Stryker reports second quarter 2026 operating results

(Moderate)

(Neutral)

Rhea-AI Summary

Stryker (NYSE:SYK) reported second quarter 2026 net sales of $6.6 billion, up 9.4% as reported and 9.0% in constant currency, with organic net sales up 9.0%. MedSurg and Neurotechnology sales rose 9.7% to $3.6 billion, and Orthopaedics sales grew 9.1% to $3.0 billion.

Reported operating income margin was 25.2% and adjusted operating income margin(1) increased 170 bps to 27.4%. Reported EPS increased to $3.30, while adjusted EPS(1) rose 17.9% to $3.69. Net earnings were $1.3 billion, up 44.3%. Operating cash flow for the first half of 2026 was $1.8 billion, compared with $1.4 billion in 2025.

For full year 2026, Stryker now expects organic net sales growth(2) of 8.3%–9.3% and adjusted EPS(2) of $14.95–$15.10, including a modestly positive pricing impact and a slightly favorable expected foreign exchange effect if rates remain near current levels.

Positive

Net sales up 9.4% to $6.6 billion in Q2 2026
Organic net sales growth 9.0% in the quarter
Reported EPS up 44.1% to $3.30 in Q2 2026
Adjusted EPS(1) up 17.9% to $3.69 in Q2 2026
Operating income up 49.1% to $1.66 billion; margin 25.2%
Operating cash flow for six months up to $1.84 billion from $1.36 billion

Negative

Vascular segment total Q2 sales down 0.7% as reported
Cash and cash equivalents decreased to $3.39 billion from $4.01 billion
Net cash used in financing activities of $1.61 billion in first half 2026

News Explained

June 30 cash was $3,391 million against $14,192 million of long-term debt.

Stryker reported second-quarter 2026 operating results for the quarter ended June 30, 2026; the release adds a balance-sheet view of the company’s cash, debt and shareholders’ equity.

At June 30, 2026, cash and cash equivalents were $3,391 million, long-term debt was $14,192 million, and shareholders’ equity was $23,988 million.

During the six months ended June 30, 2026, cash decreased; investing activities used cash, including acquisitions and property, plant and equipment, while financing activities used cash, including net debt payments and dividends.

Market reaction after 2Q26 earnings report: SYK -7.70%

-7.70% $321.25

15m delay

-7.70% Vs previous close

$321.25 Last Price

$307.00 $359.76 Day Range

$123.15B Market Cap

1.2x Rel. Volume

Following this news, SYK has declined 7.70%, reflecting a notable negative market reaction. Our momentum scanner has triggered 11 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $321.25.

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Market Context

Insider context showed Net Selling over the analyzed period. That record adds a governance-data comp...

Analysis

Insider context showed Net Selling over the analyzed period. That record adds a governance-data comparison to the quarterly results; low short positioning was another sourced risk factor to monitor.

Key Figures

Reported net sales: $6.6 billion, +9.4% Organic net sales growth: 9.0% Adjusted operating income margin: 27.4%, +170 bps +5 more

8 metrics

Reported net sales $6.6 billion, +9.4% Q2 2026

Organic net sales growth 9.0% Q2 2026

Adjusted operating income margin 27.4%, +170 bps Q2 2026

Reported EPS $3.30, +44.1% Q2 2026

Adjusted EPS $3.69, +17.9% Q2 2026

Reported net earnings $1.3 billion, +44.3% Q2 2026

Organic net sales guidance 8.3% to 9.3% Full year 2026

Adjusted EPS guidance $14.95 to $15.10 Full year 2026

Previous Earnings Reports

5 past events · Latest: Apr 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 30	Q1 earnings report	Positive	-6.5%	Q1 results and retained guidance accompanied a -6.47% 24-hour reaction.
Jan 29	2025 earnings report	Positive	+4.3%	Strong Q4 and full-year results with 2026 outlook accompanied a 4.31% reaction.
Oct 30	Q3 earnings report	Positive	-3.5%	Q3 growth, margin expansion, and raised guidance accompanied a -3.45% reaction.
Jul 31	Q2 earnings report	Positive	-3.8%	Q2 growth, higher adjusted EPS, and raised guidance accompanied a -3.8% reaction.
May 01	Q1 earnings report	Positive	+1.1%	Q1 sales growth and updated guidance accompanied a 1.13% reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-matched earnings reactions averaged -1.66%, with positive earnings outcomes diverging from the stock reaction in three of five events.

