Stryker (SYK) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were impacted by a late-quarter cyber incident, causing operational disruptions, revenue recognition delays, and increased costs, but the company quickly recovered and reaffirmed full-year guidance.

• Net sales grew 2.6% year-over-year to $6.02 billion, with organic net sales up 2.4%.

• Adjusted EPS declined 8.5% to $2.60, while reported EPS increased 14.2% to $1.93; adjusted net earnings were $1.0 billion.

• Organizational changes included the launch of the Ortho Tech business, impacting segment reporting.

• Acquisition of Amplitude Vascular Systems was announced and completed in Q2 2026, expanding the cardiovascular portfolio.

Financial highlights

• Net sales: $6,020 million (up from $5,866 million in Q1 2025); organic sales growth was 2.4% year-over-year.

• Adjusted EPS was $2.60, down 8.5% from Q1 2025; reported EPS was $1.93, up 14.2%.

• Adjusted gross margin was 63.6% (down 190 bps year-over-year); reported gross margin was 63.3%.

• Adjusted operating margin was 21.1% (down 180 bps year-over-year); reported operating margin was 15.5%.

• Cash from operations was $581 million.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: organic net sales growth of 8%-9.5% and adjusted EPS of $14.90-$15.10.

• Most Q1 lost sales expected to be realized over the remainder of the year, with recovery cadence varying by business and product type.

• Adjusted other income and expense expected to be ~$420 million for 2026; effective tax rate guidance remains 15%-16%.

• Margin guidance unchanged; expect to deliver on full-year margin targets despite Q1 headwinds.

• Free cash flow conversion expected in the 70%-80% range for the year.