not be possible to compare these financial measures with

other companies' non-GAAP financial measures having the same

or similar names. These adjusted financial measures should not

be considered in isolation or as a substitute for reported sales

growth, gross profit, selling, general and administrative expenses,

research, development and engineering expenses, operating

income, other income (expense), net, income taxes, effective

income tax rate, net earnings and net earnings per diluted share,

the most directly comparable GAAP financial measures. These

non-GAAP financial measures are an additional way of viewing

aspects of our operations when viewed with our GAAP results

and the reconciliations to corresponding GAAP financial

measures at the end of the discussion of Consolidated Results of

Operations below. We strongly encourage investors and

shareholders to review our financial statements and publicly-filed

reports in their entirety and not to rely on any single financial

measure.

The weighted-average diluted shares outstanding used in the

calculation of adjusted net earnings per diluted share are the

same as those used in the calculation of reported net earnings

per diluted share for the respective period.

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Three Months 2025	Gross Profit	Selling, General & Administrative Expenses	Research, Development & Engineering Expenses	Operating Income	Other Income (Expense), Net	Income Taxes	Net Earnings	EffectiveTax Rate	Diluted EPS
Reported	$3,852	$2,045	$410	$1,135	$(106)	$170	$859	16.5%	$2.22
Reported percent net sales	63.6%	33.8%	6.8%	18.7%	(1.8)%	nm	14.2%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	61	—	—	61	—	15	46	0.6	0.12
Other acquisition and integration-related (a)	5	(33)	(1)	39	—	6	33	0.1	0.08
Amortization of purchased intangible assets	—	—	—	189	—	39	150	1.2	0.39
Structural optimization and other special charges (b)	15	(26)	—	41	(10)	3	28	(0.1)	0.07
Goodwill and other impairments (c)	—	—	—	73	—	15	58	0.4	0.16
Medical device regulations (d)	—	—	(11)	11	—	3	8	0.1	0.02
Recall-related matters (e)	—	(1)	—	1	—	—	1	—	—
Regulatory and legal matters (f)	—	—	—	—	—	—	—	—	—
Tax matters (g)	—	—	—	—	—	(50)	50	(4.8)	0.13
Adjusted	$3,933	$1,985	$398	$1,550	$(116)	$201	$1,233	14.0%	$3.19
Adjusted percent net sales	65.0%	32.8%	6.6%	25.6%	(1.9)%	nm	20.4%


Dollar amounts are in millions except per share amounts or as otherwise specified.	15

~~Dollar~~STRYKER ~~amounts~~CORPORATION ~~are~~2026 inFirst ~~millions~~Quarter ~~except~~Form ~~per share amounts or as otherwise specified. 17~~10-Q

STRYKER CORPORATION 2025 Third Quarter Form 10-Q


Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Three Months 2026	Gross Profit	Selling, General & Administrative Expenses	Research, Development & Engineering Expenses	Operating Income	Other Income (Expense), Net	Income Taxes	Net Earnings	Effective Tax Rate	Diluted EPS
Reported	$3,810	$2,281	$413	$936	$(86)	$105	$745	12.4%	$1.93
Reported percent net sales	63.3%	37.9%	6.9%	15.5%	(1.4)%	nm	12.4%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—	—	—	—	—	—	—	—	—
Other acquisition and integration-related (a)	2	(13)	(4)	19	—	4	15	0.1	0.04
Amortization of purchased intangible assets	—	—	—	180	—	30	150	0.6	0.38
Structural optimization and other special charges (b)	14	(104)	—	118	(11)	25	82	1.1	0.21
Goodwill and other impairments (c)	—	—	—	—	—	—	—	—	—
Medical device regulations (d)	—	—	(5)	5	—	1	4	—	0.01
Recall-related matters (e)	1	(9)	—	10	—	2	8	0.1	0.02
Regulatory and legal matters (f)	—	(3)	—	3	—	1	2	—	0.01
Tax matters (g)	—	—	—	—	—	2	(2)	0.2	—
Adjusted	$3,827	$2,152	$404	$1,271	$(97)	$170	$1,004	14.5%	$2.60
Adjusted percent net sales	63.6%	35.8%	6.7%	21.1%	(1.6)%	nm	16.7%

