Stryker reports second quarter 2025 operating results
Stryker (NYSE:SYK) reported strong Q2 2025 results with net sales increasing 11.1% to $6.0 billion. The company achieved significant organic growth of 10.2%, driven by a 9.7% increase in unit volume and 0.5% from higher prices. Adjusted EPS grew 11.4% to $3.13, while adjusted operating income margin improved 110 basis points to 25.7%.
The MedSurg and Neurotechnology segment led growth with 17.3% increased sales to $3.8 billion, while Orthopaedics segment sales grew 2.0% to $2.2 billion. Based on strong performance, Stryker raised its 2025 guidance, now expecting organic net sales growth of 9.5% to 10.0% and adjusted EPS of $13.40 to $13.60.
Stryker (NYSE:SYK) ha riportato risultati solidi nel secondo trimestre 2025 con le vendite nette in aumento dell'11,1% a 6,0 miliardi di dollari. L'azienda ha registrato una crescita organica significativa del 10,2%, trainata da un aumento del volume unitario del 9,7% e dello 0,5% dovuto a prezzi più elevati. L'EPS rettificato è cresciuto dell'11,4% raggiungendo 3,13 dollari, mentre il margine operativo rettificato è migliorato di 110 punti base arrivando al 25,7%.
Il segmento MedSurg e Neurotechnology ha guidato la crescita con un aumento delle vendite del 17,3% a 3,8 miliardi di dollari, mentre le vendite del segmento Orthopaedics sono cresciute del 2,0% a 2,2 miliardi di dollari. Grazie a queste solide performance, Stryker ha rivisto al rialzo le previsioni per il 2025, prevedendo ora una crescita organica delle vendite nette tra il 9,5% e il 10,0% e un EPS rettificato compreso tra 13,40 e 13,60 dollari.
Stryker (NYSE:SYK) reportó sólidos resultados en el segundo trimestre de 2025 con las ventas netas aumentando un 11,1% hasta 6.000 millones de dólares. La compañía logró un crecimiento orgánico significativo del 10,2%, impulsado por un aumento del volumen de unidades del 9,7% y un 0,5% por precios más altos. El EPS ajustado creció un 11,4% hasta 3,13 dólares, mientras que el margen operativo ajustado mejoró 110 puntos básicos hasta el 25,7%.
El segmento MedSurg y Neurotechnology lideró el crecimiento con un aumento de ventas del 17,3% hasta 3.800 millones de dólares, mientras que las ventas del segmento Orthopaedics crecieron un 2,0% hasta 2.200 millones de dólares. Basándose en este sólido desempeño, Stryker elevó sus previsiones para 2025, esperando ahora un crecimiento orgánico de ventas netas entre el 9,5% y el 10,0% y un EPS ajustado de entre 13,40 y 13,60 dólares.
Stryker (NYSE:SYK)는 2025년 2분기에 순매출이 11.1% 증가하여 60억 달러를 기록하며 강력한 실적을 보고했습니다. 회사는 단위 판매량이 9.7% 증가하고 가격 인상이 0.5%를 차지하며 10.2%의 유기적 성장을 달성했습니다. 조정 주당순이익(EPS)은 11.4% 증가한 3.13달러를 기록했으며, 조정 영업이익률은 110bp 개선된 25.7%를 기록했습니다.
MedSurg 및 Neurotechnology 부문이 매출이 17.3% 증가하여 38억 달러를 기록하며 성장을 주도했으며, Orthopaedics 부문 매출은 2.0% 증가한 22억 달러였습니다. 강력한 실적에 힘입어 Stryker는 2025년 가이던스를 상향 조정하여, 이제 유기적 순매출 성장률을 9.5%에서 10.0% 사이, 조정 EPS는 13.40달러에서 13.60달러 사이로 전망하고 있습니다.
Stryker (NYSE:SYK) a annoncé de solides résultats pour le deuxième trimestre 2025 avec une augmentation des ventes nettes de 11,1 % à 6,0 milliards de dollars. L'entreprise a enregistré une croissance organique significative de 10,2 %, portée par une hausse des volumes unitaires de 9,7 % et une augmentation des prix de 0,5 %. Le BPA ajusté a progressé de 11,4 % pour atteindre 3,13 dollars, tandis que la marge opérationnelle ajustée s'est améliorée de 110 points de base pour atteindre 25,7 %.
