Stryker Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.66%.
Did SYK Beat Earnings? Q1 2026 Results
Stryker delivered a disappointing start to fiscal 2026, missing Wall Street expectations on both revenue and earnings as a cybersecurity incident and sweeping restructuring charges weighed heavily on results. The medical device giant posted adjusted EPS of $2.60 for Q1 2026, falling 12.86% short of the $2.98 consensus estimate and snapping a four-quarter streak of beating analyst forecasts, while revenue of $6.02 billion trailed expectations by 4.89% despite rising 2.6% year over year. CEO Kevin Lobo pointed to the March cybersecurity incident as a meaningful headwind, compounding the impact of $118.00 million in structural optimization charges, nearly three times the prior-year level, as Stryker simultaneously reorganized its segments and wound down sales relationships in certain international markets. Adjusted operating margin contracted to 21.1% from 22.9% a year ago, though operating cash flow more than doubled to $581.00 million. Management held firm on full-year 2026 guidance, maintaining organic sales growth of 8.0% to 9.5% and adjusted EPS of $14.90 to $15.10, framing Q1 as an aberration rather than a trend.
- Organic net sales growth of 2.4% driven by 2.1% unit volume increase and 0.3% pricing
- Vascular segment grew 27.5% aided by Inari acquisition
- Trauma and Extremities grew 9.5% as reported
- Instruments grew 9.9% as reported
- Orthopaedics organic growth of 4.1% from increased unit volume
- Operating cash flow more than doubled year-over-year to $581 million
“I am pleased with our team's ability to recover quickly from the cyber incident and continue delivering for our customers and their patients. We remain committed to meeting our full year guidance for organic sales growth and adjusted earnings per share as our underlying business momentum remains strong.”
Stryker CEO, on the earnings call
Forward Guidance & Outlook
Stryker is maintaining its full-year 2026 guidance of organic net sales growth in the range of 8.0% to 9.5% and adjusted net earnings per diluted share in the range of $14.90 to $15.10. Sales guidance includes a modestly positive pricing impact. Foreign exchange is expected to have a slightly favorable impact on both sales and adjusted EPS should rates hold near current levels.
SYK YoY Financials
SYK Revenue by Segment
SYK Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.