Stryker Corporation

SYK
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$6.0B
Q1 2026 · +2.6% YoY
TTM ROIC
16%
FY2025 · NOPAT (adj. operating income × 0.79) / Invested Capital (equity + net debt) · WACC ~8.5% · Moat spread +7.5pp
Margin Profile
Gross 64%
Operating 27%
FCF 17.1%
FY2025
Net Debt
$11.9B
Cash $4.0B · Debt $15.9B · FY2025

Business Overview

ticker: SYK step: 01 generated: 2026-05-12 source: quick-research

Stryker Corporation (SYK) — Business Overview

Business Description

Stryker is one of the world's leading medical technology companies, with a market-leading position in robotic-assisted orthopedic surgery (Mako platform, 3,000+ installations + 2M+ procedures) plus broad MedSurg + Neurotechnology + Orthopaedics portfolios. CEO Kevin Lobo (since 2012). The $4.9B Inari Medical acquisition (2025) added vascular/VTE intervention as a new growth pillar. Mako spine + Mako shoulder launches in 2026 expand the robotic surgery franchise into adjacent specialties. In Q1 2026, Stryker reorganized: combining Mako + power tools + Ortho instruments into a new "Ortho Tech" business.

Revenue Model

  • MedSurg and Neurotechnology (~58% of revenue): Instruments (power tools), Endoscopy, Medical (patient handling, EMS), Neurotechnology (neurosurgical, neurovascular, CMF)
  • Orthopaedics (~42%): Joint replacement (knees, hips, shoulders), Trauma & Extremities, Spine, plus Mako enabling technology
  • Recurring revenue from disposables + maintenance contracts + procedural consumables

Products & Services

Mako Robotic-Assisted Surgery
  • Mako SmartRobotics: Multi-specialty robotic-arm assisted platform
  • Mako 4: Latest generation (released 2024)
  • Mako RPS (Robotic Power System): New handheld robotic system — limited market release 2026
  • Mako Total Knee, Partial Knee, Total Hip, Revision Hip
  • Mako Spine (full launch 2026)
  • Mako Shoulder (full launch 2026)
  • 3,000+ installations globally; 2M+ procedures cumulative
Orthopaedics
  • Joint Replacement: Triathlon (knee), Tritanium (hip), MyKnee custom
  • Trauma & Extremities: Pangea trauma system (global rollout), foot/ankle implants
  • Spine: Tritanium spine system, navigation
  • Ortho Tech (reorganized 2026): Combines Mako + power tools + Ortho instruments
MedSurg / Neurotechnology
  • Instruments: Power tools (drills, saws, surgical drills) — largest installed base
  • Endoscopy: 4K imaging, surgical visualization
  • Medical: Stretchers, ICU beds, ambulance equipment, hospital communication, virtual care
  • Neurosurgical: Neuroendoscopy, cranial implants
  • Neurovascular: Trevo stent retrievers, aspiration systems for stroke
  • Inari Medical (acquired 2025 for $4.9B): ClotTriever + FlowTriever for VTE
  • Craniomaxillofacial (CMF): Cranial implants, plates, screws

Customer Base & Go-to-Market

  • Hospitals + ambulatory surgery centers: Primary buyers
  • Orthopaedic surgeons: Mako-trained network growing rapidly
  • Neurosurgeons + interventional radiologists: Neurotechnology customers
  • EMS providers: Medical products
  • Geographic mix: ~75% US, ~25% International (growing internationally)
  • Channel: Direct sales force + distributors internationally

Competitive Position

Stryker is #1 globally in orthopaedic robotic-assisted surgery (Mako vs Smith+Nephew CORI, J&J Velys, Zimmer ROSA). Moats: (1) Mako installed base of 3,000+ creates surgeon training network with switching costs, (2) deep relationships with US ortho practices, (3) Pangea trauma system gaining global share, (4) Inari VTE platform entering high-growth market. Competitors: J&J MedTech (orthopaedics + endoscopy), Medtronic (broad), Zimmer Biomet (orthopaedics), Smith+Nephew, Boston Scientific (in VTE).

Key Facts

  • Founded: 1941 (Dr. Homer Stryker)
  • Headquarters: Portage, MI
  • Employees: ~52,000
  • Exchange: NYSE
  • Sector / Industry: Health Care / Medical Devices
  • Market Cap: ~$155B (May 2026)
  • CEO: Kevin Lobo (since 2012)
  • Dividend: $3.40 annual ($0.85 quarterly)
  • 30+ consecutive years of dividend growth
  • Major recent M&A: Inari Medical $4.9B (2025)

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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