A Business at a Glance
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STRYKER CORP
SYK
$127.6B
Mkt Cap
$330.25
+3.54%
STRYKER CORP (SYK) has a current P/E ratio of 39.3, compared to its historical median P/E of 40.0. The stock is currently considered Fair based on its historical valuation range.
STRYKER CORP (SYK) has a 5-year average return on invested capital (ROIC) of 10.4%. This indicates solid capital allocation.
STRYKER CORP (SYK) has a market capitalization of $126.6B. It is classified as a large-cap stock.
Yes, STRYKER CORP (SYK) pays a dividend with a trailing twelve-month yield of 1.03%.
Based on historical P/E analysis, STRYKER CORP (SYK) appears fair. The current P/E of 39.3 is 2% below its historical median of 40.0. The estimated fair value CAGR (P/E method) is 6.2%.
STRYKER CORP (SYK) operates in the Surgical & Medical Instruments & Apparatus industry, within the Healthcare sector.
STRYKER CORP (SYK) reported annual revenue of $25.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Stryker Corporation is a global leader in medical technologies operating through two reportable segments: MedSurg and Neurotechnology, and Orthopaedics. The MedSurg and Neurotechnology segment comprises surgical instruments, endoscopic systems, patient handling and emergency medical equipment, clinical communication and AI-assisted virtual care platforms, and minimally invasive vascular and neurocranial products for stroke and thromboembolism treatment. The Orthopaedics segment includes implants for joint replacement (hip, knee, shoulder, ankle) and trauma surgeries, supported by Mako robotic-arm assisted technology. Stryker markets products directly to hospitals, doctors, and healthcare facilities across approximately 61 countries, impacting more than 150 million patients annually. The company competes as one of the leading global players in each product category, with competitive differentiation centered on innovation, quality, service reputation, and proprietary technologies including robotic-assisted surgery platforms and advanced imaging systems. Unit economics are characterized by a mix of capital equipment sales (with elevated backlogs and strong hospital CapEx environments) and consumable/implant products, supported by strong procedural volumes and sustained demand across diverse end markets including acute care, emergency services, and elective surgery.
【Strong procedural momentum continuing】 Management expects sustained strength in procedural volumes and capital product demand entering 2026, supported by continued adoption of robotic-assisted surgery, favorable demographics, and healthy hospital balance sheets. The company anticipates outgrowing the orthopaedic marketplace by 200–300 basis points, with particular momentum expected from Mako installations and utilization, including the ramp of Mako 4 platform and full commercial launch of Mako Shoulder in the first quarter of 2026. Pricing is expected to remain modestly positive in 2026, consistent with 2025 levels, while the company continues to absorb elevated tariff impacts through operational excellence, manufacturing optimization, and supply chain improvements. Management remains active on M&A, with announced agreements including Amplitude Vascular Systems, and expects to maintain margin expansion trajectory toward the long-term target of 150+ basis points through 2028.
| Metric | Target | Period |
|---|---|---|
| Organic net sales growth | 8%-9.5% | FY2026 |
| Adjusted net earnings per share | $14.90-$15.10 | FY2026 |
| Full-year other income and expense | approximately $420 million | FY2026 |
