Stryker reports third quarter 2026 operating results

Q: What were Stryker's third-quarter 2026 earnings results?

Stryker reported $1.96 in diluted earnings per share, down 11.7% year over year, while adjusted diluted earnings per share rose 10.3% to $3.52. Sales increased 7.7% to $6.5 billion, and reported net earnings declined 12.3% to $753 million.

Q: What is Stryker's updated full-year 2026 guidance?

Stryker expects 6.5% to 7.0% organic net sales growth and $14.80 to $14.90 in adjusted diluted earnings per share for 2026. Organic growth excludes the effects of currency movements and acquisitions or divestitures.

Q: How does foreign exchange affect Stryker's 2026 outlook?

Stryker expects foreign exchange to have a slightly favorable impact on both sales and adjusted diluted earnings per share if rates hold near current levels.

Quarterly goodwill and other impairments rose to $293 million from $73 million a year earlier.

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Rhea-AI Summary

Stryker (NYSE:SYK) reported third-quarter 2026 sales of $6.5 billion, with growth accompanied by a decline in reported earnings. Sales rose 7.7% year over year, including 7.7% organic growth, which excludes currency effects and acquisitions or divestitures. Net earnings fell 12.3% to $753 million, and diluted earnings per share fell 11.7% to $1.96. Operating margin declined to 15.9% from 18.7%.

Adjusted earnings per share, excluding specified items, rose 10.3% to $3.52, while adjusted operating margin increased 60 basis points to 26.2%. Stryker said performance fell short of its expectations. Its updated 2026 outlook calls for organic sales growth of 6.5% to 7.0% and adjusted diluted earnings per share of $14.80 to $14.90. The company repurchased $1.0 billion of stock during the quarter; its board approved a $3.0 billion increase to the repurchase program in October 2026.

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Positive

Moderate pointThird-quarter sales increased 7.7% year over year to $6.5 billion, with organic growth also 7.7%.
Moderate pointAdjusted diluted EPS rose 10.3% year over year to $3.52 in the third quarter.
Moderate pointAdjusted operating margin increased 60 basis points to 26.2% in the third quarter.
Moderate point. Forward-looking: it has not happened yet and may not happen.2026 guidance targets organic sales growth of 6.5% to 7.0% and adjusted diluted EPS of $14.80 to $14.90.
Moderate pointShare repurchase authorization increased by $3.0 billion with board approval in October 2026. 2.6% of market cap
Moderate pointShare repurchases returned $1.0 billion to shareholders in the third quarter of 2026.
Moderate pointThird-quarter gross profit rose 10.3% to $4,248 million; margin increased to 65.2% from 63.6%.
Moderate pointNine-month sales increased 6.6% year over year to $19,129 million.
Moderate pointNine-month operating income rose 17.6% to $3,629 million; margin increased to 19.0% from 17.2%.
Moderate pointNine-month operating cash flow increased to $3,303 million from $2,901 million a year earlier.

9 minor points

Minor pointAdjusted net earnings increased 10.1% year over year to $1.4 billion in the third quarter.
Minor pointMedSurg and Neurotechnology sales rose 9.2% to $3.7 billion; third-quarter organic growth was 9.1%.
Minor pointOrthopaedics sales rose 5.7% to $2.9 billion; third-quarter organic growth was 5.9%.
Minor pointThird-quarter intangible amortization expense declined 7.4% year over year to $175 million.
Minor pointThird-quarter net other expense decreased to $37 million from $106 million a year earlier.
Minor pointNine-month net earnings increased 15.7% to $2,774 million; diluted EPS rose 16.0% to $7.19.
Minor pointLong-term debt, excluding current maturities declined to $14,176 million from $14,859 million at December 31, 2025.
Minor pointNet debt payments totaled $753 million during the first nine months of 2026.
Minor point. Forward-looking: it has not happened yet and may not happen.2026 sales guidance includes a modestly positive pricing impact.

