10-KPeriod: FY2025

STRYKER CORP Annual Report, Year Ended Dec 31, 2025

Filed February 11, 2026For Securities:SYK

Summary

Stryker Corporation reported strong performance for the fiscal year 2025, with net sales growing by 11.2% to $25,116 million, driven by robust increases in both its MedSurg and Neurotechnology segment (up 15.7%) and its Orthopaedics segment (up 4.3%). This growth was primarily fueled by increased unit volume across all businesses, with a notable contribution from the acquisition of Inari Medical, Inc. The company also demonstrated improved profitability, with gross profit increasing and operating income rising to $4,889 million, reflecting effective pricing strategies and favorable volume dynamics. Financially, Stryker maintained a healthy liquidity position, with significant cash flow from operations and substantial cash reserves. The company continued its capital allocation strategy, investing heavily in acquisitions totaling $4,960 million, while also returning capital to shareholders through dividends. Despite macroeconomic headwinds and ongoing investments in growth initiatives, Stryker has reaffirmed its commitment to innovation and expanding its product offerings, particularly in areas like robotic-assisted surgery and minimally invasive treatments, positioning it for continued success in the dynamic medical technology landscape.

Financial Highlights

51 data points
Beta

Revenue

$25.12B

64.0% Gross Margin

Net Income

$3.25B

12.9% Net Margin

EPS (Diluted)

$8.40

Total Assets

$47.84B

Cash & Equivalents

$4.01B

Free Cash Flow

$4.28B

Financial Statements
Beta
Revenue$25.12B
Cost of Revenue$9.05B
Gross Profit$16.07B
R&D Expenses$1.62B
SG&A Expenses$8.65B
Operating Expenses$11.18B
Operating Income$4.89B
Interest Expense$582.00M
Net Income$3.25B
EPS (Basic)$8.49
EPS (Diluted)$8.40
Shares Outstanding (Basic)382.20M
Shares Outstanding (Diluted)386.50M

Key Highlights

  • 1Stryker achieved a 11.2% increase in reported net sales in 2025, reaching $25,116 million, with organic sales growth of 9.9% when excluding acquisitions and divestitures.
  • 2The MedSurg and Neurotechnology segment saw significant growth of 15.7% as reported, driven by strong performance across Instruments, Endoscopy, Medical, and Vascular businesses, including the impact of the Inari acquisition.
  • 3The Orthopaedics segment grew 4.3% as reported, with contributions from Knees, Hips, and Trauma and Extremities, despite a slight decrease in price for these products.
  • 4Gross profit margin improved to 64.0% in 2025 from 63.9% in 2024, primarily due to higher sales pricing and favorable volume.
  • 5Significant strategic investments were made in acquisitions, totaling $4,960 million in 2025, most notably the acquisition of Inari Medical, Inc., enhancing the Vascular business.
  • 6Operating income increased by 32.5% to $4,889 million in 2025, showcasing improved operational efficiency and profitability.
  • 7The company generated strong net cash from operating activities of $5,044 million, enabling continued investment in growth and shareholder returns.
  • 8Stryker's Board of Directors declared a dividend of $3.36 per common share in 2025, reflecting a commitment to shareholder returns.

Frequently Asked Questions

Stryker's net sales grew by 11.2% to $25,116 million in 2025. This growth was primarily driven by an increase in unit volume across all business segments, supported by the successful integration of acquisitions and strategic pricing initiatives. The MedSurg and Neurotechnology segment, in particular, showed robust performance, boosted by new product launches and acquisitions like Inari Medical.

In 2025, Stryker invested $4,960 million in acquisitions, with the acquisition of Inari Medical, Inc. being a significant event. This acquisition is expected to enhance Stryker's Vascular business within the MedSurg and Neurotechnology segment. While these acquisitions contribute to top-line growth and strategic expansion, they also incur integration costs, which were noted in the SG&A expenses.

Stryker demonstrated an improvement in profitability, with gross profit margin increasing to 64.0% in 2025, driven by pricing strategies and favorable volumes. The company's operating income also saw a significant increase of 32.5%. While acknowledging potential future margin pressures from segment mix (lower-margin MedSurg and Neurotechnology growing faster than Orthopaedics) and inflationary pressures, Stryker's focus on innovation and operational efficiency aims to sustain profitability.

Stryker maintained a strong liquidity position in 2025, with $4,100 million in cash, cash equivalents, and marketable securities. The company has access to a $3,000 million revolving credit facility and manages its debt levels to be appropriate for its operations and investment plans. In 2025, it issued new senior unsecured notes while also repaying existing ones, reflecting active debt management.