STRYKER REPORTS THIRD QUARTER 2026 OPERATING RESULTS
Portage, Michigan - October 29, 2026 - Stryker (NYSE:SYK) reported operating results for the third quarter of 2026:
“We delivered 7.7% organic sales growth and double-digit adjusted earnings growth in the quarter,” said Kevin A. Lobo, Chair and CEO. “While, in absolute terms, this reflected good overall performance, it did fall short of our expectations. The underlying fundamentals of the business remain strong, and we expect a solid performance in Q4 and good momentum heading into 2027.”
Consolidated net sales of $6.5 billion increased 7.7% in the quarter on both a reported and constant currency basis. Organic net sales increased 7.7% in the quarter primarily driven by increased unit volume.
MedSurg and Neurotechnology net sales of $3.7 billion increased 9.2% in the quarter on both a reported and constant currency basis. Organic net sales increased 9.1% in the quarter primarily driven by increased unit volume.
Orthopaedics net sales of $2.9 billion increased 5.7% in the quarter and 5.9% in constant currency. Organic net sales increased 5.9% in the quarter from increased unit volume.
Reported net earnings of $753 million decreased 12.3% in the quarter. Reported net earnings per diluted share of $1.96 decreased 11.7% in the quarter. Reported gross profit margin and reported operating income margin were 65.2% and 15.9% in the quarter. Reported net earnings include certain items, such as charges for acquisition and integration-related activities, the amortization of purchased intangible assets, structural optimization and other special charges, goodwill and other impairments, costs to comply with certain medical device regulations, recall-related matters, regulatory and legal matters and tax matters. Excluding the aforementioned items, adjusted gross profit margin (1) was 65.4% in the quarter, and adjusted operating income margin (1) was 26.2% in the quarter. Adjusted net earnings (1) of $1.4 billion increased 10.1% in the quarter. Adjusted net earnings per diluted share (1) of $3.52 increased 10.3% in the quarter.
In October 2026 our Board of Directors approved an increase of $3.0 billion to our existing share repurchase program. The manner, timing and amount of repurchases are determined by management based on an evaluation of market conditions, stock price, and other factors and are subject to regulatory considerations. Purchases may be made from time to time in the open market, in privately negotiated transactions, accelerated share repurchase programs or otherwise. 1
We are updating our full year 2026 guidance and now expect organic net sales growth (2) in the range of 6.5% to 7.0% and adjusted net earnings per diluted share (2) to be in the range of $14.80 to $14.90. Our sales guidance includes a modestly positive pricing impact. Additionally, foreign exchange is expected to have a slightly favorable impact on both sales and adjusted net earnings per diluted share (2) should rates hold near current levels.
(1) A reconciliation of the non-GAAP financial measures: adjusted gross profit margin, adjusted operating income and adjusted operating income margin, adjusted net earnings and adjusted net earnings per diluted share, to the most directly comparable GAAP measures: gross profit margin, operating income and operating income margin, net earnings and net earnings per diluted share, and other important information accompanies this press release.
(2) We are unable to present a quantitative reconciliation of our expected net sales growth to expected organic net sales growth as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisitions and divestitures and the impact of foreign currency exchange rates. We are unable to present a quantitative reconciliation of our expected net earnings per diluted share to expected adjusted net earnings per diluted share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of structural optimization and other special charges, acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.
at 4:30 p.m., Eastern Time, to discuss our operating results for the quarter ended September 30, 2026 and provide an operational update.
Please register for this conference call at: https://stryker-3q2026-earnings.open-exchange.net. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry. Registration is open throughout the live call. To ensure you are connected prior to the beginning of the call, we suggest registering a minimum of 15 minutes before the start of the call.
A simultaneous webcast of the call will be accessible via the Investor Relations page of our website at www.stryker.com. For those not planning to ask a question of management, we recommend listening via the webcast. Please allow 15 minutes to register, download and install any necessary software. Following the conference call, a replay will be available on our website up to one year from the time of the earnings call.