Negative

Moderate pointThird-quarter net earnings fell 12.3% year over year to $753 million.
Moderate pointThird-quarter operating income fell 8.9% to $1,034 million; margin declined to 15.9% from 18.7%.
Moderate pointThird-quarter performance fell short of Stryker's expectations.
Moderate pointThird-quarter goodwill and other impairments rose to $293 million from $73 million a year earlier.
Minor pointThird-quarter diluted EPS declined 11.7% year over year to $1.96.

5 minor points

Minor pointThird-quarter selling, general and administrative expenses increased 13.1% year over year to $2,313 million.
Minor pointThird-quarter research, development and engineering expenses increased 5.6% year over year to $433 million.
Minor pointThird-quarter cost of sales increased 3.0% year over year to $2,272 million.
Minor pointThird-quarter income taxes increased 43.5% year over year to $244 million.
Minor pointCash and cash equivalents declined to $3,271 million from $4,011 million at December 31, 2025.

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Market move: SYK -12.17% vs previous close. 3Q26 earnings report

$271.75 – $315.00 Day Range

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On Oct 29, the day this news came out, the latest delayed price for SYK is 12.17% below the previous close. Our momentum scanner has recorded 13 alerts for this stock so far that day. The latest delayed price is $273.81.

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Key Figures

Net sales: $6.5 billion, increased 7.7% Reported diluted EPS: $1.96, decreased 11.7% Adjusted diluted EPS: $3.52, increased 10.3% +5 more

Net sales: $6.5 billion, increased 7.7%; Third quarter 2026
Reported diluted EPS: $1.96, decreased 11.7%; Third quarter 2026
Adjusted diluted EPS: $3.52, increased 10.3%; Third quarter 2026
Adjusted operating income margin: 26.2%, increased 60 bps; Third quarter 2026
Share repurchases: $1.0 billion; Third quarter 2026
Share repurchase program increase: $3.0 billion; Approved in October 2026
Organic net sales growth guidance: 6.5% to 7.0%; Full year 2026
Adjusted diluted EPS guidance: $14.80 to $14.90; Full year 2026

Previous Earnings Reports

3 past events · Latest: Jul 30

Same Type 3 events

Jul 30
Quarterly earnings

24h Move

-6.4%

Organic sales and adjusted EPS grew, while full-year guidance was lowered.
Oct 30
Quarterly earnings

24h Move

-3.5%

Sales and adjusted EPS increased, and management raised full-year guidance.
Jul 31
Quarterly earnings

24h Move

-3.8%

Sales and adjusted EPS grew, prompting an increase to full-year guidance.

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

Key Terms

constant currency, accelerated share repurchase, non-gaap

3 terms

constant currency financial

"in the quarter on both a reported and constant currency basis"

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.

non-gaap financial

"reconciliation of the non-GAAP financial measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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10/29/2026 - 04:05 PM EDT

Portage, Michigan, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) reported operating results for the third quarter of 2026:

Third Quarter Results

Reported net sales increased 7.7% to $6.5 billion
Organic net sales increased 7.7%
Reported operating income margin of 15.9%
Adjusted operating income margin⁽¹⁾ increased 60 bps to 26.2%
Reported EPS decreased 11.7% to $1.96
Adjusted EPS⁽¹⁾ increased 10.3% to $3.52

	Third Quarter Net Sales Growth Overview
	Reported		Foreign Currency Exchange		Constant Currency		Acquisitions / Divestitures		Organic
MedSurg and Neurotechnology	9.2	%	—	%	9.2	%	0.1	%	9.1	%
Orthopaedics	5.7		(0.2)		5.9		—		5.9
Total	7.7	%	—	%	7.7	%	—	%	7.7	%

“We delivered 7.7% organic sales growth and double-digit adjusted earnings growth in the quarter,” said Kevin A. Lobo, Chair and CEO. “While, in absolute terms, this reflected good overall performance, it did fall short of our expectations. The underlying fundamentals of the business remain strong, and we expect a solid performance in Q4 and good momentum heading into 2027.”

Sales Analysis

Consolidated net sales of $6.5 billion increased 7.7% in the quarter on both a reported and constant currency basis. Organic net sales increased 7.7% in the quarter primarily driven by increased unit volume.