Key Terms

organic net sales, constant currency, adjusted operating income margin, non-gaap financial measures

4 terms

organic net sales financial

"Organic net sales increased 9.0% in the quarter from increased unit volume."

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

"Consolidated net sales of $6.6 billion increased 9.4% in the quarter and 9.0% 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 170 bps to 27.4%"

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"

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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07/30/2026 - 04:05 PM

Portage, Michigan, July 30, 2026 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) reported operating results for the second quarter of 2026:

Second Quarter Results

Reported net sales increased 9.4% to $6.6 billion
Organic net sales increased 9.0%
Reported operating income margin of 25.2%
Adjusted operating income margin⁽¹⁾ increased 170 bps to 27.4%
Reported EPS increased 44.1% to $3.30
Adjusted EPS⁽¹⁾ increased 17.9% to $3.69

	Second Quarter Net Sales Growth Overview
	Reported		Foreign Currency Exchange		Constant Currency		Acquisitions / Divestitures		Organic
MedSurg and Neurotechnology	9.7	%	0.5	%	9.2	%	—	%	9.2	%
Orthopaedics	9.1		0.4		8.7		0.1		8.6
Total	9.4	%	0.4	%	9.0	%	—	%	9.0	%

“We made significant progress in our recovery from the cyber incident, delivering strong growth in sales, earnings per share and operating cash flow in the second quarter,” said Kevin A. Lobo, Chair and CEO. “As we have seen in the past, the resilience of our teams when faced with challenges was once again on display. With our steady cadence of innovation and disciplined operational execution, we enter the second half of 2026 with regained momentum and remain confident in our ability to grow at the high end of MedTech.”

Sales Analysis

Consolidated net sales of $6.6 billion increased 9.4% in the quarter and 9.0% in constant currency. Organic net sales increased 9.0% in the quarter from increased unit volume.

MedSurg and Neurotechnology net sales of $3.6 billion increased 9.7% in the quarter and 9.2% in constant currency. Organic net sales increased 9.2% in the quarter including 9.1% from increased unit volume and 0.1% from higher prices.

Orthopaedics net sales of $3.0 billion increased 9.1% in the quarter and 8.7% in constant currency. Organic net sales increased 8.6% in the quarter from increased unit volume.

Earnings Analysis

Reported net earnings of $1.3 billion increased 44.3% in the quarter. Reported net earnings per diluted share of $3.30 increased 44.1% in the quarter. Reported gross profit margin and reported operating income margin were 68.3% and 25.2% in the quarter. 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 66.0% in the quarter, and adjusted operating income margin⁽¹⁾ was 27.4% in the quarter. Adjusted net earnings⁽¹⁾ of $1.4 billion increased 17.6% in the quarter. Adjusted net earnings per diluted share⁽¹⁾ of $3.69 increased 17.9% in the quarter.

2026 Outlook

We are narrowing our full year 2026 guidance and now expect organic net sales growth⁽²⁾ in the range of 8.3% to 9.3% and adjusted net earnings per diluted share⁽²⁾ in the range of $14.95 to $15.10. Our sales guidance includes a modestly positive pricing impact. Additionally, foreign exchange is expected to have a slightly favorable impact on both sales and adjusted net earnings per diluted share⁽²⁾ should rates hold near current levels.

(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 30, 2026

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

Please register for this conference call at: https://stryker-2q2026-earnings.open-exchange.net. 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 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 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 resulting from cyber-attack, data leakage, unauthorized access or theft, including the cybersecurity incident first reported on March 11, 2026; 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; our ability to realize any anticipated cost savings; risks relating to 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:

