Stryker Corporation

Welcome to the first quarter 2026 striker earnings call. My name is Megan and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Following the conference, we will conduct a question and answer session. This conference call is being recorded for replay purposes. Before we begin, I would like to remind you that the discussion during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings with the SEC. Also, the discussions will include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found today in today's press conference release that is an exhibit to Stryker's current report on Form 8K filed today with the SEC. I will now turn the call over to Mr. Kevin Lobo, Chair and Executive Officer. You may proceed, sir.

Welcome to Stryker's first quarter earnings call. Joining me today are Preston Wells, Strikers CFO and Jason Beach, Vice President of Finance and Investor Relations. Today's call will reflect a dynamic quarter. The cyber incident had a big impact on our results and affected each of our businesses differently given their varied go-to-market models and processes to record revenue. This resulted in distortions in our first quarter results that will normalize over the course of the year. Preston will provide additional color in his remarks, but this situation will not enable us to provide the normal level of detail or explanations that you are accustomed to hearing from us. The incident occurred late in the quarter and resulted in a global disruption to our business operations. In partnership with third party experts, our internal teams reacted quickly to remove the unauthorized party from our environment. We also began to work tirelessly to bring our systems back online to mitigate the disruption to our customers and the patients they serve. Patient care is our top priority, and we are incredibly thankful to our employees, customers, health care professionals and other partners for their continued trust. As of the week of April 1st, we were fully operational across our global manufacturing network as we continue to meet demand and support patient care. We are proud of the resilience shown by our teams and partners during the recovery effort. Now, moving to our financial results. For the first quarter, organic sales growth was 2.4% on a worldwide basis, 1.9% in the U.S., and 3.9% internationally. While our growth this quarter was meaningfully impacted by the cyber incident, we remain encouraged by the solid fundamentals in the markets we serve and remain well positioned within them. As a result, we are maintaining our full year guidance and look forward to another year of healthy performance in 2026. On the M&A front, we recently announced the agreement to acquire amplitude vascular systems that we expect to close in the second quarter. The acquisition of AVS will help expand treatment options for our peripheral vascular customers and is also a step toward expanding our presence in the broader cardiovascular space. Also, at the beginning of Q1, we established our new orthotech business by combining the Mako and enabling technologies with the orthopedic instruments portfolio from our instruments business to simplify the customer experience, accelerate innovation, and increase our speed to market. This move aligns two units that serve orthopedic customers with products such as System 9 power tools, flight personal protection products, pulse lavage, as well as MAKO and Enabling Technologies. Finally, I'd like to thank Jason for his last four years as Vice President of Finance and Investor Relations and wish him continued success as CFO of our MS&T Group. We look forward to Nick Mead assuming the role of VP and Investor Relations on May 1st. With that, I'll now turn the call over to Jason.

Thanks, Kevin. My comments today will focus on providing an update on the current procedural environment select product highlights, and reporting changes. As Kevin mentioned in his remarks, we are fully operational across our global manufacturing network and have provided information on our recovery efforts on our website and recent SEC filings. For today's call, inclusive of Q&A, our focus will remain on recovery and business performance. Turning to the environment, underlying demand across our businesses remain healthy in Q1, even as the cyber incident created operational disruption. Procedural volumes were solid, supported by favorable demographics and the continued adoption of robotic assisted surgery. The hospital CapEx environment also remains steady and our capital order book remains elevated as we enter the remainder of the year. Additionally, we delivered our best ever Q1 for Mako installations, both in the US and internationally with high and increasing utilization rates across the globe. We continue to expect sustained momentum from installations and utilization to drive growth in our joint replacement businesses. We also continue to receive ongoing positive feedback from surgeons on Mako Shoulder, for which we anticipate fully launching on Mako 4 mid-year. Next, to reflect the launch of the OrthoTech business, we've updated our segment disclosures beginning with our first quarter earnings materials. Within the orthopedic segment, ortho tech results include our orthopedic instruments and Mako and enabling tech portfolios, as well as other products such as bone cement. Additionally, the neurocranial businesses are now reported together with the remaining surgical technologies portfolio under instruments. These changes align with our internal organizational structure where we have presidents leading both our orthotech and instruments businesses. On our investor relations website, we've also provided additional information with our earnings release on segment quarterly revenues for 2023 through 2025 that reflects the changes I've discussed as if they had been effective for those years. With that, I will now turn the call over to Preston.