First Quarter Results
- Reported net sales increased 2.6% to
$6.0 billion - Organic net sales increased 2.4%
- Reported operating income margin of 15.5%
- Adjusted operating income margin(1) contracted 180 bps to 21.1%
- Reported EPS increased 14.2% to
$1.93 - Adjusted EPS(1) decreased 8.5% to
$2.60
| First Quarter Net Sales Growth Overview | ||||||||||||||
| Reported | Constant Currency | Acquisitions / Divestitures | Organic | |||||||||||
| MedSurg and Neurotechnology | 5.0 | % | 1.4 | % | 3.6 | % | 2.7 | % | 0.9 | % | ||||
| Orthopaedics | 0.1 | 1.9 | (1.8) | (5.9) | 4.1 | |||||||||
| Total | 2.6 | % | 1.6 | % | 1.0 | % | (1.4) % | 2.4 | % | |||||
“I am pleased with our team’s ability to recover quickly from the cyber incident and continue delivering for our customers and their patients,” said
In the first quarter 2026 Stryker announced a change in our organizational structure. Our new Ortho Tech business combines the orthopaedic instruments portfolio from our Instruments business with the Mako and enabling technologies portfolio from our Other Orthopaedics business. By bringing Mako, power tools, cutting accessories, enabling technologies and the teams behind these products together under one business, we are simplifying the customer experience and striving to increase our speed to market through focused innovation. Prior period segment information has been recast to reflect these changes and they will have no impact on our consolidated financial statements. On our Investor Relations website at investors.stryker.com, we have provided additional information on our segment quarterly revenues for 2023, 2024 and 2025 that reflects the change in our organizational structure and other changes as if they had been effective for the periods presented.
Sales Analysis
Consolidated net sales of
MedSurg and Neurotechnology net sales of
Orthopaedics net sales of
Earnings Analysis
Reported net earnings of
2026 Outlook
We are maintaining our full year 2026 guidance of organic net sales growth(2) in the range of 8.0% to 9.5% and adjusted net earnings per diluted share(2) in the range of
(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 sales growth to expected organic net sales growth as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisitions and divestitures and the impact of foreign currency exchange rates. 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 structural optimization and other special charges, acquisition-related expenses 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.
Conference Call on
As previously announced, we will host a conference call on
Please register for this conference call at: https://stryker-1q2026-earnings.open-exchange.net. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry. Registration is open throughout the live call. To ensure you are connected prior to the beginning of the call, we suggest registering a minimum of 15 minutes before the start of the call.
A simultaneous webcast of the call will be accessible via the Investor Relations page of our website at www.stryker.com. For those not planning to ask a question of management, we recommend listening via the webcast. Please allow 15 minutes to register, download and install any necessary software.
Following the conference call, a replay will be available on our website up to one year from the time of the earnings call.
Caution Concerning Forward-Looking Statements
This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law 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 risks and uncertainties include, but are not limited to: weakening of economic conditions, or the anticipation thereof, that could adversely affect the level of demand for our or Inari's products; geopolitical risks, including from tariffs and the potential for further changes in trade policies and international conflicts, which have led to and could continue to lead to, among other things, increased market volatility; pricing pressures generally, including cost-containment measures that have adversely affected and could in the future adversely affect the price of or demand for our or Inari’s products; changes in foreign currency exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect approval of new products, including Inari's products, by the
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.
