Stryker reports 2025 operating results and 2026 outlook

Rhea-AI Summary

Stryker (NYSE:SYK) reported strong fourth-quarter and full-year 2025 operating results: Q4 net sales $7.17B (+11.4%), full-year net sales $25.12B (+11.2%), organic growth Q4 +11.0% and FY +10.3%. Adjusted operating margin expanded +100 bps to 30.2% (Q4) and 26.3% (FY). 2026 outlook: organic sales growth of 8.0%–9.5% and adjusted EPS of $14.90–$15.10.

Cash flow from operations was $5.04B; acquisitions spending was $4.96B in 2025. Management cites strong capital-product demand and procedural volumes entering 2026.

Positive

• Net sales +11.4% in Q4 and +11.2% for 2025
• Organic net sales +11.0% in Q4 and +10.3% for 2025
• Adjusted operating margin expanded +100 bps (Q4 and FY)
• Adjusted EPS growth ~11.5%–11.8% (Q4 and FY)
• Operating cash flow $5.04B in 2025

Negative

• Acquisitions cash outflow $4.96B in 2025 (material use of cash)
• Long-term debt increased to $14.86B from $12.19B (2024)
• Inventories rose ~11% to $5.31B, tying up working capital

Key Figures

Q4 2025 net sales: $7.2 billion Full-year 2025 net sales: $25.1 billion Q4 adjusted EPS: $4.47 +5 more

8 metrics

Q4 2025 net sales $7.2 billion Reported, +11.4% year-over-year

Full-year 2025 net sales $25.1 billion Reported, +11.2% year-over-year

Q4 adjusted EPS $4.47 Increased 11.5% year-over-year

Full-year adjusted EPS $13.63 Increased 11.8% year-over-year

Q4 operating margin 25.2% Reported operating income margin

Q4 adjusted operating margin 30.2% Adjusted operating income margin, +100 bps

2026 organic growth outlook 8.0%–9.5% Expected 2026 organic net sales growth

2026 adjusted EPS outlook $14.90–$15.10 Expected 2026 adjusted EPS range

Market Reality Check

Price: $369.56 Vol: Volume 2,025,159 vs 20-da...

normal vol

$369.56 Last Close

Volume Volume 2,025,159 vs 20-day average 1,817,254 (relative volume 1.11). normal

Technical Trading below 200-day MA of 374.27, and 11.91% below the 52-week high, still 8.71% above the 52-week low.

Peers on Argus

SYK gained 0.92% with solid earnings, while key peers showed smaller, mixed move...

SYK gained 0.92% with solid earnings, while key peers showed smaller, mixed moves (e.g., BSX +0.5%, MDT +0.33%, EW -1.48%, ABT -1.62%). This points to a company-specific reaction rather than a broad MedTech move.

Previous Earnings Reports

5 past events · Latest: Oct 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 30	Q3 2025 earnings	Positive	-3.5%	Strong Q3 growth and margin expansion with raised 2025 guidance.
Jul 31	Q2 2025 earnings	Positive	-3.8%	Double-digit sales and organic growth; higher adjusted EPS and guidance.
May 01	Q1 2025 earnings	Positive	+1.1%	Strong sales growth with higher adjusted EPS and raised 2025 outlook.
Jan 28	2024 results, 2025 outlook	Positive	-1.0%	Robust 2024 organic growth and adjusted EPS despite impairment charges.
Oct 29	Q3 2024 earnings	Positive	+1.2%	Strong Q3 2024 growth, margin expansion and higher 2024 guidance.

Pattern Detected

Earnings releases often show strong fundamentals but mixed price reactions, with several past quarters selling off despite positive operating trends.

Recent Company History

Over the past year, Stryker has repeatedly posted double-digit sales and organic growth, with MedSurg and Neurotechnology outpacing Orthopaedics. Prior earnings reports highlighted rising adjusted EPS and expanding adjusted operating margins, alongside incremental guidance raises. However, share reactions were inconsistent, with some quarters drawing negative moves despite upbeat results and outlooks. Compared with these prior updates, the latest Q4 and full-year 2025 report continues the pattern of strong growth, higher adjusted margins, and a constructive outlook for 2026, reinforcing the existing operational trajectory.

