Stryker Misses Revenue Estimates at $6.52 Billion; Adjusted EPS Narrowly Short

Stryker (NYSE: SYK) reported third-quarter revenue of $6.52 billion, below the $6.62 billion analysts expected, and adjusted earnings of $3.52 per diluted share against the $3.55 consensus estimate, in an 8-K filed Thursday, Oct. 29, 2026.

Revenue rose 7.7% from a year earlier, and adjusted EPS rose 10.3%. Reported EPS fell 11.7% to $1.96, as net earnings declined 12.3% to $753 million. Goodwill and other impairments of $293 million and structural optimization charges were among the items the company excluded from adjusted results.

Segment sales

MedSurg and Neurotechnology net sales rose 9.2% to $3.7 billion, with organic growth of 9.1% driven mainly by higher unit volume. Orthopaedics net sales rose 5.7% to $2.9 billion, or 5.9% in constant currency.

Margins and buybacks

Reported operating income margin was 15.9%. Adjusted operating income margin rose 60 basis points to 26.2%. The company repurchased $1.0 billion of common stock in the quarter. In October, its board approved a $3.0 billion increase to the existing repurchase program.

Full-year outlook

Stryker updated its 2026 guidance, now expecting organic net sales growth of 6.5% to 7.0% and adjusted EPS of $14.80 to $14.90. The company said its sales guidance includes a modestly positive pricing impact and that foreign exchange is expected to be slightly favorable if rates hold near current levels. Analysts expected full-year adjusted EPS of $14.95 on average, so the guidance range sits below that estimate. For the fourth quarter, the average analyst estimate was $5.12 in EPS.

Chair and Chief Executive Kevin A. Lobo said the company "delivered 7.7% organic sales growth and double-digit adjusted earnings growth in the quarter." He added: "While, in absolute terms, this reflected good overall performance, it did fall short of our expectations." He said the company expects a solid performance in the fourth quarter.