STRYKER CORP (SYK): Results of Operations and Financial Condition
STRYKER CORP (SYK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 STRYKER REPORTS SECOND QUARTER 2026 OPERATING RESULTS Portage, Michigan - July 30, 2026 - Stryker (NYSE:SYK) reported operating results for the second quarter of 2026: Second Quarter Results • Reported net sales increased 9.4% to $6.6 billion • Organic net sales incr
How this was made
The 30-second read
Why it matters
Traders can update SYK’s forward expectations using the narrowed organic net sales growth range (8.3% to 9.3%) and adjusted EPS range ($14.95 to $15.10), alongside Q2 reported and adjusted margin/EPS performance.
Market read
The filing provides a concrete earnings-and-guidance datapoint for SYK, including growth, margins, and a narrowed 2026 outlook range.
What to watch
The guidance includes uncertainty around acquisitions/divestitures, FX, and special charges/regulatory and legal outcomes, which could widen realized results versus the midpoint.
STRYKER REPORTS SECOND QUARTER 2026 OPERATING RESULTS
Second-quarter net sales increased 9.4%, organic net sales increased 9.0%, reported diluted EPS increased 44.1%, and adjusted diluted EPS increased 17.9%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $6,589 million | – | 9.4% |
| Cost of salesGAAP | $2,091 million | – | (4.1)% |
| Gross profitGAAP | $4,498 million | – | 17.1% |
| Gross profit marginGAAP | 68.3% | – | – |
| Research, development and engineering expensesGAAP | $434 million | – | 6.6% |
| Selling, general and administrative expensesGAAP | $2,229 million | – | 7.2% |
| Amortization of intangible assetsGAAP | $175 million | – | (6.4)% |
| Goodwill and other impairmentsGAAP | $1 million | – | nm |
| Total operating expensesGAAP | $2,839 million | – | 4.1% |
| Operating incomeGAAP | $1,659 million | – | 49.1% |
| Operating income marginGAAP | 25.2% | – | – |
| Other income (expense), netGAAP | $(95) million | – | (2.1)% |
| Earnings before income taxesGAAP | $1,564 million | – | 53.9% |
| Income taxesGAAP | $288 million | – | 118.2% |
| Net earningsGAAP | $1,276 million | – | 44.3% |
| Basic earnings per shareGAAP | $3.32 | – | 43.1% |
| Diluted earnings per shareGAAP | $3.30 | – | 44.1% |
| Weighted-average basic shares outstandingGAAP | 383.5 million | – | – |
| Weighted-average diluted shares outstandingGAAP | 386.0 million | – | – |
| Organic net sales growthnon-GAAP | 9.0% | – | – |
| Adjusted gross profit marginnon-GAAP | 66.0% | – | – |
| Adjusted operating income marginnon-GAAP | 27.4% | – | increased 170 bps |
| Adjusted net earningsnon-GAAP | $1.4 billion | – | 17.6% |
| Adjusted net earnings per diluted sharenon-GAAP | $3.69 | – | 17.9% |
| Six-month net salesGAAP | $12,609 million | – | 6.1% |
| Six-month cost of salesGAAP | $4,301 million | – | — |
| Six-month gross profitGAAP | $8,308 million | – | 9.5% |
| Six-month gross profit marginGAAP | 65.9% | – | – |
| Six-month research, development and engineering expensesGAAP | $847 million | – | 4.3% |
| Six-month selling, general and administrative expensesGAAP | $4,510 million | – | 3.0% |
| Six-month amortization of intangible assetsGAAP | $355 million | – | 0.3% |
| Six-month goodwill and other impairmentsGAAP | $1 million | – | nm |
| Six-month total operating expensesGAAP | $5,713 million | – | 1.4% |
| Six-month operating incomeGAAP | $2,595 million | – | 33.1% |
| Six-month operating income marginGAAP | 20.6% | – | – |
| Six-month other income (expense), netGAAP | $(181) million | – | 6.5% |
| Six-month earnings before income taxesGAAP | $2,414 million | – | 35.6% |
| Six-month income taxesGAAP | $393 million | – | 62.4% |
| Six-month net earningsGAAP | $2,021 million | – | 31.4% |
| Six-month basic earnings per shareGAAP | $5.27 | – | 30.8% |
| Six-month diluted earnings per shareGAAP | $5.23 | – | 31.4% |
| Six-month weighted-average basic shares outstandingGAAP | 383.2 million | – | – |
| Six-month weighted-average diluted shares outstandingGAAP | 386.2 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| MedSurg and NeurotechnologyOrganic net sales increased 9.2% in the quarter including 9.1% from increased unit volume and 0.1% from higher prices. | $3.6 billion | – | 9.7% |
| OrthopaedicsOrganic net sales increased 8.6% in the quarter from increased unit volume. | $3.0 billion | – | 9.1% |
full year 2026 outlook
- Revenueorganic net sales growth in the range of 8.3% to 9.3%
- Noteadjusted net earnings per diluted share in the range of $14.95 to $15.10
- Notesales guidance includes a modestly positive pricing impact
- Noteforeign exchange is expected to have a slightly favorable impact on both sales and adjusted net earnings per diluted share (2) should rates hold near current levels
What drove it
- Consolidated organic net sales increased 9.0% in the quarter from increased unit volume.