Historical Comparison

earnings

+2.1 %

Average Historical Move

Historical Analysis

In the last five earnings releases, SYK’s average 1-day move was about 2.13%, often negative despite strong fundamentals. Today’s 0.92% gain reflects a more muted, but directionally consistent, reaction to another upbeat earnings and outlook update.

Typical Pattern

Earnings updates from late 2024 through 2025 show consistent double-digit sales and organic growth, expanding adjusted operating margins, and successive guidance raises. The new 2025 results and 2026 outlook extend this pattern of steady operational and financial improvement.

Market Pulse Summary

This announcement highlights robust Q4 and full-year 2025 performance, with double-digit reported an...

Analysis

This announcement highlights robust Q4 and full-year 2025 performance, with double-digit reported and organic sales growth, higher adjusted operating margins, and rising adjusted EPS. The new 2026 outlook calls for organic growth of 8.0%–9.5% and adjusted EPS of $14.90–$15.10, extending a multi-quarter pattern of strong MedSurg and Neurotechnology momentum. When assessing this update, investors may focus on execution versus guidance, Orthopaedics growth trends, and integration of recent acquisitions over coming quarters.

Key Terms

organic net sales, constant currency, adjusted operating income margin, non-GAAP financial measures, +1 more

5 terms

organic net sales financial

"Organic net sales increased 11.0% in the quarter and 10.3% in the full year"

Organic net sales represent the revenue generated from a company's core business activities, excluding the effects of acquisitions, divestments, or currency changes. It shows how well the company is growing through its existing products and services, similar to tracking how a plant grows from its own roots rather than by adding new plants. Investors use this measure to assess the true growth and health of a company's ongoing operations.

constant currency financial

"increased 11.4% in the quarter, 10.4% in constant currency"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

adjusted operating income margin financial

"Adjusted operating income margin(1) increased 100 bps to 30.2%"

Adjusted operating income margin is the percentage of revenue that a company keeps as profit from its normal, day-to-day business after removing one-time events, restructuring costs, and other unusual or accounting-only items. Investors use it to see how efficiently the core business turns sales into operating profit — like judging a car’s fuel efficiency after ignoring occasional detours — because it gives a clearer view of underlying profitability and comparability over time.

non-GAAP financial measures financial

"A reconciliation of the non-GAAP financial measures: adjusted gross profit margin"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

forward-looking statements regulatory

"This press release contains information that includes or is based on forward-looking statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

Portage, Michigan, Jan. 29, 2026 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) reported operating results for the fourth quarter and full year of 2025:

Fourth Quarter Results

• Reported net sales increased 11.4% to $7.2 billion
• Organic net sales increased 11.0%
• Reported operating income margin of 25.2%
• Adjusted operating income margin⁽¹⁾ increased 100 bps to 30.2%
• Reported EPS increased 56.0% to $2.20
• Adjusted EPS⁽¹⁾ increased 11.5% to $4.47

	Fourth Quarter Net Sales Growth Overview
	Reported			Foreign Currency Exchange			Constant Currency			Acquisitions / Divestitures			Organic
MedSurg and Neurotechnology	17.5	%		0.9	%		16.6	%		4.0	%		12.6	%
Orthopaedics	2.2			1.3			0.9			(7.5)			8.4
Total	11.4	%		1.0	%		10.4	%		(0.6)           %			11.0	%

Full Year Results

• Reported net sales increased 11.2% to $25.1 billion
• Organic net sales increased 10.3%
• Reported operating income margin of 19.5%
• Adjusted operating income margin⁽¹⁾ increased 100 bps to 26.3%
• Reported EPS increased 8.2% to $8.40
• Adjusted EPS⁽¹⁾ increased 11.8% to $13.63

