Stryker's stock fell 7.5% following the earnings release as investors reacted negatively to meaningful supply disruptions in the peripheral vascular business that caused significant lost sales and pressured margins despite solid overall organic growth.
- Reported 9% organic sales growth driven by strong performances in MedSurg, Neurotechnology, and Orthopedics.
- Supply chain issues in the peripheral vascular segment led to a considerable backlog and lost sales; management expects backorders to normalize by end of Q3.
- Adjusted EPS grew 17.9%, benefiting from operational execution and tariff-related cost benefits, though offset in part by margin pressure in disrupted segments.
- US organic growth was 9% with double-digit growth in medical, trauma extremities, and endoscopy businesses; Instruments grew 8.4% in the US.
- International organic growth stood at 8.9%, supported by strong demand in diverse markets including Australia, Germany, and Japan.
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