Stryker Corporation
SYKFinancial 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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