Three Months 2024	Gross Profit	Selling, General & Administrative Expenses	Research, Development & Engineering Expenses	Operating Income	Other Income (Expense), Net	Income Taxes	Net Earnings	EffectiveTax Rate	Diluted EPS
Three Months 2025	Gross Profit	Selling, General & Administrative Expenses	Research, Development & Engineering Expenses	Operating Income	Other Income (Expense), Net	Income Taxes	Net Earnings	EffectiveTax Rate	Diluted EPS
Reported	$3,~~517~~744	$12,~~894~~300	$~~377~~405	$~~1,085~~837	$(4273)	$~~209~~110	$~~834~~654	2014.04%	$21.1669
Reported percent net sales	6463.08%	3439.52%	6.9%	1914.73%	(01.82)%	nm	1511.21%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	2934	—	—	2934	—	78	2226	0.25	0.0607
Other acquisition and integration-related (a)	—13	(48171)	—(1)	48185	—	116	37179	0(2.35)	0.1047
Amortization of purchased intangible assets	—	—	—	~~159~~167	—	3234	~~127~~133	01.74	0.3235
Structural optimization and other special charges (b)	~~(2)~~22	(2419)	—	2241	—	414	1827	—1.0	0.0507
Goodwill and other impairments (c)	—	—	—	235	—	—9	226	—0.7	—0.06
Medical device regulations (d)	—1	—	(1311)	1312	—	23	119	0.1	0.0302
Recall-related matters (e)	—31	—(2)	—	—33	—	—8	—25	—0.5	—0.06
Regulatory and legal matters (f)	—	1—	—	~~(1)~~—	—	—1	(1)	—	—
Tax matters (g)	—	—	—	—	—	(5719)	5719	(52.54)	0.1505
Adjusted	$3,~~544~~845	$12,~~823~~108	$~~364~~393	$1,~~357~~344	$(4273)	$~~208~~174	$1,~~107~~097	1513.87%	$2.8784
Adjusted percent net sales	6465.5%	3335.29%	6.67%	2422.79%	(01.82)%	nm	2018.17%

nm - not meaningful

(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:

	Three Months
	2025	2024
	2026	2025
Employee retention and workforce reductions	$113	$1316
Changes in the fair value of contingent consideration	123	(2)
Manufacturing integration costs	75	14
Stock compensation payments upon a change in control	—	22139
Other integration-related activities	98	1028
Adjustments to Operating Income	$3919	$48185
Other income taxes related to acquisition and integration-related costs	64	116
Adjustments to Income Taxes	$64	$116
Adjustments to Net Earnings	$3315	$37179

(b) Structural optimization and other special charges represent the costs associated with:

	Three Months
	2025	2024
	2026	2025
Employee retention and workforce reductions	$57	$1232
Closure/transfer of manufacturing and other facilities	105	25
Product line exits	102	3
Termination of sales relationships in certain countries	281	6—
Other charges	1423	(1)
Adjustments to Operating Income	$41118	$2241
Adjustments to Other Income (Expense), Net	$(1011)	$—
Adjustments to Income Taxes	$325	$414
Adjustments to Net Earnings	$2882	$1827


Dollar amounts are in millions except per share amounts or as otherwise specified.	16


STRYKER CORPORATION		2026 First Quarter Form 10-Q

	Three Months
	2025	2024
	2026	2025
Certain long-lived and intangible asset write-offs and impairments	$22—	$—34
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)	51—	21
Adjustments to Operating Income	$73—	$235
Adjustments to Income Taxes	$15—	$—9
Adjustments to Net Earnings	$58—	$226

(d) Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device

reporting regulations and other requirements of the new medical device regulations in the European Union.

