Stryker (SYK) Citi’s 2025 Medtech and Life Sciences Access Day summary

Leadership transition and strategic direction

• Incoming CFO emphasizes continuity in strategy, focusing on defined targets and vision, with ongoing collaboration among leadership.

• Commitment to maintaining trajectory in operating margin and EPS goals.

• Guidance for 2025 targets 8%-9% growth, with a focus on margin expansion and execution of new product launches.

• Margin improvement expected to return to pre-pandemic levels by end of 2025, with ongoing expansion planned.

• Portfolio evolution includes divesting slower-growth spine implants and acquiring faster-growing assets like Inari.

Market environment and growth drivers

• Orthopedic procedure volumes and pricing are stable to positive, with growth rates higher than pre-COVID levels.

• Ambulatory surgery centers (ASCs) are expanding, now accounting for 17% of knees and 14% of hips, up from ~5% a few years ago.

• Younger patient demographics and increased ASC capacity are driving additional procedural volume.

• Robotics adoption, especially Mako, is accelerating in both ASCs and hospitals, with record installations and growing global uptake.

• Med-Surg and capital businesses are evolving, with strong capital order books and ongoing innovation in product lines.

Innovation, product launches, and technology

• Mako platform expanding to shoulder and spine applications, with software retrofits enabling multi-procedure use.

• Blueprint technology enhances pre-surgical planning, integrating with Mako for improved outcomes.

• Recent launches include Triathlon Hinge for revisions, Gamma nailing for trauma, and Insignia hip stem, supporting growth across orthopedics.

• AI and digital technologies are being integrated, with acquisitions like care.ai and Vocera supporting connected care and patient monitoring.

• Ongoing focus on innovation to maintain competitive edge, with new applications and upgrades planned for major platforms.