Exhibit

"We delivered another strong quarter of results, with organic sales growth of 8.6% and adjusted EPS growth of 13%," said Kevin A. Lobo, Chairman and Chief Executive Officer. "We expect this momentum to continue, which positions us well to deliver above the high end of our initial guidance range for both organic sales and adjusted EPS."

Reported net earnings of $466 million decreased 21.0% in the quarter. Reported net earnings per diluted share of $1.23 decreased 20.6% in the quarter. Reported gross profit margin and reported operating income margin were 65.0% and 17.5% in the quarter. Adjusted gross profit margin⁽¹⁾ and adjusted operating income margin⁽¹⁾ were 65.7% and 25.4%, an improvement of 50 basis points in the quarter. Adjusted net earnings⁽¹⁾ of $725 million increased 12.8% in the quarter. Adjusted net earnings per diluted share⁽¹⁾ of $1.91 increased 13.0% in the quarter.

Based on our performance to date and anticipated strength in the remainder of the year, we now expect 2019 organic net sales growth to be toward the higher end of our previously guided range of 7.5% to 8.0% and expect adjusted net earnings per diluted share⁽²⁾ to be in the range of $8.20 to $8.25. For the fourth quarter we expect adjusted net earnings per diluted share⁽²⁾ to be in the range of $2.43 to $2.48. If foreign currency exchange rates hold near current levels, we expect net sales in the fourth quarter and full year will be negatively impacted by approximately 1.0%, and net earnings per diluted share will be negatively impacted by approximately $0.02 in the fourth quarter and $0.15 in the full year.

(1) A reconciliation of the non-GAAP financial measures: adjusted gross profit margin, adjusted operating income and adjusted operating income margin, adjusted net earnings and adjusted net earnings per diluted share, to the most directly comparable GAAP measures: gross profit margin, operating income and operating income margin, net earnings and net earnings per diluted share, and other important information accompanies this press release.

(2) We are unable to present a quantitative reconciliation of our expected net earnings per diluted share to expected adjusted net earnings per diluted share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, acquisition-related expenses and fair value adjustments to inventory and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.

This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities laws that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; potential supply disruptions; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to recall-related matters; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; the impact of the federal legislation to reform the United States healthcare system; costs to comply with medical device regulations; changes in financial markets; changes in the competitive environment; our ability to integrate acquisitions; and our ability to realize anticipated cost savings. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Stryker is one of the world's leading medical technology companies and, together with its customers, is driven to make healthcare better. The company offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that help improve patient and hospital outcomes. More information is available at www.stryker.com.



STRYKER CORPORATION
For the Three and Nine Months September 30
(Unaudited - Millions of Dollars, Except Per Share Amounts)
CONSOLIDATED STATEMENTS OF EARNINGS

	Three Months								Nine Months
	2019			2018			% Change		2019			2018			% Change
Net sales	$	3,587		$	3,242		10.6	%	$	10,753		$	9,805		9.7	%
Cost of sales	1,257			1,087			15.6		3,760			3,323			13.2
Gross profit	$	2,330		$	2,155		8.1	%	$	6,993		$	6,482		7.9	%
% of sales	65.0		%	66.5		%			65.0		%	66.1		%
Research, development and engineering expenses	246			221			11.3		717			641			11.9
Selling, general and administrative expenses	1,291			1,242			3.9		3,976			3,668			8.4
Recall charges	49			4			nm		179			10			nm
Amortization of intangible assets	116			112			3.6		352			324			8.6
Total operating expenses	$	1,702		$	1,579		7.8	%	$	5,224		$	4,643		12.5	%
Operating income	$	628		$	576		9.0	%	$	1,769		$	1,839		(3.8	)%
% of sales	17.5		%	17.8		%			16.5		%	18.8		%
Other income (expense), net	(47		)	(42		)	11.9		(143		)	(140		)	2.1
Earnings before income taxes	$	581		$	534		8.8	%	$	1,626		$	1,699		(4.3	)%
Income taxes	115			(56		)	nm		268			214			25.2
Net earnings	$	466		$	590		(21.0	)%	$	1,358		$	1,485		(8.6	)%
Net earnings per share of common stock:
Basic	$	1.24		$	1.58		(21.5	)%	$	3.63		$	3.97		(8.6	)%
Diluted	$	1.23		$	1.55		(20.6	)%	$	3.58		$	3.90		(8.2	)%
Weighted-average shares outstanding (in millions):
Basic	374.2			374.1					373.8			374.0
Diluted	380.3			380.2					379.8			380.4



