STRYKER CORP
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
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, 2026 · Filed Jul 31, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0000310764-26-000031
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0000310764-26-000050
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 414 previous paragraphs and 446 current paragraphs.
240 unchanged; 56 reworded; 126 added; 110 removed; 8 previous and 24 current paragraphs rearranged.
Tables are not compared: 24 previous and 35 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 (126)
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margin of 25.2%, net earnings of$1,276 and net earnings per
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points to 27.4%, with adjusted net earnings(1) of$1,424 and
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adjusted net earnings per diluted share(1)of$3.69, anincrease of
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17.9% from 2025.
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margin of 20.6%, net earnings of$2,021 and net earnings per
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adjusted operating income margin(1) increased by 10 basis points
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to 24.4%, with adjusted net earnings(1) of$2,428 and adjusted
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net earnings per diluted share(1)of$6.29, anincrease of 5.4%
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from 2025.
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and$501 and Other Orthopaedics of$194 and$148 for thethree months 2026 and 2025. For thesix months 2026 and 2025 Ortho
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Tech includes sales related to Orthopaedic Instruments of$1,012 and$985 and Other Orthopaedics of$351 and$281. Instruments
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includes sales related to Neuro Cranial of$681 and$616 and Enabling Technologies of$28 and$34 for thethree months 2026 and
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For thesix months 2026 and 2025 Instruments includes sales related to Neuro Cranial of$1,287 and$1,179 and Enabling
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Consolidated net sales increased 9.4% in thethree months 2026
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as reported and 9.0% in constant currency, as foreign currency
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exchange rates positively impacted net sales by 0.4%. Net sales
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in constant currency increased by 9.0% from increased unit
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businesses and all Orthopaedics businesses.
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Consolidated net sales increased 6.1% in thesix months 2026 as
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reported and 5.0% in constant currency as foreign currency
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exchange rates positively impacted net sales by 1.1%. Excluding
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the(0.8)% impact of acquisitions and divestitures, net sales in
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constant currency increased by 5.6% from increased unit volume
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MedSurg and Neurotechnology net sales increased 9.7% in the
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three months 2026 as reported and 9.2% in constant currency, as
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0.5%. Net sales in constant currency increased by 9.1% from
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increased unit volumeand 0.1% from higher prices. The unit
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Medsurg and Neurotechnology businesses.
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MedSurg and Neurotechnology net sales increased 7.4% in the
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six months 2026 as reported and 6.5% in constant currency, as
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0.9%. Excluding the 1.3% impact of acquisitions and divestitures,
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net sales in constant currency increased by 4.9% from increased
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increase was due tohigher shipments across all MedSurg and
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Neurotechnology businesses.
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Orthopaedics net sales increased 9.1% in thethree months 2026
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as reported and 8.7% in constant currency, as foreign currency
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exchange rates positively impacted net sales by 0.4%. Excluding
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the 0.1% impact of acquisitions and divestitures, net sales in
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constant currency increased 8.6% from increased unit volume.
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The unit volume increase was due tohigher shipments across all
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Removed paragraphs (110)
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the orthopaedic instruments portfolio from our Instruments
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business with our Mako and enabling technologies portfolio from
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our Other Orthopaedics business. By bringing Mako, power tools,
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cutting accessories, enabling technologies and the teams behind
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these products together under one business, we are simplifying
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the customer experience and striving to increase our speed to
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market through focused innovation.
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Following this reorganization we will continue to have two
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business segments - (i) MedSurg and Neurotechnology and (ii)
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Orthopaedics, each of which comprise a reportable segment. All
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historical financial segment information has been recast to
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conform to this new presentation.
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Macroeconomic Environment
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In 2025 the United States government announced new tariffs on
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goods imported into the United States from dozens of countries,
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including China and the European Union member states. In 2026
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the United States Supreme Court issued a ruling in Learning
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Resources, Inc. v. Trump striking down certain tariffs previously
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imposed under the International Emergency Economic Powers
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Act. While this ruling may lead to potential refunds for tariffs paid
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during 2025, and the United States government subsequently
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announced a process for seeking such refunds, the availability,
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timing, and amount of such refunds remain uncertain and subject
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to further legal and administrative developments. Following this
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decision the United States administration announced the
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invocation of alternative authorities, including Section 122 of the
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Trade Act of 1974, to impose new tariffs on imports. These further
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actions may increase costs and impact our operational results.
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We continue to monitor and evaluate the situation. The overall
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macroeconomic and geopolitical environment, including tariffs or
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changes in trade policies, slower economic growth or recession,
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market volatility and inflation, and uncertainty regarding all of the
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foregoing, pose risks that could impact our business and results
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of operations. For more information about these risks, see Item
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margin of 15.5%, net earnings of$745 and net earnings per
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points to 21.1%, with adjusted net earnings(1) of$1,004 and
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adjusted net earnings per diluted share(1)of$2.60, adecrease of
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8.5% from 2025.