| Full-year effective tax rate | 15%-16% | FY2026 |
| Full-year tariff impacts | approximately $400 million | FY2026 |
Organic net sales growth (FY2026): “we expect 2026 organic net sales growth to be in the range of 8%-9.5%”
Adjusted net earnings per share (FY2026): “adjusted net earnings per share to be in the range of $14.90-$15.10”
Full-year other income and expense (FY2026): “we expect 2026 to look pretty similar from a price standpoint to 2025. Hey, Robbie, it's Jason. And then if you just consider similar to what I said in some of my prepared remarks, from an elevated backlog perspective, the environment's pretty good. And so we feel really good about the capital environment as we go into 2026. Is there anything that you can comment on that or what you're seeing or what you expect for patient volumes throughout the year? Thank you. 150 basis points, I think, through 2028 was the target, Preston, at the analyst day not too long ago. As you sit here today, just given the performance that we have seen, how would you characterize that trajectory? I think we are still kind of left wondering kind of the pace at which you may have achieved those targets. Thank you. But when we think about what we gave you for 2026 here, we gave you a lot of the different pieces in terms of our overall growth and what we expect from an EPS standpoint. I think if you plug that in, you'll see it's a healthy margin that we're planning for 2026 that really leads you down that path for that expectation of delivering 150 and above potentially as we go through the next three years. Your next question will come from Travis Steed with Bank of America. As you look over the last 5, 6, 7 years, this is our offense, and we expect that to continue going forward. That's helpful. Yeah, Travis, from a tuck-in standpoint, we've generally said that for tuck-in type deals, those are elements that we try to build into our margin expectations. As we do each of these deals, certainly it's something that we would communicate back to you all in terms of what our expectations are. Your next question will come from Vijay Kumar with Evercore ISI. I will tell you, Q4, we had a little bit more destocking than maybe we anticipated. But good visibility as we move into 2026, knowing it'll be minimal in Q1. And as these products do reach these markets, you should expect to see a pretty similar dynamic as to what you see in the United States. Now, obviously, pricing and margins can vary by country, some being as good as the U.S., some being a little less. And since MedSurg has been the primary driver of the net positive pricing across the broader business, are you expecting to see that go back up here as we go into 2026? Yeah. And we would expect to continue to see a pretty steady cadence of price coming from that business in 2026. Okay. And when should we expect to see your data? Hey, Chris, it's Jason. No, it's actually going to be closer to middle of next year in terms of results. Your next question will come from Danielle Antalffy with UBS. Just following up on, excuse me, Chris's question on pricing, just at a higher level, so I know you guys had talked about, broadly speaking, that you saw over the last two years, starting you're expecting that to wane. It sounds like that's reflected in guidance. But I'm just curious about how you're seeing potentially your hospital customers, ASC customers. And we expect that to continue into 2026. And as you said, it is built into what our expectations are from a top line and guidance standpoint. Yeah, I think overall, for the full