Q2 2026 Stryker Corp Earnings Call Transcript
Key Points
- Stryker Corp (SYK) delivered strong organic sales growth of 9% in Q2 2026, with high single-digit growth across both MedSurg/Neurotechnology and Orthopaedics segments.
- The company saw robust demand for capital products, with an elevated backlog and record Mako installations in Q2, indicating strong future revenue potential.
- Adjusted EPS grew 17.9% year-over-year, driven by improved gross margins and operational excellence, despite the cybersecurity incident recovery.
- Stryker Corp (SYK) is expanding its product portfolio with successful launches like Mako RPS, Triathlon Gold, and Incompass Total Ankle, which are generating strong customer interest.
- The company plans to resume share repurchases this quarter, supported by strong cash flow generation and a solid balance sheet, while maintaining M&A as a top priority.
- Stryker Corp (SYK) faced a supply disruption in its Peripheral Vascular business, leading to a meaningful backorder situation and lost sales in Q2, with recovery expected only by end of Q3.
- The company narrowed its full-year guidance, lowering the top end of organic sales growth range to 9.3%, reflecting uncertainty in the second-half ramp.
- US hip organic sales growth was lighter than expected at 4.9%, partly due to a high prior-year comparable, but still below some analyst expectations.
- The cybersecurity incident continues to impact the company, with costs related to lost absorption and IT remediation expected to offset some Q2 tariff benefits in the second half.
- The company faces potential headwinds from physician reimbursement cuts on joint replacements, which could impact future procedure volumes, though management remains optimistic.
Welcome to the second-quarter 2026 Stryker earnings call. My name is Meghan, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Following the conference, we will conduct a question-and-answer session. This conference call is being recorded for replay purposes.
Before we begin, I would like to remind you that the discussions during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings with the SEC. Also, the discussions will include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release that is an exhibit to Stryker's current report on Form 8-K filed with the SEC.
I will now turn the call over to Mr. Kevin Lobo, Chair and Chief Executive Officer. You may proceed, sir.
Welcome to Stryker's second-quarter earnings
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