STRYKER CORP (SYK) Earnings History

STRYKER CORP - Q4 FY2025 EarningsBeat

Filed at: Jan 29, 2026, 4:11 PM EST|Read from source

EXECUTIVE SUMMARY

Stryker delivered a strong finish to 2025 with double-digit sales and adjusted EPS growth in Q4 and full year, driven by robust demand and operational execution. The company surpassed $25 billion in revenue and achieved significant adjusted operating margin expansion, positioning it for continued high-end growth in the MedTech sector.

POSITIVE HIGHLIGHTS

  • •

    Reported net sales increased 11.4% to $7.2 billion in Q4 and 11.2% to $25.1 billion for the full year.

    positive
  • •

    Organic net sales increased 11.0% in Q4 and 10.3% for the full year, driven by unit volume.

    positive
  • •

    Adjusted operating income margin increased 100 bps to 30.2% in Q4 and 26.3% for the full year.

    positive
  • •

    Adjusted EPS increased 11.5% to $4.47 in Q4 and 11.8% to $13.63 for the full year.

    positive
  • •

    MedSurg and Neurotechnology segment sales grew significantly, up 17.5% in Q4 and 15.7% for the full year.

    positive

CONCERNS & RISKS

  • •

    Orthopaedics segment sales growth was modest, up 2.2% in Q4 and 4.3% for the full year, with organic sales growth of 8.4% and 9.5% respectively, partially offset by lower prices.

    attention
  • •

    Reported operating income margin was 19.5% for the full year, significantly lower than the adjusted operating income margin of 26.3% due to substantial special items.

    attention
  • •

    Full year net earnings increased only 8.5% to $3.2 billion, significantly lagging adjusted net earnings growth of 12.1%.

    attention
  • •

    Inventories increased to $5.31 billion in 2025 from $4.77 billion in 2024, a 11.2% increase.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$7.17B
+11.4%
Prior year: $6.44B
Annual (YTD)
$25.12B
N/A
Prior year: $22.59B
Net Income
Quarterly
$849.00M
+55.5%
Prior year: $546.00M
Annual (YTD)
$3.25B
N/A
Prior year: $2.99B
EPS (Diluted)
Quarterly
$2.20
+56.0%
Prior year: $1.41
Annual (YTD)
$8.40
N/A
Prior year: $7.76
Operating Income
Quarterly
$1.80B
+210.5%
Prior year: $581.00M
Annual (YTD)
$4.89B
N/A
Prior year: $3.69B
EPS (Basic)
Quarterly
$2.21
+54.5%
Prior year: $1.43
Annual (YTD)
$8.49
N/A
Prior year: $7.86

MARGIN ANALYSIS

Gross Margin
Current Quarter
64.5%
Prior Year
64.9%
YoY Change
-40 bps
Operating Margin
Current Quarter
25.2%
Prior Year
9.0%
YoY Change
+1620 bps
Net Margin
Current Quarter
11.8%
Prior Year
8.5%
YoY Change
+330 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
MedSurg and Neurotechnology
0.0%
N/A
CC: +16.6%
Orthopaedics
0.0%
N/A
CC: +0.9%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
MedSurg and Neurotechnology
N/A———+16.6%
Orthopaedics
N/A———+0.9%
Total Revenue$0.00M——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT GUIDANCE

FY2026

organic net sales growth
$8.0M—$9.5M
Mid-point: $8.8M
adjusted net earnings per diluted share
14.9—15.1
Mid-point: 15

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Inventory stepped-up to fair value
+$13M
$0.03 per share
Q4 2025
Other acquisition and integration-related
+$33M
$0.08 per share
Q4 2025
Amortization of purchased intangible assets
+$189M
$0.38 per share
Q4 2025
Structural optimization and other special charges
+$98M
$0.22 per share
Q4 2025
Goodwill and other impairments
+$7M
$0.01 per share
Q4 2025
Medical device regulations
+$8M
$0.02 per share
Q4 2025
Recall-related matters
+$2M
$0.00 per share
Q4 2025
Regulatory and legal matters
+$10M
$0.02 per share
Q4 2025
Tax matters
$589M
$1.53 per share
Full Year 2025
Inventory stepped-up to fair value
+$173M
$0.34 per share
Full Year 2025
Other acquisition and integration-related
+$335M
$0.78 per share
Full Year 2025
Amortization of purchased intangible assets
+$732M
$1.49 per share
Full Year 2025
Structural optimization and other special charges
+$191M
$0.37 per share
Full Year 2025
Goodwill and other impairments
+$170M
$0.31 per share
Full Year 2025
Medical device regulations
+$38M
$0.08 per share
Full Year 2025
Recall-related matters
+$58M
$0.12 per share
Full Year 2025
Regulatory and legal matters
+$17M
$0.03 per share
Full Year 2025
Tax matters
$660M
$1.71 per share
Total Impact
+$825M$7.50 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

We had an outstanding finish to 2025, driving double-digit sales and adjusted earnings per share growth for the fourth quarter and full year while delivering adjusted operating margin expansion of at least 100 basis points for the second consecutive year.

— STRYKER CORP, Q4 FY2025 2025 Earnings Call

Having surpassed $25 billion in revenue, we enter 2026 with significant momentum and are poised to continue delivering growth at the high end of MedTech.

— STRYKER CORP, Q4 FY2025 2025 Earnings Call

I want to thank our teams for driving exceptional results and positioning Stryker for sustained success this year and beyond.

— STRYKER CORP, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.