MedSurg and Neurotechnology net sales of $3.7 billion increased 9.2% in the quarter on both a reported and constant currency basis. Organic net sales increased 9.1% in the quarter primarily driven by increased unit volume.

Orthopaedics net sales of $2.9 billion increased 5.7% in the quarter and 5.9% in constant currency. Organic net sales increased 5.9% in the quarter from increased unit volume.

Earnings Analysis

Reported net earnings of $753 million decreased 12.3% in the quarter. Reported net earnings per diluted share of $1.96 decreased 11.7% in the quarter. Reported gross profit margin and reported operating income margin were 65.2% and 15.9% 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 65.4% in the quarter, and adjusted operating income margin⁽¹⁾ was 26.2% in the quarter. Adjusted net earnings⁽¹⁾ of $1.4 billion increased 10.1% in the quarter. Adjusted net earnings per diluted share⁽¹⁾ of $3.52 increased 10.3% in the quarter.

Share Repurchases

We repurchased $1.0 billion of our common stock in the third quarter of 2026.

In October 2026 our Board of Directors approved an increase of $3.0 billion to our existing share repurchase program. The manner, timing and amount of repurchases are determined by management based on an evaluation of market conditions, stock price, and other factors and are subject to regulatory considerations. Purchases may be made from time to time in the open market, in privately negotiated transactions, accelerated share repurchase programs or otherwise.

2026 Outlook

We are updating our full year 2026 guidance and now expect organic net sales growth⁽²⁾ in the range of 6.5% to 7.0% and adjusted net earnings per diluted share⁽²⁾to be in the range of $14.80 to $14.90. 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, October 29, 2026

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

Please register for this conference call at: https://stryker-3q2026-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 Nine Months September 30
(Unaudited - Millions of Dollars, Except Per Share Amounts)

CONSOLIDATED STATEMENTS OF EARNINGS

	Three Months								Nine Months
		2026			2025		% Change			2026			2025		% Change
Net sales	$	6,520		$	6,057		7.7	%	$	19,129		$	17,945		6.6	%
Cost of sales		2,272			2,205		3.0			6,573			6,508		1.0
Gross profit	$	4,248		$	3,852		10.3	%	$	12,556		$	11,437		9.8	%
% of sales		65.2	%		63.6	%				65.6	%		63.7	%
Research, development and engineering expenses		433			410		5.6			1,280			1,222		4.7
Selling, general and administrative expenses		2,313			2,045		13.1			6,823			6,424		6.2
Amortization of intangible assets		175			189		(7.4)			530			543		(2.4)
Goodwill and other impairments		293			73		nm			294			163		nm
Total operating expenses	$	3,214		$	2,717		18.3	%	$	8,927		$	8,352		6.9	%
Operating income	$	1,034		$	1,135		(8.9) %		$	3,629		$	3,085		17.6	%
% of sales		15.9	%		18.7	%				19.0	%		17.2	%
Other income (expense), net		(37)			(106)		(65.1)			(218)			(276)		(21.0)
Earnings before income taxes	$	997		$	1,029		(3.1) %		$	3,411		$	2,809		21.4	%
Income taxes		244			170		43.5			637			412		54.6
Net earnings	$	753		$	859		(12.3) %		$	2,774		$	2,397		15.7	%
Net earnings per share of common stock:
Basic	$	1.97		$	2.25		(12.4) %		$	7.24		$	6.27		15.5	%
Diluted	$	1.96		$	2.22		(11.7) %		$	7.19		$	6.20		16.0	%
Weighted-average shares outstanding (in millions):
Basic		382.2			382.4					382.9			382.1
Diluted		384.7			386.7					385.8			386.5

CONDENSED CONSOLIDATED BALANCE SHEETS
	September 30		December 31
		2026		2025
Assets
Cash and cash equivalents	$	3,271	$	4,011
Marketable securities		—		89
Accounts receivable, net		3,693		4,039
Inventories		5,747		5,310
Prepaid expenses and other current assets		1,472		1,306
Total current assets	$	14,183	$	14,755
Property, plant and equipment, net		4,054		3,876
Goodwill and other intangibles, net		24,868		24,972
Noncurrent deferred income tax assets		901		1,098
Other noncurrent assets		3,241		3,143
Total assets	$	47,247	$	47,844
Liabilities and shareholders' equity
Current liabilities	$	6,500	$	7,794
Long-term debt, excluding current maturities		14,176		14,859
Income taxes		413		402
Other noncurrent liabilities		2,701		2,369
Shareholders' equity		23,457		22,420
Total liabilities and shareholders' equity	$	47,247	$	47,844