This press release contains information that includes or is based on forward- looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such risks and uncertainties include, but are not limited to: weakening of economic conditions, or the anticipation thereof, that could adversely affect the level of demand for our products; geopolitical risks, including from tariffs and the potential for further changes in trade policies and international conflicts, which have led to and could continue to lead to, among other things, increased market volatility; pricing pressures generally, including cost-containment measures that have adversely affected and could in the future adversely affect the price of or demand for our products; changes in foreign currency exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect approval of new products by the United States Food and Drug Administration and foreign regulatory agencies; inflationary pressures; increased interest rates or interest rate volatility; supply chain disruptions; changes in labor markets; changes in coverage and reimbursement levels from third-party payors; changes in the competitive environment; breaches, failures or other disruptions of our or our vendors’ or customers’ information technology systems or products resulting from cyber-attack, data leakage, unauthorized access or theft, including the cybersecurity incident first reported on March 11, 2026; a significant increase in product liability claims; the ultimate total cost with respect to recall- related and other regulatory and quality matters; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; changes in tax laws and regulations; the impact of legislation to reform the healthcare system in the United States or other countries; costs to comply with medical device regulations; changes in financial markets; changes in our credit ratings; our ability to integrate and realize the anticipated benefits of acquisitions in full or at all or within the expected timeframes; our ability to realize any anticipated cost savings; risks relating to climate change or other environmental, social and governance and sustainability related matters; and the impact on our operations and financial results of any public health emergency and any related policies and actions by governments or other third parties. Additional information concerning these and other factors is contained in our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We disclaim any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that affect the likelihood that actual results will differ from those contained in the forward- looking statements, except to the extent required by law.
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.
Nick Mead, Vice President, Investor Relations at 269-385-2600 or nick.mead@stryker.com For media inquiries:
Kim Montagnino, Vice President, Chief Communications Officer at 269-385-2600 or kim.montagnino@stryker.com 2
CONDENSED CONSOLIDATED BALANCE SHEETS September 30 December 31 Assets 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 3,271 $ 4,011 Marketable securities — 89 Accounts receivable, net 3,693 4,039 Inventories 5,747 5,310 Prepaid expenses and other current 1,472 1,306 assets Total current assets $ 14,183 $ 14,755 Property, plant and 4,054 3,876 equipment, net Goodwill and other 24,868 24,972 intangibles, net Noncurrent deferred income 901 1,098 tax assets Other noncurrent assets 3,241 3,143 Total assets $ 47,247 $ 47,844 Liabilities and shareholders' equity Current liabilities $ 6,500 $ 7,794 Long-term debt, excluding current 14,176 14,859 maturities Income taxes 413 402 Other noncurrent liabilities 2,701 2,369 Shareholders' equity 23,457 22,420 Total liabilities and shareholders' $ 47,247 $ 47,844 equity
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Operating activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net earnings $ 2,774 $ 2,397 Depreciation 361 334 Amortization of intangible assets 530 543 Changes in operating assets, liabilities, income taxes payable and -362 -373 other, net Net cash provided by operating $ 3,303 $ 2,901 activities Investing activities Acquisitions, net of cash acquired $ -481 $ -4,950 Proceeds/(Purchases) of short-term — 750 investments Purchases of property, plant and -605 -493 equipment Other investing, net 75 132 Net cash used in investing activities $ -1,011 $ -4,561 Financing activities Borrowings (payments) of debt, net $ -753 $ 2,330 Payments of dividends -1,012 -963 Repurchases of common stock -1,000 — Other financing, net -233 -161 Net cash provided by (used in) financing $ -2,998 $ 1,206 activities Effect of exchange rate changes on cash -34 58 and cash equivalents Change in cash and cash equivalents $ -740 $ -396
STRYKER CORPORATION For the Three and Nine Months September 30 (Unaudited - Millions of Dollars)
Note: In the first quarter 2026 we announced a change in our organizational structure. Our new Ortho Tech business combines the orthopaedic instruments portfolio (Orthopaedic Instruments) from Instruments with Other Orthopaedics. In addition, Neuro Cranial and the spine enabling technologies portfolio (Enabling Technologies) from Other Orthopaedics were combined with the remaining Instruments business to align with our internal reporting structure. Ortho Tech includes sales related to Orthopaedic Instruments of $535 and $492 and Other Orthopaedics of $219 and $159 for the three months 2026 and 2025. For the nine months 2026 and 2025 Ortho Tech includes sales related to Orthopaedic Instruments of $1,547 and $1,477 and Other Orthopaedics of $570 and $440. Instruments includes sales related to Neuro Cranial of $670 and $637 and Enabling Technologies of $28 and $45 for the three months 2026 and 2025. For the nine months 2026 and 2025 Instruments includes sales related to Neuro Cranial of $1,957 and $1,816 and Enabling Technologies of $82 and $108. We have reflected these changes in all historical periods presented. 4
SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
We supplement the reporting of our financial information determined under accounting principles generally accepted in the United States (GAAP) with certain non-GAAP financial measures, including: percentage sales growth in constant currency; percentage organic sales growth; adjusted gross profit; adjusted selling, general and administrative expenses; adjusted research, development and engineering expenses; adjusted operating income; adjusted other income (expense), net; adjusted income taxes; adjusted effective income tax rate; adjusted net earnings; and adjusted net earnings per diluted share (Diluted EPS). We believe these non-GAAP financial measures provide meaningful information to assist investors and shareholders in understanding our financial results and assessing our prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core operating results and provide a baseline for analyzing trends in our underlying businesses. Management uses these non-GAAP financial measures for reviewing the operating results of reportable business segments and analyzing potential future business trends in connection with our budget process and bases certain management incentive compensation on these non-GAAP financial measures.