year, you should expect a pricing result that's not that different than what we had in 2025. From quarter to quarter, it may move a little bit, but we expect something pretty similar in 2026 as we experience in 2025. Okay. And as you'll look at our guidance that we gave, you can see when you do the work around the margin pieces of it that we have, in fact, built that into our expectations. Yeah. I hear you on the conversion range, but can you just maybe talk about what you're expecting for CapEx? It was flat year-over-year. Expecting in 2026? Like a holdback on spending. For 2026, what you're expecting more for free cash flow and CapEx? Yeah. So from a free cash flow standpoint, as I said before, I mean, we're still going to target in that same range of 70-80. That's been the range that we've been targeting for the last few years. We feel like that's a good place for us where we can balance investment with also obviously being more productive from a cash perspective. This concludes the fourth quarter and full year 2025 Stryker earnings call. You may now disconnect.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 25.3B | 25.1B | 22.6B | 20.5B | 18.4B | 17.1B |
| Net Income | 3.3B | 3.2B | 3.0B | 3.2B | 2.4B | 2.0B |
| EPS | $8.70 | $8.40 | $7.76 | $8.25 | $6.17 | $5.21 |
| Free Cash Flow | 4.6B | 4.3B | 3.5B | 3.1B | 2.0B | 2.7B |
| ROIC | 9.6% | 10.9% | 10.7% | 11.8% | 9.5% | 9.3% |
| Gross Margin | 63.8% | 64.0% | 63.9% | 63.7% | 62.8% | 64.1% |
| Debt/Equity | 0.77 | 0.73 | 0.68 | 0.73 | 0.81 | 0.87 |
| Dividends/Share | $3.39 | $3.32 | $3.16 | $2.97 | $2.75 | $2.48 |
| Operating Income | 5.0B | 4.9B | 3.7B | 3.9B | 2.8B | 2.6B |
| Operating Margin | 19.7% | 19.5% | 16.3% | 19.0% | 15.4% | 15.1% |
| ROE | 14.5% | 15.1% | 15.3% | 18.0% | 15.0% | 14.3% |
| Shares Outstanding | 383M | 386M | 386M | 384M | 382M | 383M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 9.7B | 9.9B | 11.3B | 12.4B | 13.6B | 14.9B | 14.4B | 17.1B | 18.4B | 20.5B | 22.6B | 25.1B | 25.3B |
| Gross Margin | 65.7% | 66.4% | 66.3% | 65.7% | 65.7% | 65.1% | 63.1% | 64.1% | 62.8% | 63.7% | 63.9% | 64.0% | 63.8% |
| R&D | 614M | 625M | 715M | 787M | 862M | 971M | 984M | 1.2B | 1.5B | 1.4B | 1.5B | 1.6B | 1.6B |
| SG&A | 3.5B | 3.6B | 4.1B | 4.6B | 5.1B | 5.4B | 5.4B | 6.4B | 6.4B | 7.1B | 7.7B | 8.7B | 8.6B |
| EBIT | 1.2B | 1.9B | 2.2B | 2.3B | 2.5B | 2.7B | 2.2B | 2.6B | 2.8B | 3.9B | 3.7B | 4.9B | 5.0B |
| Op. Margin | 12.9% | 18.7% | 19.2% | 18.5% | 18.7% | 18.2% | 15.5% | 15.1% | 15.4% | 19.0% | 16.3% | 19.5% | 19.7% |
| Net Income | 515M | 1.4B | 1.6B | 1.0B | 3.6B | 2.1B | 1.6B | 2.0B | 2.4B | 3.2B | 3.0B | 3.2B | 3.3B |
| Net Margin | 5.3% | 14.5% | 14.5% | 8.2% | 26.1% | 14.0% | 11.1% | 11.7% | 12.8% | 15.4% | 13.2% | 12.9% | 13.2% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 216M | 0 | 456M | 170M | 170M |
| Returns on Capital | |||||||||||||
| ROIC | 8.6% | 17.5% | 17.2% | 10.0% | 15.7% | 11.7% | 8.3% | 9.3% | 9.5% | 11.8% | 10.7% | 10.9% | 9.6% |
| ROE | 5.8% | 16.8% | 18.2% | 10.5% | 32.8% | 17.0% | 12.4% | 14.3% | 15.0% | 18.0% | 15.3% | 15.1% | 14.5% |
| ROA | 3.2% | 8.6% | 9.0% | 4.8% | 14.4% | 7.3% | 5.0% | 5.8% | 6.6% | 8.2% | 7.2% | 7.1% | 7.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.8B | 981M | 1.9B | 1.6B | 2.6B | 2.2B | 3.3B | 3.3B | 2.6B | 3.7B | 4.2B | 5.0B | 5.4B |
| Free Cash Flow | 1.5B | 711M | 1.4B | 961M | 2.0B | 1.5B | 2.8B | 2.7B | 2.0B | 3.1B | 3.5B | 4.3B | 4.6B |
| Owner Earnings | 1.1B | 305M | 1.1B | 587M | 1.5B | 1.0B | 2.1B | 1.8B | 1.2B | 2.2B | 2.6B | 3.2B | 3.5B |
