史赛克 (SYK) 2026年第三季度业绩电话会：髋关节与膝关节业务放缓导致业绩指引调整lg...

史赛克（Stryker）2026财年第三季度有机销售额增长7.7%，但由于髋关节和膝关节手术量走弱以及外周血管业务面临供应链限制，管理层下调了全年业绩预期。得益于毛利率扩大和费用控制，调整后每股收益（EPS）增长10.3%，部分弥补了销售额不及预期的影响。

核心要点

• 第三季度有机销售额增长7.7%。医疗外科与神经科技业务增长9.1%，骨科业务增长5.9%。
• 调整后每股收益为3.52美元，同比增长10.3%。调整后营业利润率扩大60个基点至26.2%。
• 美国市场膝关节有机销售额增长1.3%，髋关节销售额下降0.6%。管理层预计2026年髋关节和膝关节市场增速约为2.5%。
• 史赛克将全年有机销售额增长预期下调至6.5%-7.0%，并将调整后每股收益指引下调至14.80-14.90美元。
• 内窥镜、医疗产品和OrthoTec仍是核心增长动力。在美国市场，内窥镜有机销售额增长13%，医疗产品增长10%，OrthoTec增长18%。
• 管理层预计，在当前手术量环境持续且大型设备需求保持强劲的前提下，第四季度有机增长率将与第三季度相近。

重要财务数据

业务与运营表现

骨科业务

骨科是业绩走弱的主要原因。受去年同期高基数影响，美国膝关节有机销售额仅增长1.3%，髋关节销售额则下降0.6%。

管理层将增速放缓归因于保险费和自付额上升、预先授权拒绝率增加，以及欧洲和中东市场的疲软表现。局部动荡、罢工以及政府预算决定也推迟了美国以外地区的手术安排。

公司内部的执行问题也加剧了业务疲软。第一季度的网络安全事件以及7月份实施SAP系统分散了商业团队的精力，并延迟了对市场动态的掌握。管理层表示，虽然公司并未遭遇竞争对手带来的重大客户流失，但获取新业务的效率不及历史水平。

在Mako机器人系统和骨科动力工具的推动下，OrthoTec表现依然强劲，美国市场有机销售额增长18%。上肢业务表现同样稳健，包括Mako Shoulder在Mako 4平台上的早期应用。

医疗外科与神经科技

医疗外科与神经科技有机销售额增长9.1%。在美国市场，受手术室基础设施建设、改造需求及运动医学的推动，内窥镜销售额增长13%。

美国医疗产品有机销售额增长10%，其中Sage和SmartCare均实现两位数增长。管理层表示，在Care.ai与Vocera完成整合后，SmartCare创下有史以来最佳单季表现，实现了高两位数增长且订单量不断改善。

在去年同期增长15.3%的高基数下，美国手术器械有机销售额增长4.8%。介入脊柱与手术科技实现两位数增长，而神经外科销售额因客户在Sonopet 3发布前推迟资本性采购而受到影响。Sonopet 3已于10月获得美国FDA 510(k)许可。

外周血管

得益于中国合资企业在达成监管里程碑后带来的单次收入，外周血管业务环比有所改善。这部分弥补了因持续的供应链中断而造成的销售损失。

管理层表示，到今年年底，库存和产品供应状况应会继续恢复正常。在获得监管批准的前提下，公司预计将于2027年开始商业化AVS的IVL平台，并期待公布FlowTriever的PEERLESS II研究数据。

机器人、创新与并购

史赛克宣布对CMR Surgical进行投资，并签署协议成为Versius平台在美国的独家销售代理。管理层将软组织手术机器人视为史赛克在内窥镜、可视化及赋能技术能力的延伸。

公司打算采取分阶段推进的方式，以降低商业化和研发风险。管理层表示其最终计划是收购CMR，但未给出具体时间表。

其他既定的增长平台包括下一代Neptune废弃物管理系统、1888内窥镜平台、System 10动力工具以及预计于2027年推出的电动髋关节解决方案。管理层还提到，尽管客户反馈良好，但Mako RPS的推广普及起步较为缓慢。

管理层业绩指引

调整后的预期反映出髋关节和膝关节手术趋势放缓、外周血管业务面临供应链限制，以及对大型资本设备销售执行采取了更为保守的假设。

管理层对第四季度的预期建立在当前手术量环境持续的假设之上。同时还假设大型设备需求保持稳定，史赛克表示其在手订单量仍处于高位。

公司未发布正式的2027财年指引。管理层表示，公司的目标是在保持利润率扩大的同时，实现处于终端市场增速高位区间的增长，但同时也指出，史赛克的加权平均市场增长率可能已低于一年前讨论的约6%水平。

风险与关注领域

• 受患者支付能力担忧和预先授权拒绝率的影响，髋关节和膝关节手术量增长可能会继续承压。
• 管理层无法预测关节置换需求何时能够复苏，且在业绩指引中并未假设短期内会出现反弹。
• 骨科业务的商业化执行受到了网络安全事件和SAP系统实施的干扰。
• 外周血管业务继续面临供应限制，不过预计到年底产品供应将恢复正常。
• 强劲的大型设备需求需要充足的生产能力和执行力相匹配。
• 计划在美国商业化CMR Surgical的Versius平台，在进入新邻近领域时面临开发和推广普及的风险。
• 预计骨科产品的价格仍将小幅承压，而正向的提价贡献将主要来自医疗外科业务。

分析师问答环节要点

髋关节和膝关节业务放缓：管理层估计2026年市场增长率约为2.5%，低于近年历史水平。管理层表示，增速放缓集中在髋关节和膝关节，而非四肢骨科，且在SAP系统实施导致订单可见度延迟后，这一情况变得更加清晰。

潜在的手术恢复：管理层将业务疲软描述为需求推迟而非永久性减少，因为关节疾病属于退行性病变。然而，管理层拒绝预测复苏的具体时间或速度。

第四季度增长驱动因素：创伤与四肢骨科、医疗产品以及手术器械预计将对第四季度业绩形成支撑。随着供应状况恢复正常，外周血管业务也有望改善。

资本设备需求：史赛克表示其在手订单依然强劲且保持在高位。主要挑战在于通过匹配产能和供应链与客户订单，将需求转化为实际收入。

2027年增长框架：管理层未设立增长保底目标。管理层表示，除关节置换外，在大型设备需求、新产品和更广泛的Mako生态系统的支撑下，公司的基本面依然强劲。

资本分配：并购（M&A）仍是史赛克资本分配的首要任务。公司将股票回购描述为择机进行，并表示其现金生成能力为战略收购保留了灵活性。

业绩电话会议完整文字记录

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完整财报电话会议逐字稿

管理层陈述

Operator

Welcome to the Third Quarter 2026 Stryker Earnings Call. My name is Leila, and I'll be your conference operator for today's call. [Operator Instructions] This conference is being recorded for replay purposes.