To measure percentage sales growth in constant currency, we remove the impact of changes in foreign currency exchange rates that affect the comparability and trend of sales. Percentage sales growth in constant currency is calculated by translating current and prior year results at the same foreign currency exchange rate. To measure percentage organic sales growth, we remove the impact of changes in foreign currency exchange rates, acquisitions and divestitures, which affect the comparability and trend of sales. Percentage organic sales growth is calculated by translating current year and prior year results at the same foreign currency exchange rates excluding the impact of acquisitions and divestitures. To measure earnings performance on a consistent and comparable basis, we exclude certain items that affect the comparability of operating results and the trend of earnings. The income tax effect of each adjustment was determined based on the tax effect of the jurisdiction in which the related pre- tax adjustment was recorded. These adjustments are irregular in timing and may not be indicative of our past and future performance.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, selling, general and administrative expenses, research, development and engineering expenses, operating income, other income (expense), net, income taxes, effective income tax rate, net earnings and net earnings per diluted share, the most directly comparable GAAP financial measures. These non- GAAP financial measures are an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures below, provide a more complete understanding of our business. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
The following reconciles the non-GAAP financial measures discussed above with the most directly comparable GAAP financial measures. The weighted-average diluted shares outstanding used in the calculation of adjusted net earnings per diluted share are the same as those used in the calculation of reported net earnings per diluted share for the respective period.
(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:
Three Months 2026 2025 ────────────────────────────────────────────────────────────────────────── Termination of sales relationships $ 1 $ — Employee retention and workforce 1 11 reductions Changes in the fair value of contingent 1 12 consideration Manufacturing integration costs 17 7 Other integration-related activities (e.g., deal costs and legal entity -3 9 rationalization) Adjustments to Operating Income $ 17 $ 39 Adjustments to Income Taxes $ 3 $ 6 Adjustments to Net Earnings $ 14 $ 33
(b) Structural optimization and other special charges represent the costs associated with:
Three Months 2026 2025 ─────────────────────────────────────────────────────────────────────────── Employee retention and workforce $ 7 $ 6 reductions Closure/transfer of manufacturing and other facilities (e.g., site closure, 8 8 contract termination and redundant employee costs) Product line exits (e.g., inventory, long-lived asset and -5 9 specifically-identified intangible asset write-offs) Termination of sales relationships in 37 2 certain countries Spinal Implants sale related 77 9 Other charges 29 7 Adjustments to Operating Income $ 153 $ 41 Adjustments to Other Income (Expense), $ -54 $ -10 Net Adjustments to Income Taxes $ 23 $ 3 Adjustments to Net Earnings $ 76 $ 28
Three Months 2026 2025 ────────────────────────────────────────────────────────────────────────── Goodwill impairment $ 293 $ — Certain long-lived and intangible asset — 22 write-offs and impairments Product line exits (e.g., long-lived asset and specifically-identified — 51 intangible asset write-offs) Adjustments to Operating Income $ 293 $ 73 Adjustments to Income Taxes $ — $ 15 Adjustments to Net Earnings $ 293 $ 58
(d) Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union.
(e) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to resolve certain recall-related matters.
(f) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements. 6 (g) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:
Three Months 2026 2025 ────────────────────────────────────────────────────────────────────────────── Adjustments related to the transfer of certain intellectual properties $ -56 $ -61 between tax jurisdictions Other tax matters 6 11 Adjustments to Income Taxes $ -50 $ -50 Adjustments to Other Income (Expense), $ — $ — Net Adjustments to Net Earnings $ 50 $ 50
(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:
Nine Months 2026 2025 ───────────────────────────────────────────────────────────────────────── Termination of sales relationships $ 7 $ — Employee retention and workforce 1 56 reductions Changes in the fair value of contingent 10 13 consideration Manufacturing integration costs 27 14 Stock compensation payments upon a — 139 change in control Other integration-related activities (e.g., deal costs and legal entity 16 80 rationalization) Adjustments to Operating Income $ 61 $ 302 Adjustments to Income Taxes $ 10 $ 32 Adjustments to Net Earnings $ 51 $ 270
7 (b) Structural optimization and other special charges represent the costs associated with:
Nine Months 2026 2025 ────────────────────────────────────────────────────────────────────────── Employee retention and workforce $ 20 $ 36 reductions Closure/transfer of manufacturing and other facilities (e.g., site closure, 17 20 contract termination and redundant employee costs) Product line exits (e.g., inventory, long-lived asset and 6 2 specifically-identified intangible asset write-offs) Termination of sales relationships in 124 -2 certain countries Spinal Implants sale related 128 17 Other charges 71 20 Adjustments to Operating Income $ 366 $ 93 Adjustments to Other Income (Expense), $ -71 $ -19 Net Adjustments to Income Taxes $ 68 $ 15 Adjustments to Net Earnings $ 227 $ 59
Nine Months 2026 2025 ───────────────────────────────────────────────────────────────────────── Goodwill impairment $ 293 $ — Certain long-lived and intangible asset — 108 write-offs and impairments Product line exits (e.g., long-lived asset and specifically-identified 1 55 intangible asset write-offs) Adjustments to Operating Income $ 294 $ 163 Adjustments to Income Taxes $ — $ 46 Adjustments to Net Earnings $ 294 $ 117
(d) Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union. (e) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to resolve certain recall-related matters.