(e) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to

resolve certain recall-related matters.

(f) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to

resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 18

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

(g) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:

	Three Months
	2025	2024
	2026	2025
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$(6120)	$(47)
Other tax matters	1122	~~(10)~~28
Adjustments to Income Taxes	$~~(50)~~2	$(5719)
Adjustments to Other Income (Expense), Net	$—	$—
Adjustments to Net Earnings	$50(2)	$5719

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Nine Months 2025	Gross Profit	Selling, General & Administrative Expenses	Research, Development & Engineering Expenses	Operating Income	Other Income (Expense), Net	Income Taxes	Net Earnings	EffectiveTax Rate	Diluted EPS
Reported	$11,437	$6,424	$1,222	$3,085	$(276)	$412	$2,397	14.7%	$6.20
Reported percent net sales	63.7%	35.8%	6.8%	17.2%	(1.5)%	nm	13.4%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	160	—	—	160	—	39	121	0.5	0.31
Other acquisition and integration-related (a)	19	(280)	(3)	302	—	32	270	(0.4)	0.70
Amortization of purchased intangible assets	—	—	—	543	—	112	431	1.2	1.11
Structural optimization and other special charges (b)	43	(47)	(3)	93	(19)	15	59	0.2	0.15
Goodwill and other impairments (c)	—	—	—	163	—	46	117	0.8	0.32
Medical device regulations (d)	1	—	(29)	30	—	7	23	0.1	0.06
Recall-related matters (e)	52	(4)	—	56	—	9	47	—	0.12
Regulatory and legal matters (f)	—	(7)	—	7	—	2	5	—	0.01
Tax matters (g)	—	—	—	—	—	(71)	71	(2.5)	0.18
Adjusted	$11,712	$6,086	$1,187	$4,439	$(295)	$603	$3,541	14.6%	$9.16
Adjusted percent net sales	65.3%	33.9%	6.6%	24.7%	(1.6)%	nm	19.7%

Nine Months 2024	Gross Profit	Selling, General & Administrative Expenses	Research, Development & Engineering Expenses	Operating Income	Other Income (Expense), Net	Income Taxes	Net Earnings	EffectiveTax Rate	Diluted EPS
Reported	$10,266	$5,562	$1,108	$3,108	$(144)	$517	$2,447	17.4%	$6.35
Reported percent net sales	63.5%	34.4%	6.9%	19.2%	(0.9)%	nm	15.1%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	38	—	—	38	—	9	29	0.3	0.08
Other acquisition and integration-related (a)	—	(49)	—	49	—	14	35	0.2	0.09
Amortization of purchased intangible assets	—	—	—	467	—	96	371	1.0	0.96
Structural optimization and other special charges (b)	41	(51)	—	92	—	24	68	0.2	0.23
Goodwill and other impairments (c)	—	—	—	21	—	—	21	—	—
Medical device regulations (d)	5	—	(36)	41	—	9	32	0.1	0.08
Recall-related matters (e)	11	(11)	—	22	—	5	17	0.1	0.04
Regulatory and legal matters (f)	—	1	—	(1)	—	—	(1)	—	—
Tax matters (g)	—	—	—	—	(1)	(136)	135	(4.7)	0.35
Adjusted	$10,361	$5,452	$1,072	$3,837	$(145)	$538	$3,154	14.6%	$8.18
Adjusted percent net sales	64.1%	33.7%	6.6%	23.7%	(0.9)%	nm	19.5%

nm - not meaningful

(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:

	Nine Months
	2025	2024
Termination of sales relationships	$—	$3
Employee retention and workforce reductions	56	17
Changes in the fair value of contingent consideration	13	(12)
Manufacturing integration costs	14	2
Stock compensation payments upon a change in control	139	22
Other integration-related activities	80	17
Adjustments to Operating Income	$302	$49
Other income taxes related to acquisition and integration-related costs	32	14
Adjustments to Income Taxes	$32	$14
Adjustments to Net Earnings	$270	$35