Before we begin, I would like to remind you that the discussions 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 in today's press release that is an exhibit to Stryker current report on Form 8-K filed today with the SEC.

I will now turn the call over to Mr. Kevin Lobo, Chair and Chief Executive Officer. You may proceed, sir.

Kevin Lobo

Welcome to Stryker's third quarter earnings call. Joining me today are Preston Wells, CFO, and Nick Mead, Vice President of Investor Relations. Before I begin, I'd like to congratulate Spencer Stiles on his appointment as Stryker's next CEO. Spencer has spent nearly 3 decades at Stryker, helping shape our strategy, strengthen our culture and drive our growth. You will have additional opportunities to hear more from him at various investor events over the next few months and I am confident he will come away with an even greater appreciation of his capabilities to lead Stryker into the future.

For today's call, I'll provide an overview of our performance. Nick will then provide a brief M&A update followed by Preston with additional details on financial results and guidance. We will then open the call to Q&A. Turning to our third quarter performance. Organic sales growth for the quarter was 7.7%, and with 9.1% growth in MedSurg and Neurotechnology and 5.9% growth in Orthopedics. Our Endoscopy and OrthoTec divisions delivered double-digit performances and Medical also delivered near double-digit growth. While we delivered solid growth in several businesses, our overall results fell short of our expectations. As Preston mentioned during the investor conference in September, we are facing challenges with our hip and knee and peripheral vascular businesses.

Beginning with hips and knees, it is now clear that there is a market slowdown. In the U.S., we are seeing slower procedural growth amid affordability concerns from higher insurance premiums and deductibles we are also observing increased preauthorization denials, creating additional friction and delaying patient access to treatment. Europe and the Middle East have also remained soft amid regional disruption, strike-related delays and government funding decisions. In addition to the softer market, we have not been winning at our historical rate. 2026 has been an unusual year, marked by the cyber incident in the first quarter and an SAP implementation within our Orthopedics businesses in July. This is the last of our businesses to go on to SAP.

And while the system is functioning well, it has created a distraction for our teams and delayed our visibility of market conditions. Although Mako sales have been strong again this year, we are behind our expectations on new product sales for Mako RBS and Triumph on gold. The feedback on these innovations is very positive, but the cyber incident and SAP implementation have impacted our commercial execution. We are taking actions to improve competitive conversions and new product adoption. Finally, as a leader in power tools, we are excited about bringing a powered hip and packaging solution to the market next year, addressing an important product gap in our hip portfolio. We remain confident in the long-term attractiveness of the large joint reconstruction market, supported by favorable demographics and expanded access through new sites of care such as ASCs.

Next, I'd like to give an update on our vascular business, which reflects a sequential improvement from last quarter. The third quarter included onetime revenue from our Peripheral Vascular joint venture in China, as a result of achieving a regulatory approval milestone in September. This benefit helped offset the impact of lost revenue from the ongoing supply disruption that we discussed during our last earnings call. Our team has made meaningful progress restoring supply throughout the quarter, and we now expect inventory levels and product availability to continue normalizing through the end of the year. While this has been a challenging period, we remain convicted in the outlook for Peripheral Vascular as a growth business accretive to Stryker.

Looking ahead to 2027, we expect to begin commercializing AVS' IDL platform and also look forward to important data from our PEARLESS II study of FlowTriever. We are excited about our recently announced strategic investment in CMR Surgical, which Nick will cover in his section. Our updated organic sales guidance anticipates a similar overall organic growth rate for the company in Q4 as we achieved in Q3. This assumes a continuation of the procedure environment we observed this quarter as well as continued strong capital demand where we continue to maintain an elevated order book. Meanwhile, our successful efforts on margin expansion are limiting the impact of our sales shortfall on adjusted EPS, and we continue to generate strong cash flows.

As this is the last of 57 earnings calls as CEO, I would have preferred to deliver better news, but we've demonstrated before that our business is resilient, our foundation and culture are strong and we remain confident in our ability to deliver on our long-range financial commitments.

I will now turn the call over to Nick.

Nick Mead

Thank you, Kevin. My comments today will focus on M&A and we'll highlight 2 recent transactions. As announced earlier this week, we have completed our acquisition of Ziva, which expands the support we can provide to specialists across sports medicine and Arthroplasty. ZeriMed's differentiated fiber locker technology is designed to increase biomechanical strength and rotator cuff repair and provides a broader platform orthopedic soft tissue augmentation. Next, we recently announced an investment in CMR, an agreement to act an exclusive U.S. sales agent for the Verses platform. Soft tissue robotics is an attractive adjacency as a natural extension of Stryker's strength in Endoscopy, visualization and enabling technologies. Versius has been used in more than 50,000 procedures globally and a scalable design and support broader adoption of robotic-assisted surgery.

With its new Versius system, approved indications, technology and a growing global clinical experience, we believe now is the right time to partner with CMR and begin scaling the U.S. market through a thoughtful and disciplined approach. Together, these transactions reflect our continued focus on investing in opportunities that support durable long-term growth and value creation.

I'll now turn the call over to Preston to further discuss our third quarter financial performance.

Preston Wells

Thanks, Nick. Detailed financial information is included in today's press release. I'll focus on our third quarter financial performance, the key drivers of our results and our updated outlook for the remainder of the year. Organic sales grew 7.7% in the quarter against strong prior year comparable. Pricing contributed 0.1% to growth, while foreign currency had no impact on sales. The quarter had the same number of selling days as the prior year quarter. Adjusted earnings per share were $3.52, up 10.3% from the same quarter last year, driven by gross margin expansion supported by operational efficiencies along with disciplined expense management.

Turning to segment performance. MedSurg and Neurotechnology organic sales grew 9.1%, with growth of 9.6% in the U.S. and 7.2% internationally. Instruments U.S. organic sales grew 4.8% against a strong 15.3% prior year comparable, with double-digit growth in our Interventional Spine and Surgical Technologies businesses. This performance was offset by softer performance in our neurosurgical business due to the deferral of capital purchases ahead of the upcoming launch of our Sonopet 3 ultrasonic aspiration platform. which received FDA 510(k) clearance earlier this month. Endoscopy, U.S. organic sales grew 13%, supported by continued robust demand for operating room infrastructure and renovations and strong performance in sports medicine, where double-digit growth continues to be driven by its expanded range of shoulder implant products. Medical U.S. organic sales increased 10%, including double-digit performances from Sage and Smart Care businesses, while capital demand remains elevated across our portfolio.

