Stryker Corporation

SYK
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$6.0B
Q1 2026 · +2.4% YoY
TTM ROIC
16%
FY2025 · NOPAT (adj. operating income × 0.79) / Invested Capital (equity + net debt) · WACC ~8.5% · Moat spread +7.5pp

Financial Snapshot


ticker: SYK step: 04 generated: 2026-05-12 source: quick-research

Stryker Corporation (SYK) — Financial Snapshot

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY
Revenue $20.5B $22.6B $25.1B +11%
Adj. Gross Margin 63% 64% 64% flat
Adj. Operating Margin 25% 26% 27% +1pp
Adj. EPS $10.95 $12.20 $13.63 +12%
Free Cash Flow $2.8B $3.2B $3.5B +9%

Segment Performance (FY2025)

Segment Revenue YoY Growth
MedSurg & Neurotechnology ~$14.5B +10%
- Inari Medical (acquired 2025) $300M+ first partial year
- Instruments + Endoscopy growing
- Medical (patient handling, EMS) strong
Orthopaedics ~$10.6B +13%
- Knees (incl. Mako) growing
- Hips (incl. Mako Hip + Revision Hip) growing
- Trauma + Extremities strong (Pangea rollout)

Q1 2026 Highlights

Metric Q1 2026 YoY
Sales $5.7B +2.6% (Cyberattack impact)
Adj. Gross Margin 63.6% -190bps (tariffs + lost manufacturing absorption)
Cyberattack revenue impact -$310M 3-week shutdown
Mako Q1 installations best-ever

Mako Installations + Procedures

Metric Value
Cumulative Mako installations 3,000+ globally
Cumulative Mako procedures 2M+ (Q2 2025 milestone)
FY25 Mako growth Record installations
FY26 launches Mako Spine + Mako Shoulder (full launch)
Mako RPS handheld Limited market release 2026

2026 Guidance

Metric 2026 Guide
Organic Net Sales Growth 8-9.5%
Adj. EPS $14.90-15.10
Tariff Headwind ~$200M revenue

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$4.5B
Capital Expenditures ~$0.8B
Free Cash Flow $3.5B
Cash & Investments ~$6B
Total Debt ~$13B (post-Inari $4.9B)
Net Debt/EBITDA ~1.7x

Inari Medical Acquisition (2025)

Metric Value
Deal value $4.9B
Products ClotTriever, FlowTriever (VTE intervention)
2026 Synergies $100M+
Strategic focus High-growth VTE market

Key Ratios (approximate, May 2026)

  • P/E (forward): ~28x | EV/EBITDA: ~20x | Dividend Yield: ~0.95%
  • ROIC: ~15%
  • FCF Margin: ~14%

Growth Profile

FY25 revenue +11% to $25.1B; adj EPS +12% to $13.63. Q1 2026 sales only +2.6% due to $310M cyberattack revenue shortfall (3-week shutdown). Reaffirmed 2026 guidance at 8-9.5% organic + $14.90-15.10 EPS. Mako installations record; Mako Spine + Shoulder full launches in 2026. Inari VTE adding $100M+ synergies in 2026.

Forward Estimates

  • FY2026E Revenue: ~$27B (+8-9%, includes tariff drag offset)
  • FY2026E Adj EPS: $14.90-15.10 (mgmt)
  • FY2027E EPS: ~$17 (+13%)
  • Long-term EPS growth target: 10-15%
  • Mako Spine + Shoulder peak sales potential: $500M+ annually

Capital Return

  • Dividend $3.40 annual (~$1.3B paid)
  • 30+ consecutive years of dividend growth
  • Buybacks: ~$1B annual (moderated for Inari deleveraging)
  • Total return: ~1% dividend + buybacks + 10-15% EPS growth

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $SYK.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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