SYK earnings analysis
What we found in SYK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.93
- Gross margin
- 63.3%
- Operating margin
- 15.5%
- Segment
- MedSurg and Neurotechnology
- Segment
- Orthopaedics
What they said about what is next.
Management reiterated a long-term sales growth outlook but did not provide specific numeric guidance in this filing.
The filing reads worse than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
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