1) Cyber Incident Impact
- The cyber incident significantly disrupted Stryker's operations, affecting revenue recognition and shipment timelines.
- The company has since restored full operational capacity as of April 1, 2026, and is focused on recovery.
- The incident's impact varied across different business units, with capital-intensive segments like MedSurg facing longer recovery times compared to those with consigned inventory like Orthopaedics.

2) Financial Performance Overview
- Q1 2026 organic sales growth was 2.4%, with 1.9% in the U.S. and 3.9% internationally.
- Adjusted earnings per share (EPS) was $2.60, down 8.5% YoY, primarily due to the cyber incident and increased costs from tariffs and interest.
- Adjusted gross margin was 63.6%, reflecting a 190 basis point decline YoY, while adjusted operating margin was 21.1%, down 180 basis points YoY.
- The company maintains its full-year guidance for organic sales growth of 8% to 9.5% and adjusted EPS of $14.90 to $15.10.

3) Strategic Initiatives and M&A
- Stryker announced the acquisition of Amplitude Vascular Systems, expected to close in Q2, which will enhance its offerings in the peripheral vascular market.
- The new Ortho Tech business was established by merging Mako and Enabling Technologies with the Orthopaedic Instruments portfolio, aiming to streamline customer experience and accelerate innovation.
- The company is optimistic about its M&A pipeline and plans to remain active in pursuing additional acquisitions.

4) Market Dynamics and Product Updates
- Procedural volumes remain healthy, supported by favorable demographics and the adoption of robotic-assisted surgery.
- Stryker reported its best Q1 for Mako installations, with positive feedback on the Mako Shoulder, set for a full launch mid-year.
- The company anticipates continued growth in international markets, particularly in Japan and Saudi Arabia, with new product approvals expected to drive future sales.

5) Guidance and Outlook
- Despite the challenges faced in Q1, Stryker is confident in its ability to recover lost sales throughout the remainder of the year.
- The company expects a catch-up in revenue recognition in Q2, with further recovery anticipated in Q3 and Q4 as delayed procedures are rescheduled.
- Additional insights on the impact of the cyber incident on specific segments and detailed quarterly guidance were not provided.

Bottom line: Stryker's resilience in the face of a cyber incident, coupled with a strong market position and strategic acquisitions, positions the company well for recovery and growth in 2026, maintaining its full-year guidance despite operational disruptions.