Stryker (NYSE:SYK) Releases Earnings Results, Misses Expectations By $0.38 EPS

Key Points

• Stryker missed Q1 consensus, reporting $2.60 EPS vs. $2.98 expected and $6.02B revenue vs. $6.36B consensus, though revenue rose 2.6% year‑over‑year.
• A late‑Q1 cyber incident caused global operational disruptions, delayed shipments and revenue recognition, but systems and manufacturing were restored by early April and management expects normalization through the year.
• Management reaffirmed full‑year FY2026 guidance of $14.90–$15.10 EPS and highlighted continued growth drivers including the planned acquisition of Amplitude Vascular Systems and strong momentum in orthopedics (Mako installations and new products).

Stryker (NYSE:SYK - Get Free Report) released its earnings results on Thursday. The medical technology company reported $2.60 earnings per share for the quarter, missing analysts' consensus estimates of $2.98 by ($0.38), FiscalAI reports. Stryker had a net margin of 12.92% and a return on equity of 24.41%. The company had revenue of $6.02 billion during the quarter, compared to the consensus estimate of $6.36 billion. During the same period last year, the firm posted $2.84 EPS. The company's revenue was up 2.6% on a year-over-year basis. Stryker updated its FY 2026 guidance to 14.900-15.100 EPS.

Here are the key takeaways from Stryker's conference call:

• The company experienced a late‑Q1 cyber incident that caused a global operational disruption, delayed shipments and revenue recognition, and reduced manufacturing absorption; Stryker says systems were restored and manufacturing was fully operational by the week of April 1, with results expected to normalize over the year.
• Stryker reiterated full‑year guidance despite the disruption, forecasting organic net sales growth of 8%–9.5% and adjusted EPS of $14.90–$15.10, expecting most lost Q1 sales to be recovered throughout the rest of 2026.
• Q1 headline metrics were muted—organic sales growth of 2.4% (U.S. 1.9%, international 3.9%), adjusted EPS of $2.60 (down 8.5% vs. 2025), adjusted gross margin 63.6% (‑190 bps) and adjusted operating margin 21.1% (‑180 bps), with tariffs, higher interest expense and the cyber event cited as drivers.
• M&A remains active—Stryker announced the agreement to acquire Amplitude Vascular Systems (expected to close in Q2) to expand peripheral vascular and broader cardiovascular offerings and said it has capacity to pursue additional acquisitions (gross debt/EBITDA ~2.1x).
• Organizational and product momentum in orthopedics—Stryker launched the consolidated Ortho Tech segment (Mako + Enabling Tech + instruments), reported a record Q1 for Mako installations, plans a Mako Shoulder full launch on Mako 4 midyear, and cited strong early feedback for new robotic and instrument products.

Stryker Stock Down 0.2%

Shares of SYK stock traded down $0.49 during midday trading on Thursday, reaching $314.64. 2,751,278 shares of the stock were exchanged, compared to its average volume of 1,773,260. Stryker has a 1 year low of $311.31 and a 1 year high of $404.87. The company's 50 day moving average is $345.67 and its two-hundred day moving average is $356.95. The company has a current ratio of 1.89, a quick ratio of 1.21 and a debt-to-equity ratio of 0.66. The firm has a market cap of $120.50 billion, a PE ratio of 37.46, a price-to-earnings-growth ratio of 1.84 and a beta of 0.92.

Stryker Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be issued a dividend of $0.88 per share. The ex-dividend date is Tuesday, March 31st. This represents a $3.52 dividend on an annualized basis and a dividend yield of 1.1%. Stryker's dividend payout ratio is 41.90%.

Insider Buying and Selling at Stryker

In other Stryker news, Director Ronda E. Stryker sold 250,000 shares of the company's stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $362.92, for a total transaction of $90,730,000.00. Following the transaction, the director owned 2,457,331 shares in the company, valued at approximately $891,814,566.52. This represents a 9.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 4.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in SYK. Brighton Jones LLC grew its holdings in shares of Stryker by 15.4% during the 4th quarter. Brighton Jones LLC now owns 4,564 shares of the medical technology company's stock worth $1,643,000 after acquiring an additional 609 shares during the period. Schnieders Capital Management LLC. purchased a new position in shares of Stryker during the 2nd quarter worth approximately $205,000. Marshall Wace LLP grew its holdings in shares of Stryker by 107.9% during the 2nd quarter. Marshall Wace LLP now owns 5,700 shares of the medical technology company's stock worth $2,255,000 after acquiring an additional 77,831 shares during the period. Nebula Research & Development LLC purchased a new position in shares of Stryker during the 2nd quarter worth approximately $219,000. Finally, HUB Investment Partners LLC purchased a new stake in shares of Stryker in the 2nd quarter worth approximately $253,000. Hedge funds and other institutional investors own 77.09% of the company's stock.

Key Headlines Impacting Stryker

Here are the key news stories impacting Stryker this week:

• Positive Sentiment: Strong cash flow and profitability expansion — Reported net income, operating profit and cash from operations rose materially year-over-year (cash from ops jumped sharply), supporting balance-sheet strength and capital spending. Quiver Quantitative: Q1 results
• Positive Sentiment: Company maintained FY‑2026 EPS guidance (14.900–15.100), signaling management confidence in full‑year recovery despite the soft quarter. Reuters: misses estimates, maintains outlook
• Neutral Sentiment: Company highlighted quick operational recovery from a recent cyber incident; management framed the issue as contained and service delivery resumed. WSJ: cyberattack recovery
• Neutral Sentiment: Ongoing commercial wins and government contract awards provide recurring revenue tailwinds, but these are modest relative to total sales. Quiver: gov't contracts & institutional activity
• Negative Sentiment: Earnings and revenue missed consensus — Q1 adjusted EPS missed estimates and revenue growth was only ~2.6%, below Street expectations, driving the initial negative market reaction. Zacks: EPS & revenue lag
• Negative Sentiment: Demand weakness in implants and complex-procedure devices weighed on results and led to a contraction in adjusted operating margin (down ~180 bps) and lower adjusted EPS versus prior year. GlobeNewswire: operating results & margin details
• Negative Sentiment: Insider and large institutional selling noted in filings and data feeds, which can add downward pressure on the stock in the near term. Quiver: insider & hedge fund activity

Analysts Set New Price Targets

SYK has been the subject of a number of recent analyst reports. BTIG Research reaffirmed a "buy" rating and set a $397.00 price target on shares of Stryker in a research report on Tuesday, April 14th. UBS Group lowered their price target on Stryker from $400.00 to $380.00 and set a "neutral" rating for the company in a research report on Tuesday, March 17th. Barclays reaffirmed an "overweight" rating and set a $469.00 price target on shares of Stryker in a research report on Monday, February 2nd. Leerink Partners initiated coverage on Stryker in a research report on Monday, April 13th. They set an "outperform" rating and a $410.00 price target for the company. Finally, Evercore set a $390.00 price target on Stryker in a research report on Monday, January 5th. Fifteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, Stryker presently has a consensus rating of "Moderate Buy" and a consensus price target of $421.11.

About Stryker

Stryker Corporation is a global medical technology company that designs, manufactures and markets a broad range of products and services for use in hospitals, surgeons' offices and other healthcare facilities. Its primary business activities span orthopedics (including joint replacement implants, trauma and extremities products), surgical equipment and operating room technologies (such as visualization, navigation and powered instruments), neurotechnology and spine solutions, and patient-handling and emergency medical equipment.

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