Dollar amounts are in millions except per share amounts or as otherwise specified. 19

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

(b) Structural optimization and other special charges represent the costs associated with:

	Nine Months
	2025	2024
Employee retention and workforce reductions	$43	$14
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)	22	18
Product line exits (e.g., inventory, long-lived asset and specifically-identified intangible asset write-offs)	3	9
Termination of sales relationships in certain countries	(2)	7
Other charges	27	44
Adjustments to Operating Income	$93	$92
Adjustments to Income Taxes	$15	$24
Adjustments to Other Income (Expense), Net	$(19)	$—
Adjustments to Net Earnings	$59	$68

	Nine Months
	2025	2024
Certain long-lived and intangible asset write-offs and impairments	$108	$11
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)	55	10
Adjustments to Operating Income	$163	$21
Adjustments to Income Taxes	$46	$—
Adjustments to Net Earnings	$117	$21

(d) Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device

reporting regulations and other requirements of the new medical device regulations in the European Union.

(e) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to

resolve certain recall-related matters.

(f) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to

resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.

(g) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:

	Nine Months
	2025	2024
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$(153)	$(141)
Certain tax audit settlements	—	(2)
Other tax matters	82	7
Adjustments to Income Taxes	$(71)	$(136)
Adjustments to Other Income (Expense), Net	$—	$(1)
Adjustments to Net Earnings	$71	$135

FINANCIAL CONDITION AND LIQUIDITY

	Nine Months
	Three Months
Net cash provided by (used in):	~~2025~~2026	~~2024~~2025
Operating activities	$~~2,901~~581	$~~2,311~~250
Investing activities	(~~4,561~~185)	(24,~~697~~136)
Financing activities	(1,~~206~~510)	12,~~269~~534
Effect of exchange rate changes	58(19)	~~(4)~~20
Change in cash and cash equivalents	$(~~396~~1,133)	$~~879~~(1,332)

Operating Activities

Cash provided by operating activities was $~~2,901~~581 and $~~2,311~~250 in the

~~the~~three ~~nine~~ months ~~2025~~2026 and ~~2024~~2025. The increase was primarily due to

tochanges ~~the timing of payments and collections~~ in working capital accounts.

accounts.

Investing Activities

Cash used in investing activities was $~~4,561~~185 and $24,~~697~~136 in the

~~nine~~three months ~~2025~~2026 and ~~2024~~2025. The ~~nine~~three months ~~2025~~2026 included

cash paid tofor ~~acquire Inari and~~ purchases of property, plant and equipment. The

~~equipment~~three ~~partially~~months ~~offset~~2025 byincluded ~~proceeds~~cash ~~from~~paid ~~the~~to ~~sale~~acquire ofInari ~~short-term~~and

~~investments~~purchases ~~and~~of ~~the~~property, ~~sale~~plant ofand ~~the~~equipment ~~Spinal~~partially ~~Implants~~offset ~~business.~~by ~~The~~

~~nine~~proceeds ~~months~~from ~~2024~~the ~~included~~sale ~~cash~~of ~~paid~~short-term ~~for~~investments. ~~the~~Refer ~~Serf~~to ~~acquisition.~~Note

~~Refer to Note~~ 7 to our Consolidated Financial Statements for further information

~~further information~~ on acquisitions.

