Stryker (SYK) Q2 2026 earnings summary

Executive summary

• Achieved 9.4% year-over-year sales growth for Q2 2026, with organic sales up 9.0%, driven by strong performance across MedSurg, Neurotechnology, and Orthopaedics, despite supply disruptions and recovery from a significant cybersecurity incident.

• Adjusted EPS grew 17.9% to $3.69, while reported EPS increased 44.1% to $3.30; net earnings rose to $1.3 billion.

• Operating income margin improved to 25.2% for Q2, with adjusted margin at 27.4%.

• International organic sales growth was 8.9%, led by strong results in Australia, New Zealand, Germany, Canada, South Korea, Japan, India, and Brazil.

• Recovery from the cybersecurity incident continued, with production ramping up to meet demand and support patient care.

Financial highlights

• Q2 net sales reached $6.6 billion, up from $6.0 billion; six-month net sales totaled $12.6 billion.

• Gross profit margin increased to 68.3% (reported) and 66.0% (adjusted); adjusted operating margin was 27.4%.

• Adjusted net earnings were $1.4 billion, up 17.6% year-over-year.

• Ended Q2 with $3.5 billion in cash and marketable securities; year-to-date cash from operations was $1.84 billion.

• Debt-to-equity ratio improved as total liabilities decreased to $23.9 billion and equity rose to $24.0 billion.

Outlook and guidance

• Full-year 2026 organic net sales growth expected at 8.3%-9.3%, with adjusted EPS forecasted between $14.95 and $15.10.

• Guidance reflects strong order backlog, robust demand for capital products, and anticipated steady production ramp.

• Full-year effective tax rate expected in the range of 15%-16%.

• Management targets high-end MedTech industry sales growth and maintains a capital allocation strategy prioritizing acquisitions, dividends, and share repurchases.

• Segment mix anticipated to pressure gross margin due to faster growth in lower-margin businesses.