Company | Stryker Corporation |
Ticker | SYK US |
Reporting Period | 2Q 2026 (quarter ended June 30, 2026) |
Earnings Date | July 30, 2026 (after market close) |
Prepared | July 29, 2026 |
Sector ETF Benchmark | XLV (Health Care Select Sector SPDR) |
Key Takeaway: The setup into 2Q26 is constructive — consensus is a manageable bar and the quarter is the first clean read on SYK's cyber-recovery cadence, making organic growth the single biggest swing factor.
Stryker heads into 2Q26 with consensus expecting organic revenue growth of approximately 9.3% and adjusted EPS of $3.47 — a meaningful step-up from the cyber-distorted 2.4% organic growth and $2.60 EPS reported in 1Q26, but one that management effectively pre-validated at the Bank of America Healthcare Conference in May when they stated they were "right on track" with internal Q2 plans and expressed comfort with where Street consensus sits. The bar is achievable rather than heroic: the three-bucket recovery framework (revenue recognition catch-up in Q2, capital equipment production ramp in 2H, procedure rescheduling spread across the year) implies Q2 should capture the easiest portion of the rebound, and the capital order backlog continues to grow with orders outpacing shipments. Estimate revisions have been stable-to-modestly-higher since the April 30 print, suggesting the Street has digested the recovery narrative without building in excessive optimism. The stock has recovered from its post-earnings lows near $282 to ~$347 as of July 28, recapturing most of the cyber-driven selloff, which means the multiple is no longer distressed but also not pricing in a blowout — NTM P/E of ~21.7x is below the 12-month-ago level of ~28x, leaving room for re-rating if execution is clean. The key wildcard is the magnitude of the organic growth recovery: if procedure rescheduling and capital shipments track ahead of the phased plan, SYK could print double-digit organic growth and reignite the premium multiple narrative; if the ramp is slower than guided, the stock's recent recovery could stall despite maintained full-year guidance.
Key Takeaway: Consensus sets a high-single-digit organic growth bar (~9.3%) that is achievable given management's explicit Q2 comfort signal, but adjusted EPS of ~$3.47 requires meaningful margin recovery from 1Q26's cyber-depressed 21.1% operating margin — making organic revenue growth the primary beat/miss driver and margin recovery the secondary swing factor.
KPI | 1Q26 Actual (Last Quarter) | 2Q25 Actual (Prior Year) | 2Q26 Consensus Estimate | YoY Change (Est. vs. PY) | FY26 Guidance | Consensus vs. Guidance Midpoint |
Total Revenue ($B) | $6.02B | $6.02B | $6.57B | +9.1% | 8.0–9.5% organic growth | ~In line with midpoint |
Organic Revenue Growth (%) | 2.4% (cyber-impacted) | 10.2% | ~9.3% | −90 bps vs. PY | 8.0–9.5% | ~+55 bps above midpoint |
Adj. EPS — Diluted Operating ($) | $2.60 | $3.13 | $3.47 | +10.9% | $14.90–$15.10 | ~In line with midpoint |
Ortho Tech Revenue ($B) | $0.646B | $0.649B | $0.709B | +9.2% | N/A (segment-level not guided) | N/A |
MedSurg & Neurotechnology Revenue ($B) | $3.207B | $3.305B | $3.619B | +9.5% | N/A (segment-level not guided) | N/A |
Source: Visible Alpha Consensus and Actuals Data. All consensus figures as of July 29, 2026. Organic growth consensus derived from VA KPI “Total revenue — Organic growth(%)”. Segment revenues reflect new Ortho Tech and MedSurg & Neurotechnology reporting structure effective 1Q26 (per June 26, 2026 8-K recast).
Quarter | Reported | Consensus | Surprise (bps) | Result |
2Q24 | 9.0% | 8.8% | +20 bps | Beat |
3Q24 | 11.5% | 9.5% | +200 bps | Beat |
4Q24 | 10.2% | 8.9% | +130 bps | Beat |
1Q25 | 10.1% | 8.3% | +180 bps | Beat |
2Q25 | 10.2% | 8.5% | +170 bps | Beat |
3Q25 | 9.5% | 9.0% | +50 bps | Beat |
4Q25 | 11.0% | 9.8% | +120 bps | Beat |
1Q26 | 2.4% | 7.5% | −510 bps | Miss (cyber) |
Pattern: SYK beat organic growth consensus in 7 of the last 8 quarters by an average of ~120 bps, with the sole miss in 1Q26 entirely attributable to the mid-March cyberattack; the underlying beat cadence is one of the most consistent in large-cap medtech.
