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Earnings analysis · 10-Q

SYK earnings analysis

Filed May 11, 2026 · Our reading of the company's report

The latest report

Stryker Corporation reported disappointing Q1 2026 results, with revenues of $6.02 billion, missing estimates of $6.32 billion, and an EPS of $1.93, which was below the expected $2.98. Despite a slight revenue increase…

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Stryker Corporation reported disappointing Q1 2026 results, with revenues of $6.02 billion, missing estimates of $6.32 billion, and an EPS of $1.93, which was below the expected $2.98. Despite a slight revenue increase of 2.6% year-over-year, adjusted EPS saw a decline of 8.5% from the prior year. Fragmented performance in the MedSurg and Neurotechnology and Orthopaedics segments reflects ongoing challenges, including impacts from a recent cybersecurity incident.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $36 Operating expenses $48 Left as operating profit $16

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Reported figures

Earnings per share
$1.93
Segment
MedSurg and Neurotechnology
Segment
Orthopaedics

What stood out

  • Revenue Miss

    Reported revenue of $6.02B was 4.77% below the estimated $6.32B.

  • EPS Below Expectations

    Diluted EPS of $1.93 fell short of the estimate of $2.98, a surprise of -12.75%.

  • Segment Performance Changes

    MedSurg and Neurotechnology grew 5.0%, while Orthopaedics grew just 0.1%.

  • Operating Income Improvement

    Operating income rose to $936 million, increasing the operating margin to 15.5% from 14.3%.

  • Cybersecurity Incident Impact

    The recent cybersecurity incident led to higher manufacturing costs, affecting gross margins.

  • Increased Cash Flow from Operations

    Operating cash flow improved to $581M from $250M year-over-year.

What to watch

  • Cybersecurity Risks

    Recent cyber incident negatively impacted operations and remains an ongoing threat.

  • Declining Adjusted EPS

    Adjusted net earnings per diluted share decreased by 8.5% to $2.60.

  • Higher Manufacturing Costs

    Increased costs due to disruptions related to the cybersecurity incident impacted margins.

Management's outlook

Management reiterated a long-term sales growth outlook but did not provide specific numeric guidance in this filing.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.