Key Highlights

  • Reported net sales rose 7.7% to $6.5 billion, with organic growth also at 7.7%.
  • Reported EPS fell 11.7% to $1.96, while adjusted EPS rose 10.3% to $3.52.
  • Adjusted Operating Margin increased 60 basis points to 26.2%, against a reported margin of 15.9%.
  • Stryker repurchased $1.0 billion of its common stock in the quarter.
  • Full year adjusted EPS guidance is now $14.80 to $14.90.

Sales climb 7.7% on unit Volume across both segments

Stryker (NYSE:SYK), the Portage, Michigan medical technology group, reported third quarter 2026 results on October 29, 2026. Consolidated net sales were $6.5 billion, up 7.7% on both a reported and constant currency basis, and the company said organic growth was driven primarily by increased unit volume.

MedSurg and Neurotechnology sales were $3.7 billion, up 9.2%, with organic growth of 9.1%. Orthopaedics sales were $2.9 billion, up 5.7% as reported and 5.9% in constant currency.

Chair and CEO Kevin Lobo said the quarter reflected good overall performance in absolute terms, but that it fell short of the company's own expectations. He added that the underlying fundamentals remain strong.

Endoscopy and Ortho Tech lead the product lines

Within MedSurg and Neurotechnology, Endoscopy grew 13.9% to $1,021 million, with U.S. sales up 13.0%. Medical rose 9.7% and Vascular grew 8.0%, while Instruments increased 5.1%.

In Orthopaedics, Ortho Tech was the standout, rising 15.8% to $754 million, with U.S. sales up 18.1%. Knees edged up 1.1% to $635 million. Hips declined 1.0% to $453 million, with U.S. hip sales down 0.6%.

For the nine months ended September 30, 2026, net sales were $19,129 million, up 6.6% from $17,945 million, or 5.9% in constant currency.

Why reported Earnings fell while adjusted earnings rose

Reported net earnings were $753 million, down 12.3%, and reported diluted EPS was $1.96 against $2.22 a year earlier. The reported operating margin was 15.9%, against 18.7% a year earlier.

The largest single item was a $293 million Goodwill impairment, worth $0.76 per share. Structural optimization and other special charges added $0.20 per share, including costs tied to the sale of the Spinal Implants Business and the termination of sales relationships in certain countries. Amortization of purchased intangible assets accounted for another $0.37 per share.

Excluding such items, adjusted net earnings were $1.4 billion, up 10.1%, and adjusted EPS was $3.52, up 10.3% from $3.19. The adjusted operating margin was 26.2%, up from 25.6%.

Cash flow, Balance Sheet and buybacks

Net cash provided by Operating Activities for the nine months was $3,303 million, compared with $2,901 million a year earlier. Acquisitions used $481 million, down sharply from $4,950 million in the prior year period.

Cash and cash equivalents were $3,271 million at September 30, 2026, versus $4,011 million at December 31, 2025. Long-term debt, excluding current maturities, was $14,176 million, down from $14,859 million.

Stryker repurchased $1.0 billion of stock during the quarter, and it paid $1,012 million in dividends over the nine months. In October 2026 the board approved a $3.0 billion increase to the existing share repurchase program.

Updated 2026 outlook and what to watch

Stryker now expects 2026 organic net sales growth of 6.5% to 7.0% and adjusted EPS of $14.80 to $14.90. The sales guidance includes a modestly positive pricing impact, and foreign exchange is expected to be slightly favorable if rates hold near current levels.

Adjusted EPS for the first nine months was $9.81, up from $9.16, so the guidance range implies a fourth quarter of roughly $4.99 to $5.09 on a calculated basis. Management said it expects a solid fourth quarter and good momentum heading into 2027.

Readers will likely follow whether Endoscopy and Ortho Tech sustain their pace and how the new repurchase authorization is used.