The U.S. organic sales grew 13%, primarily reflecting the drivers that Kevin discussed earlier. Internationally, MedSurg and Neurotechnology organic sales growth of 7.2% included broad strength across endoscopy, medical and instruments. Geographically, growth was led by robust performances in Australia, Germany, Canada and India. Orthopaedics organic sales grew 5.9% with growth of 6.4% in the U.S. and 4.4% internationally. U.S. knees organic sales grew 1.3%, while U.S. Hips organic sales declined 0.6% against strong prior year compares. As Kevin noted, we remain focused on strengthening our commercial execution behind our enabling technology platforms and new products to restore momentum and drive share gains. U.S. and extremities organic sales grew 4.5% against a strong 13.2% prior year comparable.

Current year growth reflected continued strong performance in upper extremities supported by continued momentum across our differentiated portfolio, including early success of Mako shoulder on Mako 4. We are expecting strong growth for trauma extremities in the fourth quarter. U.S. OrthoTec organic sales increased 18%, supported by continued strength in Mako sales and robust demand for orthopedic power tools. Internationally, Orthopaedics organic sales grew 4.4% and supported by knees, OrthoTec and trial in extremities and was led regionally by Canada, Japan, Australia, Germany and India. Turning to margins and other income statement items. Adjusted gross margin was 65.4%, up 40 basis points from the third quarter of 2025. The improvement reflected a net tariff benefit and benefits from operational efficiencies. Adjusted operating margin was 26.2% of sales, up 60 basis points from the third quarter of 2025, reflecting the gross margin improvement and continued expense discipline.

Adjusted other income and expense was $91 million, down $25 million from the same quarter last year, reflecting lower debt levels. We now expect adjusted other income and expense to be approximately $400 million for the full year. The third quarter had an adjusted effective tax rate of 16%, and we now expect our full year effective tax rate to be in the range of 15.5% to 16%. Turning to cash and capital allocation. We ended the third quarter with approximately $3.3 billion of cash and cash equivalents and year-to-date cash from operations of $3.3 billion, an increase of approximately 14% compared to the prior year. During the quarter, we repurchased $1 billion of shares under our previously existing share repurchase program.

Additionally, we received board authorization for another [indiscernible] towards future share repurchases which provides us additional flexibility while preserving our capacity to invest in strategic M&A growth opportunities. Based on our year-to-date results, we are revising our full year guidance to reflect softer hip and knee procedure trends. Link supply constraints in peripheral vascular and mitigation of operational execution risks related to capital equipment sales. We now expect full year organic net sales growth of 6.5% to 7% and adjusted net earnings per share of $14.80 to $14.90. Our revised adjusted earnings per share outlook reflects continued expense discipline and gross margin expansion. Looking ahead, we remain confident in the long-term trajectory of our business.

Our diversified portfolio, leading positions in attractive markets robust innovation pipeline and expanding Mako ecosystem provide a strong foundation for sustainable growth. As we plan for 2027, our priorities remain focused on category leadership, advancing innovation and driving operational excellence to deliver market-leading sales growth while continuing to expand margins and grow earnings. We are continuing to assess market conditions, procedural volume trends and a broader macroeconomic environment as we finalize forecasts for 2027. While we will not provide formal guidance until early next year, we do expect to deliver growth at the high end of our markets.

With that, I will now open the call for Q&A.

Operator

[Operator Instructions] Our first question will come from Robbie Marcus with JPMorgan.

分析师问答

Robert Marcus

Great. Two for me. First, Kevin, clearly disappointing to hear about the ortho market. Where do you think market growth is now? Anything the industry could do to help spend the decline? Is it extremities as well as hips and knees? And then I have a follow-up.

Kevin Lobo

Thanks, Robbie. What we saw was really a slowdown in the pane portion of the market, not really extremities. Our extremities business, especially operepities, continues to be very high growth. So we're not seeing much impact there. It's really the hip and knee market, where we're seeing the slowdown. It's hard to estimate exactly, but I would say market growth is kind of in the 2.5% range this year. That's what we think, which is definitely a step down from where it has been in the last 5, 6 years.

And as you know, it took us a while to figure this out. There's a lot of noise with our cyber event, noise with some of the things going on competitively and then our SAP implementation, which really delayed a lot of order entry. So, we really started to figure this out kind of in early September when Preston made his remarks at the investor conference. But this has happened before in my tenure -- earlier in my tenure where we've had kind of a year like this and things have turned. So we'll have to monitor this closely and it certainly was a surprise for us, and that is reflected in our guidance.

Robert Marcus

I appreciate you're not guiding for 2027 at this point. There's a lot of moving pieces here as we think about some of the shifting market dynamics where do you think Stryker's weighted average end market growth is as we head into year-end? And any puts or takes we should be considering respective on margins? I know this is a pretty healthy margin business in ortho. How we should think about that on the P&L?

Preston Wells

Rob. So in terms of the weighted average market growth, and we said a year ago at our investor conference that we believe we're about 6% is what we thought we were -- now obviously, if you take into account what's happening across the joint place with the Hip and Knee market, that's probably taken a little bit of a tick down from there. So we're continuing to look at it and understand kind of where that nets out. So I think if we have those couple of pieces, you can see we're probably a little bit of a step down from where we said a year ago in terms of our overall growth rate. As I mentioned in my remarks, our goal will be, as we start on 2027 is that we will perform at the high end of those markets as we go into there.

Looking at the margins, our expectation around margins is that we want to continue to deliver what we committed to a year ago as well. We feel like we're putting the right plans in place from an operational excellence standpoint. We're really getting after our manufacturing element and gross margins from that standpoint as well as just looking at other efficiencies up and down the P&L. So you're right, the joint replacement market is certainly a more profitable gross margin business. But overall, we feel like we're putting the right pieces in place to continue to try to drive our margin improvement year-over-year.

Operator

Our next question will come from Larry Biegelsen with Wells Fargo.

Larry Biegelsen

So Kevin, given this is your last earnings call, congratulations on creating a lot of shareholder value at Stryker and Spencer, congratulations on your new role. I wanted to start with the CMR investment actually. Why is CMR the right partner for you? How will you and CMR compete against the bake incumbent? And if you do decide to acquire it, how will you absorb the high cost of developing and marketing a competitive soft tissue robot. And then I have one follow-up. .