Nick Mead, Vice President, Investor Relations at 269-385-2600 or nick.mead@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
		2026			2025		% Change			2026			2025		% Change
Net sales	$	6,589		$	6,022		9.4	%	$	12,609		$	11,888		6.1	%
Cost of sales		2,091			2,181		(4.1)			4,301			4,303		—
Gross profit	$	4,498		$	3,841		17.1	%	$	8,308		$	7,585		9.5	%
% of sales		68.3	%		63.8	%				65.9	%		63.8	%
Research, development and engineering expenses		434			407		6.6			847			812		4.3
Selling, general and administrative expenses		2,229			2,079		7.2			4,510			4,379		3.0
Amortization of intangible assets		175			187		(6.4)			355			354		0.3
Goodwill and other impairments		1			55		nm			1			90		nm
Total operating expenses	$	2,839		$	2,728		4.1	%	$	5,713		$	5,635		1.4	%
Operating income	$	1,659		$	1,113		49.1	%	$	2,595		$	1,950		33.1	%
% of sales		25.2	%		18.5	%				20.6	%		16.4	%
Other income (expense), net		(95)			(97)		(2.1) %			(181)			(170)		6.5
Earnings before income taxes	$	1,564		$	1,016		53.9	%	$	2,414		$	1,780		35.6	%
Income taxes		288			132		118.2			393			242		62.4
Net earnings	$	1,276		$	884		44.3	%	$	2,021		$	1,538		31.4	%
Net earnings per share of common stock:
Basic	$	3.32		$	2.32		43.1	%	$	5.27		$	4.03		30.8	%
Diluted	$	3.30		$	2.29		44.1	%	$	5.23		$	3.98		31.4	%
Weighted-average shares outstanding (in millions):
Basic		383.5			382.2					383.2			382.0
Diluted		386.0			386.4					386.2			386.4

CONDENSED CONSOLIDATED BALANCE SHEETS
	June 30		December 31
		2026		2025
Assets
Cash and cash equivalents	$	3,391	$	4,011
Marketable securities		85		89
Accounts receivable, net		3,743		4,039
Inventories		5,521		5,310
Prepaid expenses and other current assets		1,678		1,306
Total current assets	$	14,418	$	14,755
Property, plant and equipment, net		3,958		3,876
Goodwill and other intangibles, net		25,326		24,972
Noncurrent deferred income tax assets		994		1,098
Other noncurrent assets		3,234		3,143
Total assets	$	47,930	$	47,844
Liabilities and shareholders' equity
Current liabilities	$	6,684	$	7,794
Long-term debt, excluding current maturities		14,192		14,859
Income taxes		406		402
Other noncurrent liabilities		2,660		2,369
Shareholders' equity		23,988		22,420
Total liabilities and shareholders' equity	$	47,930	$	47,844

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Six Months
		2026		2025
Operating activities
Net earnings	$	2,021	$	1,538
Depreciation		241		214
Amortization of intangible assets		355		354
Changes in operating assets, liabilities, income taxes payable and other, net		(775)		(745)
Net cash provided by operating activities	$	1,842	$	1,361
Investing activities
Acquisitions, net of cash acquired	$	(459)	$	(4,814)
Proceeds/(Purchases) of short-term investments		—		750
Purchases of property, plant and equipment		(368)		(306)
Other investing, net		3		130
Net cash used in investing activities	$	(824)	$	(4,240)
Financing activities
Borrowings (payments) of debt, net	$	(750)	$	2,331
Payments of dividends		(674)		(641)
Other financing, net		(181)		(145)
Net cash provided by (used in) financing activities	$	(1,605)	$	1,545
Effect of exchange rate changes on cash and cash equivalents		(33)		57
Change in cash and cash equivalents	$	(620)	$	(1,277)

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
		2026		2025	As Reported		Constant Currency			2026		2025	As Reported		Constant Currency
MedSurg and Neurotechnology:
Instruments
United States	$	840	$	776	8.4	%	8.4	%	$	1,606	$	1,478	8.7	%	8.7	%
International		163		142	13.9		12.3			317		278	13.9		9.6
Total	$	1,003	$	918	9.3	%	9.0	%	$	1,923	$	1,756	9.6	%	8.9	%
Endoscopy
United States	$	819	$	742	10.2	%	10.2	%	$	1,520	$	1,452	4.6	%	4.6	%
International		185		157	18.8		16.5			352		314	12.4		8.1
Total	$	1,004	$	899	11.7	%	11.3	%	$	1,872	$	1,766	6.0	%	5.3	%
Medical
United States	$	945	$	840	12.6	%	12.6	%	$	1,692	$	1,642	3.1	%	3.1	%
International		177		150	17.9		15.0			332		293	13.2		8.1
Total	$	1,122	$	990	13.4	%	13.0	%	$	2,024	$	1,935	4.6	%	3.9	%
Vascular
United States	$	250	$	268	(6.7) %		(6.7) %		$	530	$	471	12.5	%	12.5	%
International		246		230	6.3		4.0			483		433	11.3		7.1
Total	$	496	$	498	(0.7) %		(1.8) %		$	1,013	$	904	11.9	%	9.9	%
MedSurg and Neurotechnology
United States	$	2,854	$	2,626	8.7	%	8.7	%	$	5,348	$	5,043	6.1	%	6.1	%
International		771		679	13.3		11.1			1,484		1,318	12.5		8.1
Total	$	3,625	$	3,305	9.7	%	9.2	%	$	6,832	$	6,361	7.4	%	6.5	%