Financing Activities

Cash ~~provided~~used byin financing activities was $1,~~206~~510 in the ~~nine~~three months

~~months~~2026 ~~2025~~ and cash provided by financing activities was $2,534 in the

~~$1,269~~three ~~in the nine~~ months ~~2024~~2025. In ~~2025~~2026, cash ~~provided~~used was primarily driven by

~~primarily~~repayments ~~driven~~of by$1,000 ~~proceeds~~to ~~from~~pay ~~the~~off ~~issuance~~maturing ofunsecured ~~various~~notes ~~senior~~as

~~unsecured notes as~~ described in Note 8 to our Consolidated Financial Statements

~~Financial~~and ~~Statements~~dividend payments. ~~This~~Cash ~~was~~provided ~~partially offset~~ by ~~debt~~2025 ~~payments,~~was primarily

~~dividend~~driven ~~payments~~by ~~and~~proceeds ~~cash~~from ~~paid~~the ~~for~~issuance ~~taxes~~of onvarious ~~withheld~~senior ~~shares.~~

~~Cash~~unsecured ~~provided~~notes bywhich ~~2024~~ was ~~primarily~~partially ~~driven~~offset by ~~proceeds~~dividend ~~from~~payments.

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.

Liquidity

Cash, cash equivalents, short-term investments and marketable

securities were $32,~~343~~965 and $4,~~493~~100 on ~~September~~March 3031, ~~2025~~2026 and

December 31, ~~2024~~2025. Current assets exceeded current liabilities

by $67,~~297~~023 and $76,~~231~~961 on ~~September~~March 3031, ~~2025~~2026 and December 31,

~~2024~~2025. 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.

We have raised funds in the capital markets and have accessed

the credit markets in the past and may continue to do so from

time-to-time. We continue to have strong investment-grade short-

term and long-term debt ratings that we believe should enable us

to refinance our debt as needed.

Our cash, cash equivalents, short-term investments and

marketable securities held in locations outside the United States

was 3532% on ~~September~~March 3031, ~~2025~~2026 compared to 20% on December 31,

~~December 31, 2024~~2025.

Dollar amounts are in millions except per share amounts or as otherwise specified. 20

STRYKER CORPORATION 2025 Third Quarter Form 10-Q

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There were no changes to our critical accounting policies and

estimates from those disclosed in our Annual Report on Form 10-

K for ~~2024~~2025, except as follows.:

~~Refer~~Following tothe ~~Note~~reorganization 11discussed toin ~~our~~Note ~~Consolidated~~12 ~~Financial~~we ~~Statements~~will ~~for~~

~~discussion~~continue ofto ~~estimates~~have ~~related~~two toreportable ~~the~~segments, ~~Spinal~~MedSurg ~~Implants~~and ~~assets~~

~~classified~~Neurotechnology asand ~~held~~Orthopaedics. ~~for~~The ~~sale~~reorganization atimpacts ~~December 31, 2024.~~

~~New~~the ~~Accounting~~composition ~~Pronouncements~~of ~~Not~~the ~~Yet~~Instruments ~~Adopted~~and Joint Replacement

~~Refer~~reporting tounits ~~Note~~and 1results toin ~~our~~a ~~Consolidated~~new ~~Financial~~reporting ~~Statements~~unit ~~for~~representing

~~information~~the Ortho Tech business.

We assessed goodwill for impairment for the impacted reporting

units immediately before and after the reorganization and

concluded that there was no impairment of goodwill for any of the

reporting units impacted by the reorganization.

In connection with this reorganization we reallocated the goodwill

associated with the impacted businesses using the relative fair

value approach, resulting in a reallocation of $518 of goodwill

from the MedSurg and Neurotechnology segment to the

Orthopaedics segment.

Historical impairment assessments for our other reporting units

have indicated that their implied fair values exceed their

respective carrying amounts. We have not identified any factors

in 2026 that would lead us to believe that those reporting units

are at risk of a goodwill impairment.

Guarantees and Other Off-Balance Sheet Arrangements

We do not have guarantees or other off-balance sheet financing

arrangements, including variable interest entities, of a magnitude

that we believe could have a material impact on our financial

condition or liquidity.


Dollar amounts are in millions except per share amounts or as otherwise specified.	17


STRYKER CORPORATION		2026 First Quarter Form 10-Q

OTHER MATTERS

Legal and Regulatory Matters

We are involved in various ongoing proceedings, legal actions

and claims arising in the normal course of our business, including

proceedings related to product, labor, tax, intellectual property ~~and~~

and other matters. Refer to Note 6 to our Consolidated Financial

Statements for further information.

