10-QPeriod: Q1 FY2026

STRYKER CORP Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 11, 2026For Securities:SYK

Summary

Stryker Corporation reported its first quarter 2026 results, showcasing a 2.6% increase in net sales to $6,020 million, driven by both its MedSurg and Neurotechnology segment (up 5.0%) and a marginal increase in its Orthopaedics segment (up 0.1%). While overall sales saw a modest rise, profitability faced some headwinds, with gross profit margin declining to 63.3% from 63.8% year-over-year, primarily due to increased manufacturing and supply chain costs linked to a recent cybersecurity incident. Net earnings rose to $745 million, or $1.93 per diluted share, a notable increase from $654 million, or $1.69 per diluted share, in the prior year period. Despite the challenges, including the impact of the cybersecurity incident, Stryker demonstrated resilience in its operations. The company's strategic focus on innovation and its diversified product portfolio across key medical technology areas continue to support its growth trajectory. Management highlighted a reorganization in the Ortho Tech business to enhance customer experience and speed to market. Investors will be keen to monitor the ongoing impact of the cybersecurity incident and the company's ability to navigate supply chain pressures and maintain its growth momentum in the upcoming quarters.

Financial Highlights

52 data points
Beta

Revenue

$6.02B

63.3% Gross Margin

Net Income

$745.00M

12.4% Net Margin

EPS (Diluted)

$1.93

Total Assets

$46.29B

Cash & Equivalents

$2.88B

Free Cash Flow

$415.00M

Financial Statements
Beta
Revenue$6.02B
Cost of Revenue$2.21B
Gross Profit$3.81B
R&D Expenses$413.00M
SG&A Expenses$2.28B
Operating Expenses$2.87B
Operating Income$936.00M
Interest Expense$142.00M
Net Income$745.00M
EPS (Basic)$1.95
EPS (Diluted)$1.93
Shares Outstanding (Basic)382.90M
Shares Outstanding (Diluted)386.50M

Key Highlights

  • 1Net sales increased by 2.6% to $6.02 billion in Q1 2026 compared to $5.87 billion in Q1 2025.
  • 2MedSurg and Neurotechnology segment sales grew by 5.0% to $3.21 billion, while Orthopaedics segment sales saw a modest increase of 0.1% to $2.81 billion.
  • 3Gross profit margin decreased to 63.3% from 63.8% in the prior year, attributed to higher manufacturing and supply chain costs related to a cybersecurity incident.
  • 4Net earnings increased by 13.9% to $745 million, with diluted EPS rising to $1.93 from $1.69.
  • 5The company experienced a cybersecurity incident in Q1 2026 which disrupted operations but has since restored global manufacturing and commercial systems.
  • 6Stryker repaid $1,000 million of senior unsecured notes in March 2026, reducing its long-term debt.
  • 7The company announced a reorganization of its Ortho Tech business to simplify customer experience and accelerate innovation.

Frequently Asked Questions

The decrease in gross profit margin to 63.3% from 63.8% was primarily driven by higher manufacturing and supply chain costs. These costs were exacerbated by idle production time resulting from a cybersecurity incident that occurred during the quarter.

The cybersecurity incident, identified in Q1 2026, led to disruptions in business operations and increased manufacturing and supply chain costs, which negatively impacted the gross profit margin. While the company has restored its systems, the full financial impact is still being assessed, and it was noted as having a material impact on operations and financial results for the first quarter.

Consolidated net sales grew 2.6% year-over-year, with the MedSurg and Neurotechnology segment showing stronger growth (5.0%) compared to the Orthopaedics segment (0.1%). Excluding acquisitions, divestitures, and foreign currency impacts, sales grew 1.0%. The company aims for high-end medical technology industry growth, and ongoing innovation and market presence are expected to support future sales.

Stryker repaid $1,000 million of senior unsecured notes in March 2026. Overall debt has decreased, with total debt at $14.72 billion at the end of Q1 2026 compared to $15.86 billion at the end of 2025. The company maintains strong credit ratings, which supports its ability to refinance debt.