01—Abstract
Summary
Summary of the 10-K filed February 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Stryker Corporation reported strong performance for the fiscal year 2025, with net sales growing by 11.2% to $25,116 milliona, 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 millionb, 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 millionc, 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.
02—Key points
Key Highlights
- Stryker 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.
- The 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.
- The 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.
- Gross profit margin improved to 64.0% in 2025 from 63.9% in 2024, primarily due to higher sales pricing and favorable volume.
- Significant strategic investments were made in acquisitions, totaling $4,960 million in 2025, most notably the acquisition of Inari Medical, Inc., enhancing the Vascular business.
- Operating income increased by 32.5% to $4,889 million in 2025, showcasing improved operational efficiency and profitability.
- The company generated strong net cash from operating activities of $5,044 million, enabling continued investment in growth and shareholder returns.
- Stryker's Board of Directors declared a dividend of $3.36 per common share in 2025, reflecting a commitment to shareholder returns.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Stryker Corp kept $0.13.
- Revenue$25.12B100.0%
- Cost of revenue−$9.05B36.0%
- Gross profit$16.07B64.0%
- Operating costs−$11.18B44.5%
- Operating income$4.89B19.5%
- Interest, other & tax−$1.64B6.5%
- Net income$3.25B12.9%
Where FY2025 revenue went
$25.12B- Cost of revenue: $9.05B, 36% of revenue
- SG&A: $8.65B, 34% of revenue
- Net income: $3.25B, 13% of revenue
- R&D: $1.62B, 6.5% of revenue
- Other operating costs: $902.0M, 3.6% of revenue
- Interest, other & tax: $1.64B, 6.5% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 11, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $25.12B$22.59B | +11.2% |
| Cost of Revenue | $9.05B$8.15B | +11.0% |
| Gross Profit | $16.07B$14.44B | +11.3% |
| R&D Expenses | $1.62B$1.47B | +10.7% |
| SG&A Expenses | $8.65B$7.68B | +12.6% |
| Operating Expenses | $11.18B$10.75B | +4.0% |
| Operating Income | $4.89B$3.69B | +32.5% |
| Interest Expense | $582.00M$396.00M | +47.0% |
| Net Income | $3.25B$2.99B | +8.5% |
| EPS (Basic) | $8.49$7.86 | +8.0% |
| EPS (Diluted) | $8.40$7.76 | +8.2% |
| Shares Outstanding (Basic) | 382.20M381.00M | +0.3% |
| Shares Outstanding (Diluted) | 386.50M385.60M | +0.2% |
05—Questions
Frequently Asked Questions
What were the key drivers of Stryker's net sales growth in 2025?
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.
How did Stryker's acquisitions in 2025 impact its financial performance?
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.
What is Stryker's outlook on profitability and margins?
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.
How is Stryker managing its debt and liquidity?
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.
06—Continue