	Full Year Net Sales Growth Overview
	Reported			Foreign Currency Exchange			Constant Currency			Acquisitions / Divestitures			Organic
MedSurg and Neurotechnology	15.7	%		0.3	%		15.4	%		4.7	%		10.7	%
Orthopaedics	4.3			0.5			3.8			(5.7)			9.5
Total	11.2	%		0.5	%		10.7	%		0.4	%		10.3	%

“We had an outstanding finish to 2025, driving double-digit sales and adjusted earnings per share growth for the fourth quarter and full year while delivering adjusted operating margin expansion of at least 100 basis points for the second consecutive year,” said Kevin A. Lobo, Chair and CEO, Stryker. “Having surpassed $25 billion in revenue, we enter 2026 with significant momentum and are poised to continue delivering growth at the high end of MedTech. I want to thank our teams for driving exceptional results and positioning Stryker for sustained success this year and beyond.”

Sales Analysis

Consolidated net sales of $7.2 billion and $25.1 billion increased 11.4% in the quarter, 10.4% in constant currency, and increased 11.2% in the full year, 10.7% in constant currency. Organic net sales increased 11.0% in the quarter and 10.3% in the full year including 10.9% and 9.9% from increased unit volume and 0.1% and 0.4% from higher prices.

MedSurg and Neurotechnology net sales of $4.6 billion and $15.6 billion increased 17.5% in the quarter, 16.6% in constant currency, and increased 15.7% in the full year, 15.4% in constant currency. Organic net sales increased 12.6% and 10.7% in the quarter and full year including 12.5% and 10.0% from increased unit volume and 0.1% and 0.7% from higher prices.

Orthopaedics net sales of $2.6 billion and $9.5 billion increased 2.2% in the quarter, 0.9% in constant currency, and increased 4.3% in the full year, 3.8% in constant currency. Organic net sales increased 8.4% and 9.5% in the quarter and full year including 8.5% and 9.6% from increased unit volume partially offset by 0.1% from lower prices in the quarter and full year.

Earnings Analysis

Reported net earnings of $0.8 billion and $3.2 billion increased 55.5% in the quarter and increased 8.5% in the full year. Reported net earnings per diluted share of $2.20 and $8.40 increased 56.0% in the quarter and increased 8.2% in the full year. Reported gross profit margin and reported operating income margin were 64.5% and 25.2% in the quarter and 64.0% and 19.5% in the full year. Reported net earnings include certain items, such as charges for acquisition and integration-related activities, the 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. Excluding the aforementioned items, adjusted gross profit margin⁽¹⁾ was 65.2% and 65.3% in the quarter and full year, and adjusted operating income margin⁽¹⁾ was 30.2% and 26.3% in the quarter and full year. Adjusted net earnings⁽¹⁾ of $1.7 billion and $5.3 billion increased 11.6% and 12.1% in the quarter and full year. Adjusted net earnings per diluted share⁽¹⁾ of $4.47 and $13.63 increased 11.5% and 11.8% in the quarter and full year.

2026 Outlook

Based on our momentum exiting 2025, healthy procedural volumes and strong demand for our capital products, we expect 2026 organic net sales growth⁽²⁾ to be in the range of 8.0% to 9.5% and adjusted net earnings per diluted share⁽²⁾ to be in the range of $14.90 to $15.10. Our full year sales guidance includes a modestly favorable pricing impact. Additionally, foreign exchange is expected to have a slightly positive impact on both sales and adjusted net earnings per diluted share⁽²⁾ should rates hold near year-to-date levels.

(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 or our expected operating income margin to expected adjusted operating income margin 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 Thursday, January 29, 2026

As previously announced, we will host a conference call on Thursday, January 29, 2026 at 4:30 p.m., Eastern Time, to discuss our operating results for the quarter and year ended December 31, 2025 and provide an operational update.

