Stryker (SYK) Q4 2025 earnings summary

Executive summary

• Achieved outstanding Q4 and full-year 2025 results, with organic sales growth of 11% for Q4 and 10.3% for the year, surpassing $25 billion in sales.

• Net sales grew 11.4% in Q4 2025 to $7.2B and 11.2% for the full year to $25.1B.

• Double-digit organic sales growth across Neurocranial, Endoscopy, Instruments, and Trauma & Extremities businesses globally.

• U.S. organic sales growth was 11.2% for the year; international growth was 7.5%, led by emerging markets, South Korea, and Japan.

• Delivered a second consecutive year of at least 100 basis points of adjusted operating margin expansion despite tariff headwinds.

Financial highlights

• Q4 organic sales growth of 11% (vs. 10.2% in Q4 2024); full-year organic sales growth of 10.3% (vs. 10.2% in 2024).

• Q4 adjusted EPS of $4.47, up 11.5% year-over-year; full-year adjusted EPS of $13.63, up 11.8%.

• Adjusted gross margin for Q4 was 65.2%, down 10 bps year-over-year due to tariffs, mostly offset by business mix and cost improvements.

• Adjusted operating margin for Q4 was 30.2%, up 100 bps year-over-year, driven by lower SG&A as a percentage of sales.

• Free cash flow as a percentage of adjusted net earnings was 81% for 2025, up from 75% in 2024.

Outlook and guidance

• 2026 organic net sales growth expected in the range of 8%-9.5%.

• 2026 adjusted net EPS guidance of $14.90-$15.10.

• Modestly positive price impact and slightly favorable FX impact anticipated for 2026.

• Full-year tariff impacts expected to be ~$400 million in 2026, with $200 million incremental vs. 2025.

• Seasonality and number of selling days in 2026 expected to be similar to 2025.