Quarter | Reported | Consensus | Surprise (%) | Result |
2Q24 | $2.82 | $2.79 | +1.1% | Beat |
3Q24 | $2.87 | $2.76 | +4.0% | Beat |
4Q24 | $4.00 | $3.87 | +3.4% | Beat |
1Q25 | $2.84 | $2.72 | +4.4% | Beat |
2Q25 | $3.13 | $3.07 | +2.0% | Beat |
3Q25 | $3.19 | $3.14 | +1.6% | Beat |
4Q25 | $4.47 | $4.40 | +1.6% | Beat |
1Q26 | $2.60 | $2.99 | −13.0% | Miss (cyber) |
Pattern: SYK beat adjusted EPS consensus in 7 of the last 8 quarters by an average of ~2.6%, with the 1Q26 miss driven entirely by the cyberattack's impact on manufacturing absorption and revenue; the pre-cyber beat cadence was remarkably consistent, averaging ~2–4% upside.
Source: Visible Alpha Consensus and Actuals Data.
Key Takeaway: Full-year guidance has been unchanged since the April 30 1Q26 earnings call — management reaffirmed 8.0–9.5% organic growth and $14.90–$15.10 adjusted EPS despite the cyberattack, and the May 13 BofA conference provided incremental comfort that Q2 is tracking in line with internal plans; tone is resilient and confident, not defensive.
Metric | Initial Guidance (Apr 30, 2026 — 1Q26 Earnings Call) | Revised Guidance | Current Consensus | Note |
FY26 Organic Revenue Growth | 8.0–9.5% | — | ~8.8% | Unchanged; management confirmed Q2 tracking in line at BofA conference (May 13, 2026) |
FY26 Adjusted EPS | $14.90–$15.10 | — | ~$14.98 | Unchanged; reflects expected sales recovery, operational excellence, and anticipated tariff improvements |
FY26 Adj. Operating Margin | ~+50 bps YoY expansion | — | ~In line | Unchanged; part of 150 bps 3-year expansion target; cyber cost pressure largely absorbed in 1Q26 |
FY26 Adj. Other Income & Expense | ~$420M | — | N/A — not tracked in VA | Unchanged; higher interest expense from Inari debt issuance in 2025 |
FY26 Effective Tax Rate | 15–16% | — | N/A — not tracked in VA | Unchanged |
FY26 Free Cash Flow Conversion | 70–80% of net income | — | N/A — not tracked in VA | Unchanged; 1Q26 cash from ops was $581M, impacted by cyber working capital effects |
Tariff Headwind | ~$400M embedded in guide (Jan 2026 baseline at ~15% tariff rate) | Favorable: rate reduced to ~10% baseline; partially offsetting cyber cost pressures | N/A | ↑ Improved at BofA conference (May 13, 2026); tariff refund process underway; net guide held |
Source: SYK 1Q26 Earnings Call (April 30, 2026); Bank of America Global Healthcare Conference transcript (May 13, 2026).
Key Takeaway: Estimates for 2Q26 have been stable-to-modestly-higher since the April 30 print, with the Street adding ~$0.57 to the 2Q26 EPS baseline as the cyber-recovery narrative was absorbed; FY26 estimates are essentially flat to the post-print baseline, confirming the market has accepted management's full-year guide as credible — a low-risk setup if execution delivers.