Le segment MedSurg et Neurotechnology a mené la croissance avec une hausse des ventes de 17,3 % à 3,8 milliards de dollars, tandis que les ventes du segment Orthopaedics ont augmenté de 2,0 % pour atteindre 2,2 milliards de dollars. Grâce à cette performance solide, Stryker a relevé ses prévisions pour 2025, anticipant désormais une croissance organique des ventes nettes entre 9,5 % et 10,0 % et un BPA ajusté compris entre 13,40 et 13,60 dollars.
Stryker (NYSE:SYK) meldete starke Ergebnisse für das zweite Quartal 2025 mit einem Anstieg der Nettoumsätze um 11,1 % auf 6,0 Milliarden US-Dollar. Das Unternehmen erzielte ein signifikantes organisches Wachstum von 10,2 %, getrieben durch eine Steigerung des Stückvolumens um 9,7 % und 0,5 % durch höhere Preise. Das bereinigte Ergebnis je Aktie (EPS) wuchs um 11,4 % auf 3,13 US-Dollar, während die bereinigte operative Gewinnmarge um 110 Basispunkte auf 25,7 % verbessert wurde.
Das Segment MedSurg und Neurotechnology führte das Wachstum mit einem Umsatzanstieg von 17,3 % auf 3,8 Milliarden US-Dollar an, während die Umsätze im Orthopädie-Segment um 2,0 % auf 2,2 Milliarden US-Dollar stiegen. Aufgrund der starken Leistung hat Stryker seine Prognose für 2025 angehoben und erwartet nun ein organisches Nettoumsatzwachstum von 9,5 % bis 10,0 % sowie ein bereinigtes EPS von 13,40 bis 13,60 US-Dollar.
- Double-digit sales growth of 11.1% to $6.0 billion
- Strong organic growth of 10.2% driven by 9.7% unit volume increase
- Adjusted EPS grew 11.4% to $3.13
- Operating margin improved 110 basis points to 25.7%
- MedSurg and Neurotechnology segment showed robust 17.3% growth
- Raised full-year 2025 guidance for both sales and earnings
- Gross profit margin improved to 63.8% from 63.0% year-over-year
- Orthopaedics segment showed modest 2.0% growth
- Operating income margin declined to 18.5% from 19.4% year-over-year
- Increased operating expenses by 15.3%
- Goodwill and other impairments of $55 million recorded
- Other expenses increased 83.0% to $97 million
Insights
Stryker delivered impressive Q2 2025 results with double-digit sales and adjusted EPS growth, raising full-year guidance.
Stryker has posted exceptional Q2 2025 results, with reported net sales increasing
The MedSurg and Neurotechnology segment was the standout performer, delivering
Profitability metrics show meaningful improvement, with adjusted operating margin expanding
Management's decision to raise full-year 2025 guidance signals confidence in continued momentum, with organic sales growth now projected at
Stryker's balance sheet shows strategic capital deployment, with the company having completed significant acquisitions while maintaining
The strong volume-driven growth across both business segments demonstrates Stryker's competitive positioning and execution capabilities in the medical technology market, with particular strength in its MedSurg and Neurotechnology portfolio.
Portage, Michigan, July 31, 2025 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) reported operating results for the second quarter of 2025:
Second Quarter Results
- Reported net sales increased
11.1% to$6.0 billion - Organic net sales increased
10.2% - Reported operating income margin of
18.5% - Adjusted operating income margin(1) increased 110 bps to
25.7% - Reported EPS increased
7.0% to$2.29 - Adjusted EPS(1) increased
11.4% to$3.13
| Second Quarter Net Sales Growth Overview | ||||||||||||||
| Reported | Foreign Currency Exchange | Constant Currency | Acquisitions / Divestitures | Organic | ||||||||||
| MedSurg and Neurotechnology | 17.3 | % | 0.6 | % | 16.7 | % | 5.7 | % | 11.0 | % | ||||
| Orthopaedics | 2.0 | 0.9 | 1.1 | (7.9) | 9.0 | |||||||||
| Total | 11.1 | % | 0.8 | % | 10.3 | % | 0.1 | % | 10.2 | % | ||||
“We again delivered double-digit sales and adjusted earnings per share growth in the second quarter,” said Kevin A. Lobo, Chair and CEO. “Our strong sales and earnings power reflect demand for our products, our durable innovation pipeline and ongoing operational execution.”
Sales Analysis
Consolidated net sales of
MedSurg and Neurotechnology net sales of
Orthopaedics net sales of
Earnings Analysis
Reported net earnings of
2025 Outlook
Considering our year-to-date results, strong demand for our products and our operational momentum, we are raising our full year 2025 guidance and now expect organic net sales growth(2) of
Our updated sales guidance includes a modestly favorable pricing impact. In addition, 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 current levels.
