Stryker Misses Third-Quarter Estimates, Cuts Guidance and Shares Fall After Hours

Stryker missed third-quarter profit and sales estimates on Thursday and cut its full-year guidance, sending its shares lower after hours.

Stryker Corporation reported third-quarter 2026 results on Thursday, Oct. 29, 2026. The quarter covered the three months ended Sept. 30, 2026.

Revenue was $6.52 billion, up 7.7% from $6.06 billion a year earlier. Analysts surveyed by FactSet had expected $6.62 billion, Dow Jones reported.

The precise revenue total was $6.52 billion, the release table showed. Organic sales also rose 7.7%, driven mainly by higher unit volume.

Adjusted profit was $3.52 a share, up 10.3% from a year earlier. Adjusted strips out charges the company treats as outside core operations.

Analysts had expected $3.55 a share on that basis, according to FactSet. Adjusted net earnings were $1.36 billion, up 10.1%.

Reported net earnings were $753 million, down 12.3% from $859 million. Reported profit was $1.96 a share, down 11.7% from $2.22.

Reported operating income was $1.03 billion, down 8.9% from a year earlier. The reported operating margin was 15.9%, against 18.7% a year earlier.

Adjusted operating income was $1.71 billion in the quarter. The adjusted operating margin rose 60 basis points to 26.2%.

A basis point is one-hundredth of a percentage point. Adjusted measures exclude items such as goodwill impairments and acquisition charges.

“We delivered 7.7% organic sales growth and double-digit adjusted earnings growth in the quarter,” said Kevin A. Lobo, Stryker's chair and chief executive.

“While, in absolute terms, this reflected good overall performance, it did fall short of our expectations,” Lobo said.

Lobo said the business fundamentals remain strong. He expects a solid fourth quarter and good momentum heading into 2027.

MedSurg led segment growth

MedSurg and Neurotechnology sales were $3.66 billion, up 9.2%. Organic sales in the segment rose 9.1%, driven by unit volume.

Orthopaedics sales were $2.86 billion, up 5.7% as reported. Organic Orthopaedics sales rose 5.9% in the quarter.

United States sales were $4.95 billion, up 8.3%. International sales were $1.57 billion, up 5.7% as reported.

Reported gross margin was 65.2% in the quarter. The adjusted gross margin was 65.4%, the release said.

Stryker also repurchased $1.0 billion of its common stock in the quarter. Its board approved a $3.0 billion increase to the buyback program in October.

Guidance cut on both lines

For full-year 2026, Stryker now expects organic net sales growth of 6.5% to 7.0%. Dow Jones reported the prior sales growth range was 8.3% to 9.3%.

Adjusted profit guidance is now $14.80 to $14.90 a share. That is down from $14.95 to $15.10 a share previously.

The company said its sales guidance includes a modestly positive pricing impact. Foreign exchange should be slightly favorable if rates hold near current levels.

Shares fell after hours

The cut, not the sales growth, is what investors punished. Both headline figures missed the same FactSet tally.

Shares fell 7.6% to $288 in after-hours trading on Thursday, Dow Jones reported.

That is the settled snapshot used here, from the Dow Jones report on Thursday afternoon. Later after-hours levels may differ from that print.

What remains unknown

What remains unknown is whether fourth-quarter sales can lift full-year growth into the new range. The guide still assumes only a modest pricing contribution.

Also unknown is how much of the reported profit fall repeats. The release lists a $293 million goodwill impairment among the reported items.

What to watch is fourth-quarter revenue against the lowered full-year guide. Investors will also check whether reported margins recover toward adjusted levels.