FORWARD-LOOKING STATEMENTS

This report contains statements that are not historical facts and

are considered "forward-looking statements" within the meaning

of the Private Securities Litigation Reform Act of 1995. These

statements are based on current projections about operations,

industry conditions, financial condition and liquidity. Words that

identify forward-looking statements include, without limitation,

words such as "may," "could," "will," "should," "possible," "plan,"

"predict," "forecast," "potential," "anticipate," "estimate," "expect,"

"project," "intend," "believe," "may impact," "on track," "goal,"

"strategy" and words and terms of similar substance used in

connection with any discussion of future operating or financial

performance, an acquisition or our businesses. In addition, any

statements that refer to expectations, projections or other

characterizations of future events or circumstances, including any

underlying assumptions, are forward-looking statements. Those

statements are not guarantees and are subject to risks,

uncertainties and assumptions that are difficult to predict.,

~~Therefore,~~including ~~actual~~uncertainties ~~results~~related ~~could~~to ~~differ~~the ~~materially~~impact ~~and~~of ~~adversely~~the cybersecurity

~~from~~incident ~~these~~first ~~forward-looking~~reported ~~statements~~on March 11, ~~historical~~2026 ~~experience~~on orour operations and

~~our~~financial ~~present expectations~~results. ~~Some~~Therefore, ~~important~~actual ~~factors~~results ~~that~~ could differ materially

~~cause~~and ~~our~~adversely ~~actual results to differ~~ from ~~our~~these ~~expectations~~forward-looking instatements, ~~any~~historical

~~forward-looking~~experience ~~statements~~or ~~include~~our ~~the~~present ~~risks~~expectations. ~~discussed~~Some inimportant ~~Item~~factors

~~1A.~~that ~~"Risk~~could ~~Factors"~~cause of our ~~Annual~~actual ~~Report~~results onto ~~Form~~differ ~~10-K~~from ~~for~~our ~~2024.~~expectations

~~This~~in ~~Form~~any 10forward-Qlooking ~~should~~statements beinclude ~~read~~the inrisks ~~conjunction~~discussed ~~with~~in ~~our~~

Item 1A. "Risk Factors" of our Annual Report on Form 10-K for

2025. This Form 10-Q should be read in conjunction with our

Consolidated Financial Statements and accompanying notes to

our Consolidated Financial Statements in our Annual Report on

Form 10-K for ~~2024~~2025. While we believe that the assumptions

underlying such forward-looking statements are reasonable,

there can be no assurance that future events or developments

will not cause such statements to be inaccurate. All forward-

looking statements contained in this report are qualified in their

entirety by this cautionary statement. We expressly disclaim any

intention or obligation to publicly update or revise any forward-

looking statement to reflect any change in our expectations or in

events, conditions or circumstances on which those expectations

may be based, or that affect the likelihood that actual results will

differ from those contained in the forward-looking statements.


ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We consider our greatest potential area of market risk exposure

to be exchange rate risk on our operating results. Quantitative

and qualitative disclosures about exchange rate risk are included

in Item 7A "Quantitative and Qualitative Disclosures About Market

Risk" of our Annual Report on Form 10-K for ~~2024~~2025. There were

no material changes from the information provided therein.


ITEM 4.	CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the Chief Executive

Officer and Chief Financial Officer (the Certifying Officers),

evaluated the effectiveness of the Company's disclosure controls

and procedures (as defined in Rules 13a-15(e) or 15d-15(e)

promulgated under the Securities Exchange Act of 1934, as

amended) on ~~September~~March 3031, ~~2025~~2026. Based on that evaluation, the

Certifying Officers concluded the Company's disclosure controls

and procedures were effective as of ~~September~~March 3031, ~~2025~~2026.