We now estimate a net impact from tariffs in 2025 of approximately
(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 Thursday, July 31, 2025
As previously announced, we will host a conference call on Thursday, July 31, 2025 at 4:30 p.m., Eastern Time, to discuss our operating results for the quarter ended June 30, 2025 and provide an operational update.
Please register for this conference call at: https://www.veracast.com/webcasts/stryker/events/SYK2Q25.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 or Inari 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 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; our ability to realize any anticipated cost savings; risks relating to climate change or other environmental, social and governance and sustainability related matters; 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; unexpected liabilities, costs, charges or expenses in connection with the acquisition of Inari; and the effects of the Inari transaction on the parties’ relationships with employees, customers, other business partners or governmental entities. 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:
Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 or jason.beach@stryker.com
For media inquiries:
Kim Montagnino, Vice President, Chief Communications Officer at 269-385-2600 or kim.montagnino@stryker.com
| STRYKER CORPORATION | |||||||||||||||||||||
| For the Three and Six Months June 30 | |||||||||||||||||||||
| (Unaudited - Millions of Dollars, Except Per Share Amounts) | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||||||
| Three Months | Six Months | ||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||
| Net sales | $ | 6,022 | $ | 5,422 | 11.1 | % | $ | 11,888 | $ | 10,665 | 11.5 | % | |||||||||
| Cost of sales | 2,181 | 2,006 | 8.7 | 4,303 | 3,916 | 9.9 | |||||||||||||||
| Gross profit | $ | 3,841 | $ | 3,416 | 12.4 | % | $ | 7,585 | $ | 6,749 | 12.4 | % | |||||||||
| % of sales | 63.8 | % | 63.0 | % | 63.8 | % | 63.3 | % | |||||||||||||
| Research, development and engineering expenses | 407 | 363 | 12.1 | 812 | 731 | 11.1 | |||||||||||||||
| Selling, general and administrative expenses | 2,079 | 1,831 | 13.5 | 4,379 | 3,668 | 19.4 | |||||||||||||||
| Amortization of intangible assets | 187 | 155 | 20.6 | 354 | 308 | 14.9 | |||||||||||||||
| Goodwill and other impairments | 55 | 16 | nm | 90 | 19 | nm | |||||||||||||||
| Total operating expenses | $ | 2,728 | $ | 2,365 | 15.3 | % | $ | 5,635 | $ | 4,726 | 19.2 | % | |||||||||
| Operating income | $ | 1,113 | $ | 1,051 | 5.9 | % | $ | 1,950 | $ | 2,023 | (3.6) % | ||||||||||
| % of sales | 18.5 | % | 19.4 | % | 16.4 | % | 19.0 | % | |||||||||||||
| Other income (expense), net | (97) | (53) | 83.0 | % | (170) | (102) | 66.7 | ||||||||||||||
| Earnings before income taxes | $ | 1,016 | $ | 998 | 1.8 | % | $ | 1,780 | $ | 1,921 | (7.3) % | ||||||||||
| Income taxes | 132 | 173 | (23.7) | 242 | 308 | (21.4) | |||||||||||||||
| Net earnings | $ | 884 | $ | 825 | 7.2 | % | $ | 1,538 | $ | 1,613 | (4.6) % | ||||||||||
| Net earnings per share of common stock: | |||||||||||||||||||||
| Basic | $ | 2.32 | $ | 2.17 | 6.9 | % | $ | 4.03 | $ | 4.24 | (5.0) % | ||||||||||
| Diluted | $ | 2.29 | $ | 2.14 | 7.0 | % | $ | 3.98 | $ | 4.19 | (5.0) % | ||||||||||
| Weighted-average shares outstanding (in millions): | |||||||||||||||||||||
| Basic | 382.2 | 381.0 | 382.0 | 380.7 | |||||||||||||||||