CONDENSED CONSOLIDATED BALANCE SHEETS
	September 30		December 31
	2019		2018
Assets
Cash and cash equivalents	$	1,948	$	3,616
Marketable securities	88		83
Accounts receivable, net	2,438		2,332
Inventories	3,269		2,955
Prepaid expenses and other current assets	823		747
Total current assets	$	8,566	$	9,733
Property, plant and equipment, net	2,460		2,291
Goodwill and other intangibles, net	12,760		12,726
Noncurrent deferred income tax assets	1,586		1,678
Other noncurrent assets	1,287		801
Total assets	$	26,659	$	27,229
Liabilities and shareholders' equity
Current liabilities	$	3,921	$	4,807
Long-term debt, excluding current maturities	7,889		8,486
Income taxes	1,095		1,228
Other noncurrent liabilities	1,439		978
Shareholders' equity	12,315		11,730
Total liabilities and shareholders' equity	$	26,659	$	27,229



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Nine Months
	2019			2018
Operating activities
Net earnings	$	1,358		$	1,485
Depreciation	231			223
Amortization of intangible assets	352			324
Changes in operating assets and liabilities and other, net	(485		)	(468		)
Net cash provided by operating activities	$	1,456		$	1,564
Investing activities
Acquisitions, net of cash acquired	$	(281	)	$	(770	)
Change in marketable securities, net	(5		)	(41		)
Purchases of property, plant and equipment	(450		)	(418		)
Net cash used in investing activities	$	(736	)	$	(1,229	)
Financing activities
(Payments) borrowings of debt, net	$	(1,348	)	$	(13	)
Dividends paid	(585		)	(528		)
Repurchases of common stock	(307		)	(300		)
Other financing, net	(120		)	(110		)
Net cash (used in) provided by financing activities	$	(2,360	)	$	(951	)
Effect of exchange rate changes on cash and cash equivalents	(28		)	(8		)
Change in cash and cash equivalents	$	(1,668	)	$	(624	)



SALES GROWTH ANALYSIS
	Three Months								Nine Months
					Percentage Change								Percentage Change
	2019		2018		As Reported		Constant Currency		2019		2018		As Reported		Constant Currency
Geographic:
United States	$	2,644	$	2,381	11.1	%	11.1	%	$	7,918	$	7,080	11.8	%	11.8	%
International	943		861		9.5		12.9		2,835		2,725		4.0		9.6
Total	$	3,587	$	3,242	10.6	%	11.5	%	$	10,753	$	9,805	9.7	%	11.2	%
Segment:
Orthopaedics	$	1,262	$	1,171	7.8	%	8.8	%	$	3,785	$	3,615	4.7	%	6.5	%
MedSurg	1,576		1,443		9.2		10.0		4,737		4,325		9.5		10.8
Neurotechnology and Spine	749		628		19.4		20.2		2,231		1,865		19.6		21.4
Total	$	3,587	$	3,242	10.6	%	11.5	%	$	10,753	$	9,805	9.7	%	11.2	%



SUPPLEMENTAL SALES GROWTH ANALYSIS
	Three Months
									United States		International
					Percentage Change
	2019		2018		As Reported		Constant Currency		As Reported		As Reported		Constant Currency
Orthopaedics:
Knees	$	426	$	395	7.8	%	8.8	%	8.9	%	4.6	%	8.4	%
Hips	332		316		5.2		6.4		7.0		2.3		5.6
Trauma and Extremities	407		376		8.0		9.1		8.3		7.6		10.7
Other	97		84		15.8		16.3		20.3		(2.2	)	—
	$	1,262	$	1,171	7.8	%	8.8	%	9.2	%	4.7	%	8.0	%
MedSurg:
Instruments	$	476	$	442	7.7	%	8.5	%	5.8	%	15.6	%	19.4	%
Endoscopy	474		443		6.8		7.6		8.6		0.1		4.0
Medical	554		492		12.6		13.5		12.5		13.3		17.3
Sustainability	72		66		9.7		9.7		9.2		nm		nm
	$	1,576	$	1,443	9.2	%	10.0	%	9.1	%	9.6	%	13.5	%
Neurotechnology and Spine:
Neurotechnology	$	488	$	435	12.2	%	13.1	%	10.7	%	15.1	%	17.6	%
Spine	261		193		35.3		36.2		38.2		27.6		30.8
	$	749	$	628	19.4	%	20.2	%	19.9	%	18.3	%	21.0	%
Total	$	3,587	$	3,242	10.6	%	11.5	%	11.1	%	9.5	%	12.9	%