For investor inquiries:
For media inquiries:
| For the Three Months | ||||||||||
| (Unaudited - Millions of Dollars, Except Per Share Amounts) | ||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||
| Three Months | ||||||||||
| 2026 | 2025 | % Change | ||||||||
| Net sales | $ | 6,020 | $ | 5,866 | 2.6 | % | ||||
| Cost of sales | 2,210 | 2,122 | 4.1 | |||||||
| Gross profit | $ | 3,810 | $ | 3,744 | 1.8 | % | ||||
| % of sales | 63.3 | % | 63.8 | % | ||||||
| Research, development and engineering expenses | 413 | 405 | 2.0 | |||||||
| Selling, general and administrative expenses | 2,281 | 2,300 | (0.8) | |||||||
| Amortization of intangible assets | 180 | 167 | 7.8 | |||||||
| — | 35 | nm | ||||||||
| Total operating expenses | $ | 2,874 | $ | 2,907 | (1.1) % | |||||
| Operating income | $ | 936 | $ | 837 | 11.8 | % | ||||
| % of sales | 15.5 | % | 14.3 | % | ||||||
| Other income (expense), net | (86) | (73) | 17.8 | % | ||||||
| Earnings before income taxes | $ | 850 | $ | 764 | 11.3 | % | ||||
| Income taxes | 105 | 110 | (4.5) | |||||||
| Net earnings | $ | 745 | $ | 654 | 13.9 | % | ||||
| Net earnings per share of common stock: | ||||||||||
| Basic | $ | 1.95 | $ | 1.71 | 14.0 | % | ||||
| Diluted | $ | 1.93 | $ | 1.69 | 14.2 | % | ||||
| Weighted-average shares outstanding (in millions): | ||||||||||
| Basic | 382.9 | 381.7 | ||||||||
| Diluted | 386.5 | 386.4 | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| 2026 | 2025 | ||||
| Assets | |||||
| Cash and cash equivalents | $ | 2,878 | $ | 4,011 | |
| Marketable securities | 87 | 89 | |||
| Accounts receivable, net | 3,571 | 4,039 | |||
| Inventories | 5,419 | 5,310 | |||
| Prepaid expenses and other current assets | 1,383 | 1,306 | |||
| Total current assets | $ | 13,338 | $ | 14,755 | |
| Property, plant and equipment, net | 3,887 | 3,876 | |||
| 24,704 | 24,972 | ||||
| Noncurrent deferred income tax assets | 1,193 | 1,098 | |||
| Other noncurrent assets | 3,169 | 3,143 | |||
| Total assets | $ | 46,291 | $ | 47,844 | |
| Liabilities and shareholders' equity | |||||
| Current liabilities | $ | 6,315 | $ | 7,794 | |
| Long-term debt, excluding current maturities | 14,224 | 14,859 | |||
| Income taxes | 403 | 402 | |||
| Other noncurrent liabilities | 2,370 | 2,369 | |||
| Shareholders' equity | 22,979 | 22,420 | |||
| Total liabilities and shareholders' equity | $ | 46,291 | $ | 47,844 | |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Three Months | |||||||
| 2026 | 2025 | ||||||
| Operating activities | |||||||
| Net earnings | $ | 745 | $ | 654 | |||
| Depreciation | 120 | 105 | |||||
| Amortization of intangible assets | 180 | 167 | |||||
| Changes in operating assets, liabilities, income taxes payable and other, net | (464) | (676) | |||||
| Net cash provided by operating activities | $ | 581 | $ | 250 | |||
| Investing activities | |||||||
| Acquisitions, net of cash acquired | $ | (22) | $ | (4,749) | |||
| Proceeds/(Purchases) of short-term investments | — | 750 | |||||
| Purchases of property, plant and equipment | (166) | (123) | |||||
| Other investing, net | 3 | (14) | |||||
| Net cash used in investing activities | $ | (185) | $ | (4,136) | |||
| Financing activities | |||||||
| Borrowings (payments) of debt, net | $ | (1,000) | $ | 2,979 | |||
| Payments of dividends | (337) | (320) | |||||
| Other financing, net | (173) | (125) | |||||
| Net cash provided by (used in) financing activities | $ | (1,510) | $ | 2,534 | |||
| Effect of exchange rate changes on cash and cash equivalents | (19) | 20 | |||||
| Change in cash and cash equivalents | $ | (1,133) | $ | (1,332) | |||
| For the Three Months |
| (Unaudited - Millions of Dollars) |
| SALES GROWTH ANALYSIS | ||||||||||
| Three Months | ||||||||||
| Percentage Change | ||||||||||
| 2026 | 2025 | As Reported | Constant Currency | |||||||
| Geographic: | ||||||||||
| $ | 4,476 | $ | 4,440 | 0.8 | % | 0.8 | % | |||
| International | 1,544 | 1,426 | 8.3 | 1.5 | ||||||
| Total | $ | 6,020 | $ | 5,866 | 2.6 | % | 1.0 | % | ||
| Segment: | ||||||||||
| MedSurg and Neurotechnology | $ | 3,207 | $ | 3,056 | 5.0 | % | 3.6 | % | ||
| Orthopaedics | 2,813 | 2,810 | 0.1 | (1.8) | ||||||
| Total | $ | 6,020 | $ | 5,866 | 2.6 | % | 1.0 | % | ||
| SUPPLEMENTAL SALES GROWTH ANALYSIS | ||||||||||||||||||