Changes in Internal Control Over Financial Reporting

There was no change to our internal control over financial

reporting during the ~~nine~~three months ~~2025~~2026 that materially affected, or

or is reasonably likely to materially affect, our internal control over

financial reporting.

PART II – OTHER INFORMATION


ITEM 1A.	RISK FACTORS

We are not aware of any material changes to the risk factors

included in Item 1A. "Risk Factors" in our Annual Report on Form

10-K for ~~2024.~~2025, except for updates to the following risk factors:

BUSINESS AND OPERATIONAL RISKS

We have experienced, and in the future we, our business

partners or our third-party vendors could experience a

material failure or breach of a key information technology

system, network, process or site: We rely extensively on

information technology (IT) systems to conduct business. In

addition, we rely on networks and services, including internet

sites, cloud and software-as-a-service solutions, data hosting and

processing facilities and tools and other hardware, software

(including open-source software) and technical applications and

platforms, some of which are managed, hosted, provided and/or

used by third parties or their vendors, to assist in conducting our

business. Furthermore, numerous and evolving cybersecurity

threats have posed, and will continue to pose, risks to the

security of our IT systems, networks and product offerings, as

well as the confidentiality, availability and integrity of our data.

Emerging technologies such as generative AI may be used by

malicious actors to create more targeted phishing narratives,

spread disinformation about us or our products or otherwise

strengthen social engineering capabilities. An increasing risk of

civil unrest, political tensions, wars, or other military conflicts or

actions, such as the United States’ ongoing combat operations in

Iran, can also impact the cybersecurity threat risk landscape.

Some of our products, services, and IT systems contain or use

open-source software which poses particular risks, including

potential security vulnerabilities, licensing compliance issues and

quality issues. We, our customers and third-party hosting

services have experienced, and expect to continue to experience,

security breaches of, unauthorized access to, and disruptions of,

products or systems. For example, on March 11, 2026, we

identified and reported a cybersecurity incident affecting certain

IT systems that resulted in a disruption to our corporate network

environment and caused disruption to our business operations.

As disclosed in our Current Report on Form 8-K/A, dated April 9,

2026, filed under Item 1.05, we subsequently determined that this

incident had a material impact on our operations, with resulting

impact to our financial results for the first quarter of 2026. While

we are fully operational across our global manufacturing network

and our commercial, ordering and distribution systems have been

restored, our investigation of the incident remains ongoing and

we may experience further adverse impacts, including financially,


Dollar amounts are in millions except per share amounts or as otherwise specified.	18


STRYKER CORPORATION		2026 First Quarter Form 10-Q

reputationally or otherwise. In addition, any future breaches,

unauthorized access or disruptions could have a material

adverse effect on our business, financial condition and results of

operations, including through business interruption, loss of

revenue, regulatory fines, litigation costs, reputational harm and

increased cybersecurity expenditures. Although we have made

investments and expect to continue to make investments seeking

to address these threats, including monitoring of networks and

systems, use of AI, hiring of experts, employee training, security

policies for employees and third-party providers and designing,

developing and maintaining processes and procedures to come

into compliance with regulatory and legal enactments such as

Section 524B of the Federal Food, Drug, and Cosmetic Act in the

United States, the techniques used in these attacks change

frequently and may be difficult to detect for periods of time and

we may face difficulties in anticipating and implementing

adequate preventative measures.

When cybersecurity or other technology related incidents occur,

we follow our incident response protocols and address them in

accordance with applicable governmental regulations and other

legal requirements. For example, in connection with the March

11, 2026 cybersecurity incident, we activated our incident

response protocols, engaged external cybersecurity experts to

assist in investigation, containment and remediation, notified

applicable regulatory authorities and kept our customers and

vendors informed through a number of communication channels.