Kevin Lobo

Yes. Thanks, Larry. Look, the soft tissue robotic market is very appealing. As you know, I've been talking about it for years. We've looked at every robot around the world and had multiple looks at these robots. When Versius Plus came along the upgraded version of Versius, we got a chance to see something that we felt very excited about. We feel it is the best rollout on the market to be able to succeed in multiple sites of care. The modular nature makes it great for the ambulatory surgery center as well as working well in hospitals. And frankly, robotic penetration is very low in general surgery.

So we look at winning as being able to convert open surgery and convert laparoscopic surgery to robotic regardless of competing with the incumbent. There's plenty of room for 2 players in the market. But this will work in hospitals. This will work very well for high-volume procedures like colectomies and appendectomies and hernias. And so it can be a very high volume, simple-to-use small platform robot that's highly, highly functional. And to your question about risk, one of the reasons we're going about it in this manner is we want to derisk this and have our people do the commercialization in the U.S. as an investor, but not a full owner our hope and our plan is that we will eventually purchase this.

And we're not going to get into details about when that would be, but that is our plan. This is our bet in the soft tissue robotic place. We're putting a lot of resources on this and that is our expectation that we will be able to take out the asset and be able to drive value for Stryker. We've done this before with Mako, and we had the challenges of developing that. This is further along, frankly, in its journey than Mako was when we acquired Mako. And again, we're very excited. It's a very high-growth segment of MedTech, and we believe this is going to be a winning solution that we are hopeful to acquire in the not-too-distant future.

Larry Biegelsen

That's helpful. And Kevin, it's been a while since the last new product super cycle. You talked about the recent Sonopet clearance. You have the hip impactor next year and the PEERLESS II data. What other products or growth drivers would you highlight for next year?

Kevin Lobo

Well, we have the next version of Neptune, which is our big waste management platform. within instruments that's coming in the first half of next year. Now that's going to be a very exciting launch. We have the ABS product, as you know, that we're expecting FDA approval towards the end of this year. That will be a shot in the arm for our Peripheral Vascular business. And we have -- in the not-too-distant future, we're not going to give you dates. We have system 10 coming for power tools. We have 1888 coming as well for endoscopy and so we're going to continue to be launching products on a pretty sustained basis across it.

I'm not even getting into all the smaller products that we have. Obviously, we've acquired a great platform for sports medicine with Isorimed that will plug right into our existing shoulder businesses. And so there are a bunch of other products, which we'll get into later on earning other calls, but major platforms Neptune major platform on a pet major platform, 1888 coming, System 10 coming. So we have a lot. And don't forget, Mako RPS is just getting started. TritonGold just getting started, that they made a stabilized inserts doing very well. And so the power of factor is very important. In hips for us, that is a really important gap to be able to do competitive conversions, having that power impact is going to be very important for us and they have business.

Operator

Our next question will come from Joanne Wuensch with Citi.

Joanne Wuensch

And congratulations to you both. I do have a memory of ebbs and flows in the orthopedics market, and we hit the main market. But generally, could you remind what brought us out the last time? And what can be learned from that to think about bringing this out this time?

Kevin Lobo

Well, in the past, sometimes it's been tied to economic activity. So when you see it in economic pressures, people feeling strained financially. I mean, there are patients that today are having trouble being able to make their deductible because their deductibles are higher and to be able to fund their deductible, they're actually living with pain a little bit longer than they would like to. So as sort of economic conditions tend to improve for the, let's call it, an average person in the in the market, then you start to see the demand pick up.

And frankly, these diseases are degenerative. So you can delay these for a while, but the pain reaches the point where you can't sleep at night. And so we see this as not a market that's going to go away. It's just this temporary delay that's happening right now, and the market will come back. It's hard to predict exactly when. But it has historically tied more to sort of economic cycles if you go back, Joanne, I think that's a correlation you'll probably notify.

Joanne Wuensch

Helpful. And I think just to pick up from a previous question, to say you grow at the high end of where your market growth is, we're all going to be updating our models and talking about lots of fun stuff. Can you give us some parameters around that? Just some footing as we think about next year?

Preston Wells

Yes, Joanne, I would just point you back to what we said a year ago, again, in terms of what we think our Ranger is across all of our businesses. I mean we're not going to obviously put detailed business by business. But if we look at just that overall [indiscernible] and then think about this new kind of reality that we're living within the hip and knee market, and that probably takes a little bit of a tick down. And then again, our expectation is that we're going to grow faster than what that looks like.

Operator

Your next question will come from Ryan Zimmerman with U.S. Bancorp BTIG.

Ryan Zimmerman

Kevin, 57 quarters, nice run. Congratulations. On the fourth quarter, I think if you look at the implied math, it shakes out to around 7.9% organic, roughly in line with kind of what you guys saw this quarter. Preston, you did highlight the areas that you think are going to be weak, orthopedics, peripheral vascular, et cetera. Maybe help us think about kind of what's accretive in the implied organic growth for fourth quarter where you're seeing momentum, where you're seeing strength? It sounds like extremities is holding up nicely in some of the other MedSurg businesses as well. But just help us offset some of that weakness or where you see that could be offset? .

Preston Wells

Absolutely. So I mean we expect that, like you said, I think that implied number is pretty good. I think we'll be looking at areas like trauma and extremities, as you mentioned. We expect that to have a very strong quarter, as I mentioned in my prepared remarks. The other areas I would look at medical will have a really good quarter. So we expect that to perform well. Instruments is another area that we would expect to have strong performances as well.

And then I think the other is, again, it's just a matter of keeping par with some of what we've done today. As Kevin mentioned, around peripheral vascular, while we still see that being pressured, it should be a little bit better underlying in terms of where we expect that to perform also. So we have a few areas that we'll certainly be leaning on as we come into the fourth quarter, and we'll continue to work on the execution and other areas that Kevin mentioned as well, even in some of those softer spaces.

Ryan Zimmerman

And maybe turning to -- and maybe just turning to capital for a minute. I mean you've talked about the strength of the order book. But at the same time, it's kind of balanced by some of your other comments around capital and so if we could step back and give us your view of capital in the market, maybe what you're seeing, there's been a lot of chatter about 340B and the impact of hospitals. And so would love to understand kind of where you're seeing maybe strong capital demand at higher price points, maybe versus lower price points, et cetera, but I appreciate those thoughts.

Nick Mead

Ryan, this is Nick. I'll take that from a capital perspective. So really, there's 2 components there. There's the demand side of the capital equation, and then there's us executing on mind. From a demand perspective, the order book remains strong and elevated. And of course, there's nuances by business, but by and large, the capital environment remains healthy. What we're focused on is continuing to execute on that demand from a capacity perspective, and we're laser focused to ensure that we have plans in place to deliver on all those businesses that Preston just mentioned in terms of together in the full year.