| Three Months | ||||||||||||||||||
| Percentage Change | ||||||||||||||||||
| International | ||||||||||||||||||
| 2026 | 2025 | As Reported | Constant Currency | As Reported | As Reported | Constant Currency | ||||||||||||
| MedSurg and Neurotechnology: | ||||||||||||||||||
| Instruments | $ | 920 | $ | 838 | 9.9 | % | 8.7 | % | 9.1 | % | 14.0 | % | 7.0 | % | ||||
| Endoscopy | 868 | 867 | 0.1 | (1.0) | (1.2) | 6.0 | — | |||||||||||
| Medical | 902 | 945 | (4.6) | (5.6) | (6.9) | 8.3 | 1.1 | |||||||||||
| Vascular | 517 | 406 | 27.5 | 24.0 | 37.9 | 17.0 | 10.5 | |||||||||||
| $ | 3,207 | $ | 3,056 | 5.0 | % | 3.6 | % | 3.2 | % | 11.7 | % | 5.1 | % | |||||
| Orthopaedics: | ||||||||||||||||||
| Knees | $ | 670 | $ | 639 | 4.7 | % | 2.8 | % | 1.4 | % | 13.5 | % | 6.1 | % | ||||
| Hips | 460 | 443 | 3.7 | 1.2 | 2.3 | 6.0 | (0.3) | |||||||||||
| Trauma and Extremities | 1,035 | 945 | 9.5 | 7.4 | 7.6 | 15.3 | 6.8 | |||||||||||
| Ortho Tech | 646 | 617 | 4.8 | 3.2 | 2.0 | 12.9 | 6.5 | |||||||||||
| $ | 2,811 | $ | 2,644 | 6.3 | % | 4.3 | % | 4.0 | % | 12.2 | % | 4.9 | % | |||||
| Spinal Implants | 2 | 166 | (98.9) | (99.0) | (100.0) | (96.2) | (96.6) | |||||||||||
| $ | 2,813 | $ | 2,810 | 0.1 | % | (1.8) % | (2.0) % | 5.5 | % | (1.3) % | ||||||||
| Total | $ | 6,020 | $ | 5,866 | 2.6 | % | 1.0 | % | 0.8 | % | 8.3 | % | 1.5 | % | ||||
Note: In the first quarter 2026 we announced a change in our organizational structure. Our new Ortho Tech business combines the orthopaedic instruments portfolio (Orthopaedic Instruments) from Instruments with Other Orthopaedics. In addition, Neuro Cranial and the spine enabling technologies portfolio (
SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
We supplement the reporting of our financial information determined under accounting principles generally accepted in
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, acquisitions and divestitures, which affect the comparability and trend of sales. Percentage organic sales growth is calculated by translating current year and prior year results at the same foreign currency exchange rates excluding the impact of acquisitions and divestitures. 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. The income tax effect of each adjustment was determined based on the tax effect of the jurisdiction in which the related pre-tax adjustment was recorded. These adjustments are irregular in timing and may not be indicative of our past and future performance.
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, other income (expense), net, income taxes, 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 adjusted net earnings per diluted share are the same as those used in the calculation of reported net earnings per diluted share for the respective period.
| For the Three Months | ||||||||||||||||||||||||
| (Unaudited - Millions of Dollars, Except Per Share Amounts) | ||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures | ||||||||||||||||||||||||
| Three Months 2026 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other Income (Expense), Net | Income Taxes | Net Earnings | Effective Tax Rate | Diluted EPS | |||||||||||||||
| Reported | $ | 3,810 | $ | 2,281 | $ | 413 | $ | 936 | $ | (86) | $ | 105 | $ | 745 | 12.4 | % | $ | 1.93 | ||||||
| Reported percent net sales | 63.3 | % | 37.9 | % | 6.9 | % | 15.5 | % | (1.4) % | nm | 12.4 | % | ||||||||||||
| Acquisition and integration-related costs: | ||||||||||||||||||||||||
| Inventory stepped-up to fair value | — | — | — | — | — | — | — | — | — | |||||||||||||||
| Other acquisition and integration-related (a) | 2 | (13) | (4) | 19 | — | 4 | 15 | 0.1 | 0.04 | |||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 180 | — | 30 | 150 | 0.6 | 0.38 | |||||||||||||||
| Structural optimization and other special charges (b) | 14 | (104) | — | 118 | (11) | 25 | 82 | 1.1 | 0.21 | |||||||||||||||
| — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Medical device regulations (d) | — | — | (5) | 5 | — | 1 | 4 | — | 0.01 | |||||||||||||||
| Recall-related matters (e) | 1 | (9) | — | 10 | — | 2 | 8 | 0.1 | 0.02 | |||||||||||||||
| Regulatory and legal matters (f) | — | (3) | — | 3 | — | 1 | 2 | — | 0.01 | |||||||||||||||
| Tax matters (g) | — | — | — | — | — | 2 | (2) | 0.2 | — | |||||||||||||||
