STRYKER CORP
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0000310764-25-000075
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000310764-25-000107
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 415 previous paragraphs and 491 current paragraphs.
298 unchanged; 68 reworded; 90 added; 39 removed; 10 previous and 35 current paragraphs rearranged.
Tables are not compared: 25 previous and 36 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (90)
Current report
income margin of 18.5%, net earnings of$884 and net earnings
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points to 25.7%, with adjusted net earnings(1) of$1,211 and
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adjusted net earnings per diluted share(1)of$3.13, anincrease of
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11.4% from 2024.
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Excluding the impact of acquisitions and divestitures, sales
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margin of 16.4%, net earnings of$1,538 and net earnings per
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points to 24.3%, with adjusted net earnings(1) of$2,308 and
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adjusted net earnings per diluted share(1)of$5.97, anincrease of
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12.4% from 2024.
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unsecured notes due February 10, 2035. In June 2025 we repaid
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$650M of 1.150% senior unsecured notes.
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interventional spine of$129 and$98 for thethree months 2025 and 2024 and$247 and$196 for thesix months 2025 and 2024. Other
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Consolidated net sales increased 11.1% in thethree months
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2025 as reported and 10.3% in constant currency, as foreign
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currency exchange rates positively impacted net sales by 0.8%.
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Excluding the 0.1% impact of acquisitions and divestitures, net
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sales in constant currency increased by 9.7% from increased unit
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Neurotechnology businesses and most Orthopaedics businesses.
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Consolidated net sales increased 11.5% in thesix months 2025
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as reported and 11.5% in constant currency. Excluding the 1.3%
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currency increased by 9.6% from increased unit volumeand
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Neurotechnology businesses and most Orthopaedics businesses.
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MedSurg and Neurotechnology net sales increased 17.3% in the
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three months 2025 as reported and 16.7% in constant currency,
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as foreign currency exchange rates positively impacted net sales
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by 0.6%. Excluding the 5.7% impact of acquisitions and
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divestitures, net sales in constant currency increased by 10.2%
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MedSurg and Neurotechnology net sales increased 15.4% in the
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six months 2025 as reported and 15.5% in constant currency, as
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0.1%. Excluding the 4.7% impact of acquisitions and divestitures,
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net sales in constant currency increased by 9.8% from increased
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Neurotechnology businesses.
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Orthopaedics net sales increased 2.0% in thethree months 2025
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the(7.9)% impact of acquisitions and divestitures, net sales in
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constant currency increased 9.0% from increased unit volume.
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Orthopaedics net sales increased 5.8% in thesix months 2025 as
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reported and 5.8% in constant currency. Excluding the(3.4)%
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currency increased 9.2% from increased unit volume. The unit
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volume increase was due tohigher shipments across most
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Orthopaedics businesses.
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Removed paragraphs (39)
Previous report
income margin of 14.3%, net earnings of$654 and net earnings
Previous report
points to 22.9%, with adjusted net earnings(1) of$1,097 and
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adjusted net earnings per diluted share(1)of$2.84, anincrease of
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13.6% from 2024.
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unsecured notes due February 10, 2035.
Previous report
Consolidated net sales increased 11.9% in thethree months
Previous report
2025 as reported and 12.8% in constant currency, as foreign
Previous report
Excluding the 2.7% impact of acquisitions and divestitures, net
Previous report
sales in constant currency increased by 9.4% from increased unit
Previous report
Neurotechnology businesses andmost Orthopaedics businesses.
Previous report
MedSurg and Neurotechnology net sales increased 13.4% in the
Previous report
three months 2025 as reported and 14.2% in constant currency,
Previous report
by 0.8%. Excluding the 3.5% impact of acquisitions and
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divestitures, net sales in constant currency increased by 9.5%
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Orthopaedics net sales increased 9.7% in thethree months 2025
Previous report
exchange rates negatively impacted net sales by 1.0%. Excluding
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the 1.4% impact of acquisitions and divestitures, net sales in
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constant currency increased 9.3% from increased unit volume.