- MedSurg and Neurotechnology organic net sales increased 9.2%, including 9.1% from increased unit volume and 0.1% from higher prices.
- Orthopaedics organic net sales increased 8.6% from increased unit volume.
- Reported gross profit margin was 68.3%, compared with 63.8% in the prior-year quarter.
- Reported operating income increased 49.1% to $1,659 million.
- Adjusted operating income margin increased 170 bps to 27.4%.
Concerns
- The company cited the cybersecurity incident first reported on March 11, 2026 as a risk that could result in breaches, failures or disruptions of information technology systems or products.
- Reported net earnings include charges for acquisition and integration-related activities, amortization of purchased intangible assets, structural optimization and other special charges, goodwill and other impairments, costs to comply with certain medical device regulations, recall-related matters, regulatory and legal matters and tax matters.
- The company identified pricing pressures, tariffs and potential trade-policy changes, foreign-currency changes, inflationary pressures, supply-chain disruptions, reimbursement changes and regulatory actions among its risks.
- Income taxes increased 118.2% to $288 million in the second quarter.
What to watch
- Delivery against full-year 2026 organic net sales growth guidance of 8.3% to 9.3%.
- Delivery against full-year 2026 adjusted net earnings per diluted share guidance of $14.95 to $15.10.
- The expected modestly positive pricing impact included in sales guidance.
- Whether foreign exchange remains slightly favorable to sales and adjusted net earnings per diluted share should rates hold near current levels.
- Continued recovery from the cyber incident and the company's execution during the second half of 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $3,391 million as of June 30, 2026, compared with $4,011 million as of December 31, 2025.
- Marketable securities were $85 million as of June 30, 2026, compared with $89 million as of December 31, 2025.
- Inventories were $5,521 million as of June 30, 2026, compared with $5,310 million as of December 31, 2025.
- Long-term debt, excluding current maturities, was $14,192 million as of June 30, 2026, compared with $14,859 million as of December 31, 2025.
- Total assets were $47,930 million as of June 30, 2026, compared with $47,844 million as of December 31, 2025.
- Shareholders' equity was $23,988 million as of June 30, 2026, compared with $22,420 million as of December 31, 2025.
- Six-month net earnings in operating activities were $2,021 million, compared with $1,538 million.
- Six-month depreciation was $241 million, compared with $214 million.
Analysis
Stryker reported a strong second quarter, with GAAP net sales of $6,589 million, up 9.4%, and organic net sales growth of 9.0%. The company attributed consolidated organic growth to increased unit volume. Both operating segments contributed: MedSurg and Neurotechnology delivered 9.7% reported sales growth and 9.2% organic growth, while Orthopaedics delivered 9.1% reported sales growth and 8.6% organic growth. Management said it made significant progress in recovery from the cyber incident and entered the second half with regained momentum.