SUPPLEMENTAL SALES GROWTH ANALYSIS
	Nine Months
									United States		International
					Percentage Change
	2019		2018		As Reported		Constant Currency		As Reported		As Reported		Constant Currency
Orthopaedics:
Knees	$	1,305	$	1,236	5.6	%	7.2	%	7.3	%	0.9	%	6.7	%
Hips	1,011		983		2.9		4.9		5.4		(1.3	)	3.9
Trauma and Extremities	1,197		1,152		3.9		5.7		5.4		1.3		6.4
Other	272		244		11.7		12.8		12.7		7.5		13.0
	$	3,785	$	3,615	4.7	%	6.5	%	6.7	%	0.6	%	6.0	%
MedSurg:
Instruments	$	1,474	$	1,292	14.2	%	15.5	%	16.0	%	7.5	%	13.7	%
Endoscopy	1,424		1,335		6.6		8.0		8.2		0.7		7.4
Medical	1,627		1,508		7.9		9.2		11.2		(3.2	)	2.5
Sustainability	212		190		11.7		11.8		11.2		nm		nm
	$	4,737	$	4,325	9.5	%	10.8	%	11.7	%	1.4	%	7.6	%
Neurotechnology and Spine:
Neurotechnology	$	1,436	$	1,282	12.0	%	13.8	%	12.6	%	11.0	%	16.0	%
Spine	795		583		36.4		38.0		41.0		24.1		30.0
	$	2,231	$	1,865	19.6	%	21.4	%	22.2	%	14.4	%	19.6	%
Total	$	10,753	$	9,805	9.7	%	11.2	%	11.8	%	4.0	%	9.6	%

We supplement the reporting of our financial information determined under accounting principles generally accepted in the United States (GAAP) with certain non-GAAP financial measures, including: percentage sales growth; percentage sales growth in constant currency; percentage organic sales growth; adjusted gross profit; adjusted selling, general and administrative expenses; adjusted research, development and engineering expenses; adjusted operating income; adjusted effective income tax rate; adjusted net earnings; and adjusted net earnings per diluted share (Diluted EPS). We believe that these non-GAAP financial measures provide meaningful information to assist investors and shareholders in understanding our financial results and assessing our prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core operating results and provide a baseline for analyzing trends in our underlying businesses. Management uses these non-GAAP financial measures for reviewing the operating results of reportable business segments and analyzing potential future business trends in connection with our budget process and bases certain management incentive compensation on these non-GAAP financial measures.

To measure percentage sales growth in constant currency, we remove the impact of changes in foreign currency exchange rates that affect the comparability and trend of sales. Percentage sales growth in constant currency is calculated by translating current and prior year results at the same foreign currency exchange rate. To measure percentage organic sales growth, we remove the impact of changes in foreign currency exchange rates and acquisitions, which affect the comparability and trend of sales. Percentage organic sales growth is calculated by translating current year results at prior year average foreign currency exchange rates excluding the impact of acquisitions. To measure earnings performance on a consistent and comparable basis, we exclude certain items that affect the comparability of operating results and the trend of earnings.

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, selling, general and administrative expenses, research, development and engineering expenses, operating income, effective income tax rate, net earnings and net earnings per diluted share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures below, provide a more complete understanding of our business. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

The following reconciles the non-GAAP financial measures discussed above with the most directly comparable GAAP financial measures. The weighted-average diluted shares outstanding used in the calculation of non-GAAP earnings per share are the same as those used in the calculation of reported earnings per share for the respective period.



STRYKER CORPORATION
For the Three and Nine Months September 30
(Unaudited - Millions of Dollars, Except Per Share Amounts)
Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Three Months 2019	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	2,330		$	1,291		$	246		$	628		$	466		19.8	%	$	1.23
Reported percent net sales	65.0		%	36.0		%	6.9		%	17.5		%	13.0		%
Acquisition and integration-related charges (a)
Inventory stepped-up to fair value	17			—			—			17			13			0.2		0.03
Other acquisition and integration-related	—			(15		)	—			15			8			0.6		0.02
Amortization of purchased intangible assets	—			—			—			116			105			(1.5	)	0.28
Restructuring-related and other charges (b)	10			(37		)	—			48			40			0.1		0.11
Medical device regulations (c)	—			—			(15		)	15			13			—		0.03
Recall-related matters (d)	—			—			—			49			28			2.2		0.07
Regulatory and legal matters (e)	—			(25		)	—			25			14			1.2		0.04
Tax matters (f)	—			—			—			—			38			(6.5	)	0.10
Adjusted	$	2,357		$	1,214		$	231		$	913		$	725		16.1	%	$	1.91
Adjusted percent net sales	65.7		%	33.8		%	6.5		%	25.4		%	20.2		%



