Stryker Holds FY26 Guidance After Cyberattack Cuts Q1 EPS by 8.5%
SYK•Stryker reported Q1 revenues of $6 billion, up 2.6% year-over-year, but missed estimates after a March cyberattack disrupted operations. Adjusted EPS dropped 8.5% to $2.60 while the company maintains FY26 organic growth guidance of 8–9.5% and EPS range of $14.90–$15.10.
1. Q1 Financial Results
Stryker delivered Q1 revenues of approximately $6 billion, reflecting a 2.6% year-over-year increase driven by medsurg and neurotechnology growth. Adjusted EPS fell 8.5% to $2.60 as sales growth and manufacturing absorption were hampered, leading to a revenue shortfall versus analyst projections.
2. Cyberattack Disruption
A cyberattack beginning March 11 targeted Stryker’s Cork, Ireland headquarters and spread across multiple sites, limiting access to key information systems and delaying shipments. The incident caused outsized revenue recognition delays late in the quarter and contributed to operational setbacks alongside increased tariff and interest expenses.
3. FY26 Guidance and Outlook
Despite Q1 headwinds, Stryker reaffirmed its FY26 targets of 8–9.5% organic sales growth and adjusted EPS of $14.90–$15.10. Management cited ongoing operational excellence initiatives and a modest favorable impact from foreign currency translation as offsets to cyber-related disruptions.