Please register for this conference call at: https://www.veracast.com/webcasts/stryker/events/SYK4Q25.cfm. 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 products; geopolitical risks, including from international conflicts and tariffs, which could, among other things, lead to 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 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 by the United States Food and Drug Administration and foreign regulatory agencies; inflationary pressures; increased interest rates or interest rate volatility; supply chain disruptions; changes in labor markets; changes in coverage and reimbursement levels from third-party payors; changes in the competitive environment; breaches, failures or other disruptions of our or our vendors’ or customers’ information technology systems or products, including by cyber-attack, data leakage, unauthorized access or theft; a significant increase in product liability claims; the ultimate total cost with respect to recall-related and other regulatory and quality matters; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; changes in tax laws and regulations; the impact of legislation to reform the healthcare system in the United States or other countries; costs to comply with medical device regulations; changes in financial markets; changes in our credit ratings; our ability to integrate and realize the anticipated benefits of acquisitions in full or at all or within the expected timeframes, including our acquisition of Inari Medical, Inc.; our ability to realize any anticipated cost savings; potential negative impacts resulting from climate change or other environmental, social and governance and sustainability related matters; and the impact on our operations and financial results of any public health emergency and any related policies and actions by governments or other third parties. Additional information concerning these and other factors is contained in our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We disclaim any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that affect the likelihood that actual results will differ from those contained in the forward-looking statements, except to the extent required by law.

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 please contact:
Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 or jason.beach@stryker.com

For media inquiries please contact:
Kim Montagnino, Vice President, Chief Communications Officer at 269-385-2600 or kim.montagnino@stryker.com

STRYKER CORPORATION
For the Three Months and Full Year December 31
(Unaudited - Millions of Dollars, Except Per Share Amounts)
CONSOLIDATED STATEMENTS OF EARNINGS
	Three Months											Full Year
		2025				2024			% Change				2025				2024			% Change
Net sales	$	7,171			$	6,436			11.4	%		$	25,116			$	22,595			11.2	%
Cost of sales		2,543				2,262			12.4				9,051				8,155			11.0
Gross profit	$	4,628			$	4,174			10.9	%		$	16,065			$	14,440			11.3	%
% of sales		64.5	%			64.9	%						64.0	%			63.9	%
Research, development and engineering expenses		401				358			12.0				1,623				1,466			10.7
Selling, general and administrative expenses		2,227				2,123			4.9				8,651				7,685			12.6
Amortization of intangible assets		189				156			21.2				732				623			17.5
Goodwill and other impairments		7				956			nm				170				977			nm
Total operating expenses	$	2,824			$	3,593			(21.4)        %			$	11,176			$	10,751			4.0	%
Operating income	$	1,804			$	581			210.5	%		$	4,889			$	3,689			32.5	%
% of sales		25.2	%			9.0	%						19.5	%			16.3	%
Other income (expense), net		(99)				(53)			86.8				(375)				(197)			90.4
Earnings before income taxes	$	1,705			$	528			222.9	%		$	4,514			$	3,492			29.3	%
Income taxes		856				(18)			nm				1,268				499			nm
Net earnings	$	849			$	546			55.5	%		$	3,246			$	2,993			8.5	%
Net earnings per share of common stock:
Basic	$	2.21			$	1.43			54.5	%		$	8.49			$	7.86			8.0	%
Diluted	$	2.20			$	1.41			56.0	%		$	8.40			$	7.76			8.2	%
Weighted-average shares outstanding (in millions):
Basic		382.5				381.3							382.2				381.0
Diluted		386.5				386.1							386.5				385.6

CONDENSED CONSOLIDATED BALANCE SHEETS
	December 31
		2025			2024
Assets
Cash and cash equivalents	$	4,011		$	3,652
Short-term investments		—			750
Marketable securities		89			91
Accounts receivable, net		4,039			3,987
Inventories		5,310			4,774
Prepaid expenses and other current assets		1,306			1,593
Total current assets	$	14,755		$	14,847
Property, plant and equipment, net		3,876			3,448
Goodwill and other intangibles, net		24,972			20,250
Noncurrent deferred income tax assets		1,098			1,742
Other noncurrent assets		3,143			2,684
Total assets	$	47,844		$	42,971
Liabilities and shareholders' equity
Current liabilities	$	7,794		$	7,616
Long-term debt, excluding current maturities		14,859			12,188
Income taxes		402			349
Other noncurrent liabilities		2,369			2,184
Shareholders' equity		22,420			20,634
Total liabilities and shareholders' equity	$	47,844		$	42,971