Orthopaedics:
Knees
United States	$	488	$	460	6.2	%	6.2	%	$	960	$	924	3.8	%	3.8	%
International		205		180	14.0		12.4			403		355	13.7		9.2
Total	$	693	$	640	8.4	%	8.0	%	$	1,363	$	1,279	6.6	%	5.3	%
Hips
United States	$	296	$	283	4.9	%	4.9	%	$	572	$	552	3.6	%	3.6	%
International		183		183	—		(0.8)			367		357	2.9		(0.6)
Total	$	479	$	466	2.9	%	2.6	%	$	939	$	909	3.3	%	1.9	%
Trauma and Extremities
United States	$	791	$	702	12.5	%	12.5	%	$	1,558	$	1,415	10.1	%	10.1	%
International		281		255	10.3		8.5			549		487	12.7		7.7
Total	$	1,072	$	957	11.9	%	11.5	%	$	2,107	$	1,902	10.7	%	9.4	%
Ortho Tech
United States	$	530	$	483	9.5	%	9.5	%	$	997	$	942	5.8	%	5.8	%
International		187		166	12.8		11.8			366		324	12.9		9.2
Total	$	717	$	649	10.3	%	10.0	%	$	1,363	$	1,266	7.6	%	6.7	%
	$	2,961	$	2,712	9.2	%	8.8	%	$	5,772	$	5,356	7.7	%	6.5	%
Spinal Implants
United States	$	—	$	—	(100.0) %		(100.0) %		$	—	$	118	(100.0) %		(100.0) %
International		3		5	(36.7)		(40.9)			5		53	(90.2)		(91.2)
Total	$	3	$	5	(36.7) %		(40.9) %		$	5	$	171	(96.9) %		(97.1) %
Orthopaedics
United States	$	2,105	$	1,928	9.1	%	9.1	%	$	4,087	$	3,951	3.4	%	3.4	%
International		859		789	8.9		7.6			1,690		1,576	7.2		3.0
Total	$	2,964	$	2,717	9.1	%	8.7	%	$	5,777	$	5,527	4.5	%	3.3	%

Geographic:
United States	$	4,959	$	4,554	8.9	%	8.9	%	$	9,435	$	8,994	4.9	%	4.9	%
International		1,630		1,468	11.0		9.2			3,174		2,894	9.7		5.3
Total	$	6,589	$	6,022	9.4	%	9.0	%	$	12,609	$	11,888	6.1	%	5.0	%

Note: In the first quarter 2026 we announced a change in our organizational structure. Our new Ortho Tech business combines the orthopaedic instruments portfolio (Orthopaedic Instruments) from Instruments with Other Orthopaedics. In addition, Neuro Cranial and the spine enabling technologies portfolio (Enabling Technologies) from Other Orthopaedics were combined with the remaining Instruments business to align with our internal reporting structure. Ortho Tech includes sales related to Orthopaedic Instruments of $523 and $501 and Other Orthopaedics of $194 and $148 for the three months 2026 and 2025. For the six months 2026 and 2025 Ortho Tech includes sales related to Orthopaedic Instruments of $1,012 and $985 and Other Orthopaedics of $351 and $281. Instruments includes sales related to Neuro Cranial of $681 and $616 and Enabling Technologies of $28 and $34 for the three months 2026 and 2025. For the six months 2026 and 2025 Instruments includes sales related to Neuro Cranial of $1,287 and $1,179 and Enabling Technologies of $54 and $63. We have reflected these changes in all historical periods presented.