(f) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.
(g) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:
Nine Months 2026 2025 ────────────────────────────────────────────────────────────────────────────── Adjustments related to the transfer of certain intellectual properties $ -131 $ -153 between tax jurisdictions Other tax matters 44 82 Adjustments to Income Taxes $ -87 $ -71 Adjustments to Other Income (Expense), $ — $ — Net Adjustments to Net Earnings $ 87 $ 71
Full text with the tables
Exhibit 99.1
STRYKER REPORTS THIRD QUARTER 2026 OPERATING RESULTS
Portage, Michigan - October 29, 2026 - Stryker (NYSE:SYK) reported operating
results for the third quarter of 2026:
Third Quarter Results
•
Reported net sales increased 7.7% to $6.5 billion
•
Organic net sales increased 7.7%
•
Reported operating income margin of 15.9%
•
Adjusted operating income margin
(1)
increased 60 bps to
26.2%
•
Reported EPS decreased 11.7% to $1.96
•
Adjusted EPS
(1)
increased 10.3% to $3.52
Th…
Qu…
Net
Sa…
Gr…
Ov…
Fo… Co… Ac…
Re… Cu… Cu… / Or…
Ex… Di…
M…
a… 9.2 % — % 9.2 % 0.1 % 9… %
N…
O… 5.7 -0… 5.9 — 5…
T… 7.7 % — % 7.7 % — % 7… %
“We delivered 7.7% organic sales growth and double-digit adjusted earnings
growth in the quarter,” said Kevin A. Lobo, Chair and CEO. “While, in absolute
terms, this reflected good overall performance, it did fall short of our
expectations. The underlying fundamentals of the business remain strong, and we
expect a solid performance in Q4 and good momentum heading into 2027.”
Sales Analysis
Consolidated net sales of $6.5 billion increased 7.7% in the quarter on both a
reported and constant currency basis. Organic net sales increased 7.7% in the
quarter primarily driven by increased unit volume.
MedSurg and Neurotechnology net sales of $3.7 billion increased 9.2% in the
quarter on both a reported and constant currency basis. Organic net sales
increased 9.1% in the quarter primarily driven by increased unit volume.
Orthopaedics net sales of $2.9 billion increased 5.7% in the quarter and 5.9% in
constant currency. Organic net sales increased 5.9% in the quarter from
increased unit volume.
Earnings Analysis
Reported net earnings of $753 million decreased 12.3% in the quarter. Reported
net earnings per diluted share of $1.96 decreased 11.7% in the quarter. Reported
gross profit margin and reported operating income margin were 65.2% and 15.9% in
the quarter. Reported net earnings include certain items, such as charges for
acquisition and integration-related activities, the amortization of purchased
intangible assets, structural optimization and other special charges, goodwill
and other impairments, costs to comply with certain medical device regulations,
recall-related matters, regulatory and legal matters and tax matters. Excluding
the aforementioned items, adjusted gross profit margin (1) was 65.4% in the
quarter, and adjusted operating income margin (1) was 26.2% in the quarter.
Adjusted net earnings (1) of $1.4 billion increased 10.1% in the quarter.
Adjusted net earnings per diluted share (1) of $3.52 increased 10.3% in the
quarter.
Share Repurchases
We repurchased $1.0 billion of our common stock in the third quarter of 2026.
In October 2026 our Board of Directors approved an increase of $3.0 billion to
our existing share repurchase program. The manner, timing and amount of
repurchases are determined by management based on an evaluation of market
conditions, stock price, and other factors and are subject to regulatory
considerations. Purchases may be made from time to time in the open market, in
privately negotiated transactions, accelerated share repurchase programs or
otherwise.
1
2026 Outlook
We are updating our full year 2026 guidance and now expect organic net sales
growth (2) in the range of 6.5% to 7.0% and adjusted net earnings per diluted
share (2) to be in the range of $14.80 to $14.90. Our sales guidance includes a
modestly positive pricing impact. Additionally, foreign exchange is expected to
have a slightly favorable impact on both sales and adjusted net earnings per
diluted share (2) should rates hold near current levels.
