Stryker (SYK) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 7.7% to $6,520M, with organic growth driven primarily by higher unit volume; adjusted diluted EPS increased 10.3% to $3.52.

• Results fell short of expectations despite solid underlying fundamentals; reported net earnings declined 12.3% to $753M, including a $293M Peripheral Vascular goodwill and other impairment.

• Spencer Stiles was appointed next CEO after Kevin Lobo’s final earnings call as CEO.

Financial highlights

• Adjusted gross margin was 65.4%, up 40 bps; adjusted operating margin was 26.2%, up 60 bps.

• Reported gross margin rose to 65.2% from 63.6%; reported operating margin was 15.9% versus 18.7%.

• Adjusted net earnings increased 10.1% to $1.4B; adjusted diluted EPS rose 10.3% to $3.52.

• Nine-month net earnings rose 15.7% to $2.77B and diluted EPS increased 15.5% to $7.19; adjusted diluted EPS rose 7.1% to $9.81.

• Adjusted other income and expense was $91M, down $25M YoY; Q3 adjusted tax rate was 16%.

Outlook and guidance

• FY26 organic net sales growth guidance is 6.5%–7.0%; adjusted diluted EPS guidance is $14.80–$14.90.

• Q4 organic growth is expected to be similar to Q3, assuming a continued Q3 procedure environment and strong capital demand.

• FY adjusted other income and expense is expected to be ~$400M; full-year effective tax rate outlook is 15.5%–16%.

• Formal 2027 guidance is expected early next year; current expectations are growth at the high end of markets and continued year-over-year margin improvement.