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Gross profit was$3,744 and$3,333 in thethree months 2025
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$37 or 10.1% in thethree months 2025. Expensesas a
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Selling, general and administrative expenses increased $463 or
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months 2025 and 2024. Refer to Note 7 to our Consolidated
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Financial Statements for further information.
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Goodwill and other impairments was$35 and$3 in thethree
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months 2025 and 2024. Refer to Note 11 to our Consolidated
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Financial Statements for further information on impairment
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Operating income was$837 and$972 in thethree months 2025
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three months 2025 decreased to 14.3% from 18.5% in 2024.
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percentage of net sales increased to 27.6% in thethree months
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percentage of net sales increased to 27.2% in thethree months
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2025 from 26.2% in 2024. The key components of the change
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unit volumes andlower manufacturing and supply chain costs
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Other income (expense), net was($73) and($49) in thethree
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expense in 2025 partially offset by higher interest income.
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certain discrete tax items.
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three months 2025 from$788 or$2.05 per diluted share in 2024.
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change.
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higher net earnings partially offset by the timing of payments and
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three months 2025 and 2024. Thethree months 2025 included
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Beginning in the first quarter 2025, the United States government
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Beginning in 2025, the United States government has announced
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has announced new tariffs on goods imported into the United
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new tariffs on goods imported into the United States from dozens
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States from dozens of countries, including China and the
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of countries, including China and the European Union member
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European Union member states. In response, governments have
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states. In response, governments have threatened or imposed
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threatened or imposed reciprocal tariffs or taken other measures,
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reciprocal tariffs or taken other measures, and the United States
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and the United States is in the process of negotiating with certain
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is in the process of negotiating with certain governments. We
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governments. We continue to monitor and evaluate the situation.
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continue to monitor and evaluate the situation. Tariffs are
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Tariffs could result in an increase in certain product costs or have
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expected to result in an increase in certain product costs or have
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Overview of the Three Months
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Overview of the Three and Six Months
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In thethree months 2025 we achieved sales growth of 11.9%
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In thethree months 2025 we achieved sales growth of 11.1%
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sales grew 10.1% in constant currency. We reported operating
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sales grew 10.2% in constant currency. We reported operating
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per diluted share of$1.69. Excluding the impact of certain items,
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per diluted share of$2.29. Excluding the impact of certain items,
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total consideration of$4,745, in upfront payments, net of cash
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total consideration of$4,810, in upfront payments, net of cash
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principal amount of the facility by$750 to$3,000 and extend the
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principal amount of the facility by$750 to $3,000 and extend the
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maturity date to February 25, 2030. On March 31, 2025 there
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maturity date to February 25, 2030. On June 30, 2025 there were
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wereno borrowings outstanding under our revolving credit facility
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no borrowings outstanding under our revolving credit facility or
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or our commercial paper program which allows for maturities up
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our commercial paper program which allows for maturities up to
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to 397 days from the date of issuance. The maximum amount of
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397 days from the date of issuance. The maximum amount of our
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our commercial paper that can be outstanding at any time is
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commercial paper that can be outstanding at any time is$2,250.
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interventional spine of$118 and$98 forthree months 2025 and 2024. Other Orthopaedics includes sales related to Enabling
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Orthopaedics includes sales related to Enabling Technologies of$34 and$31 for thethree months 2025 and 2024 and$63 and$62 for
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Technologies of$29 and$31 forthree months 2025 and 2024. We have reflected these changes in all historical periods presented.
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thesix months 2025 and 2024. We have reflected these changes in all historical periods presented.
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volumeand 0.7% due tohigher prices. The unit volume increase
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volumeand 0.5% due tohigher prices. The unit volume increase
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from increased unit volumeand 1.2% from higher prices. The unit
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from increased unit volumeand 0.8% from higher prices. The unit
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as foreign currency exchange rates negatively impacted net sales
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foreign currency exchange rates negatively impacted net sales by
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as reported and 10.7% in constant currency, as foreign currency
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as reported and 1.1% in constant currency, as foreign currency
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currency exchange rates negatively impacted net sales by 0.9%.