| Diluted | 386.4 | 385.4 | 386.4 | 385.2 | |||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| June 30 | December 31 | ||||
| 2025 | 2024 | ||||
| Assets | |||||
| Cash and cash equivalents | $ | 2,375 | $ | 3,652 | |
| Short-term investments | — | 750 | |||
| Marketable securities | 89 | 91 | |||
| Accounts receivable, net | 3,918 | 3,987 | |||
| Inventories | 5,289 | 4,774 | |||
| Prepaid expenses and other current assets | 1,332 | 1,593 | |||
| Total current assets | $ | 13,003 | $ | 14,847 | |
| Property, plant and equipment, net | 3,702 | 3,448 | |||
| Goodwill and other intangibles, net | 25,145 | 20,250 | |||
| Noncurrent deferred income tax assets | 1,375 | 1,742 | |||
| Other noncurrent assets | 3,106 | 2,684 | |||
| Total assets | $ | 46,331 | $ | 42,971 | |
| Liabilities and shareholders' equity | |||||
| Current liabilities | $ | 7,288 | $ | 7,616 | |
| Long-term debt, excluding current maturities | 14,829 | 12,188 | |||
| Income taxes | 395 | 349 | |||
| Other noncurrent liabilities | 2,628 | 2,184 | |||
| Shareholders' equity | 21,191 | 20,634 | |||
| Total liabilities and shareholders' equity | $ | 46,331 | $ | 42,971 | |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Six Months | |||||||
| 2025 | 2024 | ||||||
| Operating activities | |||||||
| Net earnings | $ | 1,538 | $ | 1,613 | |||
| Depreciation | 214 | 210 | |||||
| Amortization of intangible assets | 354 | 308 | |||||
| Changes in operating assets, liabilities, income taxes payable and other, net | (745) | (1,294) | |||||
| Net cash provided by operating activities | $ | 1,361 | $ | 837 | |||
| Investing activities | |||||||
| Acquisitions, net of cash acquired | $ | (4,814) | $ | (334) | |||
| Proceeds from maturity of short-term investments | 750 | — | |||||
| Purchases of property, plant and equipment | (306) | (319) | |||||
| Other investing, net | 130 | 128 | |||||
| Net cash used in investing activities | $ | (4,240) | $ | (525) | |||
| Financing activities | |||||||
| Borrowings (payments) of debt, net | $ | 2,331 | $ | (600) | |||
| Payments of dividends | (641) | (609) | |||||
| Other financing, net | (145) | (175) | |||||
| Net cash provided by (used in) financing activities | $ | 1,545 | $ | (1,384) | |||
| Effect of exchange rate changes on cash and cash equivalents | 57 | (25) | |||||
| Change in cash and cash equivalents | $ | (1,277) | $ | (1,097) | |||
| STRYKER CORPORATION |
| For the Three and Six Months June 30 |
| (Unaudited - Millions of Dollars) |
| SALES GROWTH ANALYSIS | |||||||||||||||||||||
| Three Months | Six Months | ||||||||||||||||||||
| Percentage Change | Percentage Change | ||||||||||||||||||||
| 2025 | 2024 | As Reported | Constant Currency | 2025 | 2024 | As Reported | Constant Currency | ||||||||||||||
| Geographic: | |||||||||||||||||||||
| United States | $ | 4,554 | $ | 4,047 | 12.5 | % | 12.5 | % | $ | 8,994 | $ | 7,961 | 13.0 | % | 13.0 | % | |||||
| International | 1,468 | 1,375 | 6.8 | 3.9 | 2,894 | 2,704 | 7.0 | 7.3 | |||||||||||||
| Total | $ | 6,022 | $ | 5,422 | 11.1 | % | 10.3 | % | $ | 11,888 | $ | 10,665 | 11.5 | % | 11.5 | % | |||||
| Segment: | |||||||||||||||||||||
| MedSurg and Neurotechnology | $ | 3,771 | $ | 3,215 | 17.3 | % | 16.7 | % | $ | 7,282 | $ | 6,312 | 15.4 | % | 15.5 | % | |||||
| Orthopaedics | 2,251 | 2,207 | 2.0 | 1.1 | 4,606 | 4,353 | 5.8 | 5.8 | |||||||||||||