(1) A reconciliation of the non-GAAP financial measures: adjusted gross profit
margin, adjusted operating income and adjusted operating income margin, adjusted
net earnings and adjusted net earnings per diluted share, to the most directly
comparable GAAP measures: gross profit margin, operating income and operating
income margin, net earnings and net earnings per diluted share, and other
important information accompanies this press release.
(2) We are unable to present a quantitative reconciliation of our expected net
sales growth to expected organic net sales growth as we are unable to predict
with reasonable certainty and without unreasonable effort the impact and timing
of acquisitions and divestitures and the impact of foreign currency exchange
rates. We are unable to present a quantitative reconciliation of our expected
net earnings per diluted share to expected adjusted net earnings per diluted
share as we are unable to predict with reasonable certainty and without
unreasonable effort the impact and timing of structural optimization and other
special charges, acquisition-related expenses and the outcome of certain
regulatory, legal and tax matters. The financial impact of these items is
uncertain and is dependent on various factors, including timing, and could be
material to our Consolidated Statements of Earnings.
Conference Call on Thursday, October 29, 2026
As previously announced, we will host a conference call on
Thursday, October 29, 2026
at 4:30 p.m., Eastern Time, to discuss our operating results for the quarter
ended September 30, 2026 and provide an operational update.
Please register for this conference call at:
https://stryker-3q2026-earnings.open-exchange.net. After registering, a
confirmation will be sent via email, including dial-in details and unique
conference call access codes required for call entry. Registration is open
throughout the live call. To ensure you are connected prior to the beginning of
the call, we suggest registering a minimum of 15 minutes before the start of the
call.
A simultaneous webcast of the call will be accessible via the Investor Relations
page of our website at www.stryker.com. For those not planning to ask a question
of management, we recommend listening via the webcast. Please allow 15 minutes
to register, download and install any necessary software.
Following the conference call, a replay will be available on our website up to
one year from the time of the earnings call.
Caution Concerning Forward-Looking Statements
This press release contains information that includes or is based on forward-
looking statements within the meaning of the federal securities law that are
subject to various risks and uncertainties that could cause our actual results
to differ materially from those expressed or implied in such statements. Such
risks and uncertainties include, but are not limited to: weakening of economic
conditions, or the anticipation thereof, that could adversely affect the level
of demand for our products; geopolitical risks, including from tariffs and the
potential for further changes in trade policies and international conflicts,
which have led to and could continue to lead to, among other things, increased
market volatility; pricing pressures generally, including cost-containment
measures that have adversely affected and could in the future adversely affect
the price of or demand for our products; changes in foreign currency exchange
markets; legislative and regulatory actions; unanticipated issues arising in
connection with clinical studies and otherwise that affect approval of new
products by the United States Food and Drug Administration and foreign
regulatory agencies; inflationary pressures; increased interest rates or
interest rate volatility; supply chain disruptions; changes in labor markets;
changes in coverage and reimbursement levels from third-party payors; changes in
the competitive environment; breaches, failures or other disruptions of our or
our vendors’ or customers’ information technology systems or products resulting
from cyber-attack, data leakage, unauthorized access or theft, including the
cybersecurity incident first reported on March 11, 2026; a significant increase
in product liability claims; the ultimate total cost with respect to recall-
related and other regulatory and quality matters; the impact of investigative
and legal proceedings and compliance risks; resolution of tax audits; changes in
tax laws and regulations; the impact of legislation to reform the healthcare
system in the United States or other countries; costs to comply with medical
device regulations; changes in financial markets; changes in our credit ratings;
our ability to integrate and realize the anticipated benefits of acquisitions in
full or at all or within the expected timeframes; our ability to realize any
anticipated cost savings; risks relating to climate change or other
environmental, social and governance and sustainability related matters; and the
impact on our operations and financial results of any public health emergency
and any related policies and actions by governments or other third parties.
Additional information concerning these and other factors is contained in our
filings with the United States Securities and Exchange Commission, including our
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We disclaim any
intention or obligation to publicly update or revise any forward-looking
statement to reflect any change in our expectations or in events, conditions or
circumstances on which those expectations may be based, or that affect the
likelihood that actual results will differ from those contained in the forward-
looking statements, except to the extent required by law.
Stryker is a global leader in medical technologies and, together with our
customers, we are driven to make healthcare better. We offer innovative products
and services in MedSurg, Neurotechnology and Orthopaedics that help improve
patient and healthcare outcomes. Alongside our customers around the world, we
impact more than 150 million patients annually. More information is available at
www.stryker.com.
