In fiscal 2025 Stryker delivered 11% year-over-year revenue growth, outpacing the 7% median growth rate of its med-tech peers. Net sales reached $20.3 billion, driven by strong performance across orthopaedics and neurotechnology. Operating margin expanded by 150 basis points to 31.5%, reflecting sustained leverage from higher-margin robotics and spine systems, as well as disciplined cost management initiatives implemented across global manufacturing sites.

The Mako robotics platform continued to gain market share in major joint replacements, capturing 38% of U.S. robotic knee procedures and 34% of robotic hip procedures in 2025, up from 33% and 29% a year earlier. Expansion into extremities—launching wrist and ankle modules in June 2025—added 8% incremental system instrument revenue in the fourth quarter. Usage of Mako in ambulatory surgical centers rose by 20%, underscoring under-tapped potential in lower-cost settings.

Management has earmarked $3 billion for mergers and acquisitions over the next 18 months, targeting complementary robotics, cardiology and urology technologies. In April 2025 Stryker closed its acquisition of SpineTech Innovations for $450 million in cash, accelerating its minimally invasive spine portfolio. Concurrently, organic growth drivers like the Smart Care digital patient-monitoring platform delivered a 12% uplift in service revenues, reflecting strong cross-sell opportunities within existing customer accounts.

Stryker trades at 15.5× forward EV/EBITDA, compared with a 17.8× average for med-tech large-caps, representing a 13% discount. Investor reluctance has been attributed to sector-wide derating pressures following multiple peers’ recent guidance cuts, even though Stryker raised its full-year sales outlook twice in 2025. With leverage on sale growth, margin expansion and disciplined capital deployment, the company’s valuation gap offers a potential entry point for long-term investors seeking exposure to premium surgical robotics and implant franchises.