Operator

Your next question will come from the line of Travis Steed with Bank of America.

Travis Steed

Spencer, congrats on the CEO job. First, when you think about calling out market slowdown versus the winning rate? And what data point is helping kind of build out what's the market slowdown versus the win rate? It seems like, at least to me, from where I sit, maybe things got a little worse later in September versus kind of what was being used at the September conference. So I don't know if things kind of worsened over the course of September for as well.

Kevin Lobo

Yes. Look, I wouldn't say things worsened in September. We only gained visibility to the quarter kind of in the September to because there was huge delays in order entry given the change in SAP. So we only recognized it later in the quarter, but it wasn't just something that fell off in the month of September. And the other thing I'd say is if you look at our sales, we don't do bulk sales within our hip and knee business. And so when you see our numbers that they tend to be pretty reflective of what's happening in the market because we don't have that exaggeration of bulk sales. And it's still going to be a combination. The market is definitely slowed.

We know we're not losing major bits of business to the competition. So that tells us that it's mostly market-related, but we have been gaining share at a higher rate very consistently for the past 5, 6 years, and our teams were distracted. They clearly weren't focused as much on this. And so -- that's why we think the market growth definitely declined, but we weren't taking share of the way we had been taking share in the past.

Travis Steed

Okay. That's helpful. And how does the cyber impact in 26 impact 2027? Is it an easy comp? Is there ability to catch up in '27? And I just want to make sure, it sounds like 6% is kind of the floor for total company growth next year. I just want to make sure I heard that correctly.

Preston Wells

Yes. So let me answer your cyber question. So we haven't gone through yet all the different quarterly splits, et cetera, for next year's process. But certainly, as you look at cyber, it will be something that we'll have to talk about anniversary clearly in the first quarter. but then we'll also anniversary bits of the recovery throughout the year. So we're going to have to really talk through as we go through each quarter kind of the impacts as we can kind of detail them out.

But the reality is for much of the cyber incident, that's been made back up just at different points in time. And I think when we look at our performance in '27 versus '26, it's really going to be a matter of looking at kind of overall how we're performing versus the market and any market changes that are happening from '26 to '27. In terms of the floor, we're not setting in right now. So we're just giving a bit of an indicator of how we're starting to think about '27.

Kevin Lobo

Yes. I think the takeaway is the market slowed down in drug replacement. We've had this challenge with SAP that we believe will be through it affected joint replacement also affected our core trauma business pretty significantly. We think that will be through that. And the underlying fundamentals of our business in every other area are strong. Capital demand is very strong and we have a pretty good innovation cycle. So it's -- the companies, despite this quarter's takedown on the guide, the fundamentals are still very, very strong, looking at it.

Operator

Your next question will come from Matthew O'Brien with Piper Sandler.

Matthew O'Brien

And Kevin, it's been an absolute pleasure watching you grow this business. I guess I'm still a little hung up on the hip and knee commentary about Q3 here because if I look at your OrthoTec number, that was really good. It still seems like, generally speaking, the macro environment is really healthy. actually talked to CDMO yesterday, they said things are pretty steady. Trying to reconcile this slowdown is all these other data points that look like they're still fairly positive.

And what I'm really kind of getting at is, it feels like this could be a very short-term blip and that the recovery could be very quick. Is that fair? Are there certain parts of the market? I don't know if it's private pay patients versus Medicare patients or anything else like that you can point to that says this is the one area that's really slowing down and that we could see a snapback in that area going forward?

Kevin Lobo

Look, I'm not going to be -- I don't have a crystal ball. So it's really going to be difficult to predict if there will be a snapback. There have been confounding data points all year on the market. I mean one of the big hospital chains just announced their results earlier this week and talked about a significant slowdown in hips and knees. And they're a very large operator. So that's a data point, then there's other data points that say it's not as bad. So I think your point is -- the most accurate point is things come back, and it's hard to predict when they come back. You might be right, there could be a snapback, but we're not going to count on that as we give our guide, we're assuming it stays where it is right now, the market stays where it is. We have seen times in the past where it's come back pretty quickly, and we've seen other times where it's taken a little longer. And I really don't have a great feel for when this will return.

Matthew O'Brien

Okay. And then just quickly on the vascular business. It does look like it popped back up here a little bit, which is great to see. Can you just talk about kind of the state of the vascular business and then your IVL plans as we go into '27?

Kevin Lobo

Yes. Look, the state of the business is we have a very stable and high-performing sales organization, which was last year's challenge. If you recall, we had a lot of sales force challenges. That's well behind us. And sales and marketing organization is really solid. As we came back up after the cyber incident, we had a lot of challenges with our manufacturing facility. And that put us in a back order, and that was -- has been very, very painful. It got better in the last quarter. We also had the one-time benefit, which I mentioned in my opening remarks, but I'm starting to feel like AVS, the excitement from our customers is in crown. Customers are really excited about technology, the method of action and it's the same customer that also uses our other peripheral vascular products.

So we believe that synergy is going to be fantastic. Not only will the product, and we believe performed very well, but we believe it will have a synergistic effect on the base business. So we're looking -- we're just waiting for the FDA approval and the teams are already preparing for launch.

Operator

Your next question will come from the line of Matthew Taylor with Jefferies.

Matthew Taylor

I wanted to ask you somewhat conceptual, but also pragmatic question about AI. You've seen in other areas of the market, even in health care recently a lot of subsectors that credit for AI and the improvements that it could bring, it doesn't seem like that's really happened at all in med tech, and yet you have a couple of businesses now with robotics in surgery and connected care that I would think over time could have significant product benefits, development benefits from AI. So I was hoping you could talk about that a little bit why you think med tech hasn't gotten credit and the kind of benefit that we could see from AI on your business in MedTech over time?

Kevin Lobo

Yes, I think what we've generally seen within health care and MedTech specifically, is when you have new cycles of technology innovation, it tends to take longer before it has an impact. Just the regulated nature of our industry tends to cause ticket a little bit longer. Same robotics is a good example where robotics has taken hold in a lot of other industries and more recently has really started to take off in MedTech we focused a lot of our energy on AI for innovation. Yes, we have some productivity initiatives ongoing, but we have 3 FDA-approved AI products and you referenced a couple of them when you were speaking in your question, and we have a number of other words.

