01—Abstract
Summary
Summary of the 8-K filed June 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Stryker filed this Form 8-K on June 26, 2026 to recast its consolidated financial statements for 2023 through 2025 to reflect a change in segment reporting.
The change is organizational, not an accounting restatement: the company is reorganizing its Instruments and Other Orthopaedics businesses into a new Ortho Tech business, which combines orthopaedic instruments with Mako robotics and enabling technologies. Stryker will still report two segments, MedSurg and Neurotechnology and Orthopaedics. Consolidated net sales, net earnings, the balance sheet, and cash flows are unchanged by the recast.
The filing does not update the 2025 10-K's MD&A for later developments, so investors should read it alongside the Q1 2026 10-Q. The recast mainly changes how segment-level growth and margins look. Under the new structure, Ortho Tech 2025 net sales were $11,239 milliona, up 10.9% as reported, with Ortho Tech carrying the Mako robotics and power tool franchise.
MedSurg and Neurotechnology remains the faster-growing segment at 16.5%b reported growth in 2025, versus 5.4% for Orthopaedics, which was weighed down by the divestiture of Spinal Implants. Because the Spinal Implants business was sold in April 2025, the Orthopaedics comparison is distorted by that sale. Investors modeling segment economics should use the recast figures rather than the originally reported ones.
The filing also reconfirms the 2025 financial baseline that the recast leaves intact: net sales of $25,116 millionc (+11.2%), GAAP diluted EPS of $8.40, adjusted diluted EPS of $13.63 (+11.8%), and operating cash flow of $5,044 million. Acquisitions, mainly Inari Medical for about $4.8 billion, were the largest use of capital, and total debt rose to $15,859 million.
The filing does not change any of these figures. Its value lies in giving analysts a consistent segment basis for future comparisons.
02—Key points
Key Highlights
- Segment recast only: Stryker recast 2023–2025 segment data for the new Ortho Tech business; there is no restatement of consolidated results, which remain at $25.1B net sales and $3.2B GAAP net earnings for 2025.
- Ortho Tech created: Combines orthopaedic instruments from Instruments with Mako robotics, power tools, and enabling technologies, aiming to speed up product innovation and simplify customer engagement. Ortho Tech had 2025 sales of $11.2B, up 10.9% as reported.
- Two reportable segments retained: MedSurg and Neurotechnology ($13.7B, +16.5% in 2025) and Orthopaedics ($11.4B, +5.4%). The Orthopaedics growth figure is depressed by the Spinal Implants divestiture.
- Adjusted EPS of $13.63 for 2025 (+11.8%), with reported GAAP EPS of $8.40 reflecting a $1.71 one-time tax benefit tied to intellectual property transfers, which is excluded from adjusted results.
- Capital deployment was heavy in 2025: $4.96B in acquisitions (mainly Inari), $1.28B in dividends, and total debt rising to $15.9B; no share repurchases were made in 2025.
- Filing scope limitation: The 8-K does not update the 2025 10-K MD&A. Investors should rely on the Q1 2026 10-Q for current developments and events since the annual report.
03—Questions
Frequently Asked Questions
Does this 8-K change Stryker's reported 2025 financial results?
No. The filing states that the recast reflects only segment reporting changes and is not a restatement. Consolidated net sales ($25,116M), net earnings ($3,246M), diluted EPS ($8.40), the balance sheet, and cash flows are unchanged. Only segment and product-line disclosures in Notes 2 and 14 and in the MD&A were recast.
What is Ortho Tech and why did Stryker create it?
Ortho Tech is a new business unit that combines orthopaedic instruments from the Instruments business with the Mako robotic-arm platform and enabling technologies from Other Orthopaedics. Stryker says this aims to simplify the customer experience and speed up innovation by putting related products and teams under one business. Ortho Tech generated $11.2B of 2025 sales, about 45% of total revenue.
How will the new segment structure affect comparisons for investors?
Historical segment figures now reflect Ortho Tech, so 2023–2025 trends are comparable on the new basis. However, segment margins and growth rates differ from previously published figures, so older analyst models and prior-period comparisons need to be updated. Because Spinal Implants was divested in 2025, Orthopaedics growth in 2025 (+5.4% reported, +4.8% constant currency) understates underlying growth from continuing operations.
Why does the filing say it does not update the MD&A for later events?
The 8-K recasts information from the 2025 Form 10-K as of its original date and includes only the segment changes. It explicitly excludes developments after the 10-K. The Q1 2026 Form 10-Q contains more recent information on events, updated expectations, and the recast quarterly segment data, and should be used for current analysis.
What were the main drivers of Stryker's 2025 profitability and capital allocation?
Operating margin rose to 19.5% from 16.3%, helped by lower 2024 impairment charges, higher pricing, and volume. The 2025 GAAP effective tax rate was 28.1% because of intellectual property transfers, which created a $718M one-time tax adjustment excluded from adjusted results. The company spent $4.96B on acquisitions, mainly Inari, and returned $1.28B through dividends. Share repurchases were zero, and the buyback authorization had $1.03B remaining.
04—Continue