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	December 31
		2025				2024
Operating activities
Net earnings	$	3,246			$	2,993
Depreciation		461				427
Amortization of intangible assets		732				623
Changes in operating assets, liabilities, income taxes payable and other, net		605				199
Net cash provided by operating activities	$	5,044			$	4,242
Investing activities
Acquisitions, net of cash acquired	$	(4,960)			$	(1,628)
Proceeds/(Purchases) of short-term investments		750				(750)
Purchases of property, plant and equipment		(761)				(755)
Other investing, net		105				133
Net cash used in investing activities	$	(4,866)			$	(3,000)
Financing activities
Borrowings (payments) of debt, net	$	1,579			$	940
Payments of dividends		(1,284)				(1,219)
Other financing, net		(182)				(246)
Net cash provided by (used in) financing activities	$	113			$	(525)
Effect of exchange rate changes on cash and cash equivalents		68				(36)
Change in cash and cash equivalents	$	359			$	681

nm - not meaningful

STRYKER CORPORATION

For the Three Months and Full Year December 31

(Unaudited - Millions of Dollars)

SALES GROWTH ANALYSIS
	Three Months										Full Year
						Percentage Change										Percentage Change
		2025		2024		As Reported		Constant Currency				2025		2024		As Reported		Constant Currency
Geographic:
United States	$	5,441	$	4,873		11.7	%	11.7	%		$	19,006	$	16,943		12.2	%	12.2	%
International		1,730		1,563		10.6		6.3				6,110		5,652		8.1		6.4
Total	$	7,171	$	6,436		11.4	%	10.4	%		$	25,116	$	22,595		11.2	%	10.7	%
Segment:
MedSurg and Neurotechnology	$	4,562	$	3,882		17.5	%	16.6	%		$	15,647	$	13,518		15.7	%	15.4	%
Orthopaedics		2,609		2,554		2.2		0.9				9,469		9,077		4.3		3.8
Total	$	7,171	$	6,436		11.4	%	10.4	%		$	25,116	$	22,595		11.2	%	10.7	%

SUPPLEMENTAL SALES GROWTH ANALYSIS
	Three Months
											United States			International
						Percentage Change
		2025		2024		As Reported		Constant Currency			As Reported			As Reported		Constant Currency
MedSurg and Neurotechnology:
Instruments	$	925	$	790		17.1	%	16.1	%		19.2	%		9.0	%	4.3	%
Endoscopy		1,145		1,006		13.8		13.6			11.1			28.1		26.3
Medical		1,284		1,142		12.4		11.3			12.0			13.7		8.0
Vascular		539		341		58.1		55.8			115.9			19.6		15.8
Neuro Cranial		669		603		11.0		10.2			9.9			16.8		11.6
	$	4,562	$	3,882		17.5	%	16.6	%		17.5	%		17.4	%	13.1	%
Orthopaedics:
Knees	$	749	$	687		8.9	%	7.9	%		7.6	%		12.8	%	8.8	%
Hips		499		463		8.1		6.6			5.6			12.3		8.4
Trauma and Extremities		1,086		996		9.1		7.6			8.5			10.8		4.9
Other		267		222		20.1		18.6			28.7			(0.8)		(5.3)
		2,601		2,368		9.9	%	8.5	%		9.6	%		10.6	%	5.8	%
Spinal Implants		8		186		(95.8)		(96.1)			(100.0)			(86.5)		(87.5)
	$	2,609	$	2,554		2.2	%	0.9	%		1.9	%		2.9	%	(1.6)        %
Total	$	7,171	$	6,436		11.4	%	10.4	%		11.7	%		10.6	%	6.3	%

