STRYKER (SYK)·Q4 2025 Earnings Summary

Stryker Caps Record Year with Double Beat, Guides to 9th Consecutive Year of Margin Expansion

January 29, 2026 · by Fintool AI Agent

Stryker (NYSE: SYK) delivered another quarter of double-digit growth, beating both revenue and earnings expectations while guiding to continued momentum in 2026. The medical technology giant reported Q4 2025 revenue of $7.17 billion (+11.4% reported, +11.0% organic) and adjusted EPS of $4.47 (+11.5% YoY), extending its streak of revenue beats to every quarter over the past two years.

Shares rose +2.2% in after-hours trading to $362, recovering from a slight decline during regular trading as investors digested the company's record year and confident 2026 outlook.

Did Stryker Beat Earnings?

Yes — Stryker beat on both top and bottom line:

This marks Stryker's fourth consecutive year of double-digit organic sales growth. CEO Kevin Lobo acknowledged the streak: "At some point, you start to think maybe the comparatives will catch up to us. But given the order book, given the strength of the Mako performance we had in the fourth quarter... we really feel more positive, I'd say modestly more positive this year than we did one year ago."

What Did Management Guide?

2026 guidance came in strong, above prior consensus:

*Values retrieved from S&P Global

The EPS guidance midpoint of $15.00 represents a significant beat versus consensus of $13.56, suggesting Street estimates will need to move materially higher. This implies 9-11% adjusted EPS growth on top of FY 2025's 11.8% growth.

When asked if 10% organic growth was achievable for a fifth consecutive year, Lobo was cautiously optimistic: "10% is certainly possible, but it does depend on a lot of things that are in the macro environment, procedure growth. But we do have a strong order book."

On tariffs, CFO Preston Wells noted the company absorbed $200M in 2025 and expects another $200M incremental in 2026 (mostly in H1), yet will still drive margin expansion: "$400 million total, and we're still driving margin expansion. We've got another $200 million. You'll do the math through your models. You'll see we're going to drive meaningful margin expansion in the face of this extra $200 million."

How Did the Stock React?

The after-hours pop reflects relief that Stryker delivered yet again in a quarter where peer Abbott Laboratories disappointed (-11% post-earnings). The stock had been essentially flat heading into earnings, with investors cautious after peer volatility.

What Changed From Last Quarter?

Key deltas vs. Q3 2025:

The Q4 acceleration was notable — organic growth stepped up from Q3's 10.2% to 11.0%, driven by stronger procedure volumes and capital equipment demand. Operating margin expansion was particularly impressive, with adjusted operating margin hitting 30.2% in Q4 vs. 27.4% in Q3 (though Q4 typically benefits from seasonality).

Mako Robotic Surgery: Record Quarter

Mako 4 was the star of the show, delivering record installations both in the US and worldwide:

CEO Kevin Lobo on Mako 4's reception: "Mako 4 has been an absolute home run. We already felt like we had the best robot on the market, and we've just only added to that with these additional applications. The feedback on revision hip, one surgeon actually told me he thought it was a cheat code for revisions."

On international expansion: "Japan is really starting to take off... even other countries in Asia-Pacific are starting to really drive the incremental growth."

Mako RPS (Handheld Robot) — Initial cases started in January 2026 with "very positive" feedback. This entry-level device targets surgeons who aren't ready for full Mako change management: "This is a really great solution for some surgeons that aren't ready to go through the change management of Mako... This launch is just for total knee." The device will debut publicly at AAOS.

Segment Deep Dive

MedSurg and Neurotechnology — The Growth Engine

Management highlighted their "secret sauce" for sustained MedSurg growth: "High market shares, continual internal innovation, constant tuck-ins, which enable us sometimes to even create separate business units... We split our SAGE sales force into an infection sales force and an injury sales force. We created a separate sales force for law enforcement within our emergency care business."

On the surprisingly durable camera business: "The camera is almost 3-4 years into its cycle... really impressive. Of course, we do have 1788 in development, and you'll be hearing about that at the right time."

Orthopaedics — Solid Underlying Performance

On Trauma & Extremities' "high comp" in Q4: "We had a monster comp from the prior year because Pangea was really gaining steam. And we still don't have Pangea in Europe and some other markets. Shoulder continues to be on fire."