Three Months 2018	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	2,155		$	1,242		$	221		$	576		$	590		(10.5	)%	$	1.55
Reported percent net sales	66.5		%	38.3		%	6.8		%	17.8		%	18.2		%
Acquisition and integration-related charges (a)
Inventory stepped-up to fair value	(11		)	—			—			(11		)	(11		)	0.3		(0.03		)
Other acquisition and integration-related	—			(19		)	—			19			17			—		0.05
Amortization of purchased intangible assets	—			—			—			112			92			0.5		0.24
Restructuring-related and other charges (b)	4			(35		)	—			39			31			0.4		0.08
Medical device regulations (c)	—			—			(2		)	2			2			—		—
Recall-related matters (d)	—			—			—			4			2			0.1		0.01
Regulatory and legal matters (e)	—			(66		)	—			66			50			1.0		0.13
Tax matters (f)	—			—			—			—			(130		)	24.3		(0.34		)
Adjusted	$	2,148		$	1,122		$	219		$	807		$	643		16.1	%	$	1.69
Adjusted percent net sales	66.2		%	34.6		%	6.7		%	24.9		%	19.8		%



Nine Months 2019	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	6,993		$	3,976		$	717		$	1,769		$	1,358		16.5	%	$	3.58
Reported percent net sales	65.0		%	37.0		%	6.7		%	16.5		%	12.6		%
Acquisition and integration-related charges (a)
Inventory stepped-up to fair value	55			—			—			55			42			0.3		0.11
Other acquisition and integration-related	—			(168		)	—			168			126			1.0		0.33
Amortization of purchased intangible assets	—			—			—			352			294			0.1		0.78
Restructuring-related and other charges (b)	21			(125		)	—			146			122			0.1		0.32
Medical device regulations (c)	1			—			(33		)	34			28			0.1		0.07
Recall-related matters (d)	—			—			—			179			144			0.4		0.38
Regulatory and legal matters (e)	—			(35		)	—			35			19			0.5		0.05
Tax matters (f)	—			—			—			—			58			(3.5	)	0.15
Adjusted	$	7,070		$	3,648		$	684		$	2,738		$	2,191		15.5	%	$	5.77
Adjusted percent net sales	65.7		%	33.9		%	6.4		%	25.5		%	20.4		%



Nine Months 2018	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	6,482		$	3,668		$	641		$	1,839		$	1,485		12.6	%	$	3.90
Reported percent net sales	66.1		%	37.4		%	6.5		%	18.8		%	15.1		%
Acquisition and integration-related charges (a)
Inventory stepped-up to fair value	—			—			—			—			(4		)	0.2		(0.01		)
Other acquisition and integration-related	—			(49		)	—			49			41			—		0.11
Amortization of purchased intangible assets	—			—			—			324			263			0.5		0.69
Restructuring-related and other charges (b)	9			(115		)	—			124			98			0.3		0.26
Medical device regulations (c)	1			—			(5		)	5			4			—		0.01
Recall-related matters (d)	—			—			—			10			7			—		0.02
Regulatory and legal matters (e)	—			(121		)	—			121			92			0.6		0.24
Tax matters (f)	—			—			—			—			(35		)	2.1		(0.09		)
Adjusted	$	6,492		$	3,383		$	636		$	2,472		$	1,951		16.3	%	$	5.13
Adjusted percent net sales	66.2		%	34.5		%	6.5		%	25.2		%	19.9		%



(a)	Charges represent certain acquisition and integration-related costs associated with acquisitions.
(b)	Charges represent the costs associated with certain restructuring-related activities associated with workforce reductions and other restructuring-related activities.
(c)	Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union and China.
(d)	Charges represent changes in our best estimate of the minimum end of the range of probable loss to resolve certain recall-related matters.
(e)	Our best estimate of the minimum of the range of probable loss to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.
(f)	Benefits and charges represent the accounting impact of certain significant and discrete tax items, including adjustments related to the Tax Cuts and Jobs Act of 2017, and the transfer of certain intellectual properties between tax jurisdictions.


•	Adjusted operating income margin⁽¹⁾ expanded 50 bps to 25.4%


•	Adjusted EPS⁽¹⁾ increased 13.0% to $1.91, at the high end of guidance range



	Third Quarter Net Sales Growth Overview
	Reported		Foreign Currency Exchange		Constant Currency		Acquisitions		Organic
Orthopaedics	7.8	%	(1.0	)%	8.8	%	—%		8.8	%
MedSurg	9.2		(0.8	)	10.0		1.2		8.8
Neurotechnology and Spine	19.4		(0.8	)	20.2		12.6		7.6
Total	10.6	%	(0.9	)%	11.5	%	2.9	%	8.6	%