| Total | $ | 6,022 | $ | 5,422 | 11.1 | % | 10.3 | % | $ | 11,888 | $ | 10,665 | 11.5 | % | 11.5 | % | |||||
| 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 | $ | 768 | $ | 698 | 10.0 | % | 9.4 | % | 10.1 | % | 9.7 | % | 6.8 | % | ||||
| Endoscopy | 899 | 768 | 17.1 | 16.7 | 19.1 | 8.3 | 6.4 | |||||||||||
| Medical | 990 | 908 | 9.0 | 8.6 | 10.1 | 3.4 | 1.2 | |||||||||||
| Vascular | 498 | 327 | 52.3 | 50.7 | 111.0 | 15.0 | 11.7 | |||||||||||
| Neuro Cranial | 616 | 514 | 19.8 | 19.2 | 21.3 | 13.5 | 9.9 | |||||||||||
| $ | 3,771 | $ | 3,215 | 17.3 | % | 16.7 | % | 19.4 | % | 10.1 | % | 7.4 | % | |||||
| Orthopaedics: | ||||||||||||||||||
| Knees | $ | 640 | $ | 602 | 6.3 | % | 5.6 | % | 6.2 | % | 6.5 | % | 4.1 | % | ||||
| Hips | 466 | 428 | 8.9 | 7.5 | 8.4 | 9.6 | 6.3 | |||||||||||
| Trauma and Extremities | 957 | 832 | 15.0 | 14.0 | 15.1 | 14.9 | 10.5 | |||||||||||
| Other | 183 | 167 | 9.6 | 8.5 | 5.6 | 20.9 | 19.0 | |||||||||||
| 2,246 | 2,029 | 10.7 | % | 9.7 | % | 10.4 | % | 11.5 | % | 8.1 | % | |||||||
| Spinal Implants | 5 | 178 | (97.2) | (97.0) | (100.0) | (90.7) | (90.2) | |||||||||||
| $ | 2,251 | $ | 2,207 | 2.0 | % | 1.1 | % | 1.5 | % | 3.1 | % | — | % | |||||
| Total | $ | 6,022 | $ | 5,422 | 11.1 | % | 10.3 | % | 12.5 | % | 6.8 | % | 3.9 | % | ||||
| Six Months | ||||||||||||||||||
| United States | International | |||||||||||||||||
| Percentage Change | ||||||||||||||||||
| 2025 | 2024 | As Reported | Constant Currency | As Reported | As Reported | Constant Currency | ||||||||||||
| MedSurg and Neurotechnology: | ||||||||||||||||||
| Instruments | $ | 1,498 | $ | 1,365 | 9.7 | % | 9.7 | % | 10.2 | % | 7.8 | % | 7.8 | % | ||||
| Endoscopy | 1,766 | 1,546 | 14.2 | 14.4 | 15.3 | 9.4 | 10.4 | |||||||||||
| Medical | 1,935 | 1,772 | 9.2 | 9.3 | 11.1 | (0.3) | 0.3 | |||||||||||
| Vascular | 904 | 637 | 41.9 | 42.3 | 89.9 | 11.3 | 11.4 | |||||||||||
| Neuro Cranial | 1,179 | 992 | 18.9 | 18.8 | 20.3 | 12.5 | 12.7 | |||||||||||
| $ | 7,282 | $ | 6,312 | 15.4 | % | 15.5 | % | 17.5 | % | 8.0 | % | 8.4 | % | |||||
| Orthopaedics: | ||||||||||||||||||
| Knees | $ | 1,279 | $ | 1,190 | 7.5 | % | 7.7 | % | 7.2 | % | 8.2 | % | 8.8 | % | ||||
| Hips | 909 | 821 | 10.7 | 10.6 | 7.8 | 15.5 | 15.2 | |||||||||||
| Trauma and Extremities | 1,902 | 1,662 | 14.4 | 14.3 | 15.9 | 10.4 | 9.9 | |||||||||||
| Other | 345 | 331 | 4.2 | 4.3 | 1.7 | 10.5 | 11.0 | |||||||||||
| $ | 4,435 | $ | 4,004 | 10.8 | % | 10.8 | % | 10.6 | % | 11.1 | % | 11.1 | % | |||||
| Spinal Implants | 171 | 349 | (51.0) | (50.7) | (51.0) | (50.9) | (49.2) | |||||||||||
| $ | 4,606 | $ | 4,353 | 5.8 | % | 5.8 | % | 5.8 | % | 5.9 | % | 6.0 | % | |||||
| Total | $ | 11,888 | $ | 10,665 | 11.5 | % | 11.5 | % | 13.0 | % | 7.0 | % | 7.3 | % | ||||
Note: In the first quarter 2025 we changed the name of our Neurovascular business to Vascular due the acquisition of Inari. In the fourth quarter 2024 we reorganized our Spine business to align with certain updates to our internal reporting structure. The spine enabling technologies portfolio (Enabling Technologies) was reclassified to Other Orthopaedics, the interventional spine portfolio was reclassified to Neuro Cranial and the remaining Spine business was renamed to Spinal Implants. Neuro Cranial includes sales related to interventional spine of
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 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.