For investor inquiries:
Nick Mead, Vice President, Investor Relations at 269-385-2600 or
nick.mead@stryker.com
For media inquiries:
Kim Montagnino, Vice President, Chief Communications Officer at 269-385-2600 or
kim.montagnino@stryker.com
2
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CONDENSED CONSOLIDATED
BALANCE SHEETS September 30 December 31
Assets 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 3,271 $ 4,011
Marketable securities — 89
Accounts receivable, net 3,693 4,039
Inventories 5,747 5,310
Prepaid expenses and other
current 1,472 1,306
assets
Total current assets $ 14,183 $ 14,755
Property, plant and 4,054 3,876
equipment, net
Goodwill and other 24,868 24,972
intangibles, net
Noncurrent deferred income 901 1,098
tax assets
Other noncurrent assets 3,241 3,143
Total assets $ 47,247 $ 47,844
Liabilities and shareholders'
equity
Current liabilities $ 6,500 $ 7,794
Long-term debt, excluding
current 14,176 14,859
maturities
Income taxes 413 402
Other noncurrent liabilities 2,701 2,369
Shareholders' equity 23,457 22,420
Total liabilities and
shareholders' $ 47,247 $ 47,844
equity
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS Nine Months
Operating activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net earnings $ 2,774 $ 2,397
Depreciation 361 334
Amortization of intangible assets 530 543
Changes in operating assets,
liabilities, income taxes payable and -362 -373
other, net
Net cash provided by operating $ 3,303 $ 2,901
activities
Investing activities
Acquisitions, net of cash acquired $ -481 $ -4,950
Proceeds/(Purchases) of short-term — 750
investments
Purchases of property, plant and -605 -493
equipment
Other investing, net 75 132
Net cash used in investing activities $ -1,011 $ -4,561
Financing activities
Borrowings (payments) of debt, net $ -753 $ 2,330
Payments of dividends -1,012 -963
Repurchases of common stock -1,000 —
Other financing, net -233 -161
Net cash provided by (used in)
financing $ -2,998 $ 1,206
activities
Effect of exchange rate changes on
cash -34 58
and cash equivalents
Change in cash and cash equivalents $ -740 $ -396
3
STRYKER CORPORATION
For the Three and Nine Months September 30
(Unaudited - Millions of Dollars)
… P…
… … N… C…
… … … M… As C…
… … … … 2… 2… R… C…
──────────────────────────────────────────────────────────────────────────────
$ … $ … … % … % $ … $ … … % … %
… … … … … … … …
$ … $ … … % … % $ … $ … … % … %
$ … $ … … % … % $ … $ … … % … %
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$ … $ … … % … % $ … $ … … % … %
$ — $ — — % — % $ — $ … … % … %
4 6 … … 9 … … …
$ 4 $ 6 … % … % $ 9 $ … … % … %
$ … $ … … % … % $ … $ … … % … %
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$ … $ … … % … % $ … $ … … % … %
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$ … $ … … % … % $ … $ … … % … %
Note: In the first quarter 2026 we announced a change in our organizational
structure. Our new Ortho Tech business combines the orthopaedic instruments
portfolio (Orthopaedic Instruments) from Instruments with Other Orthopaedics. In
addition, Neuro Cranial and the spine enabling technologies portfolio (Enabling
Technologies) from Other Orthopaedics were combined with the remaining
Instruments business to align with our internal reporting structure. Ortho Tech
includes sales related to Orthopaedic Instruments of $535 and $492 and Other
Orthopaedics of $219 and $159 for the three months 2026 and 2025. For the nine
months 2026 and 2025 Ortho Tech includes sales related to Orthopaedic
Instruments of $1,547 and $1,477 and Other Orthopaedics of $570 and $440.
Instruments includes sales related to Neuro Cranial of $670 and $637 and
Enabling Technologies of $28 and $45 for the three months 2026 and 2025. For the
nine months 2026 and 2025 Instruments includes sales related to Neuro Cranial of
$1,957 and $1,816 and Enabling Technologies of $82 and $108. We have reflected
these changes in all historical periods presented.
4
SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
We supplement the reporting of our financial information determined under
accounting principles generally accepted in the United States (GAAP) with
certain non-GAAP financial measures, including: percentage sales growth in
constant currency; percentage organic sales growth; adjusted gross profit;
adjusted selling, general and administrative expenses; adjusted research,
development and engineering expenses; adjusted operating income; adjusted other
income (expense), net; adjusted income taxes; adjusted effective income tax
rate; adjusted net earnings; and adjusted net earnings per diluted share
(Diluted EPS). We believe these non-GAAP financial measures provide meaningful
information to assist investors and shareholders in understanding our financial
results and assessing our prospects for future performance. Management believes
percentage sales growth in constant currency and the other adjusted measures
described above are important indicators of our operations because they exclude
items that may not be indicative of or are unrelated to our core operating
results and provide a baseline for analyzing trends in our underlying
businesses. Management uses these non-GAAP financial measures for reviewing the
operating results of reportable business segments and analyzing potential future
business trends in connection with our budget process and bases certain
management incentive compensation on these non-GAAP financial measures.
