SYK · Q2 2026 Earnings

Cautious

Stryker Corporation

Reported July 30, 2026

30-second summary

Stryker recovered cleanly from the Q1 cyber incident with Q2 revenue of $6.59B (+9.4% YoY) and adjusted EPS of $3.69 (+17.9% YoY), driven by 9.0% organic growth that clears the FY 8.3–9.3% range on its own. Management narrowed the FY2026 organic guide from 8.0–9.5% to 8.3–9.3% — a 30bps low-end raise but a 20bps high-end trim — and moved FY EPS to $14.95–$15.10 vs. prior $14.90–$15.10, tightening the range and raising the floor while capping the ceiling. The upside optionality that the reaffirmed Q1 guide preserved has now been quietly closed off at the top, even as the operational story recovers.

Headline numbers

EPS

Q2 FY2026

$3.69

+5.7% vs est.

Revenue

Q2 FY2026

$6.59B

+9.4% YoY

+0.1% vs est.

Gross margin

Q2 FY2026

68.3%

Operating margin

Q2 FY2026

25.2%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$6.59B	$6.02B	+9.4%	$6.02B	+9.5%
EPS	$3.69	$3.13	+17.9%	$2.60	+41.9%
Gross margin	68.3%	63.8%	+450bps	63.3%	+500bps
Operating margin	25.2%	18.5%	+670bps	15.5%	+970bps

Guidance

Company narrowed FY2026 organic sales growth and EPS guidance ranges while affirming midpoint expectations; low end of EPS raised modestly as business momentum improves post-cyber incident recovery.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Organic net sales growth	FY 2026	8.0% to 9.5%	8.3% to 9.3%	Range narrowed; low end raised +30bps, high end lowered -20bps; midpoint effectively flat at ~8.8%	Lowered
Adjusted net earnings per diluted share	FY 2026	$14.90 to $15.10	$14.95 to $15.10	Low end raised +$0.05; high end reaffirmed; range narrowed from $0.20 to $0.15	Lowered

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
MedSurg and Neurotechnology	$3.625B	$3.771B	-3.9%
Orthopaedics	$2.964B	$2.251B	+31.7%
MedSurg and Neurotechnology Organic Growth	9.2%	11.0%	—
Orthopaedics Organic Growth	8.6%	—	—
Instruments Segment Revenue	$1.003 billion	—	—
Endoscopy Segment Revenue	$1.004 billion	—	—
Medical Segment Revenue	$1.122 billion	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
United States	$4.959B	$4.554B	+8.9%
International	$1.63B	$1.468B	+11.0%
Organic Net Sales Growth	9.0%	10.2%	—
Adjusted Operating Income Margin	27.4%	25.7%	—
Adjusted Gross Profit Margin	66.0%	65.4%	—

Management tone

Narrative arc: Q3 FY2025 (second guidance raise, tariffs quantified higher) → Q4 FY2025 (FY beat, FY2026 normalization with $400M tariff load) → Q1 FY2026 (cyber incident, guidance reaffirmed with tariff line withdrawn) → Q2 FY2026 (post-cyber snap-back, guidance narrowed with quiet high-end trim).

Two quarters ago management framed FY2026 as normalization at the "high end of MedTech" with an $400M tariff load fully absorbed; last quarter, cyber disruption forced restraint and the tariff figure disappeared from disclosure; this quarter, Lobo's language pairs "significant progress in our recovery from the cyber incident" with "regained momentum" and confidence in growing at "the high end of MedTech." The competitive-positioning frame from Q4 FY2025 has returned — but with a lowered ceiling. The Q4 narrative implicitly kept the FY26 organic upside alive to 9.5%; this quarter closed that door to 9.3%. The tone is recovery, not restoration.

The absent tariff figure — for the second consecutive quarter — sits underneath the recovery narrative. Q4 FY2025 quantified the FY26 tariff load at ~$400M with $200M incremental and H1-weighted; Q1 FY2026 dropped the figure; Q2 FY2026 still doesn't restore it in the press release. If H1 is where the tariff load was concentrated, Q2 was the quarter where its absorption should have been most visible — and Q2's 27.4% adjusted operating margin (+170bps YoY) is either strong evidence the tariff drag has abated or strong evidence disclosure has changed. Without the transcript, the print can't discriminate between the two.