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Nine Months
		2026		2025
Operating activities
Net earnings	$	2,774	$	2,397
Depreciation		361		334
Amortization of intangible assets		530		543
Changes in operating assets, liabilities, income taxes payable and other, net		(362)		(373)
Net cash provided by operating activities	$	3,303	$	2,901
Investing activities
Acquisitions, net of cash acquired	$	(481)	$	(4,950)
Proceeds/(Purchases) of short-term investments		—		750
Purchases of property, plant and equipment		(605)		(493)
Other investing, net		75		132
Net cash used in investing activities	$	(1,011)	$	(4,561)
Financing activities
Borrowings (payments) of debt, net	$	(753)	$	2,330
Payments of dividends		(1,012)		(963)
Repurchases of common stock		(1,000)		—
Other financing, net		(233)		(161)
Net cash provided by (used in) financing activities	$	(2,998)	$	1,206
Effect of exchange rate changes on cash and cash equivalents		(34)		58
Change in cash and cash equivalents	$	(740)	$	(396)

STRYKER CORPORATION

For the Three and Nine Months September 30

(Unaudited - Millions of Dollars)

SALES GROWTH ANALYSIS
	Three Months								Nine Months
					Percentage Change								Percentage Change
		2026		2025	As Reported		Constant Currency			2026		2025	As Reported		Constant Currency
MedSurg and Neurotechnology:
Instruments
United States	$	835	$	797	4.8	%	4.8	%	$	2,441	$	2,275	7.4	%	7.4	%
International		161		152	6.5		7.1			478		430	11.3		8.8
Total	$	996	$	949	5.1	%	5.2	%	$	2,919	$	2,705	8.0	%	7.6	%
Endoscopy
United States	$	839	$	743	13.0	%	13.0	%	$	2,359	$	2,195	7.5	%	7.5	%
International		182		153	18.0		18.5			534		467	14.2		11.4
Total	$	1,021	$	896	13.9	%	14.0	%	$	2,893	$	2,662	8.7	%	8.2	%
Medical
United States	$	910	$	827	10.0	%	10.0	%	$	2,602	$	2,469	5.4	%	5.4	%
International		171		158	8.1		8.5			503		451	11.4		8.2
Total	$	1,081	$	985	9.7	%	9.8	%	$	3,105	$	2,920	6.3	%	5.8	%
Vascular
United States	$	320	$	283	13.0	%	13.0	%	$	850	$	754	12.7	%	12.7	%
International		246		242	2.1		0.8			729		675	8.0		4.9
Total	$	566	$	525	8.0	%	7.4	%	$	1,579	$	1,429	10.5	%	9.0	%
MedSurg and Neurotechnology
United States	$	2,904	$	2,650	9.6	%	9.6	%	$	8,252	$	7,693	7.3	%	7.3	%
International		760		705	7.8		7.7			2,244		2,023	10.9		8.0
Total	$	3,664	$	3,355	9.2	%	9.2	%	$	10,496	$	9,716	8.0	%	7.4	%