To measure percentage sales growth in constant currency, we remove the impact of
changes in foreign currency exchange rates that affect the comparability and
trend of sales. Percentage sales growth in constant currency is calculated by
translating current and prior year results at the same foreign currency exchange
rate. To measure percentage organic sales growth, we remove the impact of
changes in foreign currency exchange rates, acquisitions and divestitures, which
affect the comparability and trend of sales. Percentage organic sales growth is
calculated by translating current year and prior year results at the same
foreign currency exchange rates excluding the impact of acquisitions and
divestitures. To measure earnings performance on a consistent and comparable
basis, we exclude certain items that affect the comparability of operating
results and the trend of earnings. The income tax effect of each adjustment was
determined based on the tax effect of the jurisdiction in which the related pre-
tax adjustment was recorded. These adjustments are irregular in timing and may
not be indicative of our past and future performance.
Because non-GAAP financial measures are not standardized, it may not be possible
to compare these financial measures with other companies' non-GAAP financial
measures having the same or similar names. These adjusted financial measures
should not be considered in isolation or as a substitute for reported sales
growth, gross profit, selling, general and administrative expenses, research,
development and engineering expenses, operating income, other income (expense),
net, income taxes, effective income tax rate, net earnings and net earnings per
diluted share, the most directly comparable GAAP financial measures. These non-
GAAP financial measures are an additional way of viewing aspects of our
operations that, when viewed with our GAAP results and the reconciliations to
corresponding GAAP financial measures below, provide a more complete
understanding of our business. We strongly encourage investors and shareholders
to review our financial statements and publicly-filed reports in their entirety
and not to rely on any single financial measure.
The following reconciles the non-GAAP financial measures discussed above with
the most directly comparable GAAP financial measures. The weighted-average
diluted shares outstanding used in the calculation of adjusted net earnings per
diluted share are the same as those used in the calculation of reported net
earnings per diluted share for the respective period.
… …
… … …
& & …
… … … … … … … …
… … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … %
— — — — — — —
6 … … … — 3 —
— — — … — … …
… … … … … … …
— — — … — — …
— — … 6 — 1 —
— 4 — … — … …
— … — … — 6 …
— — — — — … …
— — — — — — —
$ … $ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … %
5
… …
… … …
& & …
… … … … … … … …
… … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … %
… — — … — … …
5 … … … — 6 …
— — — … — … …
… … — … … 3 …
— — — … — … …
— — … … — 3 …
— … — 1 — — —
— — — — — — —
— — — — — … …
$ … $ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … %
nm - not meaningful
(a) Charges represent certain acquisition and integration-related costs
associated with acquisitions, including:
Three Months 2026 2025
──────────────────────────────────────────────────────────────────────────
Termination of sales relationships $ 1 $ —
Employee retention and workforce 1 11
reductions
Changes in the fair value of contingent 1 12
consideration
Manufacturing integration costs 17 7
Other integration-related activities
(e.g., deal costs and legal entity -3 9
rationalization)
Adjustments to Operating Income $ 17 $ 39
Adjustments to Income Taxes $ 3 $ 6
Adjustments to Net Earnings $ 14 $ 33
(b) Structural optimization and other special charges represent the costs
associated with:
Three Months 2026 2025
───────────────────────────────────────────────────────────────────────────
Employee retention and workforce $ 7 $ 6
reductions
Closure/transfer of manufacturing and
other facilities (e.g., site closure, 8 8
contract termination and redundant
employee costs)
Product line exits (e.g., inventory,
long-lived asset and -5 9
specifically-identified intangible asset
write-offs)
Termination of sales relationships in 37 2
certain countries
Spinal Implants sale related 77 9
Other charges 29 7
Adjustments to Operating Income $ 153 $ 41
Adjustments to Other Income (Expense), $ -54 $ -10
Net
Adjustments to Income Taxes $ 23 $ 3
Adjustments to Net Earnings $ 76 $ 28
(c) Goodwill and other impairments represent the costs associated with:
Three Months 2026 2025
──────────────────────────────────────────────────────────────────────────
Goodwill impairment $ 293 $ —
Certain long-lived and intangible asset — 22
write-offs and impairments
Product line exits (e.g., long-lived
asset and specifically-identified — 51
intangible asset write-offs)
Adjustments to Operating Income $ 293 $ 73
Adjustments to Income Taxes $ — $ 15
Adjustments to Net Earnings $ 293 $ 58
(d) Charges represent the costs specific to updating our quality system, product
labeling, asset write-offs and product remanufacturing to comply with the
medical device reporting regulations and other requirements of the new medical
device regulations in the European Union.