| CapEx | 233M | 270M | 490M | 598M | 572M | 649M | 487M | 525M | 588M | 575M | 755M | 761M | 804M |
| Maint. CapEx | 586M | 590M | 752M | 859M | 966M | 1.0B | 1.1B | 1.3B | 1.3B | 1.3B | 1.4B | 1.6B | 1.6B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 586M | 590M | 752M | 859M | 966M | 1.0B | 1.1B | 1.3B | 1.3B | 1.3B | 1.4B | 1.6B | 1.6B |
| CapEx/OCF | 13.1% | 30.0% | 25.6% | 38.4% | 21.9% | 29.6% | 14.9% | 16.1% | 22.4% | 15.5% | 17.8% | 15.1% | 15.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 462M | 521M | 568M | 636M | 703M | 778M | 863M | 950M | 1.1B | 1.1B | 1.2B | 1.3B | 1.3B |
| Dividend Yield | 1.7% | 1.6% | 1.5% | 1.3% | 1.2% | 1.1% | 1.2% | 1.0% | 1.2% | 1.1% | 0.9% | 0.9% | 1.0% |
| Share Buybacks | 100M | 700M | 13M | 230M | 300M | 307M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.3% | 2.2% | 0.0% | 0.4% | 0.5% | 0.4% | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 77M | 86M | 97M | 113M | 119M | 127M | 142M | 171M | 168M | 205M | 229M | 243M | 246M |
| Debt Repayment | 1.4B | 500M | 750M | 0 | 669M | 1.3B | 2.3B | 1.2B | 653M | 2.1B | 2.0B | 1.4B | 1.4B |
| Balance Sheet | |||||||||||||
| Net Debt | 574M | -81M | 3.7B | 4.4B | 6.2B | 7.1B | 11.4B | 9.9B | 11.7B | 10.5B | 9.7B | 12.3B | 14.8B |
| Cash & Equiv. | 1.8B | 3.4B | 3.3B | 2.5B | 3.6B | 4.3B | 2.9B | 2.9B | 1.8B | 3.0B | 3.7B | 4.0B | 2.9B |
| Long-Term Debt | 3.2B | 3.2B | 6.7B | 6.6B | 8.5B | 10.2B | 13.2B | 12.5B | 11.9B | 10.9B | 12.2B | 14.9B | 14.2B |
| Debt/Equity | 0.65 | 0.47 | 0.74 | 0.72 | 0.84 | 0.90 | 1.10 | 0.87 | 0.81 | 0.73 | 0.68 | 0.73 | 0.77 |
| Interest Coverage | 11.0 | 17.2 | 9.5 | 9.3 | 9.6 | 9.5 | 7.1 | 7.7 | 8.4 | 10.9 | 9.3 | 8.4 | 31.2 |
| Equity | 8.6B | 8.5B | 9.6B | 10.0B | 11.7B | 12.8B | 13.1B | 14.9B | 16.6B | 18.6B | 20.6B | 22.4B | 23.0B |
| Total Assets | 17.3B | 16.2B | 20.4B | 22.2B | 27.2B | 30.2B | 34.3B | 34.6B | 36.9B | 39.9B | 43.0B | 47.8B | 46.3B |
| Total Liabilities | 8.7B | 7.7B | 10.9B | 12.2B | 15.5B | 17.4B | 21.2B | 19.8B | 20.3B | 21.3B | 22.3B | 25.4B | 23.3B |
| Intangibles | 2.0B | 1.8B | 3.5B | 3.5B | 4.2B | 4.2B | 5.6B | 4.8B | 4.9B | 4.6B | 4.4B | 5.7B | 5.5B |
| Retained Earnings | 7.6B | 7.8B | 8.8B | 9.0B | 10.8B | 11.7B | 12.5B | 13.5B | 14.8B | 16.8B | 18.5B | 20.5B | 20.9B |
| Working Capital | 4.2B | 4.4B | 4.7B | 4.5B | 4.9B | 6.7B | 4.7B | 5.5B | 4.0B | 4.6B | 7.2B | 7.0B | 7.0B |
| Current Assets | 8.7B | 7.9B | 7.9B | 8.0B | 9.7B | 11.1B | 9.7B | 10.0B | 10.3B | 12.5B | 14.8B | 14.8B | 13.3B |
| Current Liabilities | 4.5B | 3.5B | 3.1B | 3.5B | 4.8B | 4.4B | 5.0B | 4.5B | 6.3B | 7.9B | 7.6B | 7.8B | 6.3B |
| Per Share Data | |||||||||||||
| EPS | 1.34 | 3.78 | 4.35 | 2.68 | 9.34 | 5.48 | 4.20 | 5.21 | 6.17 | 8.25 | 7.76 | 8.40 | 8.70 |
| Owner EPS | 2.91 | 0.80 | 2.82 | 1.54 | 4.01 | 2.68 | 5.41 | 4.76 | 3.08 | 5.64 | 6.71 | 8.36 | 9.19 |
| Book Value | 22.36 | 22.36 | 25.22 | 26.19 | 30.84 | 33.69 | 34.37 | 38.87 | 43.48 | 48.47 | 53.50 | 58.02 | 59.94 |
| Cash Flow/Share | 4.64 | 2.58 | 5.06 | 4.10 | 6.86 | 5.76 | 8.61 | 8.53 | 6.87 | 9.67 | 11.00 | 13.05 | 12.89 |
| Dividends/Share | 1.26 | 1.42 | 1.57 | 1.67 | 1.85 | 2.05 | 2.27 | 2.48 | 2.75 | 2.97 | 3.16 | 3.32 | 3.39 |
| Shares Out. | 384.3M | 380.7M | 378.6M | 380.6M | 380.4M | 380.1M | 380.7M | 382.7M | 382.2M | 383.6M | 385.7M | 386.4M | 383.4M |
| Valuation | |||||||||||||
| P/E Ratio | 62.6 | 22.1 | 25.0 | 53.3 | 15.4 | 35.9 | 53.8 | 49.7 | 37.9 | 35.6 | 46.8 | 42.1 | 38.0 |
| P/FCF | 20.8 | 44.8 | 28.9 | 56.5 | 26.8 | 48.6 | 30.8 | 36.2 | 43.9 | 35.9 | 40.1 | 31.9 | 27.7 |
| EV/EBIT | 25.6 | 17.5 | 20.7 | 25.9 | 24.5 | 30.4 | 44.0 | 42.0 | 35.8 | 32.1 | 40.8 | 30.6 | 28.3 |