Most of our product innovations that we're launching, anything in enabling tech world is likely going to have some kind of AI component to it. And we're very excited about the promise of bringing science to health care and using AI to help drive that science. So that when you visit a surgeon, you're not just getting there 1 lived person's experience, you're going to be getting a wealth of data at the disposition to be able to make informed decisions, just like we do with our Blueprint preplanning software for our upper extremities. So, we are investing in it. You're going to hear more from us. It is always a little bit slower in med tech. That's just the nature of innovations in a regulated industry.

Operator

Our next question will come from Vijay Kumar with Evercore ISI.

Vijay Kumar

Kevin, maybe my first one for you. When you look at '27 and new products, you listed out then in the past when we had these [indiscernible] and 1788 launches. You called them as super cycles. I'm curious on given the current environment, how would you characterize this impact of new products? Is it still something that you would characterize as a super cycle for '27?

Kevin Lobo

Yes. Look, the phrase was important because we had a number of platforms all being launched at the same time. And what I'd say is our innovation never stops. And sometimes the timing is just on the same time. Sometimes it's metered out over -- you have a power to launch 1 year, a camera launch to next year, and [indiscernible] upgrade the next year. So sometimes they're a little bit more spaced out. They just happen to be condensed all in one sort of cluster, if you will. But I would say that we have great innovation ongoing. Innovation gets rewarded in med tech. And so we are going to continue to invest in innovation and the platforms, I can tell you, 1888, I'm incredibly excited about. It has some features that it's going to be a step change.

So as 1688 was a step change, 1788 was a little bit more incremental. I think 1888 is going to be fantastic. And then we have System 10, and we have all the other products across our portfolio that we've been launching Neptune is always is a great product that platform changes obviously drives growth. So every time we do these innovations, it drives growth, and that is not changing. That dynamic isn't changing and the capital market is really good. We're seeing our order book being elevated, and we're not training our backlog. And we're just -- frankly, if you think about medical is a good example like back Procuity are still new products. They don't sound new, but these products ramp over an extended period of time just because the replacement cycle is a lot longer on [indiscernible] and defibrillators, and so the demand for those products are very significant and we're actually building extra capacity, especially in beds. The demand is very strong. And so those are still kind of new products, even though they've been launched a little while ago because of the replacement cycle. So we feel good about our innovation. It's alive and well in our company and a number of those launches will occur in '27.

Vijay Kumar

That's helpful. Maybe, Preston one for you. I saw the buyback in the quarter. You have a new authorization for $3 billion. What's the, I guess, philosophy behind capital allocation editions, right? Is this something that you would consider as more opportunistic in nature when you think about deploying capital towards buybacks?

Preston Wells

Thanks for the question. As we said last quarter, given the timing of when we have our deal flow from an M&A standpoint, that we would look at more opportunistic share buyback opportunities. And that's kind of what we saw. That's what we saw in the third quarter and we'll continue to evaluate that in the fourth quarter as well. But just to reiterate, and Nick talked a little bit about this in his prepared remarks, capital allocation from our standpoint, the #1 priority remains M&A. And so we want to continue to put our dollars towards M&A, but just given the timing of what we've had this year, and what we see, this does just give us the opportunity to go out and do some opportunistic repurchases of share.

The one thing I would say, too, is it doesn't take away from any of our firepower. I think what we've been able to demonstrate over the last several years is a continued increase in our ability to generate cash at a higher rate. Just some of its scale, some of it is the work that we're doing on working capital in other areas. And so that gives us a lot of flexibility now to go out and enhance our capital allocation in terms of how we're thinking about where we put our dollars to drive shareholder value. So this just gives us another lever to keep that.

Kevin Lobo

Yes, I'd just like to add something about M&A. So we continue to remain a disciplined acquirer, and we had a number of targets that we weren't able to close on this year. And some of those targets basically didn't trade at all. and we hope will actually come back to us as opportunities in the future. And so we do have an active pipeline. But with the sheer amount of cash we're generating, we're able to do these buybacks and still pursue all of the deals that we're pursuing right now. And we intend to remain active in M&A going forward.

Operator

Our next question will come from the line of Chris Pascal with Barclays.

Unknown Analyst

You mentioned mitigating execution risk related to capital equipment sales as one of the factors behind the guidance revision. I was just hoping you can elaborate on that. Are you saying you're just being more conservative about what's assumed between now and year-end just to absorb any delays that might crop up? Or is there more to it in terms of what you're seeing out there in the market?

Preston Wells

Chris, I think that's right. When you listen to what Nick said earlier with regards to capital demand, demand is there, we're seeing very, very strong demand. We talked about ramping production, which we've been doing and we were able to do on many of our lines, particularly around medical. It's just making sure that we can match that production and supply with the demand as it continues to grow. So again, it's a bit of a -- just a conservative -- more conservative view in terms of our lead to just make sure that we are executing at the highest level to make sure that we can meet all the demand that is out there from a capital standpoint.

Unknown Analyst

Okay. And then you had called out weakness in hips previously. The knee performance this quarter was sort of the incremental did some new dynamics emerge on the knee side in terms of your competitiveness in that segment. And if we think about the impact as being a catalyst for improved relative performance in hips, is there something similar you're looking for to provide a boost in knees?

Nick Mead

I mean as we look at the market, we typically not tend to over-index on one specific quarter. If you look at the trends over the past 12 months, we really haven't seen any notable movement in share. We've been growing more in line with market. If you look back over the past few years, we've certainly been exceeding market growth by a meaningful amount.

And over the past couple of quarters for a variety of reasons that Kevin talked about. We've been growing part in line with the market. As we think about our performance moving forward, we're excited to play offense and certainly having the hit factor in our portfolio. It's going to allow us to do that in 2027 and beyond.

Preston Wells

And the thing I'd add from a need standpoint, Kevin mentioned this, it's really just continued execution of our enabling tech strategy to really talk about Mako 4, Mako RPS, along with the new products that you mentioned with track long gold and MSI. I mean those are elements that we feel give us a lot of opportunity to play offices Nick mention.

Kevin Lobo

Yes, that the medial stabilized insert is actually doing very well and getting really positive feedback. It's a polyinsert, but it's -- there's a demand in the market and to be able to convert business. That's something we're very bullish about. That start has been very good, and I think that could be an accelerator going forward.

Operator

Our next question will come from Patrick Wood with UBS.

Patrick Wood

Beautiful. Two quick ones. One, just the state of the union on the SmartCare business like Vasara and Care AI. I know obviously, I asked last quarter, but that's been a big push this year. So that's the first one. And then the second, extremities obviously still doing very well. What do you think it is a distinct about, say, shoulder that is enabling it to sort of back off some of the pressures that hip and knee has seen? I know the base market growth is way higher, but in your mind, what's distinct about the patient pool that's enabling that to remain as strong as it sounds like it is.