	Full Year
											United States			International
						Percentage Change
		2025		2024		As Reported		Constant Currency			As Reported			As Reported		Constant Currency
MedSurg and Neurotechnology:
Instruments	$	3,183	$	2,834		12.3	%	11.9	%		13.0	%		9.5	%	7.5	%
Endoscopy		3,807		3,389		12.3		12.3			12.2			12.8		12.4
Medical		4,204		3,852		9.1		8.8			10.0			4.8		2.8
Vascular		1,968		1,307		50.6		50.0			107.5			14.8		13.4
Neuro Cranial		2,485		2,136		16.3		15.9			16.5			15.5		13.1
	$	15,647	$	13,518		15.7	%	15.4	%		17.0	%		11.3	%	9.7	%
Orthopaedics:
Knees	$	2,656	$	2,447		8.5	%	8.2	%		7.6	%		11.0	%	9.7	%
Hips		1,865		1,704		9.5		8.9			7.4			12.9		11.2
Trauma and Extremities		3,948		3,507		12.6		11.8			13.1			11.0		8.2
Other		815		712		14.5		14.0			18.2			5.3		3.6
		9,284		8,370		10.9	%	10.3	%		10.9	%		11.0	%	9.0	%
Spinal Implants		185		707		(73.9)		(73.9)			(76.0)			(69.3)		(69.2)
	$	9,469	$	9,077		4.3	%	3.8	%		4.3	%		4.4	%	2.6	%
Total	$	25,116	$	22,595		11.2	%	10.7	%		12.2	%		8.1	%	6.4	%

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 the United States (GAAP) with certain non-GAAP financial measures, including: 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 other income (expense), net; adjusted income taxes; adjusted effective income tax rate; adjusted net earnings; and adjusted net earnings per diluted share (Diluted EPS). We believe 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, 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 rate 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.

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.

STRYKER CORPORATION
For the Three Months and Full Year December 31
(Unaudited - Millions of Dollars, Except Per Share Amounts)
Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
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	$	4,628		$	2,227		$	401		$	1,804		$	(99)		$	856		$	849		50.2	%	$	2.20
Reported percent net sales		64.5	%		31.1	%		5.6	%		25.2	%	(1.4)      %			nm				11.8	%
Acquisition and integration-related costs
Inventory stepped-up to fair value		13			—			—			13			—			3			10		0.1			0.03
Other acquisition and integration-related (a)		5			(16)			(12)			33			—			4			29		(0.1)			0.08
Amortization of purchased intangible assets		—			—			—			189			—			39			150		0.6			0.38
Structural optimization and other special charges (b)		31			(66)			(1)			98			(8)			9			81		(0.4)			0.22
Goodwill and other impairments (c)		—			—			—			7			—			4			3		0.2			(0.01)
Medical device regulations (d)		—			—			(8)			8			—			1			7		—			0.02
Recall-related matters (e)		2			—			—			2			—			1			1		—			—
Regulatory and legal matters (f)		—			(10)			—			10			—			3			7		—			0.02
Tax matters (g)		—			—			—			—			—			(589)			589		(34.5)			1.53
Adjusted	$	4,679		$	2,135		$	380		$	2,164		$	(107)		$	331		$	1,726		16.1	%	$	4.47
Adjusted percent net sales		65.2	%		29.7	%		5.3	%		30.2	%	(1.5)   %			nm				24.1	%

Three Months 2024	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	$	4,174		$	2,123		$	358		$	581		$	(53)		$	(18)		$	546		(3.4)        %		$	1.41
Reported percent net sales		64.9	%		33.0	%		5.6	%		9.0	%	(0.8)       %			nm				8.5	%
Acquisition and integration-related costs
Inventory stepped-up to fair value		8			—			—			8			—			3			5		0.2			0.01
Other acquisition and integration-related (a)		—			(58)			(1)			59			—			9			50		(0.1)			0.13
Amortization of purchased intangible assets		—			—			—			156			—			32			124		1.5			0.32
Structural optimization and other special charges (b)		18			(26)			(2)			46			1			10			37		1.0			0.06
Goodwill and other impairments (c)		—			—			—			956			—			120			836		(5.2)			2.21
Medical device regulations (d)		4			—			(13)			17			—			5			12		0.3			0.03
Recall-related matters (e)		—			(18)			—			18			—			5			13		0.3			0.04
Regulatory and legal matters (f)		—			(37)			—			37			—			7			30		0.3			0.08
Tax matters (g)		—			—			—			—			1			108			(107)		20.5			(0.28)
Adjusted	$	4,204		$	1,984		$	342		$	1,878		$	(51)		$	281		$	1,546		15.4	%	$	4.01
Adjusted percent net sales		65.3	%		30.8	%		5.3	%		29.2	%	(0.8)      %			nm				24.0	%