Orthopaedics:
Knees
United States	$	458	$	452	1.3	%	1.3	%	$	1,418	$	1,376	3.0	%	3.0	%
International		177		176	0.5		1.1			580		531	9.3		6.6
Total	$	635	$	628	1.1	%	1.2	%	$	1,998	$	1,907	4.8	%	4.0	%
Hips
United States	$	277	$	279	(0.6) %		(0.6) %		$	849	$	831	2.2	%	2.2	%
International		176		178	(1.7)		(0.8)			543		535	1.4		(0.6)
Total	$	453	$	457	(1.0) %		(0.7) %		$	1,392	$	1,366	1.9	%	1.1	%
Trauma and Extremities
United States	$	735	$	703	4.5	%	4.5	%	$	2,293	$	2,118	8.2	%	8.2	%
International		275		257	7.5		8.4			824		744	10.9		7.9
Total	$	1,010	$	960	5.3	%	5.5	%	$	3,117	$	2,862	8.9	%	8.1	%
Ortho Tech
United States	$	576	$	487	18.1	%	18.1	%	$	1,573	$	1,429	10.0	%	10.0	%
International		178		164	9.0		9.5			544		488	11.6		9.3
Total	$	754	$	651	15.8	%	16.0	%	$	2,117	$	1,917	10.4	%	9.8	%
	$	2,852	$	2,696	5.8	%	6.0	%	$	8,624	$	8,052	7.1	%	6.4	%
Spinal Implants
United States	$	—	$	—	—	%	—	%	$	—	$	118	(100.0) %		(100.0) %
International		4		6	(43.9)		(45.4)			9		59	(85.7)		(87.1)
Total	$	4	$	6	(43.9) %		(45.4) %		$	9	$	177	(95.2) %		(95.5) %
Orthopaedics
United States	$	2,046	$	1,921	6.5	%	6.5	%	$	6,133	$	5,872	4.4	%	4.4	%
International		810		781	3.8		4.5			2,500		2,357	6.1		3.5
Total	$	2,856	$	2,702	5.7	%	5.9	%	$	8,633	$	8,229	4.9	%	4.1	%

Geographic:
United States	$	4,950	$	4,571	8.3	%	8.3	%	$	14,385	$	13,565	6.0	%	6.0	%
International		1,570		1,486	5.7		6.0			4,744		4,380	8.3		5.6
Total	$	6,520	$	6,057	7.7	%	7.7	%	$	19,129	$	17,945	6.6	%	5.9	%

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 $535 and $492 and Other Orthopaedics of $219 and $159 for the three months 2026 and 2025. For the nine months 2026 and 2025 Ortho Tech includes sales related to Orthopaedic Instruments of $1,547 and $1,477 and Other Orthopaedics of $570 and $440. Instruments includes sales related to Neuro Cranial of $670 and $637 and Enabling Technologies of $28 and $45 for the three months 2026 and 2025. For the nine months 2026 and 2025 Instruments includes sales related to Neuro Cranial of $1,957 and $1,816 and Enabling Technologies of $82 and $108. 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 Nine Months September 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	$	4,248		$	2,313		$	433		$	1,034		$	(37)	$	244	$	753		24.5	%	$	1.96
Reported percent net sales		65.2	%		35.5	%		6.6	%		15.9	%	(0.6) %		nm			11.5	%
Acquisition and integration-related costs:
Inventory stepped-up to fair value		—			—			—			—			—		—		—		—			—
Other acquisition and integration-related (a)		6			(5)			(6)			17			—		3		14		—			0.04
Amortization of purchased intangible assets		—			—			—			175			—		33		142		0.5			0.37
Structural optimization and other special charges (b)		12			(137)			(4)			153			(54)		23		76		0.8			0.20
Goodwill and other impairments (c)		—			—			—			293			—		—		293		(4.8)			0.76
Medical device regulations (d)		—			—			(6)			6			—		1		5		—			0.01
Recall-related matters (e)		—			4			—			(4)			—		(2)		(2)		(0.1)			—
Regulatory and legal matters (f)		—			(32)			—			32			—		6		26		0.1			0.07
Tax matters (g)		—			—			—			—			—		(50)		50		(5.0)			0.11
Reversal of 2025 tariffs		—			—			—			—			—		—		—		—			—
Adjusted	$	4,266		$	2,143		$	417		$	1,706		$	(91)	$	258	$	1,357		16.0	%	$	3.52
Adjusted percent net sales		65.4	%		32.8	%		6.4	%		26.2	%	(1.4) %		nm			20.8	%