| Price/Book | 3.8 | 3.7 | 4.3 | 5.5 | 4.7 | 5.8 | 6.6 | 6.7 | 5.4 | 6.1 | 6.8 | 6.1 | 5.5 |
| Price/Sales | 2.9 | 3.2 | 3.3 | 3.9 | 4.3 | 4.7 | 5.0 | 5.5 | 4.7 | 5.1 | 5.8 | 5.8 | 5.0 |
| FCF Yield | 4.8% | 2.2% | 3.5% | 1.8% | 3.7% | 2.1% | 3.2% | 2.8% | 2.3% | 2.8% | 2.5% | 3.1% | 3.6% |
| Market Cap | 32.3B | 31.8B | 41.1B | 54.3B | 54.7B | 74.9B | 86.0B | 99.2B | 89.4B | 112.7B | 140.0B | 136.5B | 126.6B |
| Avg. Price | 72.34 | 84.76 | 99.18 | 127.18 | 153.74 | 184.65 | 188.47 | 244.20 | 224.48 | 272.99 | 342.48 | 374.26 | 330.25 |
| Year-End Price | 83.92 | 83.65 | 108.65 | 142.78 | 143.72 | 196.97 | 225.95 | 259.08 | 234.01 | 293.67 | 362.90 | 353.34 | 330.25 |
STRYKER CORP passes 5 of 9 quality checks, suggesting mixed fundamentals.
STRYKER CORP trades at 39.3x trailing earnings, compared to its 15-year median P/E of 40.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 29.5x vs a median of 36.1x. The company's 5-year average ROIC is 10.4% with a gross margin of 63.7%. Total shareholder yield (dividends) is 1.0%. At current prices, the estimated annualized return to fair value is +9.2%.
STRYKER CORP (SYK) has a net profit margin of 12.9%. This is a healthy margin.
STRYKER CORP (SYK) generated $4.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
STRYKER CORP (SYK) has a debt-to-equity ratio of 0.73. This indicates moderate leverage.
STRYKER CORP (SYK) reported earnings per share (EPS) of $8.40 in its most recent fiscal year.
STRYKER CORP (SYK) has a return on equity (ROE) of 15.1%. This indicates the company generates strong returns for shareholders.
STRYKER CORP (SYK) has a 5-year average gross margin of 63.7%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for STRYKER CORP (SYK), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
STRYKER CORP (SYK) has a book value per share of $58.02, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects sustained strength in procedural volumes and capital product demand entering 2026, supported by continued adoption of robotic-assisted surgery, favorable demographics, and healthy hospital balance sheets. The company anticipates outgrowing the orthopaedic marketplace by 200–300 basis points, with particular momentum expected from Mako installations and utilization, including the ramp of Mako 4 platform and full commercial launch of Mako Shoulder in the first quarter of 2026. Pricing is expected to remain modestly positive in 2026, consistent with 2025 levels, while the company continues to absorb elevated tariff impacts through operational excellence, manufacturing optimization, and supply chain improvements. Management remains active on M&A, with announced agreements including Amplitude Vascular Systems, and expects to maintain margin expansion trajectory toward the long-term target of 150+ basis points through 2028.
Based on recent SEC filings and earnings calls, STRYKER CORP (SYK) has provided the following forward guidance: Organic net sales growth: 8%-9.5% (FY2026); Adjusted net earnings per share: $14.90-$15.10 (FY2026); Full-year other income and expense: approximately $420 million (FY2026); Full-year effective tax rate: 15%-16% (FY2026); Full-year tariff impacts: approximately $400 million (FY2026).
Full-year effective tax rate (FY2026): “For 2026, we expect our full-year effective tax rate to be in the range of 15%-16%”
Full-year tariff impacts (FY2026): “we expect full-year tariff impacts to be approximately $400 million, which includes an incremental $200 million compared to 2025 that will be realized in the first half of the year”