(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:

	Three Months
		2025			2024
Termination of sales relationships	$	—		$	1
Employee retention and workforce reductions		4			5
Changes in the fair value of contingent consideration		9			20
Manufacturing integration costs		4			1
Other integration-related activities (e.g., deal costs and legal entity rationalization)		16			32
Adjustments to Operating Income	$	33		$	59
Other income taxes related to acquisition and integration-related costs		4			9
Adjustments to Income Taxes	$	4		$	9
Adjustments to Net Earnings	$	29		$	50

(b) Structural optimization and other special charges represent the costs associated with:

	Three Months
		2025				2024
Employee retention and workforce reductions	$	11			$	9
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)		9				13
Product line exits		10				28
Termination of sales relationships in certain countries		10				1
Other charges		58				(5)
Adjustments to Operating Income	$	98			$	46
Adjustments to Other Income (Expense), Net	$	(8)			$	1
Adjustments to Income Taxes	$	9			$	10
Adjustments to Net Earnings	$	81			$	37

(c) Goodwill and other impairments represent the costs associated with:

	Three Months
		2025			2024
Goodwill impairments	$	—		$	456
Certain long-lived and intangible asset write-offs and impairments		6			455
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)		1			45
Adjustments to Operating Income	$	7		$	956
Adjustments to Income Taxes	$	4		$	120
Adjustments to Net Earnings	$	3		$	836

(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 European Union.
(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
		2025				2024
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$	(565)			$	(44)
Deferred tax benefit on outside basis difference related to a planned disposition		—				170
Other tax matters		(24)				(18)
Adjustments to Income Taxes	$	(589)			$	108
Adjustments to Other Income (Expense), Net	$	—			$	1
Adjustments to Net Earnings	$	589			$	(107)

Full Year 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	$	16,065		$	8,651		$	1,623		$	4,889		$	(375)		$	1,268		$	3,246		28.1	%	$	8.40
Reported percent net sales		64.0	%		34.4	%		6.5	%		19.5	%	(1.5) %			nm				12.9	%
Acquisition and integration-related costs
Inventory stepped-up to fair value		173			—			—			173			—			42			131		0.3			0.34
Other acquisition and integration-related (a)		24			(296)			(15)			335			—			36			299		(0.3)			0.78
Amortization of purchased intangible assets		—			—			—			732			—			151			581		0.9			1.49
Structural optimization and other special charges (b)		74			(113)			(4)			191			(27)			24			140		—			0.37
Goodwill and other impairments (c)		—			—			—			170			—			50			120		0.5			0.31
Medical device regulations (d)		1			—			(37)			38			—			8			30		0.1			0.08
Recall-related matters (e)		54			(4)			—			58			—			10			48		—			0.12
Regulatory and legal matters (f)		—			(17)			—			17			—			5			12		—			0.03
Tax matters (g)		—			—			—			—			—			(660)			660		(14.5)			1.71
Adjusted	$	16,391		$	8,221		$	1,567		$	6,603		$	(402)		$	934		$	5,267		15.1	%	$	13.63
Adjusted percent net sales		65.3	%		32.8	%		6.2	%		26.3	%	(1.6)    %			nm				21.0	%

