Over the past twelve months, Stryker has delivered above-average revenue growth relative to its med-tech peers, driven by broad demand across its orthopedics and surgical divisions. In its most recent fiscal year, the company achieved a revenue increase of 8.2% year-over-year, while operating margin expanded by 220 basis points to reach 23.4%. Despite these results and a price-to-earnings multiple that remains below the sector median, Stryker’s shares have lagged, as investors weigh broader sector valuation pressures against the company’s fundamentals.

Stryker continues to leverage its Mako robotic-assisted surgery platform, which now accounts for roughly 40% of its major-joint replacements business and has captured additional share in knee and hip procedures. The company is also scaling its presence in the extremities market with new small-joint implants and instruments, targeting a high-growth segment that now represents nearly 10% of overall orthopedics revenue. Management has highlighted ambulatory surgical centers (ASCs) as an under-penetrated end market, estimating that ASCs today contribute less than 15% of procedure volume but could double over the next five years given favorable reimbursement trends.

Capital allocation remains focused on high-return M&A and targeted bolt-on acquisitions in robotics, cardiology and urology. In fiscal 2025, Stryker deployed $1.2 billion toward three small-to-mid-sized transactions, including a robotics imaging software firm and a minimally invasive urology device start-up. Organic initiatives such as the roll-out of its Smart Care digital platform—designed to optimize procedural pathways and inventory management—are expected to add 2–3 percentage points of incremental margin over the next two years as adoption scales across hospital systems.