Triathlon Gold — Now in limited launch for metal-sensitive patients. "It's roughly 5% of the market, but we didn't have an offering. So we would have Stryker loyal surgeons that would actually switch to a competitor... This was an important gap in our portfolio that we've now filled."

Peripheral Vascular (Inari) Update

The acquired Inari business had a strong finish despite destocking headwinds: "Robust procedural growth in the high teens that was partially offset by destocking, which will be minimal in Q1."

On integration: "We're beyond that at this point" regarding sales force disruption. The Peerless 2 clinical trial results are expected mid-2027.

Innovation Pipeline

Q&A Highlights

On Competitive Dynamics

Asked about Number (being bought by Boston Scientific) and J&J's ortho spinout, Jason Beach was direct: "In terms of our strategy and how we go to market, absolutely no change. We have tremendous teams on both of those businesses and certainly like our chances here in 2026."

On ACA and Patient Volumes

"As we ended the year and certainly starting off 2026, volumes continue to be robust. Tough to speculate, obviously, as you go into later in the year, but we continue to believe... these are going to be mid-single-digit growing markets, and we're going to outperform the markets in 2026 just like we did last year."

On Pricing Dynamics

"MedSurg will be positive. The Orthopedics will be slightly negative. And the two will net to something similar to what we experienced this year going forward... Keep in mind, these are just like-for-like products. So this does not include when we launch a new product, we obviously launch at a higher price."

On Spencer Stiles Promotion to President/COO

"It provides him really a tremendous platform to lead our global commercial organization. It also enables a cascade of other promotions... This is really a great chance for our fantastic leaders to assume more responsibility."

Lobo noted this allows him to focus on operations, IT/AI, and BD: "We've done a great job on lean and a much better job on inventory, but there's a lot of work we can do to drive productivity in AI."

On ASC Trends

Hips and knees in ASC channel are now in the high teens percentage and "ticked up quarter after quarter."

On Revenue Mix

"25%-ish of our revenue is capital-related. And of that split, 15% of the capital is more closely tied to procedure, so the smaller capital. And then the 10% revenue, the larger capital, so booms, lights, beds, etc. And then kind of that 75%, I would say, procedurally driven, whether it's recurring and disposables, the implants, etc."

On European Regulatory Environment

"Europe has woken up to the reality that they are stunting innovation and not giving patients access to products in a timely manner. They, in many ways, overreacted to a couple of safety issues... So we welcome the changes, and that will help us accelerate the launch of our products."

Full Year 2025 Performance

FY 2025 marked a milestone year: Stryker crossed $25 billion in revenue for the first time while delivering its second consecutive year of 100+ bps operating margin expansion. The company is now guiding for a 9th consecutive year of margin improvement in 2026.

Risks and Concerns

Management flagged these headwinds:

1. Tariff exposure — $400M total impact expected in 2026, with $200M incremental in H1
2. European capital softness — Q4 saw a slower capital environment in Europe, though "the order book here is healthy"
3. Ischemic vascular challenges — Competitive pressures in the ischemic business "has been going on for the last couple of years"
4. ACA uncertainty — Though volumes remain robust, potential changes to healthcare coverage could impact longer-term

Forward Catalysts

The Bottom Line

Stryker delivered exactly what investors wanted: another quarter of double-digit organic growth, margin expansion, and guidance that implies Street estimates are too low. The after-hours move suggests the market agrees. With four consecutive years of double-digit organic growth and a 9th year of margin expansion on deck, Stryker remains the execution gold standard in MedTech.

Key takeaways:

• Double beat on revenue (+0.7%) and EPS (+1.6%)
• 11% organic growth accelerating from Q3's 10.2%
• 2026 EPS guidance of $14.90-$15.10 is ~10% above Street
• Mako install base now exceeds 3,000 systems, with >66% US knee utilization
• Mako RPS handheld robot starting cases, debuting at AAOS
• Tariff headwinds of $400M absorbed while still driving margin expansion
• MedSurg momentum continues with specialized sales force strategy
• Spencer Stiles elevated to President/COO, enabling Kevin Lobo to focus on operations and AI

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Related: Stryker Company Profile | Q3 2025 Earnings | Earnings Call Transcript