Kevin Lobo

Yes. So the first thing I'd say is SmartCare had its best quarter in our history this past quarter. So it was a big contributor to the growth in medical. It's small relative to the size of medical in dollars, but it had very high double-digit growth in the quarter. Orders are picking up. The integration of Kari with Vocera is smooth. We've moved things to the cloud. So a lot of the early integration pains that we've had, we were through that. and are very excited about the momentum. The most excited I've been since frankly, we've got acquisitions. The integration is smooth. The customer experience is terrific.

Virtual nursing is really becoming a common topic across hospitals to drive productivity and [indiscernible] is very well suited for that. So I would say, I'm more bullish than ever about this. It's taken us a while admittedly, but we had a terrific quarter in Q3, and that will -- we expect that to continue going forward. And the second part?

Patrick Wood

Shoulder.

Kevin Lobo

Shoulder, look, it's a little bit a newer joint. If you got -- hips and knees have been around a long time, shoulder -- the results from shoulder joint replacement are really terrific. In the past, they sort of had -- didn't have the same degree of great outcomes. And obviously, we're the #1 player in that with the tornado plants that we have. and so many innovations that we've launched a short stemless. We now have Mako shoulder that application. That's creating a buzz. We -- so we have the polycarbon that's really great for sort of hemiarthroplasty. So we have so much innovation and we've sort of been scaling those innovations in shoulder ID, which is a personalized glenoid.

These are all launches we've had over the past 2, 3 years that are kind of scaled and created tremendous differentiation in our shoulder business. So the market as a whole is growing faster and has been growing faster than pens for a while because it's a newer market, where people are now seeing great outcomes, telling your friends about it. And then I think it's going to be a very -- a big market in the future because a lot of people are living with pain that they could get addressed. And I think that Mako Shoulder will actually potentially grow the market as hip and knee surgeons that used to do shoulders, if they're familiar with Mako, they may very well go back to doing shoulders again, which they potentially had abandoned in the past.

Operator

Our next question will come from Mike Matson with Needham & Company.

Michael Matson

Just wanted to ask one on the commentary around the hip and knee market. I think you're seeing 2.5% growth. Was that kind of your estimate of the year-to-date growth or the growth in this third quarter? Because just looking at your numbers in the third quarter, it looks like you were about flat, which would imply a fair bit of market share loss -- it sounds like you're sort of saying that you think you are in line with the market. I'm just trying to figure out is it gone from low single digits to more flattish in the third quarter here.

Preston Wells

So again, I think Nick mentioned this as well. We never look at 1 quarter in this tiffany market and kind of say that's indicative of the trend. And so, when we talk about 2.5, we're really trying to understand and extrapolate over the course of the year or even the last -- kind of the last trailing 12 months. Hard to do since not everybody has reported yet, and so we have to wait and see what that looks like. But that's our read on the market kind of year-to-date, is that rough -- roughly 2.5 is what we're seeing is growing.

Michael Matson

Okay. But the message is that you think it was slower in the third quarter than the first half of the year?

Preston Wells

No, we do think it slowed down a bit more in the [indiscernible].

Operator

Our next question will come from Jayson Bedford with Raymond James.

Elaine Cui

This is Elaine on for Jason. You talked about the factors driving or to slowdown. And I was wondering, are you seeing similar dynamics having on net surge volumes? Or what you say that MedSurg or insulated given the acute nature of the procedures?

Unknown Executive

Yes, the latter. We see this more insulated. We have not seen a slowdown there. Preston talked about our growth drivers heading into Q4. A lot of those are on the Metso side.

Elaine Cui

Okay. And I'll have a follow-up. So organic came in a bit better than our expectations despite the broader ortho softness, can you talk about what enabled it to do better? And do you have an update on the progress with Mako shoulder and Mako RPS?

Kevin Lobo

Yes. So yes, we were very pleased with the OrthoTec performance. Mako growth was tremendous. And as a reminder, we have a balance between upgrades as well as brand new installations, and that balance continues since we launched the Mako platform. We also had a very strong performance from our orthopedic instruments business. So those are the power tool type business. They did very well. Capital sales, they were very strong in the quarter. So those are both very good.

And then Mako RPS is off to a slow start, a really good customer feedback, but we've got to get our sales force playing offense a bit distracted last quarter. So we have incentives in place and a commercial offense that's going to lean in a lot more on RPS as we go forward. And then the shoulder for Mako is getting really, really good feedback and contributing to the shoulder growth.

Operator

Our next question will come from Mike Crake with Leerink Partners.

Unknown Analyst

This is Sam on for Mike. So it just seems like we're hearing antidotes if price competition getting more intense in orthopedics. So I was just wondering what you guys are seeing out there on the pricing side and your expectations for 2027?

Preston Wells

Yes. So from a price perspective, we've maintained kind of our same expectations through the year. We expect modest price across the entirety of our portfolio. That will likely come from more on the MedSurg side, where it's a positive price. And on the ortho side, we're trying to hold as much price as possible, but we'll end up in a slightly negative position, which is not significantly different than where we were last year. And so from our perspective, we're not expecting anything significantly different than that.

Kevin Lobo

Yes. We -- I picked up some noise in the market around price going down because of bulk sales. So there is some activity of it's not happening at Stryker. We don't do bulk sales. We report our price. We actually report price, which not everybody does in our market. And so that's what I hear. Outside of that sort of base business, normal contracting, it's a pretty stable pricing environment. So that's the noise that we hear. But it certainly doesn't apply to us.

Unknown Analyst

Got it. Helpful. And then just on the vascular side, can you provide any color on how much in share loss during this interim disruption you kind of view it as temporary versus potentially more durable and how difficult it may be to get back any block share in accounts that have been disrupted?

Preston Wells

Yes. So what I would say is we feel really good about being able to get back on mentioned. And so anything that we feel like we've lost, we believe is temporary and that we'll be able to get back out and start winning that business back. certainly having ABS and that launching that product sometime next year will be a big help as we continue to build out and diversify the portfolio to have a winning offense in '27.

Operator

Our next question will come from the line of Richard Newitter with Truist.

Richard Newitter

Maybe just the first, congrats on the CMR Surgical deal. I guess -- maybe you could just tell us why that asset and Kevin, you've talked a lot in the past, you don't feel rushed you guys are kind of going to make the right decision. And just maybe also as you answer that, the why now, why that asset? And then why not just purchase it outright?