KPI (Period) | Estimate as of May 7, 2026 (Post-Print Baseline) | Current Estimate (Jul 29, 2026) | Estimate Δ (%) | Initial Guidance (Apr 30 Call) | Current Guidance | Guidance Δ | Consensus vs. Guidance (%) |
Total Revenue — 2Q26 | $6.577B | $6.571B | −0.1% | 8.0–9.5% organic growth (FY) | Unchanged | — | ~In line with midpoint |
Organic Growth % — 2Q26 | ~9.4% | ~9.3% | −10 bps | 8.0–9.5% (FY) | Unchanged | — | ~+55 bps above FY midpoint |
Adj. EPS — 2Q26 | $3.477 | $3.475 | −0.1% | $14.90–$15.10 (FY) | Unchanged | — | ~In line with FY midpoint |
Total Revenue — FY26 | $27.283B | $27.270B | −0.05% | 8.0–9.5% organic growth | Unchanged | — | ~In line with midpoint |
Adj. EPS — FY26 | $14.981 | $14.980 | ~0.0% | $14.90–$15.10 | Unchanged | — | ~In line with midpoint ($15.00) |
Source: Visible Alpha Consensus and Actuals Data. Post-print baseline uses consensus as of May 7, 2026 (5 trading days after April 30 earnings). Estimate Δ reflects change from post-print baseline to current. Guidance unchanged since April 30, 2026 1Q26 earnings call.
The near-zero estimate drift since the post-print baseline is notable: the Street has essentially locked in the full-year guide as the anchor, with 2Q26 estimates reflecting the recovery cadence management described. This creates a clean setup — if SYK delivers organic growth at or above the ~9.3% consensus, the full-year guide becomes more credible and estimates could move higher for 3Q/4Q.
Key Takeaway: SYK's post-earnings underperformance vs. XLV and the S&P 500 was driven almost entirely by multiple compression (NTM P/E collapsed from ~28x to ~21x over 12 months) rather than estimate cuts — the stock has since recovered ~12% from its post-earnings lows as the cyber-recovery narrative gained credibility, but remains ~12% below year-ago levels, leaving meaningful re-rating potential if 2Q26 execution is clean.
Chart: SYK vs. XLV vs. S&P 500 — Indexed to 100 at April 30, 2026 (Last Earnings Date)
Date | SYK (Indexed) | XLV (Indexed) | SPY (Indexed) |
Apr 30, 2026 (Earnings Day) | 100.0 | 100.0 | 100.0 |
May 8, 2026 | 90.6 | 98.3 | 102.6 |
May 20, 2026 | 102.0 | 100.8 | 103.1 |
Jun 9, 2026 | 99.7 | 105.9 | 102.6 |
Jun 26, 2026 (★ 8-K Segment Recast) | 105.6 | 109.8 | 101.4 |
Jul 2, 2026 | 103.6 | 112.2 | 103.6 |
Jul 14, 2026 | 98.7 | 108.4 | 104.6 |
Jul 28, 2026 (Latest) | 110.0 | 114.6 | 103.1 |
Note: Indexed to 100 at April 30, 2026 close ($315.13 SYK / $145.99 XLV / $718.66 SPY). ★ marks the June 26, 2026 8-K segment recast filing. Source: Yahoo Finance / Stock Price Data.
Key Takeaway: The most important post-earnings development is management's explicit Q2 comfort signal at the May 13 BofA conference, which de-risked the recovery narrative; the June 26 segment recast 8-K is the second most important as it resets the reporting framework investors will use to evaluate 2Q26 results.
Key Takeaway: Peer commentary from May–July 2026 is broadly constructive for SYK's 2Q26 setup: procedure volumes are stable-to-healthy across orthopedics, surgical, and interventional categories (JNJ, ABT, ZBH); hospital capital spending signals are positive (ABT); and the orthopedic market is described as growing 4–5% (ZBH) with U.S. hips up 5%. The one cautionary note is BSX's unexpected Watchman/EP-specific headwinds, which are product-specific and do not read through to SYK's core segments.