Full Year 2024	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	$	14,440		$	7,685		$	1,466		$	3,689		$	(197)		$	499		$	2,993		14.3	%	$	7.76
Reported percent net sales		63.9	%		34.0	%		6.5	%		16.3	%	(0.9)     %			nm				13.2	%
Acquisition and integration-related costs
Inventory stepped-up to fair value		46			—			—			46			—			12			34		0.2			0.09
Other acquisition and integration-related (a)		—			(107)			(1)			108			—			23			85		0.2			0.22
Amortization of purchased intangible assets		—			—			—			623			—			128			495		1.0			1.28
Structural optimization and other special charges (b)		59			(77)			(2)			138			1			29			110		0.3			0.29
Goodwill and other impairments (c)		—			—			—			977			—			125			852		(0.6)			2.21
Medical device regulations (d)		9			—			(49)			58			—			14			44		0.1			0.11
Recall-related matters (e)		11			(29)			—			40			—			10			30		0.1			0.08
Regulatory and legal matters (f)		—			(36)			—			36			—			7			29		0.1			0.08
Tax matters (g)		—			—			—			—			—			(28)			28		(0.9)			0.07
Adjusted	$	14,565		$	7,436		$	1,414		$	5,715		$	(196)		$	819		$	4,700		14.8	%	$	12.19
Adjusted percent net sales		64.5	%		32.9	%		6.3	%		25.3	%	(0.9)        %			nm				20.8	%

(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:

		2025			2024
Termination of sales relationships	$	—		$	4
Employee retention and workforce reductions		60			22
Changes in the fair value of contingent consideration		21			8
Manufacturing integration costs		19			3
Stock compensation payments upon a change in control		140			22
Other integration-related activities		95			49
Adjustments to Operating Income	$	335		$	108
Other income taxes related to acquisition and integration-related costs		36			23
Adjustments to Income Taxes	$	36		$	23
Adjustments to Net Earnings	$	299		$	85

(b) Structural optimization and other special charges represent the costs associated with:

		2025				2024
Employee retention and workforce reductions	$	55			$	23
Closure/transfer of manufacturing and other facilities		31				31
Product line exits		13				37
Termination of sales relationships in certain countries		7				8
Other charges		85				39
Adjustments to Operating Income	$	191			$	138
Adjustments to Other Income (Expense), Net	$	(27)			$	1
Adjustments to Income Taxes	$	24			$	29
Adjustments to Net Earnings	$	140			$	110

(c) Goodwill and other impairments represent the costs associated with:

		2025			2024
Goodwill impairments	$	—		$	456
Certain long-lived and intangible asset write-offs and impairments		114			466
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)		56			55
Adjustments to Operating Income	$	170		$	977
Adjustments to Income Taxes	$	50		$	125
Adjustments to Net Earnings	$	120		$	852

(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 European Union.
(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:

		2025				2024
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$	(718)			$	(185)
Certain tax audit settlements		—				(1)
Deferred tax benefit on outside basis difference related to a planned disposition		—				170
Other tax matters		58				(12)
Adjustments to Income Taxes	$	(660)			$	(28)
Adjustments to Net Earnings	$	660			$	28

FAQ

What were Stryker's (SYK) Q4 2025 net sales and growth rates?

Stryker reported Q4 2025 net sales of $7.17 billion, up 11.4%. According to the company, constant-currency growth was 10.4% and organic growth was 11.0%, driven by volume gains across MedSurg, Neurotechnology and Orthopaedics.

What is Stryker's full-year 2025 adjusted EPS and its growth versus 2024?

Stryker reported adjusted EPS of $13.63 for full-year 2025, up 11.8%. According to the company, adjusted net earnings rose 12.1%, reflecting margin expansion and operational leverage across the business.

What guidance did Stryker (SYK) give for 2026 organic sales and adjusted EPS?

Stryker expects 2026 organic net sales growth of 8.0%–9.5% and adjusted EPS of $14.90–$15.10. According to the company, guidance assumes modestly favorable pricing and slightly positive FX if rates hold near year-to-date levels.

How did Stryker fund acquisitions in 2025 and what was the cash impact?

Stryker used $4.96 billion of cash for acquisitions in 2025. According to the company, acquisitions materially increased investing outflows while operating cash flow remained strong at $5.04 billion for the year.

What margin improvements did Stryker report for Q4 and full-year 2025?

Adjusted operating margin improved by 100 basis points to 30.2% in Q4 and to 26.3% for the full year. According to the company, margin expansion was driven by volume, pricing and cost management despite acquisition and integration items.