Stryker Q1 Sales Rise 2.6% to $6B as EPS Jumps 14.2%
SYK•First-quarter net sales rose 2.6% to $6.0 billion with organic growth of 2.4% and reported operating margin at 15.5%, while adjusted operating margin contracted 180 basis points to 21.1%. Reported EPS of $1.93 climbed 14.2% as adjusted EPS dropped 8.5% to $2.60, and management reaffirmed 2026 guidance while creating Ortho Tech unit.
1. First Quarter Financial Results
Stryker reported net sales of $6.0 billion in Q1 2026, up 2.6% on a reported basis and 1.0% in constant currency, with organic growth of 2.4% driven by 2.1% volume gains and 0.3% pricing. MedSurg & Neurotechnology net sales rose 5.0% while Orthopaedics held essentially flat at 0.1%.
2. Earnings Analysis
Net earnings advanced to $745 million, a 13.9% increase, resulting in reported EPS of $1.93, up 14.2%. Excluding one-time charges, adjusted net earnings of $1.0 billion declined 8.5%, with adjusted EPS at $2.60 and adjusted operating margin contracting 180 basis points to 21.1%.
3. Organizational Restructuring
The company launched a new Ortho Tech unit by merging orthopaedic instruments with Mako and enabling technologies, aiming to streamline customer interactions, accelerate product development and simplify its market approach.
4. 2026 Outlook
Stryker reaffirmed full-year targets for organic net sales growth of 8.0%–9.5% and adjusted EPS of $14.90–$15.10, expecting modest pricing benefits and a slightly favorable foreign exchange impact if currency rates remain near current levels.
