Stryker Corporation 8-K
EarningsGuidanceImpairment / charge
MedSurg and Neurotechnology unit volumes drove sales growth, while a $293M goodwill impairment weighed on GAAP earnings.
Filed 2026-10-29 16:11 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with updated FY2026 guidance. Sales growth was driven primarily by higher unit volumes, while reported earnings declined and adjusted earnings increased. Management said the quarter fell short of expectations but described the business fundamentals as strong and expects solid Q4 performance and good momentum into 2027.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $6.52B, +7.7% Y/Y | $19.1B, +6.6% Y/Y |
| Gross margin | 65.2%, vs 63.6% | 65.6%, vs 63.7% |
| Gross margin, non-GAAP | 65.4%, vs 65.0% | 65.1%, vs 65.3% |
| Operating income | $1.03B, -8.9% Y/Y | $3.63B, +17.6% Y/Y |
| Operating income, non-GAAP | $1.71B, +10.1% Y/Y | $4.78B, +7.8% Y/Y |
| Net earnings | $753M, -12.3% Y/Y | $2.77B, +15.7% Y/Y |
| Net earnings, non-GAAP | $1.36B, +10.1% Y/Y | $3.79B, +6.9% Y/Y |
| Diluted EPS | $1.96, -11.7% Y/Y | $7.19, +16.0% Y/Y |
| Diluted EPS, non-GAAP | $3.52, +10.3% Y/Y | $9.81, +7.1% Y/Y |
| Operating cash flow | — | $3.30B, +13.9% Y/Y |
- MedSurg and Neurotechnology sales were $3.66B, up 9.2% (9.1% organic); Orthopaedics sales were $2.86B, up 5.7% (5.9% organic). Organic growth in both segments was primarily driven by unit volume.
- Q3 GAAP results included a $293M goodwill impairment. Adjusted results also exclude items including purchased-intangible amortization and structural optimization and other special charges.
- Stryker repurchased $1.0B of stock in Q3, and the board approved an additional $3.0B for the existing repurchase program. Weighted-average diluted shares were 384.7M vs 386.7M a year earlier. Cash was $3.27B at 9/30/2026; long-term debt, excluding current maturities, was $14.2B.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Organic net sales growth | FY2026 | 6.5%-7.0% | — | — |
| Adjusted net earnings per diluted share, non-GAAP | FY2026 | $14.80-$14.90 | — | — |
Sales guidance includes a modestly positive pricing impact. Foreign exchange is expected to be slightly favorable to sales and adjusted EPS if rates remain near current levels.
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Organic net sales growth | FY2026 | 8.3%-9.3% | 6.5%-7.0% | lowered |
| Adjusted net earnings per diluted share, non-GAAP | FY2026 | $14.95-$15.10 | $14.80-$14.90 | lowered |
Investor Takeaways
- Q4 organic sales and unit-volume growth will test management’s expectation for a solid quarter and momentum into 2027.
- Track whether unit-volume growth continues in MedSurg and Neurotechnology and Orthopaedics, which posted 9.1% and 5.9% organic growth, respectively, in Q3.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-30 14:45:16Z