| Adjusted | $ | 3,827 | $ | 2,152 | $ | 404 | $ | 1,271 | $ | (97) | $ | 170 | $ | 1,004 | 14.5 | % | $ | 2.60 | ||||||
| Adjusted percent net sales | 63.6 | % | 35.8 | % | 6.7 | % | 21.1 | % | (1.6) % | nm | 16.7 | % | ||||||||||||
| Three Months 2025 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other Income (Expense), Net | Income Taxes | Net Earnings | Effective Tax Rate | Diluted EPS | ||||||||||||||||
| Reported | $ | 3,744 | $ | 2,300 | $ | 405 | $ | 837 | $ | (73) | $ | 110 | $ | 654 | 14.4 | % | $ | 1.69 | |||||||
| Reported percent net sales | 63.8 | % | 39.2 | % | 6.9 | % | 14.3 | % | (1.2) % | nm | 11.1 | % | |||||||||||||
| Acquisition and integration-related costs: | |||||||||||||||||||||||||
| Inventory stepped-up to fair value | 34 | — | — | 34 | — | 8 | 26 | 0.5 | 0.07 | ||||||||||||||||
| Other acquisition and integration-related (a) | 13 | (171) | (1) | 185 | — | 6 | 179 | (2.5) | 0.47 | ||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 167 | — | 34 | 133 | 1.4 | 0.35 | ||||||||||||||||
| Structural optimization and other special charges (b) | 22 | (19) | — | 41 | — | 14 | 27 | 1.0 | 0.07 | ||||||||||||||||
| — | — | — | 35 | — | 9 | 26 | 0.7 | 0.06 | |||||||||||||||||
| Medical device regulations (d) | 1 | — | (11) | 12 | — | 3 | 9 | 0.1 | 0.02 | ||||||||||||||||
| Recall-related matters (e) | 31 | (2) | — | 33 | — | 8 | 25 | 0.5 | 0.06 | ||||||||||||||||
| Regulatory and legal matters (f) | — | — | — | — | — | 1 | (1) | — | — | ||||||||||||||||
| Tax matters (g) | — | — | — | — | — | (19) | 19 | (2.4) | 0.05 | ||||||||||||||||
| Adjusted | $ | 3,845 | $ | 2,108 | $ | 393 | $ | 1,344 | $ | (73) | $ | 174 | $ | 1,097 | 13.7 | % | $ | 2.84 | |||||||
| Adjusted percent net sales | 65.5 | % | 35.9 | % | 6.7 | % | 22.9 | % | (1.2) % | nm | 18.7 | % | |||||||||||||
nm - not meaningful
(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:
| Three Months | ||||||
| 2026 | 2025 | |||||
| Employee retention and workforce reductions | $ | 3 | $ | 16 | ||
| Changes in the fair value of contingent consideration | 3 | (2) | ||||
| Manufacturing integration costs | 5 | 4 | ||||
| Stock compensation payments upon a change in control | — | 139 | ||||
| Other integration-related activities (e.g., deal costs and legal entity rationalization) | 8 | 28 | ||||
| Adjustments to Operating Income | $ | 19 | $ | 185 | ||
| Other income taxes related to acquisition and integration-related costs | 4 | 6 | ||||
| Adjustments to Income Taxes | $ | 4 | $ | 6 | ||
| Adjustments to Net Earnings | $ | 15 | $ | 179 | ||
(b) Structural optimization and other special charges represent the costs associated with:
| Three Months | ||||||
| 2026 | 2025 | |||||
| Employee retention and workforce reductions | $ | 7 | $ | 32 | ||
| Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs) | 5 | 5 | ||||
| Product line exits | 2 | 3 | ||||
| Termination of sales relationships in certain countries | 81 | — | ||||
| Other charges | 23 | 1 | ||||
| Adjustments to Operating Income | $ | 118 | $ | 41 | ||
| Adjustments to Other Income (Expense), Net | $ | (11) | $ | — | ||
| Adjustments to Income Taxes | $ | 25 | $ | 14 | ||
| Adjustments to Net Earnings | $ | 82 | $ | 27 | ||
(c) Goodwill and other impairments represent the costs associated with:
| Three Months | |||||
| 2026 | 2025 | ||||
| Certain long-lived and intangible asset write-offs and impairments | $ | — | $ | 34 | |
| Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs) | — | 1 | |||
| Adjustments to Operating Income | $ | — | $ | 35 | |
| Adjustments to Income Taxes | $ | — | $ | 9 | |
| Adjustments to Net Earnings | $ | — | $ | 26 | |
(d) 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
(e) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to resolve certain recall-related matters.
(f) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.
(g) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:
| Three Months | |||||||
| 2026 | 2025 | ||||||
| Adjustments related to the transfer of certain intellectual properties between tax jurisdictions | $ | (20) | $ | (47) | |||
| Other tax matters | 22 | 28 | |||||
| Adjustments to Income Taxes | $ | 2 | $ | (19) | |||
| Adjustments to Other Income (Expense), Net | $ | — | $ | — | |||
| Adjustments to Net Earnings | $ | (2) | $ | 19 | |||