| STRYKER CORPORATION | |||||||||||||||||||||||||
| For the Three and Six Months June 30 | |||||||||||||||||||||||||
| (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 | $ | 3,841 | $ | 2,079 | $ | 407 | $ | 1,113 | $ | (97) | $ | 132 | $ | 884 | 13.0 | % | $ | 2.29 | |||||||
| Reported percent net sales | 63.8 | % | 34.5 | % | 6.8 | % | 18.5 | % | (1.6) % | nm | 14.7 | % | |||||||||||||
| Acquisition and integration-related costs: | |||||||||||||||||||||||||
| Inventory stepped-up to fair value | 65 | — | — | 65 | — | 16 | 49 | 0.5 | 0.12 | ||||||||||||||||
| Other acquisition and integration-related (a) | 1 | (76) | (1) | 78 | — | 20 | 58 | 0.7 | 0.15 | ||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 187 | — | 39 | 148 | 1.0 | 0.37 | ||||||||||||||||
| Structural optimization and other special charges (b) | 6 | (2) | (3) | 11 | (9) | (2) | 4 | (0.2) | 0.01 | ||||||||||||||||
| Goodwill and other impairments (c) | — | — | — | 55 | — | 22 | 33 | 1.2 | 0.10 | ||||||||||||||||
| Medical device regulations (d) | — | — | (7) | 7 | — | 1 | 6 | 0.1 | 0.02 | ||||||||||||||||
| Recall-related matters (e) | 21 | (1) | — | 22 | — | 1 | 21 | (0.3) | 0.06 | ||||||||||||||||
| Regulatory and legal matters (f) | — | (7) | — | 7 | — | 1 | 6 | 0.1 | 0.01 | ||||||||||||||||
| Tax matters (g) | — | — | — | — | — | (2) | 2 | (0.2) | — | ||||||||||||||||
| Adjusted | $ | 3,934 | $ | 1,993 | $ | 396 | $ | 1,545 | $ | (106) | $ | 228 | $ | 1,211 | 15.9 | % | $ | 3.13 | |||||||
| Adjusted percent net sales | 65.4 | % | 33.1 | % | 6.6 | % | 25.7 | % | (1.8) % | nm | 20.1 | % | |||||||||||||
| 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 | $ | 3,416 | $ | 1,831 | $ | 363 | $ | 1,051 | $ | (53) | $ | 173 | $ | 825 | 17.3 | % | $ | 2.14 | |||||||
| Reported percent net sales | 63.0 | % | 33.8 | % | 6.7 | % | 19.4 | % | (1.0) % | nm | 15.2 | % | |||||||||||||
| Acquisition and integration-related costs: | |||||||||||||||||||||||||
| Inventory stepped-up to fair value | 9 | — | — | 9 | — | 2 | 7 | 0.1 | 0.02 | ||||||||||||||||
| Other acquisition and integration-related (a) | — | (14) | — | 14 | — | 2 | 12 | 0.1 | 0.03 | ||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 155 | — | 32 | 123 | 0.8 | 0.33 | ||||||||||||||||
| Structural optimization and other special charges (b) | 40 | (19) | — | 59 | — | 17 | 42 | 0.5 | 0.11 | ||||||||||||||||
| Goodwill and other impairments (c) | — | — | — | 16 | — | — | 16 | — | 0.04 | ||||||||||||||||
| Medical device regulations (d) | 4 | — | (11) | 15 | — | 4 | 11 | 0.1 | 0.02 | ||||||||||||||||
| Recall-related matters (e) | 11 | (6) | — | 17 | — | 4 | 13 | 0.1 | 0.03 | ||||||||||||||||
| Regulatory and legal matters (f) | — | 2 | — | (2) | — | (1) | (1) | — | — | ||||||||||||||||
| Tax matters (g) | — | — | — | — | (1) | (38) | 37 | (3.8) | 0.09 | ||||||||||||||||
| Adjusted | $ | 3,480 | $ | 1,794 | $ | 352 | $ | 1,334 | $ | (54) | $ | 195 | $ | 1,085 | 15.2 | % | $ | 2.81 | |||||||
| Adjusted percent net sales | 64.2 | % | 33.1 | % | 6.5 | % | 24.6 | % | (1.0) % | nm | 20.0 | % | |||||||||||||
nm - not meaningful
(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:
| Three Months | |||||
| 2025 | 2024 | ||||
| Termination of sales relationships | $ | — | $ | 2 | |
| Employee retention and workforce reductions | 29 | 4 | |||
| Changes in the fair value of contingent consideration | 3 | 2 | |||
| Manufacturing integration costs | 3 | 1 | |||
| Other integration-related activities (e.g., deal costs and legal entity rationalization) | 43 | 5 | |||
| Adjustments to Operating Income | $ | 78 | $ | 14 | |
| Other income taxes related to acquisition and integration-related costs | 20 | 2 | |||