Guidance shifted from "maintaining guidance" (Q1's defensive posture) to "narrowing guidance" (Q2's tightening act). The narrowing itself is normal mid-year discipline, but the asymmetry matters — the low end moves up 30bps while the high end moves down 20bps, which is not what a company confident in second-half acceleration typically does. Management is signaling that Q2's 9.0% organic is close to the run rate for the balance of the year, not a stepping stone.

Answers to last quarter's watch list

Whether the ~$400M FY tariff figure returns to disclosure on Q2 — The figure did not return to the press release. Management referenced "modestly positive pricing impact" and "slightly favorable" FX on both sales and EPS, but the specific tariff quantification remains absent. This is the second consecutive quarter without the tariff figure Preston laid out on Q4 FY2025.

Not resolved

Q2 organic growth required to keep FY 8.0–9.5% in reach — Q2 organic came in at 9.0%, clearing the 8%+ bar on its own and validating that at least some catch-up shipped in-quarter rather than loading entirely into H2. However, management responded by trimming the FY high end from 9.5% to 9.3%, signaling that the residual H2 catch-up is not enough to push above 9%. Status: Resolved positively for FY-in-reach, resolved negatively for path-to-10%

Adjusted operating margin recovery from Q1's disruption — Q2 adjusted operating margin came in at 27.4%, +170bps YoY per the press release and consistent with the FY +100bps expansion commitment. The structural-margin case is back on track after the Q1 disruption.

Resolved positively

US organic growth recovery — US reported growth was +8.9% in Q2, sitting in the mid-to-high single digits and consistent with the shipment-timing-not-demand-destruction thesis. Organic figures for the US-International split weren't included in the top-of-release KPI table.

Resolved positively

Vascular ex-Inari-comp organic — Vascular printed $496M, -0.7% reported and -1.8% CC in Q2 — the Inari-comp burn-off dynamic is now visibly weighing on the sub-segment, with US Vascular at -6.7% offsetting International at +6.3% reported. This is the material soft spot inside an otherwise strong MedSurg print.

Resolved negatively

Whether management restores normal segment-level disclosure on the Q2 print — Sub-segment disclosure (Instruments, Endoscopy, Medical, Vascular, Knees, Hips, Trauma & Extremities, Ortho Tech, Spinal) is present in the Sales Growth Analysis table of the press release, with reported and constant-currency figures for both US and International. Disclosure has returned to normal.

Resolved positively

What to watch into next quarter

Whether the ~$400M FY tariff figure returns to disclosure on Q3 — third consecutive quarter of silence on the most operationally consequential cost line would suggest a structural change in how Stryker discloses tariffs, not a cyber-driven interruption. Watch whether Q3 restores the figure, revises it (in either direction), or continues the qualitative-only framing.

Whether the FY organic high end returns to 9.5% or the range narrows further to something like 8.5–9.2% — the trimmed 9.3% high end is the single most important signal on this print about how management sees H2. A Q3 print above 9% organic would create pressure to reopen the top of the range; a Q3 print at 8.5% or below would confirm the 8.8% midpoint is the target.

Adjusted operating margin holding above 27% into Q3 — Q2's 27.4% (+170bps YoY) is the level the FY +100bps commitment implies; a Q3 print at or above 27% validates the structural-margin machine, while a decline below 26% would raise the same question the Q1 disruption raised.

Vascular trajectory as the Inari comp fully laps — Q2's -0.7% reported / -1.8% CC is the first clean look at the sub-segment post-Inari-comp; whether Q3 shows sequential stabilization or continued deceleration will determine whether this is a comp-driven trough or a demand issue.

Hips reacceleration — Q2 Hips at +2.9% reported / +2.6% CC is the notable Ortho laggard vs. Knees (+8.4%) and Trauma & Extremities (+11.9%); watch whether Mako-driven mix and the shoulder-launch halo pull Hips growth back toward the segment average.

Mako shoulder launch commentary on the Q3 call — mid-2026 shoulder launch on Mako 4 was the platform-extension anchor for the FY26 growth algorithm; watch for install and surgeon-adoption color, particularly given the Q4 FY2025 "stunning" framing that management has been maintaining.

Sources

Stryker Corporation, Q2 2026 Earnings Press Release (SEC EX-99.1): https://www.sec.gov/Archives/edgar/data/310764/000031076426000048/sykex991earningsq22026.htm
Stryker Corporation, prior briefs referenced for guidance-change and watch-list context (Q1 FY2026, Q4 FY2025, Q3 FY2025, Q2 FY2025).

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.