(e) Charges represent changes in our best estimate of the probable loss, or the
minimum of the range of probable losses when a best estimate within a range is
not known, to resolve certain recall-related matters.
(f) Charges represent changes in our best estimate of the probable loss, or the
minimum of the range of probable losses when a best estimate within a range is
not known, to resolve certain regulatory or other legal matters and the amount
of favorable awards from settlements.
6
(g) Benefits / (charges) represent the accounting impact of certain significant
and discrete tax items, including:
Three Months 2026 2025
──────────────────────────────────────────────────────────────────────────────
Adjustments related to the transfer
of
certain intellectual properties $ -56 $ -61
between
tax jurisdictions
Other tax matters 6 11
Adjustments to Income Taxes $ -50 $ -50
Adjustments to Other Income
(Expense), $ — $ —
Net
Adjustments to Net Earnings $ 50 $ 50
… …
… … …
& & …
… … … … … … … …
… … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … %
— — — — — — —
… … … … — … —
— — — … — … …
… … … … … … …
— — — … — — …
— — … … — 3 —
— … — 8 — 1 —
— … — … — 7 —
— — — — — … …
… — — … — … —
$ … $ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … %
… …
… … …
& & …
… … … … … … … …
… … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … %
… — — … — … …
… … … … — … …
— — — … — … …
… … … … … … …
— — — … — … …
1 — … … — 7 …
… … — … — 9 —
— … — 7 — 2 —
— — — — — … …
$ … $ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … %
nm - not meaningful
(a) Charges represent certain acquisition and integration-related costs
associated with acquisitions, including:
Nine Months 2026 2025
─────────────────────────────────────────────────────────────────────────
Termination of sales relationships $ 7 $ —
Employee retention and workforce 1 56
reductions
Changes in the fair value of contingent 10 13
consideration
Manufacturing integration costs 27 14
Stock compensation payments upon a — 139
change in control
Other integration-related activities
(e.g., deal costs and legal entity 16 80
rationalization)
Adjustments to Operating Income $ 61 $ 302
Adjustments to Income Taxes $ 10 $ 32
Adjustments to Net Earnings $ 51 $ 270
7
(b) Structural optimization and other special charges represent the costs
associated with:
Nine Months 2026 2025
──────────────────────────────────────────────────────────────────────────
Employee retention and workforce $ 20 $ 36
reductions
Closure/transfer of manufacturing and
other facilities (e.g., site closure, 17 20
contract termination and redundant
employee costs)
Product line exits (e.g., inventory,
long-lived asset and 6 2
specifically-identified intangible asset
write-offs)
Termination of sales relationships in 124 -2
certain countries
Spinal Implants sale related 128 17
Other charges 71 20
Adjustments to Operating Income $ 366 $ 93
Adjustments to Other Income (Expense), $ -71 $ -19
Net
Adjustments to Income Taxes $ 68 $ 15
Adjustments to Net Earnings $ 227 $ 59
(c) Goodwill and other impairments represent the costs associated with:
Nine Months 2026 2025
─────────────────────────────────────────────────────────────────────────
Goodwill impairment $ 293 $ —
Certain long-lived and intangible asset — 108
write-offs and impairments
Product line exits (e.g., long-lived
asset and specifically-identified 1 55
intangible asset write-offs)
Adjustments to Operating Income $ 294 $ 163
Adjustments to Income Taxes $ — $ 46
Adjustments to Net Earnings $ 294 $ 117
(d) Charges represent the costs specific to updating our quality system, product
labeling, asset write-offs and product remanufacturing to comply with the
medical device reporting regulations and other requirements of the new medical
device regulations in the European Union.
(e) Charges represent changes in our best estimate of the probable loss, or the
minimum of the range of probable losses when a best estimate within a range is
not known, to resolve certain recall-related matters.
(f) Charges represent changes in our best estimate of the probable loss, or the
minimum of the range of probable losses when a best estimate within a range is
not known, to resolve certain regulatory or other legal matters and the amount
of favorable awards from settlements.
(g) Benefits / (charges) represent the accounting impact of certain significant
and discrete tax items, including:
Nine Months 2026 2025
──────────────────────────────────────────────────────────────────────────────
Adjustments related to the transfer
of
certain intellectual properties $ -131 $ -153
between
tax jurisdictions
Other tax matters 44 82
Adjustments to Income Taxes $ -87 $ -71
Adjustments to Other Income
(Expense), $ — $ —
Net
Adjustments to Net Earnings $ 87 $ 71
8