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exchange rates positively impacted net sales by 0.9%. Excluding
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gross profit as a percent of net sales between the three months
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gross profit as a percent of net sales between thesix months
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percentage of net sales in thethree months 2025 of 6.9%
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percentage of net sales in thethree months 2025 of 6.8%
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remained relatively flat with 7.0% in 2024.
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remained relatively flat with 6.7% in 2024.
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25.2% in thethree months 2025. As a percentage of net sales,
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13.5% in thethree months 2025. As a percentage of net sales,
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expenses increased to 39.2% from 35.0% in 2024, primarily due
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expenses increased to 34.5% from 33.8% in 2024, primarily due
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to higher acquisition-related costs andcontinued investments to
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to higher acquisition-related costs and continued investments to
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support our growth. Expenses in thethree months 2025 included
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support our growth. Expenses in thesix months 2025 included a
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a charge of$139 for share-based awards for Inari employees that
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charge of$139 for share-based awards for Inari employees that
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Amortization of intangible assets was$167 and$153 in thethree
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Amortization of intangible assets was$187 and$155 in thethree
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Refer to the discussion above for the primary drivers of the
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to the discussion above for the primary drivers of the change.
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2025 from 27.3% in 2024. Orthopaedics operating income as a
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2025 from 28.1% in 2024. Orthopaedics operating income as a
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partially offset byhigher selling, general and administrative
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unit volumes and prices offset byhigher selling, general and
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months 2025 and 2024. Theincrease in net expense in thethree
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The increase in net expense in thethree months andsix
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Our effective tax rates were 14.4% and 14.6% in thethree
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Our effective tax rates were 13.0% and 13.6% in thethree and
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adjusted operating income margin(1) increased by 110 basis
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In thesix months 2025 we achieved sales growth of 11.5% from
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grew 10.2% in constant currency. We reported operating income
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diluted share of$3.98. Excluding the impact of certain items,
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impact of acquisitions and divestitures, net sales in constant
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0.6% due tohigher prices. The unit volume increase was due to
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higher product shipments across all MedSurg and
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unit volumeand 1.0% from higher prices. The unit volume
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increase was due tohigher shipments across all MedSurg and
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impact of acquisitions and divestitures, net sales in constant
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The key components of the change were:
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Research, development and engineering expenses increased
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to higher acquisition-related costs and continued investments to
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2025 and 2024. Operating income as a percentage of net sales in
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MedSurg and Neurotechnology operating income as a
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2025 from 27.7% in 2024. Orthopaedics operating income as a
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Theincrease in MedSurg and Neurotechnology operating income
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driven bylower manufacturing and supply chain costs andhigher
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administrative expenses primarily due to the acquisition of Inari
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and continued investments to support our growth.
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Theincrease in Orthopaedics operating income as a percentage
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provisions to have a material impact on our Consolidated
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(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:
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(b) Structural optimization and other special charges represent the costs associated with:
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(c) Goodwill and other impairments represent the costs associated with:
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(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
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reporting regulations and other requirements of the new medical device regulations in the European Union.
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(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
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(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
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resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.
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(g) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:
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months 2025 and 2024. Thesix months 2025 included cash paid
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Note 7 to our Consolidated Financial Statements for further
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taxes on withheld shares. Cash used in 2024 was primarily driven
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Refer to Note 1 to our Consolidated Financial Statements for
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In the fourth quarter 2024 we reorganized our Spine business to
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align with certain updates to our internal reporting structure. The
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spine enabling technologies portfolio (Enabling Technologies)
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was reclassified to Other Orthopaedics, the Interventional Spine
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(IVS) portfolio was reclassified to Neuro Cranial and the
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remaining Spine business was renamed to Spinal Implants.
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charges related to assets held for sale at March 31, 2025.
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Serf acquisition. Refer to Note 7 to our Consolidated Financial
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Financial Statements. This was partially offset by dividend
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in thethree months 2025 and 2024.