Theme | JNJ Commentary | Read-Through to SYK | Directionality |
Procedure Volumes & Demand | "Procedure volumes continue to be stable. And we're not seeing evidence of a broad based slowdown in demand." JNJ explicitly stated it would "not attribute our medtech performance in Q2 to a systemic slowdown in procedures" and has "not observed any meaningful impact on procedure volumes across our portfolio related to the ACA." | Direct and positive read-through. JNJ's broad market presence and stable procedure volume assessment suggests a healthy underlying demand environment for SYK's orthopedic and surgical procedures. | Positive |
Orthopedics | U.S. orthopedics grew 4.2% in 2Q26, "primarily driven by new product launches such as volt and trauma and strong commercial execution." Orthopedics business "had another quarter of improvement" under new leadership. | Direct read-through. Orthopedics is SYK's largest segment. JNJ's 4.2% U.S. growth indicates a moderately growing market; SYK's Mako-driven share gains should allow it to outperform this market rate. | Positive |
MedTech 2H Outlook | JNJ expects MedTech to "grow better in the second half than the first half," driven by orthopedics, surgery, and cardiovascular improvement. | Positive for SYK's 2H recovery narrative. JNJ's 2H acceleration expectation aligns with SYK's own phased recovery plan (capital equipment and procedure rescheduling weighted to 2H). | Positive |
China / International | China inventory dynamics impacted JNJ's EP growth by ~400 bps; VBP headwinds in surgery. Tariff impact on MedTech margin noted, though JNJ anticipates "reduction and recoupment of certain tariff related costs." | Relevant caution for SYK's international segment. China VBP and inventory dynamics are headwinds SYK also faces. Tariff mitigation commentary is consistent with SYK's own tariff refund process. | Neutral / Slight Negative |
Theme | ABT Commentary | Read-Through to SYK | Directionality |
Overall Healthcare Demand | Diagnostic test volume data "continues to reflect strong and stable demand for testing" — viewed as "a positive indication of the durable underlying demand for healthcare, not just in the US but globally." CEO Ford stated demand is "not showing" a slowdown and that "Medicaid is not a driver of med tech surgical procedures in the United States. It's actually Medicare." | Positive. ABT's real-time diagnostic volume data is a leading indicator of hospital activity. Stable-to-strong demand directly supports SYK's procedure-driven revenue streams. The Medicare-as-primary-payer clarification removes an ACA/Medicaid policy risk overhang. | Positive |
Hospital Capital Spending | ABT's hospital lab instrument business was "up 13% in this quarter," indicating hospitals are actively investing in capital equipment. | Positive for SYK's capital equipment backlog thesis. Hospital willingness to invest in capital (instruments, reagents) suggests a healthy CapEx environment that supports SYK's elevated order book. | Positive |
2H Acceleration Confidence | ABT reported Q2 sales growth "accelerated each month during the quarter" and raised full-year EPS guidance. CEO expressed "very confident" tone on 2H acceleration with "momentum building across the portfolio." | Positive for SYK's 2H recovery narrative. ABT's monthly acceleration within Q2 and confidence in 2H is consistent with the broader medtech demand environment SYK is operating in. | Positive |
International / Emerging Markets | Broad-based international growth across India, Latin America, Southeast Asia. China VBP impact on core lab is subsiding ("much, much lower mid-single digits" decline in 2H vs. ~30% prior). | Positive for SYK's international segment. Subsiding China VBP headwinds and broad EM growth are tailwinds for SYK's international organic growth, which was 3.9% in 1Q26 and should accelerate in 2Q26. | Positive |
Theme | BSX Commentary | Read-Through to SYK | Directionality |
Overall Q2 Performance | BSX delivered 7% organic growth in 2Q26, beating its 5–7% guidance range. Adj. EPS of $0.86 grew 15% and exceeded the high end of guidance. Adj. gross margin expanded 80 bps YoY to 70.3%. | Broadly positive for medtech demand. BSX's strong Q2 beat suggests a healthy procedure environment in surgical-adjacent categories (endoscopy +7%, neuromodulation +12%, interventional oncology +12%) that overlap with SYK's portfolio. | Positive |
Endoscopy | "Endoscopy sales grew 7% with strong results across our business." | Direct read-through. SYK has a significant endoscopy business within MedSurg. BSX's 7% endoscopy growth suggests healthy demand in general surgical procedures. | Positive |