Profit growth exceeded sales growth in the quarter. Gross profit increased 17.1% to $4,498 million, and GAAP gross profit margin was 68.3%, compared with 63.8% in the prior-year quarter. Operating income increased 49.1% to $1,659 million, while GAAP operating income margin was 25.2%, compared with 18.5%. Adjusted operating income margin increased 170 bps to 27.4%, and adjusted gross profit margin was 66.0%.
GAAP net earnings increased 44.3% to $1,276 million and diluted EPS increased 44.1% to $3.30. On a non-GAAP basis, adjusted net earnings were $1.4 billion, up 17.6%, and adjusted diluted EPS was $3.69, up 17.9%. The filing identifies several items excluded from adjusted results, including acquisition and integration-related activities, purchased-intangible amortization, structural optimization and other special charges, impairments, regulatory and legal matters, and tax matters.
The six-month results also showed improved profitability. Net sales increased 6.1% to $12,609 million, operating income increased 33.1% to $2,595 million, and net earnings increased 31.4% to $2,021 million. Six-month gross profit margin was 65.9%, compared with 63.8%, and operating income margin was 20.6%, compared with 16.4%.
Stryker narrowed its full-year 2026 outlook to organic net sales growth of 8.3% to 9.3% and adjusted net earnings per diluted share of $14.95 to $15.10. The guidance includes a modestly positive pricing impact, while foreign exchange is expected to have a slightly favorable impact on sales and adjusted EPS if rates remain near current levels. Cash and cash equivalents were $3,391 million at June 30, 2026, versus $4,011 million at December 31, 2025, and long-term debt excluding current maturities was $14,192 million versus $14,859 million.
Management, verbatim
We made significant progress in our recovery from the cyber incident, delivering strong growth in sales, earnings per share and operating cash flow in the second quarter.
Kevin A. Lobo, Chair and CEO
With our steady cadence of innovation and disciplined operational execution, we enter the second half of 2026 with regained momentum and remain confident in our ability to grow at the high end of MedTech.
Kevin A. Lobo, Chair and CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Quarterly operating cash flow was not provided.
- Quarterly free cash flow was not provided.
- The filing text provided only a partial six-month cash flow statement, ending after depreciation; complete operating cash flow, investing cash flow, financing cash flow and free cash flow figures were not provided.
- Share repurchases were not provided.
- Dividend declarations or payments were not provided.
- Adjusted operating income amount was not provided.
- Adjusted gross profit amount was not provided.
- Prior-year adjusted gross profit margin was not provided.
- Prior-year adjusted operating income margin was not provided as a percentage.
- Prior-year adjusted net earnings amount was not provided.
- Prior-year adjusted diluted EPS amount was not provided.
- Sequential segment revenue comparisons were not provided.
- Full-year 2026 gross-margin, operating-expense and tax-rate guidance was not provided.
- GAAP full-year 2026 net sales growth and GAAP diluted EPS guidance were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K (Item 2.02) with Stryker’s Q2 2026 operating results and a narrowed full-year 2026 outlook.
Ticker impact
Stryker reported Q2 2026 net sales up 9.4% to $6.6B and raised/updated full-year guidance to organic growth 8.3% to 9.3%.
Likely supportive for SYK, especially if investors were positioned for weaker MedTech demand or wider guidance.
The filing is a primary earnings-and-guidance disclosure with quantified Q2 results and a narrowed 2026 outlook range, which typically drives immediate repricing versus prior expectations.
Market effects
MedTech peers may see read-across from Stryker’s organic growth and margin resilience, reinforcing demand expectations for med device end-markets.
Limited direct regional signal; FX is noted as slightly favorable if rates hold near current levels.
Global MedTech demand and pricing dynamics are indirectly supported by Stryker’s constant-currency and organic growth disclosures.
Counterpoint
Adjusted results exclude multiple special items, so investors should scrutinize whether underlying demand and pricing are as strong as headline growth suggests.
Key entities
- companyStryker Corp
Reported Q2 2026 results and narrowed full-year 2026 guidance in an SEC 8-K.
- executiveKevin A. Lobo
CEO and Chair, cited progress in recovery from a prior cyber incident and confidence in high-end MedTech growth.