Notwithstanding these efforts, our response to these incidents

and our investments to protect our product offerings and

information technology infrastructure and data may not shield us

from significant losses and potential liability nor prevent any

future interruption or breach of our systems. Moreover, given the

increasing complexity and sophistication of the techniques used

by threat actors to obtain unauthorized access or disable or

degrade systems, a cyberattack could occur and persist for an

extended period of time before being detected, and we may not

anticipate these acts or mitigate them adequately or timely, which

may compound damages before the incident is discovered or

remediated. The extent of the March 11, 2026 cyber incident and

any future cyber incident, and the steps that we may need to take

to further investigate any such incident, may not be immediately

clear, and it may take a significant amount of time before such

investigation can be completed and full and reliable information

about the incident is known. Additionally, as threats continue to

evolve and increase, and as the regulatory environment and

customer requirements related to information security, data

collection and use, and privacy become increasingly rigorous, we

may be required to devote significant additional resources to

modify and enhance our security controls and to identify and

remediate any security vulnerabilities, which could adversely

impact our net income. In addition, a significant number of our

employees work remotely, which has exposed us, and may

continue to expose us, to greater risks related to cybersecurity

and cyber-liability.

In responding to a cybersecurity incident or other disruption to

our IT systems, we have been required and in the future may be

required to use manual processes or other alternatives to our

normal systems for a period of time. These workarounds may be

less efficient, may not be sustainable for extended periods, and

may increase the risk of errors, delays or data integrity issues

(including with respect to information collected or processed

during the disruption). For example, during the March 11, 2026

cybersecurity incident, certain of our employees were unable to

access our IT systems. Any such issues could adversely affect

our ability to maintain effective processes and controls, including

processes supporting financial and operational reporting, and

could result in additional costs, remediation efforts, regulatory

scrutiny or litigation.

Hardware and software failures or delays in our key IT systems,

networks, processes or sites have disrupted and could in the

future disrupt our operations, cause the loss of confidential

information or otherwise adversely impact our business. Our

systems, networks, processes and sites may be vulnerable to

damage, disruptions and shutdown from a variety of sources,

including malfunctions in maintenance updates or security

patches, design defects, the age of the technology, network

failures, modernization or other initiatives, human acts and

natural disasters. For example, some of our IT systems contain

legacy third-party software components for which we depend on

a layered security approach to protect against exploitation, which

may not be effective. The March 11, 2026 cybersecurity incident

demonstrates that such damage or disruptions can compromise

the security of our information systems and networks with

material consequences. These issues can also arise as a result

of failures by, or in the software or hardware of, third parties,

including networks or service providers, with whom we do

business and over whom we have limited or no control.

Disruptions or failures of our systems, networks, processes or

sites have had, and could in the future have, a material impact on

our business and operations.

If our IT systems, networks or processes are damaged or cease

to function properly for any reason, the networks, service

providers, hardware or software we rely upon fail to function

properly, or we or one of our third-party providers suffer a loss or

disclosure of our business or stakeholder information due to any

number of causes ranging from catastrophic events or power

outages to improper data handling or security breaches or

unauthorized access, and our business continuity plans do not

effectively address these failures on a timely basis, we may be

exposed to reputational, competitive and business harm as well

as litigation and regulatory action and fines, penalties and

expenses related thereto.

Interruption of manufacturing operations has adversely

affected, and could in the future adversely affect, our

business: We and our suppliers have manufacturing and supply

sites all over the world. However, the manufacturing of certain of

our product lines is concentrated in one or more plants or

geographic regions. We have principal manufacturing and

distribution facilities in the United States in Arizona, California,

Florida, Illinois, Indiana, Michigan, Minnesota, New Jersey,

Puerto Rico, Tennessee, Texas, Utah and Washington, and

outside the United States in China, France, Germany, Ireland,

Mexico, the Netherlands, Poland, Switzerland and Turkey.

Damage to our facilities, to our suppliers’ or service providers’

facilities, or to our central distribution centers as a result of

natural disasters, fires, explosions or otherwise, as well as issues

in our manufacturing arising from a failure to follow specific

internal protocols and procedures, compliance concerns relating

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