Neurovascular / Interventional Oncology | Interventional oncology and embolization grew 12%. BSX announced intent to acquire Penumbra (neurovascular), expected to close 2H26. | Positive for SYK's neurovascular segment. Strong growth in interventional oncology/embolization signals robust demand in neurovascular-adjacent therapies. BSX's Penumbra acquisition signals competitive intensity in neurovascular — a space where SYK competes. | Positive / Competitive Watch |
Full-Year Guidance Cut (Watchman/EP) | BSX cut full-year organic growth guidance to 5–6% (from 5–7%) due to unexpected Watchman market slowdown (clinical evidence impacting referral patterns) and US EP competitive share loss. Second half described as "more pressured than originally anticipated." | Limited direct read-through to SYK. Watchman and US EP are BSX-specific product dynamics with no meaningful SYK exposure. The guidance cut reflects company-specific competitive and clinical evidence issues, not a broad medtech demand deterioration. | Neutral (SYK-specific) |
International (Asia-Pac) | Asia-Pac grew 11% operationally, led by double-digit growth in Japan, China, and Korea. BSX also recognized ~$80M in IIPA tariff refunds in Q2. | Positive for SYK's international segment. Strong Asia-Pac demand, particularly in Japan and China, is a positive read-through for SYK's international organic growth recovery. Tariff refund precedent is consistent with SYK's own refund process. | Positive |
Theme | ZBH Commentary | Read-Through to SYK | Directionality |
Orthopedic Market Health | CEO Ivan Tornos stated the orthopedic market is "healthy" and "growing 4% to 5%." | Direct and positive read-through. ZBH's market-level assessment of 4–5% growth is the most direct orthopedic market read available. SYK's Mako-driven share gains should allow it to outperform this market rate, consistent with its ~9% organic growth target. | Positive |
U.S. Hips | ZBH's U.S. hips grew 5% in 1Q26 with "MAG 7" hip launches "overperforming." | Positive for SYK's hip reconstruction segment. A 5% U.S. hip market growth rate from a major competitor confirms healthy demand; SYK's Mako-enabled hip procedures should allow above-market performance. | Positive |
Foot & Ankle | ZBH's Paragon 28 business is "growing double digit" and expected to return to "mid-teens" growth by end of 2026. Integration "going better than expected." | Positive for SYK's Trauma & Extremities segment. Double-digit growth in foot & ankle from a major competitor confirms robust demand in this sub-segment, which is also a growth area for SYK. | Positive |
ASC Channel | ZBH is "adding a ton of people when it comes to ASC, Ambulatory Surgical Centers" as part of Project Optima. | Positive for SYK. Continued strategic investment in the ASC channel by major orthopedic players confirms this as a durable growth driver. SYK is well-positioned in ASCs with Mako and its surgical portfolio. | Positive |
Robotics Competition | ZBH is launching a CT-scan-based ROSA to address a competitive gap vs. Mako. Monogram robot (semi-autonomous) expected early 2027, targeting the "80% of surgeons in the U.S. who don't use a robot." | Neutral to slight negative for SYK's Mako moat. ZBH's CT-scan ROSA directly addresses a perceived Mako advantage. Monogram's 2027 launch targeting non-robot users could expand the market but also increase competitive pressure. Near-term (2Q26) impact is minimal. | Neutral / Watch |
SYK Sales Force Productivity Benchmark | ZBH CEO noted its reps average 7 cases/week vs. "our leading competitor doing 16.7 cases" — an implicit reference to SYK's specialized sales force model. | Positive for SYK. ZBH's explicit acknowledgment of SYK's ~2.4x sales force productivity advantage confirms SYK's specialized model as a durable competitive differentiator that is difficult to replicate quickly. | Positive |
Theme | EW Commentary | Read-Through to SYK | Directionality |
Overall Demand & Beat | EW delivered "stronger than expected" 2Q26 sales growth of 12.5%, raising full-year guidance to 10–11%. Management noted strength "across all product groups and regions." | Positive for the broader medtech demand environment. EW's broad-based beat and guidance raise signals a healthy procedure environment across surgical and interventional categories. | Positive |
Surgical Segment | EW's surgical segment grew 5% in 2Q26, driven by continued adoption of Resilia therapies. Management "continues to expect mid-single digit sales growth in surgical in 2026." | Positive for SYK's surgical instruments and MedSurg segment. Consistent mid-single-digit surgical growth from EW confirms hospitals are actively performing surgical procedures and adopting new technologies. | Positive |
FX Environment | FX was a +110 bps tailwind in 2Q26 for EW, but EW estimates a ~$35M FX headwind in 2H26 at current rates. | Neutral to slightly negative for SYK's 2H international revenue. FX tailwind in Q2 may partially benefit SYK's reported revenue, but the anticipated 2H headwind is a watch item for SYK's international segment. | Neutral |