Stryker Reports Q3 2026 Results, Adjusts Guidance, and Adds $3.0B to Share Buyback

Executive Summary

On October 29, 2026, Stryker Corporation filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) announcing financial results for the third quarter ended September 30, 2026. While Stryker delivered solid organic growth of 7.7% and double-digit adjusted EPS growth, management noted that performance fell short of internal expectations. Concurrently, the Board approved a $3.0 billion expansion to its share repurchase authorization following $1.0 billion of repurchases executed during the quarter.

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Financial Highlights (Q3 2026)

• Net Sales: $6.52 billion, an increase of 7.7% reported and 7.7% organic compared to $6.06 billion in Q3 2025.
  • MedSurg and Neurotechnology: $3.7 billion, up 9.2% reported and 9.1% organic, driven primarily by unit volume.
  • Orthopaedics: $2.9 billion, up 5.7% reported and 5.9% organic / constant currency.
• Profitability & Margins:
  • Reported gross margin: 65.2% (up from 63.6% in Q3 2025).
  • Reported operating margin: 15.9%.
  • Adjusted operating income margin: 26.2% (expanded 60 basis points YoY).
• Net Earnings & EPS:
  • Reported Net Earnings: $753 million, down 12.3% YoY; Reported EPS of $1.96, down 11.7%.
  • Adjusted Net Earnings: $1.4 billion, up 10.1% YoY; Adjusted EPS of $3.52, up 10.3%.

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Capital Allocation & Share Repurchases

• Q3 Repurchases: Stryker repurchased $1.0 billion of common stock during Q3 2026.
• Program Expansion: In October 2026, the Board of Directors authorized a $3.0 billion increase to the company's existing share repurchase program.

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Updated Full-Year 2026 Guidance

• Organic Net Sales Growth: Expected in the range of 6.5% to 7.0% (incorporates modest positive pricing impact).
• Adjusted Diluted EPS: Expected in the range of $14.80 to $14.90.
• FX Impact: Foreign exchange is expected to have a slightly favorable impact on both sales and adjusted EPS assuming current exchange rates persist.