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Recent Developments
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In the first quarter 2026 we identified a cybersecurity incident
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Reworded paragraphs (56)
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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 2026 we achieved sales growth of 2.6% from
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In thethree months 2026 we achieved sales growth of 9.4% from
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grew 1.0% in constant currency. We reported operating income
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grew 9.0% in constant currency. We reported operating income
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diluted share of$1.93. Excluding the impact of certain items,
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diluted share of$3.30. Excluding the impact of certain items,
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adjusted operating income margin(1) contracted by 180 basis
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adjusted operating income margin(1) increased by 170 basis
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the spine enabling technologies portfolio (Enabling Technologies) from Other Orthopaedics was combined with the remaining
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the spine enabling technologies portfolio (Enabling Technologies) from Other Orthopaedics were combined with the remaining
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Instruments business to align with our internal reporting structure. Ortho Tech includes sales related to Orthopaedic Instruments of$489
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Instruments business to align with our internal reporting structure. Ortho Tech includes sales related to Orthopaedic Instruments of$523
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Enabling Technologies of$26 and$29 for thethree months 2026 and 2025. We have reflected these changes in all historical periods
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Technologies of$54 and$63. We have reflected these changes in all historical periods presented.
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volume. The unit volume increase was due tohigher shipments
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volume. The unit volume increase was due tohigher product
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and 0.3% due tohigher prices. The unit volume increase was due
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and 0.2% due tohigher prices. The unit volume increase was due
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tohigher product shipments across most MedSurg and
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tohigher product shipments across all MedSurg and
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unit volumeand 0.6% from higher prices. The unit volume
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unit volumeand 0.3% from higher prices. The unit volume
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2026 decreased to 63.3% from 63.8% in 2025 driven by higher
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2026 increased to 68.3% from 63.8% in 2025 primarily driven by
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manufacturing and supply chain costs primarily due to idle
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supply chain costs primarily due to idle production time related to
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Research, development and engineering expenses increased $8
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Research, development and engineering expenses increased
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or 2.0% in thethree months 2026. Expenses as a percentage of
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months 2026. Expenses as a percentage of net sales of 6.6% in
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0.8% in thethree months 2026. As a percentage of net sales,
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7.2% in thethree months 2026. As a percentage of net sales,
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expenses decreased to 37.9% from 39.2% in 2025, primarily due
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expenses decreased to 33.8% from 34.5% in 2025, primarily due
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included a charge of$139 for share-based awards for Inari
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$139 for share-based awards for Inari employees that vested
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Amortization of intangible assets was$180 and$167 in thethree
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Amortization of intangible assets was$175 and$187 in thethree
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Financial Statements for further information.
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Refer to Note 7 to our Consolidated Financial Statements for
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2026 from 24.8% in 2025. Orthopaedics operating income as a
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2026 from 25.6% in 2025. Orthopaedics operating income as a
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Thedecrease in MedSurg and Neurotechnology operating
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Theincrease in MedSurg and Neurotechnology operating income
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income as a percentage of net sales for thethree months was
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as a percentage of net sales for thethree months was primarily
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partially offset by lower selling, general and administrative
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driven by lower selling, general and administrative expenses,
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Thedecrease in Orthopaedics operating income as a percentage
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Theincrease in Orthopaedics operating income as a percentage
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research, development and engineering expenses partially offset
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expenses, partially offset by higher manufacturing and supply
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by higher unit volumes and prices.
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expenses andhigher unit volumes and prices, offset by higher
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and 2025. The increase in interest expense in thethree months
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in interest expense in thethree months andsix months 2026 from
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The decrease in other income in thethree months 2026
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other income in thethree andsix months 2026 from 2025 was
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from 2025 was primarily due to lower interest income in 2026.
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primarily due to lower interest income in 2026.
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Our effective tax rates were 12.4% and 14.4% in thethree
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Our effective tax rates were 18.4% and 16.3% in thethree and
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months 2026 and 2025. The effective tax rates for thethree
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business. The effective tax rates for thethree andsix months
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months 2026 and 2025 reflect the continued lower effective
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2026 and 2025 reflect the continued lower effective income tax
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income tax rates as a result of our European operations and
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rates as a result of our European operations and certain discrete
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Net earnings increased to$745 or$1.93 per diluted share in the
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Net earnings increased to$1,276 or$3.30 per diluted share in
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months 2026 and 2025. Refer to Note 7 to our Consolidated
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in 2025. Refer to the discussion above for the primary drivers of
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Cash provided by operating activities was$581 and$250 in the
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Cash provided by operating activities was$1,842 and$1,361 in
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three months 2026 and 2025. Theincrease was primarily due to
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thesix months 2026 and 2025. Theincrease was primarily due to
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Cash used in investing activities was$185 and$4,136 in the
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Cash used in investing activities was$824 and$4,240 in thesix
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In thesix months 2026 we achieved sales growth of 6.1% from
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Excluding the impact of acquisitions and divestitures, sales
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grew 5.8% in constant currency. We reported operating income
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diluted share of$5.23. Excluding the impact of certain items,
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shipments across most MedSurg and Neurotechnology
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volume increase was due tohigher shipments across most
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foreign currency exchange rates positively impacted net sales by
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inventory stepped up to fair value.
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The key components of the change were:
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increased to 65.9% from 63.8% in 2025 driven by a reduction of
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2026 and 2025. Operating income as a percentage of net sales in
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to the discussion above for the primary drivers of the change.
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Theincrease in Orthopaedics operating income as a percentage
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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 2026 and 2025. Thesix months 2026 included cash paid
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Consolidated Financial Statements for further information on
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1A. "Risk Factors" in our Annual Report on Form 10-K for 2025.
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production time related to the cybersecurity incident.
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MedSurg and Neurotechnology operating income as a
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due to idle production time related to the cybersecurity incident,
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manufacturing and supply chain costsdue to idle production time
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2026 from 2025 was primarily due to 2025 debt issuances.
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Refer to the discussion above for the primary drivers of the
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7 to our Consolidated Financial Statements for further information