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	$	3,852		$	2,045		$	410		$	1,135		$	(106)	$	170	$	859		16.5	%	$	2.22
Reported percent net sales		63.6	%		33.8	%		6.8	%		18.7	%	(1.8) %		nm			14.2	%
Acquisition and integration-related costs:
Inventory stepped-up to fair value		61			—			—			61			—		15		46		0.6			0.12
Other acquisition and integration-related (a)		5			(33)			(1)			39			—		6		33		0.1			0.08
Amortization of purchased intangible assets		—			—			—			189			—		39		150		1.2			0.39
Structural optimization and other special charges (b)		15			(26)			—			41			(10)		3		28		(0.1)			0.07
Goodwill and other impairments (c)		—			—			—			73			—		15		58		0.4			0.16
Medical device regulations (d)		—			—			(11)			11			—		3		8		0.1			0.02
Recall-related matters (e)		—			(1)			—			1			—		—		1		—			—
Regulatory and legal matters (f)		—			—			—			—			—		—		—		—			—
Tax matters (g)		—			—			—			—			—		(50)		50		(4.8)			0.13
Adjusted	$	3,933		$	1,985		$	398		$	1,550		$	(116)	$	201	$	1,233		14.0	%	$	3.19
Adjusted percent net sales		65.0	%		32.8	%		6.6	%		25.6	%	(1.9) %		nm			20.4	%

nm - not meaningful

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

	Three Months
		2026		2025
Termination of sales relationships	$	1	$	—
Employee retention and workforce reductions		1		11
Changes in the fair value of contingent consideration		1		12
Manufacturing integration costs		17		7
Other integration-related activities (e.g., deal costs and legal entity rationalization)		(3)		9
Adjustments to Operating Income	$	17	$	39
Adjustments to Income Taxes	$	3	$	6
Adjustments to Net Earnings	$	14	$	33

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

	Three Months
		2026		2025
Employee retention and workforce reductions	$	7	$	6
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)		8		8
Product line exits (e.g., inventory, long-lived asset and specifically-identified intangible asset write-offs)		(5)		9
Termination of sales relationships in certain countries		37		2
Spinal Implants sale related		77		9
Other charges		29		7
Adjustments to Operating Income	$	153	$	41
Adjustments to Other Income (Expense), Net	$	(54)	$	(10)
Adjustments to Income Taxes	$	23	$	3
Adjustments to Net Earnings	$	76	$	28

	Three Months
		2026		2025
Goodwill impairment	$	293	$	—
Certain long-lived and intangible asset write-offs and impairments		—		22
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)		—		51
Adjustments to Operating Income	$	293	$	73
Adjustments to Income Taxes	$	—	$	15
Adjustments to Net Earnings	$	293	$	58

(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	$	(56)	$	(61)
Other tax matters		6		11
Adjustments to Income Taxes	$	(50)	$	(50)
Adjustments to Other Income (Expense), Net	$	—	$	—
Adjustments to Net Earnings	$	50	$	50

Nine 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	$	12,556		$	6,823		$	1,280		$	3,629		$	(218)	$	637	$	2,774		18.7	%	$	7.19
Reported percent net sales		65.6	%		35.7	%		6.7	%		19.0	%	(1.1) %		nm			14.5	%
Acquisition and integration-related costs:
Inventory stepped-up to fair value		—			—			—			—			—		—		—		—			—
Other acquisition and integration-related (a)		15			(32)			(14)			61			—		10		51		—			0.14
Amortization of purchased intangible assets		—			—			—			530			—		96		434		0.4			1.12
Structural optimization and other special charges (b)		31			(330)			(5)			366			(71)		68		227		0.6			0.59
Goodwill and other impairments (c)		—			—			—			294			—		—		294		(1.3)			0.76
Medical device regulations (d)		—			—			(16)			16			—		3		13		—			0.03
Recall-related matters (e)		—			(8)			—			8			—		1		7		—			0.02
Regulatory and legal matters (f)		—			(38)			—			38			—		7		31		—			0.08
Tax matters (g)		—			—			—			—			—		(87)		87		(2.6)			0.22
Reversal of 2025 tariffs		(158)			—			—			(158)			—		(25)		(133)		—			(0.34	)
Adjusted	$	12,444		$	6,415		$	1,245		$	4,784		$	(289)	$	710	$	3,785		15.8	%	$	9.81
Adjusted percent net sales		65.1	%		33.5	%		6.5	%		25.0	%	(1.5) %		nm			19.8	%