| Adjustments to Income Taxes | $ | 20 | $ | 2 | |
| Adjustments to Net Earnings | $ | 58 | $ | 12 | |
(b) Structural optimization and other special charges represent the costs associated with:
| Three Months | ||||||
| 2025 | 2024 | |||||
| Employee retention and workforce reductions | $ | 5 | $ | 3 | ||
| Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs) | 7 | 10 | ||||
| Product line exits | (10) | 6 | ||||
| Termination of sales relationships in certain countries | (3) | 1 | ||||
| Other charges | 12 | 39 | ||||
| Adjustments to Operating Income | $ | 11 | $ | 59 | ||
| Adjustments to Other Income (Expense), Net | $ | (9) | $ | — | ||
| Adjustments to Income Taxes | $ | (2) | $ | 17 | ||
| Adjustments to Net Earnings | $ | 4 | $ | 42 | ||
(c) Goodwill and other impairments represent the costs associated with:
| Three Months | |||||
| 2025 | 2024 | ||||
| Certain long-lived and intangible asset write-offs and impairments | $ | 52 | $ | 7 | |
| Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs) | 3 | 9 | |||
| Adjustments to Operating Income | $ | 55 | $ | 16 | |
| Adjustments to Income Taxes | $ | 22 | $ | — | |
| Adjustments to Net Earnings | $ | 33 | $ | 16 | |
(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 | $ | (45) | $ | (47) | |||
| Certain tax audit settlements | — | (2) | |||||
| Other tax matters | 43 | 11 | |||||
| Adjustments to Income Taxes | $ | (2) | $ | (38) | |||
| Charges / (benefits) for certain tax audit settlements | — | (1) | |||||
| Adjustments to Other Income (Expense), Net | $ | — | $ | (1) | |||
| Adjustments to Net Earnings | $ | 2 | $ | 37 | |||
| Six 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 | $ | 7,585 | $ | 4,379 | $ | 812 | $ | 1,950 | $ | (170) | $ | 242 | $ | 1,538 | 13.6 | % | $ | 3.98 | |||||||
| Reported percent net sales | 63.8 | % | 36.8 | % | 6.8 | % | 16.4 | % | (1.4) % | nm | 12.9 | % | |||||||||||||
| Acquisition and integration-related costs: | |||||||||||||||||||||||||
| Inventory stepped-up to fair value | 99 | — | — | 99 | — | 24 | 75 | 0.5 | 0.19 | ||||||||||||||||
| Other acquisition and integration-related (a) | 14 | (247) | (2) | 263 | — | 26 | 237 | (0.7) | 0.62 | ||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 354 | — | 73 | 281 | 1.1 | 0.72 | ||||||||||||||||
| Structural optimization and other special charges (b) | 28 | (21) | (3) | 52 | (9) | 12 | 31 | 0.3 | 0.08 | ||||||||||||||||
| Goodwill and other impairments (c) | — | — | 90 | — | 31 | 59 | 1.0 | 0.16 | |||||||||||||||||
| Medical device regulations (d) | 1 | — | (18) | 19 | — | 4 | 15 | 0.1 | 0.04 | ||||||||||||||||
| Recall-related matters (e) | 52 | (3) | — | 55 | — | 9 | 46 | 0.1 | 0.12 | ||||||||||||||||
| Regulatory and legal matters (f) | — | (7) | — | 7 | — | 2 | 5 | 0.1 | 0.01 | ||||||||||||||||
| Tax matters (g) | — | — | — | — | — | (21) | 21 | (1.2) | 0.05 | ||||||||||||||||
| Adjusted | $ | 7,779 | $ | 4,101 | $ | 789 | $ | 2,889 | $ | (179) | $ | 402 | $ | 2,308 | 14.9 | % | $ | 5.97 | |||||||
| Adjusted percent net sales | 65.4 | % | 34.5 | % | 6.6 | % | 24.3 | % | (1.5) % | nm | 19.4 | % | |||||||||||||
| Six 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 | $ | 6,749 | $ | 3,668 | $ | 731 | $ | 2,023 | $ | (102) | $ | 308 | $ | 1,613 | 16.0 | % | $ | 4.19 | ||||||||
| Reported percent net sales | 63.3 | % | 34.4 | % | 6.9 | % | 19.0 | % | (1.0) % | nm | 15.1 | % | ||||||||||||||
| Acquisition and integration-related costs: | ||||||||||||||||||||||||||
| Inventory stepped-up to fair value | 9 | — | — | 9 | — | 2 | 7 | 0.1 | 0.02 | |||||||||||||||||
