Stryker cuts 2026 profit forecast, Q3 sales miss estimates

Stryker Corporation (SYK) said on Oct. 29, 2026 that adjusted earnings per share rose 10.3% to $3.52 in the third quarter, below the $3.58 consensus estimate compiled by Finnhub. Revenue of $6.52 billion also missed the $6.69 billion estimate, and the company cut its 2026 forecast.

The forecast now calls for adjusted net earnings per diluted share of $14.80 to $14.90. That is down from the $14.95 to $15.10 range the company gave on July 30. Organic net sales growth is now expected at 6.5% to 7.0%, from 8.3% to 9.3% in the earlier outlook.

Here's how the company did:

• Adjusted EPS: $3.52 vs. $3.19 a year earlier, against the $3.58 consensus estimate according to Finnhub
• Reported EPS: $1.96 vs. $2.22 a year earlier
• Revenue: $6.52 billion vs. $6.06 billion a year earlier, against the $6.69 billion consensus estimate according to Finnhub
• Reported operating income margin: 15.9% vs. 18.7% a year earlier

Reported net sales rose 7.7% from a year earlier, on both a reported and constant currency basis. The company said organic net sales, which strip out currency effects, acquisitions and divestitures, also rose 7.7%, primarily from increased unit volume.

2026 guidance

The company said its sales guidance includes a modestly positive pricing impact. Foreign exchange is expected to have a slightly favorable impact on both sales and adjusted EPS, should rates hold near current levels.

Chair and CEO Kevin A. Lobo said: “We delivered 7.7% organic sales growth and double-digit adjusted earnings growth in the quarter.” He added: “While, in absolute terms, this reflected good overall performance, it did fall short of our expectations.”

Segment results

MedSurg and Neurotechnology net sales were $3.7 billion, up 9.2% from a year earlier. Orthopaedics net sales were $2.9 billion, up 5.7%.

Within Orthopaedics, Ortho Tech sales rose 15.8% to $754 million. Endoscopy sales rose 13.9% to $1.02 billion.

Costs and charges

Goodwill and other impairments totaled $293 million in the quarter, against $73 million a year earlier. Structural optimization and other special charges included $77 million tied to the Spinal Implants sale, according to the reconciliation table.

Capital returns

Stryker repurchased $1.0 billion of its common stock in the third quarter. In October 2026, its board approved an increase of $3.0 billion to the existing share repurchase program. The company said the timing and amount of purchases are determined by management based on market conditions, stock price and other factors.