Nine 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	$	11,437		$	6,424		$	1,222		$	3,085		$	(276)	$	412	$	2,397		14.7	%	$	6.20
Reported percent net sales		63.7	%		35.8	%		6.8	%		17.2	%	(1.5) %		nm			13.4	%
Acquisition and integration-related costs:
Inventory stepped-up to fair value		160			—			—			160			—		39		121		0.5			0.31
Other acquisition and integration-related (a)		19			(280)			(3)			302			—		32		270		(0.4)			0.70
Amortization of purchased intangible assets		—			—			—			543			—		112		431		1.2			1.11
Structural optimization and other special charges (b)		43			(47)			(3)			93			(19)		15		59		0.2			0.15
Goodwill and other impairments (c)		—			—			—			163			—		46		117		0.8			0.32
Medical device regulations (d)		1			—			(29)			30			—		7		23		0.1			0.06
Recall-related matters (e)		52			(4)			—			56			—		9		47		—			0.12
Regulatory and legal matters (f)		—			(7)			—			7			—		2		5		—			0.01
Tax matters (g)		—			—			—			—			—		(71)		71		(2.5)			0.18
Adjusted	$	11,712		$	6,086		$	1,187		$	4,439		$	(295)	$	603	$	3,541		14.6	%	$	9.16
Adjusted percent net sales		65.3	%		33.9	%		6.6	%		24.7	%	(1.6) %		nm			19.7	%

nm - not meaningful

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

	Nine Months
		2026		2025
Termination of sales relationships	$	7	$	—
Employee retention and workforce reductions		1		56
Changes in the fair value of contingent consideration		10		13
Manufacturing integration costs		27		14
Stock compensation payments upon a change in control		—		139
Other integration-related activities (e.g., deal costs and legal entity rationalization)		16		80
Adjustments to Operating Income	$	61	$	302
Adjustments to Income Taxes	$	10	$	32
Adjustments to Net Earnings	$	51	$	270

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

	Nine Months
		2026		2025
Employee retention and workforce reductions	$	20	$	36
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)		17		20
Product line exits (e.g., inventory, long-lived asset and specifically-identified intangible asset write-offs)		6		2
Termination of sales relationships in certain countries		124		(2)
Spinal Implants sale related		128		17
Other charges		71		20
Adjustments to Operating Income	$	366	$	93
Adjustments to Other Income (Expense), Net	$	(71)	$	(19)
Adjustments to Income Taxes	$	68	$	15
Adjustments to Net Earnings	$	227	$	59

	Nine Months
		2026		2025
Goodwill impairment	$	293	$	—
Certain long-lived and intangible asset write-offs and impairments		—		108
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)		1		55
Adjustments to Operating Income	$	294	$	163
Adjustments to Income Taxes	$	—	$	46
Adjustments to Net Earnings	$	294	$	117

	Nine Months
		2026		2025
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$	(131)	$	(153)
Other tax matters		44		82
Adjustments to Income Taxes	$	(87)	$	(71)
Adjustments to Other Income (Expense), Net	$	—	$	—
Adjustments to Net Earnings	$	87	$	71

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Stryker's third-quarter 2026 earnings results?

Stryker reported $1.96 in diluted earnings per share, down 11.7% year over year, while adjusted diluted earnings per share rose 10.3% to $3.52. Sales increased 7.7% to $6.5 billion, and reported net earnings declined 12.3% to $753 million.

What is Stryker's updated full-year 2026 guidance?

Stryker expects 6.5% to 7.0% organic net sales growth and $14.80 to $14.90 in adjusted diluted earnings per share for 2026. Organic growth excludes the effects of currency movements and acquisitions or divestitures.

How does foreign exchange affect Stryker's 2026 outlook?

Stryker expects foreign exchange to have a slightly favorable impact on both sales and adjusted diluted earnings per share if rates hold near current levels.

Stryker reports third quarter 2026 operating results