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 2026	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	$	4,498		$	2,229		$	434		$	1,659		$	(95)	$	288	$	1,276		18.4	%	$	3.30
Reported percent net sales		68.3	%		33.8	%		6.6	%		25.2	%	(1.4) %		nm			19.4	%
Acquisition and integration-related costs:
Inventory stepped-up to fair value		—			—			—			—			—		—		—		—			—
Other acquisition and integration-related (a)		7			(14)			(4)			25			—		3		22		—			0.06
Amortization of purchased intangible assets		—			—			—			175			—		33		142		0.3			0.37
Structural optimization and other special charges (b)		5			(89)			(1)			95			(6)		20		69		0.3			0.18
Goodwill and other impairments (c)		—			—			—			1			—		—		1		—			—
Medical device regulations (d)		—			—			(5)			5			—		1		4		—			0.01
Recall-related matters (e)		(1)			(3)			—			2			—		1		1		—			—
Regulatory and legal matters (f)		—			(3)			—			3			—		—		3		—			—
Tax matters (g)		—			—			—			—			—		(39)		39		(2.5)			0.11
Reversal of 2025 tariffs		(158)			—			—			(158)			—		(25)		(133)		—			(0.34)
Adjusted	$	4,351		$	2,120		$	424		$	1,807		$	(101)	$	282	$	1,424		16.5	%	$	3.69
Adjusted percent net sales		66.0	%		32.2	%		6.4	%		27.4	%	(1.5) %		nm			21.6	%

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	%

nm - not meaningful

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

	Three Months
		2026		2025
Termination of sales relationships	$	6	$	—
Employee retention and workforce reductions		(3)		29
Changes in the fair value of contingent consideration		6		3
Manufacturing integration costs		5		3
Other integration-related activities (e.g., deal costs and legal entity rationalization)		11		43
Adjustments to Operating Income	$	25	$	78
Adjustments to Income Taxes	$	3	$	20
Adjustments to Net Earnings	$	22	$	58

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

	Three Months
		2026		2025
Employee retention and workforce reductions	$	6	$	5
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)		4		7
Product line exits		9		(10)
Termination of sales relationships in certain countries		6		(3)
Other charges		70		12
Adjustments to Operating Income	$	95	$	11
Adjustments to Other Income (Expense), Net	$	(6)	$	(9)
Adjustments to Income Taxes	$	20	$	(2)
Adjustments to Net Earnings	$	69	$	4

	Three Months
		2026		2025
Certain long-lived and intangible asset write-offs and impairments	$	—	$	52
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)		1		3
Adjustments to Operating Income	$	1	$	55
Adjustments to Income Taxes	$	—	$	22
Adjustments to Net Earnings	$	1	$	33

(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
		2026		2025
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$	(55)	$	(45)
Other tax matters		16		43
Adjustments to Income Taxes	$	(39)	$	(2)
Adjustments to Other Income (Expense), Net	$	—	$	—
Adjustments to Net Earnings	$	39	$	2

Six Months 2026	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	$	8,308		$	4,510		$	847		$	2,595		$	(181)	$	393	$	2,021		16.3	%	$	5.23
Reported percent net sales		65.9	%		35.8	%		6.7	%		20.6	%	(1.4) %		nm			16.0	%
Acquisition and integration-related costs:
Inventory stepped-up to fair value		—			—			—			—			—		—		—		—			—
Other acquisition and integration-related (a)		9			(27)			(8)			44			—		7		37		—			0.10
Amortization of purchased intangible assets		—			—			—			355			—		63		292		0.3			0.75
Structural optimization and other special charges (b)		19			(193)			(1)			213			(17)		45		151		0.6			0.39
Goodwill and other impairments (c)		—			—			—			1			—		—		1		—			—
Medical device regulations (d)		—			—			(10)			10			—		2		8		—			0.02
Recall-related matters (e)		—			(12)			—			12			—		3		9		—			0.02
Regulatory and legal matters (f)		—			(6)			—			6			—		1		5		—			0.01
Tax matters (g)		—			—			—			—			—		(37)		37		(1.5)			0.11
Reversal of 2025 tariffs		(158)			—			—			(158)			—		(25)		(133)		—			(0.34)
Adjusted	$	8,178		$	4,272		$	828		$	3,078		$	(198)	$	452	$	2,428		15.7	%	$	6.29
Adjusted percent net sales		64.9	%		33.9	%		6.6	%		24.4	%	(1.6) %		nm			19.3	%