| Other acquisition and integration-related (a) | — | (1) | — | 1 | — | 3 | (2) | 0.2 | (0.01) | |||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 308 | — | 64 | 244 | 1.1 | 0.64 | |||||||||||||||||
| Structural optimization and other special charges (b) | 43 | (27) | — | 70 | — | 20 | 50 | 0.4 | 0.18 | |||||||||||||||||
| Goodwill and other impairments (c) | — | — | — | 19 | — | — | 19 | — | — | |||||||||||||||||
| Medical device regulations (d) | 5 | — | (23) | 28 | — | 7 | 21 | 0.1 | 0.05 | |||||||||||||||||
| Recall-related matters (e) | 11 | (11) | — | 22 | — | 5 | 17 | 0.1 | 0.04 | |||||||||||||||||
| Regulatory and legal matters (f) | — | — | — | — | — | — | — | — | — | |||||||||||||||||
| Tax matters (g) | — | — | — | — | (1) | (79) | 78 | (4.1) | 0.20 | |||||||||||||||||
| Adjusted | $ | 6,817 | $ | 3,629 | $ | 708 | $ | 2,480 | $ | (103) | $ | 330 | $ | 2,047 | 13.9 | % | $ | 5.31 | ||||||||
| Adjusted percent net sales | 63.9 | % | 34.0 | % | 6.6 | % | 23.3 | % | (1.0) % | nm | 19.2 | % | ||||||||||||||
nm - not meaningful
(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:
| Six Months | ||||||
| 2025 | 2024 | |||||
| Termination of sales relationships | $ | — | $ | 3 | ||
| Employee retention and workforce reductions | 45 | 4 | ||||
| Changes in the fair value of contingent consideration | 1 | (14) | ||||
| Manufacturing integration costs | 7 | 1 | ||||
| Stock compensation payments upon a change in control | 139 | — | ||||
| Other integration-related activities (e.g., deal costs and legal entity rationalization) | 71 | 7 | ||||
| Adjustments to Operating Income | $ | 263 | $ | 1 | ||
| Other income taxes related to acquisition and integration-related costs | 26 | 3 | ||||
| Adjustments to Income Taxes | $ | 26 | $ | 3 | ||
| Adjustments to Net Earnings | $ | 237 | $ | (2) | ||
(b) Structural optimization and other special charges represent the costs associated with:
| Six Months | ||||||
| 2025 | 2024 | |||||
| Employee retention and workforce reductions | $ | 38 | $ | 2 | ||
| Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs) | 12 | 16 | ||||
| Product line exits (e.g., inventory, long-lived asset and specifically-identified intangible asset write-offs) | (7) | 6 | ||||
| Termination of sales relationships in certain countries | (4) | 1 | ||||
| Other charges | 13 | 45 | ||||
| Adjustments to Operating Income | $ | 52 | $ | 70 | ||
| Adjustments to Income Taxes | $ | 12 | $ | 20 | ||
| Adjustments to Other Income (Expense), Net | $ | (9) | $ | — | ||
| Adjustments to Net Earnings | $ | 31 | $ | 50 | ||
(c) Goodwill and other impairments represent the costs associated with:
| Six Months | |||||
| 2025 | 2024 | ||||
| Certain long-lived and intangible asset write-offs and impairments | $ | 86 | $ | 10 | |
| Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs) | 4 | 9 | |||
| Adjustments to Operating Income | $ | 90 | $ | 19 | |
| Adjustments to Income Taxes | $ | 31 | $ | — | |
| Adjustments to Net Earnings | $ | 59 | $ | 19 | |
(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:
| Six Months | |||||||
| 2025 | 2024 | ||||||
| Adjustments related to the transfer of certain intellectual properties between tax jurisdictions | $ | (92) | $ | (94) | |||
| Certain tax audit settlements | — | (2) | |||||
| Other tax matters | 71 | 17 | |||||
| Adjustments to Income Taxes | $ | (21) | $ | (79) | |||
| Adjustments to Other Income (Expense), Net | $ | — | $ | (1) | |||
| Adjustments to Net Earnings | $ | 21 | $ | 78 | |||
FAQ
What were Stryker's (SYK) Q2 2025 earnings results?
How much did Stryker's organic sales grow in Q2 2025?
What is Stryker's updated guidance for 2025?
How did Stryker's MedSurg and Neurotechnology segment perform in Q2 2025?
What was Stryker's operating margin in Q2 2025?
