Stryker Corporation

What they do

Stryker designs and sells medical devices and services across two reportable segments: MedSurg and Neurotechnology (surgical equipment, endoscopy, medical, vascular, neuro cranial products) and Orthopaedics (implants, robotics, and surgical equipment for joint replacements and trauma). Products are marketed directly to doctors, hospitals, and healthcare facilities in approximately 61 countries. The company competes in markets with a few large players such as Medtronic, Johnson & Johnson, and Zimmer Biomet.

Revenue drivers

• MedSurg and Neurotechnology — Largest segment, generating $15.65 billion in 2025 (62% of total net sales). Includes instruments, endoscopy, medical, vascular, and neuro cranial products.
• Orthopaedics — Second segment, generating $9.47 billion in 2025 (38% of total net sales). Focus on implants, navigation, and robotics for joint replacement and trauma surgeries.
• Medical — Sub-segment within MedSurg and Neurotechnology, $4.20 billion in 2025 (27% of segment sales). Includes patient handling, emergency equipment, and virtual care platform technology.
• Endoscopy — Sub-segment within MedSurg and Neurotechnology, $3.81 billion in 2025 (24% of segment sales). Endoscopic and communications systems sold to hospitals and surgical centers.

Recent performance

In Q2 2026, reported net sales increased 9.4% to $6.6 billion, with organic sales up 9.0% (constant currency 9.0%). Adjusted EPS rose 17.9% to $3.69; reported EPS was $3.30. For the first half of 2026, net sales increased 6.1% to $12.61 billion, with adjusted EPS of $6.29. The company saw strong orthopaedics growth (organic +8.6%) and continued recovery from a cybersecurity incident.

Strategy

Management prioritizes capital allocation to acquisitions, dividends, and share repurchases. The company aims to grow at the high end of the MedTech industry, supported by a steady cadence of innovation (e.g., Steri-Shield 8 launch). Continued focus on robotics (Mako) and AI-assisted virtual care platforms. Operational discipline and recovery from cyber incident are near-term priorities.

Risks

• Cybersecurity incidents — A cyber incident impacted operations; recovery was ongoing into 2026, and future incidents could disrupt sales or increase costs.
• Competition — Intense rivalry with Medtronic, Johnson & Johnson, Zimmer Biomet, and others across all product segments could pressure pricing and market share.
• Legal and regulatory matters — Ongoing product liability, IP, and regulatory proceedings could result in significant costs or reputational harm.
• Supply chain and manufacturing — Operates 55 manufacturing locations globally; disruptions due to geopolitical, natural, or operational events could affect production and sales.

Outlook

For full year 2026, management narrowed organic net sales growth guidance to 8.3%–9.3% and adjusted EPS to $14.95–$15.10. Foreign exchange is expected to have a slightly favorable impact on sales and adjusted EPS at current rates. The company expects pricing to be modestly positive and remains confident in growing at the high end of MedTech.