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	%

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

	Six Months
		2026		2025
Termination of sales relationships	$	6	$	—
Employee retention and workforce reductions		—		45
Changes in the fair value of contingent consideration		9		1
Manufacturing integration costs		10		7
Stock compensation payments upon a change in control		—		139
Other integration-related activities (e.g., deal costs and legal entity rationalization)		19		71
Adjustments to Operating Income	$	44	$	263
Adjustments to Income Taxes	$	7	$	26
Adjustments to Net Earnings	$	37	$	237

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

	Six Months
		2026		2025
Employee retention and workforce reductions	$	13	$	38
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)		9		12
Product line exits (e.g., inventory, long-lived asset and specifically-identified intangible asset write-offs)		11		(7)
Termination of sales relationships in certain countries		87		(4)
Other charges		93		13
Adjustments to Operating Income	$	213	$	52
Adjustments to Other Income (Expense), Net	$	(17)	$	(9)
Adjustments to Income Taxes	$	45	$	12
Adjustments to Net Earnings	$	151	$	31

	Six Months
		2026		2025
Certain long-lived and intangible asset write-offs and impairments	$	—	$	86
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)		1		4
Adjustments to Operating Income	$	1	$	90
Adjustments to Income Taxes	$	—	$	31
Adjustments to Net Earnings	$	1	$	59

	Six Months
		2026		2025
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$	(75)	$	(92)
Other tax matters		38		71
Adjustments to Income Taxes	$	(37)	$	(21)
Adjustments to Other Income (Expense), Net	$	—	$	—
Adjustments to Net Earnings	$	37	$	21

FAQ

How did Stryker (SYK) perform financially in Q2 2026?

Stryker reported higher sales and earnings in Q2 2026. According to Stryker, net sales rose 9.4% to $6.6 billion, reported EPS increased 44.1% to $3.30, and adjusted EPS(1) grew 17.9% to $3.69 versus Q2 2025.

What was Stryker’s organic sales growth in Q2 2026 for SYK?

Stryker’s organic net sales grew 9.0% in Q2 2026. According to Stryker, MedSurg and Neurotechnology organic net sales increased 9.2%, while Orthopaedics organic net sales rose 8.6%, driven primarily by higher unit volumes and modest price contribution in MedSurg.

What 2026 guidance did Stryker (SYK) provide with its Q2 2026 results?

Stryker narrowed its 2026 outlook. According to Stryker, it now expects organic net sales growth(2) of 8.3% to 9.3% and adjusted net earnings per diluted share(2) between $14.95 and $15.10, assuming modestly positive pricing and slightly favorable foreign exchange impacts.

How did Stryker’s operating margins change in Q2 2026?

Stryker’s profitability measures improved in Q2 2026. According to Stryker, reported operating income margin was 25.2%, while adjusted operating income margin(1) reached 27.4%, an increase of 170 basis points compared with the prior-year quarter’s adjusted operating income margin.

What were Stryker’s cash flow trends for the first half of 2026?

Stryker generated higher operating cash flow in early 2026. According to Stryker, net cash provided by operating activities was $1.84 billion for the first six months of 2026, up from $1.36 billion for the same period in 2025, while investing cash outflows decreased significantly.

How did Stryker’s MedSurg and Neurotechnology and Orthopaedics segments perform in Q2 2026?

Both segments posted sales growth in Q2 2026. According to Stryker, MedSurg and Neurotechnology net sales increased 9.7% to $3.6 billion, and Orthopaedics net sales rose 9.1% to $3.0 billion, with constant currency growth of 9.2% and 8.7% respectively.

Did Stryker mention the impact of its 2026 cyber incident on Q2 2026 results?

Stryker referenced ongoing recovery from the cyber incident. According to Stryker, management highlighted significant progress in recovery and noted strong growth in sales, earnings per share, and operating cash flow in Q2 2026 while entering the second half of 2026 with regained momentum.