- Price
- $291.21
- Fair value
- $316.00
- Discount
- 7.8%
- Uncertainty
- Medium
- LSEG rating
- 1.83
- Moat
- Wide
- Next earnings
- 2026-10-29
- Next earnings is estimate
- No
- Company name
- Stryker
- Sector
- Medical devices
- About
- Stryker makes medical devices and equipment for hospitals. It reports two segments. MedSurg and Neurotechnology sells surgical and endoscopy equipment, defibrillators, healthcare IT and neurotechnology products and, since the 2025 purchase of Inari Medical, devices that remove blood clots from veins. Orthopaedics sells knee and hip implants, other orthopaedic implants, power tools and the Mako robot for joint replacement surgery. Stryker makes money from the sale of implants and single-use products for each procedure, and from the sale of capital equipment such as robots and power tools. In Q2 2026, net sales were $6.6 billion: $3.6 billion from MedSurg and Neurotechnology and $3.0 billion from Orthopaedics. The company expects net sales of more than $26 billion in 2026. It has completed more than 60 acquisitions since 2012.
- Thesis
- The market prices Stryker lower because the cyberattack of March 2026 still hurts parts of the business. The attack stopped ordering and shipping systems, and Q1 2026 adjusted EPS fell 8.5%. Sales recovered in Q2 2026, with 9.0% organic growth. But on September 8, 2026, the CFO said that the supply problems in the peripheral vascular business, which came from the Inari purchase, may continue into Q4 2026, and that hip sales were slower than expected over the summer. The stock fell about 10% after these comments. Investors now ask whether Stryker loses market share in clot removal while it cannot supply all customers. A CEO change on January 1, 2027 adds a second question. For the gap to close, three things must be true. Stryker must reach its 2026 outlook of 8.3% to 9.3% organic sales growth and adjusted EPS of $14.95 to $15.10. Peripheral vascular supply must return to full levels by early 2027. The 2027 outlook, with the Q4 report in early 2027, must show organic growth near the high end of the medical device industry again. The first test is the Q3 2026 report on October 29, 2026. If these checks pass, the gap can close over the next two to four quarters. The main risk is that the lost clot removal customers do not come back.
- Risks
- The March 2026 cyberattack still limits the supply of peripheral vascular products. The CFO said in September 2026 that the problem may last into Q4 2026 and that Stryker loses share in emergency procedures when it cannot supply product. A law firm has opened an investigation into whether Stryker told investors about the problem in time.
Hip sales were slower than expected in the summer of 2026. The CFO said that joint replacement was weaker in Europe, and that some US patients delay procedures because of costs such as higher insurance deductibles. Stryker also does not have a hip impactor product.
The CEO changes on January 1, 2027. Spencer Stiles replaces Kevin Lobo, who led Stryker for 14 years and stays as Executive Chair. A change of strategy or of the pace of acquisitions can change growth.
Stryker buys many companies. Integration problems, such as the effect of the cyberattack on the Inari plant, can lower the return on these purchases. Debt was $14.9 billion at June 30, 2026.
- Balance sheet
- Cash: $3.5B
Debt: $14.9B
Net debt: $11.5B
Interest cover: 9.0×
Undrawn credit line: $2.9B
Debt due within 12 months: $750M
Stryker funds itself with unsecured senior notes, commercial paper and bank credit lines. At June 30, 2026, debt was $14.9 billion, including $250 million of commercial paper, down from $15.9 billion at December 31, 2025, because Stryker repaid $1.0 billion of 3.500% notes in March 2026. Cash includes short-term investments and marketable securities. Interest cover is operating income divided by interest expense for the first half of 2026. The commercial paper programs allow up to $3.0 billion. Stryker says that it has strong investment-grade ratings. Current assets were $7.7 billion more than current liabilities at June 30, 2026.
As of 2026-06-30.
- Checkpoints
- Oct 29, 2026: Q3 2026 results: peripheral vascular supply and hips. Pending. Watch: Organic growth within the 8.3% to 9.3% outlook and a clear date for full peripheral vascular supply pass; a lower outlook or supply problems into 2027 fail.
Jan 2027 (estimate): Q4 2026 results and 2027 outlook under the new CEO. Pending. Watch: A 2027 outlook with organic sales growth near the 2026 level passes; a lower growth outlook or a loss of clot removal customers fails.
- Recent events
- 2026-10-06: Stryker said that Spencer Stiles, President and COO, will become CEO on January 1, 2027. Kevin Lobo, CEO since 2012, will become Executive Chair of the Board. Stiles has worked at Stryker for 27 years and led Orthopaedics from 2019.
2026-10-01: Stryker said that it will report Q3 2026 results on October 29, 2026, with a call at 4:30 p.m. Eastern time.
2026-09-08: At a Wells Fargo conference, CFO Preston Wells said that supply problems in the peripheral vascular business may continue into Q4 2026, after Stryker had expected to solve them by Q3. He also said that hip sales were slower than expected over the summer. Stryker did not change its outlook. The stock fell about 10% by the next day.
2026-07-30: Stryker reported Q2 2026 results. Net sales were $6.6 billion, up 9.4%, with 9.0% organic growth. Adjusted EPS was $3.69, up 17.9%. Stryker narrowed its 2026 outlook to organic sales growth of 8.3% to 9.3% and adjusted EPS of $14.95 to $15.10.
2026-05-20: Stryker named Kathryn Baculik its chief accounting officer from September 1, 2026.
2026-04-30: Stryker reported Q1 2026 results. Net sales were $6.0 billion, up 2.6%, with 2.4% organic growth. Adjusted EPS fell 8.5% to $2.60 because of the cyberattack. Stryker kept its 2026 outlook. The stock fell about 6% the next day.