Kevin Lobo

Yes. I think I sort of mentioned this earlier in the call, but an outright purchase comes with a lot of risk. And then huge costs for continued ongoing development. And we have to make sure that this is going to be a commercial success in the United States that really will determine the ultimate success of CMR. And so we are going to actually run the sales office in the United States, and we know how to run sales. So we believe we're going to be very successful, but we don't want to put all our eggs in this basket. It's a high-risk kind of a deal. There's still ongoing development that's needed and they have a really strong team.

Their changed diverses Plus was has been excellent. We've been talking to this company for a long time. For many years, we know them very, very well. We've watched their trajectory. They have about 10-plus years of experience and time over target in robotics is actually really important. We saw that with Mako, having all those years under their belt before we acquired it, was massively helpful. But we don't want to just jump in here. Unlike Mako, which had implants attached to it. This is a pure adjacency. And it's not something we wanted to rush into necessarily. And it's just a risk we felt we didn't need or want to take at this time and also put a lot of other financial pressures on to the rest of our portfolio. So it's financially derisked operationally derisked, but we like the partner. We have a great relationship with their leadership.

And that Versius Plus the improvements that they do that system, we always like to design the modular nature easy to move around between rooms, so great for the ASC and great for -- if you have a lot of surgeons that want the robot today, there's many surgeons that would love to use a robot, but they don't have one in their hospital. And this is, as I said, great for those high-volume procedures that will switch from being laparoscopic and open into robotics. So the feedback, we did surgeon testing, a lot of evaluations and feedback was really positive. We hired a medical director as part of the Endoscopy team, Dr. Santiago Morgan, who is very famous and he looked at every single robot and was -- he was our Chief Adviser on this, but also used a panel of surgeons to assess all different robotic technologies.

There was a few that we liked, and this one was the clear winner. And -- but not jumping in all told is because it's a new space. It's a pure adjacency. There is obviously a large incumbent, and we have to be able to prove the U.S. success. But our hope and our plan is that this does work and that we do eventually take it out.

Richard Newitter

And maybe just one on orthopedic robotics. You have a competitor coming out with their monogram at some point next year. just wanted to hear, Kevin, your thoughts on how Mako is positioned or what you're expecting as the features of that product eventually kind of hit the market? And any thoughts on that.

Kevin Lobo

Yes. Well, for now, we're going to hold off making any comments until we see it in the marketplace. But we have our solution, which, of course, has multiple applications on the same robot, which this will not have and obviously proven success. Robots aren't easy. And as we've seen with other offerings in the marketplace, it takes a little while to get it -- to start to perform in a decent way. And we still think we have the winning platform. We looked at this company, obviously, earlier on, but I'm going to reserve judgment and wait until we see what happens. Let's see it come to market. And all I can say is robots are hard. And it's not something that I'm really afraid of in the near term, but we'll see.

Operator

Our next question comes from Matt Blackman with TD Cowen.

Unknown Analyst

It's Geron for Matt. Kevin, just one for you and then one for Preston. But you were talking about CMR a few times in the call, but I'm just curious if you could give us maybe a deeper view on where do you think the biggest opportunity is? Is it just conversion from LAP or just which bucket do you think has the largest opportunity and maybe how should we think about the potential for you to integrate your tower and camera business and with CR, you mentioned 1888 Is coming. It's a step change for 1788. Just curious if that really helps you go deeper in existing surgical categories? Or does this even open up new surgical areas for you?

Kevin Lobo

Yes. So the second part of your question, I'm really not going to answer because we haven't bought the company. And in fact, we haven't even closed our agreement, but it will close shortly. But really, we're going to work with CMR. It's still their company. We're an investor. We have a stake in the company and we have a Board seat with the company. But we'll work with them. You do need a tower with their robot. And obviously, if we're commercializing the robot, chances are we're going to try to partner with our tower, but there are a lot of synergy opportunities. And we will work with them on some of those synergy opportunities. And then ultimately, when we eventually acquire this, then we'll be able to talk a lot more openly about our plans.

So for now, it is a relationship that we have with them. And we will show them things that we can collaborate, but ultimately, they're going to have to agree because it is still their company. Definitely, the biggest opportunity is conversion of laparoscopic and open to robotic. That's where the biggest opportunity is. Again, it doesn't mean that we won't be chosen in some cases versus the competitive offering. But that's really not -- that's not the prime focus. There are a lot of procedures done today and laparoscopy isn't easy. Laparoscopic suturing is not easy. It's not an easy robot -- robotics will make these procedures easier perform and we think that will drive much higher adoption of minimum invasive surgery.

Unknown Analyst

And for Preston earlier in the call, I think someone mentioned that there was a China JV revenue head in the quarter. Just wondering if you might be able to quantify that for the Vascular business.

Preston Wells

Yes. So yes, we did get a onetime benefit out of our joint venture in China. As a reminder, this was a joint venture that was in place and we purchased a -- we aren't calling it out specifically what I would just say is underlying business, the ongoing underlying peripheral vascular and vascular business is about in line with the comments that I made earlier in September and similar to the performance and impact that it had on the business in second quarter.

Operator

Our final question will come from Vik Chopra with BMO Capital Markets.

Vikramjeet Chopra

Just a quick question for you on Zurumed. I'm just wondering how that fiber locker technology expands the soft tissue augmentation portfolio? And anything you can share around revenues and time line?

Kevin Lobo

Look, it's a little early for us to share much on revenue and time lines. What I'd tell you is it's a very differentiated performing product. It has an open system in terms of the type of in that you're able to attach to drive that fixation. We love the applicator. The applicator is kind of almost like a magic the way it applies fixation, really, really clever design and we think it's going to be an absolute winner. As you know, this is an area that [indiscernible] have to have a lot of failures and this additional sort of augmentation will provide tremendous clinical benefit.

It has been a fast-growing part of the market. We did not have a solution for this. And we looked at some others and we passed on them because we didn't feel they were differentiating enough. And this one is the one we feel will be an absolute winner. We already have and the timing is just perfect because we've launched all of these shoulder products. And now we have this augment as well. So it's really something that we're excited about. We'll share more details as we launch it in terms of cases. I do believe it's going to be a winner in the market.

Operator

There are no further questions. I will turn the call over to Kevin Lobo for closing remarks.

Kevin Lobo

Well, thank you all for joining our call, and thanks for all the time we've had over the years. We look forward to sharing our Q4 and full year 2026 results for you at the next earnings call. Thank you.

Operator

This concludes the Third Quarter 2026 Stryker Earnings Call. You may now disconnect.

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