Revenue growth has significantly decelerated to 2.6% in 2026Q1, while operating margins have contracted to 15.5%, suggesting that the company is struggling to scale profitability amidst current elective procedure headwinds.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 25.27B | 25.12B | 22.59B | 20.5B | 18.45B | 17.11B | 14.35B | 14.88B | 13.6B | 12.44B | 11.32B | 9.95B | 9.68B | 9.02B | 8.66B | 8.31B | 7.32B | 6.72B | 6.72B | 6B | 5.41B | 4.87B | 4.26B | 3.63B | 3.01B | 2.6B | 2.29B | 2.1B | 1.1B | 980.1M | 910.1M |
| Revenue Growth % | 8.84% | 11.16% | 10.23% | 11.11% | 7.84% | 19.21% | -3.58% | 9.43% | 9.3% | 9.88% | 13.86% | 2.8% | 7.25% | 4.2% | 4.21% | 13.48% | 8.88% | 0.07% | 11.96% | 11.01% | 10.96% | 14.29% | 17.57% | 20.38% | 15.73% | 13.67% | 8.83% | 90.69% | 12.56% | 7.69% | 4.37% |
| Cost of Goods Sold | 9.18B | 9.05B | 8.62B | 8B | 7.41B | 6.4B | 5.6B | 5.5B | 5B | 4.54B | 4.08B | 3.56B | 3.45B | 3.08B | 2.88B | 2.79B | 2.34B | 2.22B | 2.17B | 1.91B | 1.89B | 1.77B | 1.56B | 1.31B | 1.11B | 963.8M | 740.5M | 723.7M | 434.5M | 364.5M | 357.7M |
| COGS % of Revenue | - | 36.04% | 38.13% | 39.05% | 40.16% | 37.4% | 39.01% | 36.97% | 36.77% | 36.49% | 36.02% | 35.78% | 35.68% | 34.12% | 33.28% | 33.59% | 32.02% | 33.01% | 32.32% | 31.77% | 35.01% | 36.28% | 36.55% | 36.2% | 36.9% | 37.04% | 32.34% | 34.4% | 39.39% | 37.19% | 39.3% |
| Gross Profit | 16.09B | 16.07B | 13.98B | 12.49B | 11.04B | 10.71B | 8.75B | 9.38B | 8.6B | 7.9B | 7.25B | 6.39B | 6.22B | 5.94B | 5.78B | 5.52B | 4.98B | 4.5B | 4.55B | 4.09B | 3.51B | 3.1B | 2.7B | 2.31B | 1.9B | 1.64B | 1.55B | 1.38B | 668.7M | 615.6M | 552.4M |
| Gross Margin % | 63.67% | 63.96% | 61.87% | 60.95% | 59.84% | 62.6% | 60.99% | 63.03% | 63.23% | 63.51% | 63.98% | 64.22% | 64.32% | 65.88% | 66.72% | 66.41% | 67.98% | 66.99% | 67.68% | 68.23% | 64.99% | 63.72% | 63.45% | 63.8% | 63.1% | 62.96% | 67.66% | 65.6% | 60.61% | 62.81% | 60.7% |
| Gross Profit Growth % | - | 14.91% | 11.89% | 13.17% | 3.09% | 22.35% | -6.7% | 9.09% | 8.82% | 9.07% | 13.45% | 2.64% | 4.71% | 2.89% | 4.69% | 10.87% | 10.48% | -0.94% | 11.06% | 16.53% | 13.18% | 14.78% | 16.93% | 21.71% | 15.98% | 5.78% | 12.24% | 106.37% | 8.63% | 11.44% | 3.99% |
| Operating Expenses | 10.7B | 11.18B | 8.92B | 8.21B | 7.31B | 6.95B | 5.72B | 5.99B | 5.5B | 5.14B | 4.67B | 4.13B | 3.99B | 3.84B | 3.86B | 3.55B | 3.13B | 2.78B | 2.99B | 2.77B | 2.39B | 2.14B | 1.86B | 1.64B | 1.34B | 1.17B | 1.12B | 1.02B | 479.9M | 431.7M | 418.2M |
| OpEx % of Revenue | - | 44.5% | 39.47% | 40.07% | 39.6% | 40.6% | 39.89% | 40.27% | 40.41% | 41.27% | 41.23% | 41.57% | 41.28% | 42.61% | 44.58% | 42.69% | 42.7% | 41.35% | 44.55% | 46.11% | 44.15% | 43.89% | 43.71% | 45.28% | 44.35% | 44.8% | 48.8% | 48.26% | 43.5% | 44.05% | 45.95% |
| Selling, General & Admin | 8.55B | 8.65B | 7.5B | 6.92B | 6.08B | 5.81B | 4.82B | 5.02B | 4.63B | 4.35B | 3.95B | 3.51B | 3.38B | 3.31B | 3.39B | 3.08B | 2.73B | 2.44B | 2.63B | 2.39B | 2.06B | 1.85B | 1.65B | 1.42B | 1.17B | 985.4M | 885.6M | 808.4M | 381.2M | 341.5M | 326.6M |
| SG&A % of Revenue | - | 34.44% | 33.22% | 33.76% | 32.93% | 33.98% | 33.59% | 33.75% | 34.07% | 34.95% | 34.91% | 35.29% | 34.94% | 36.67% | 39.14% | 37.13% | 37.32% | 36.35% | 39.07% | 39.86% | 38.14% | 38.05% | 38.76% | 39.06% | 38.7% | 37.87% | 38.68% | 38.43% | 34.55% | 34.84% | 35.89% |
| Research & Development | 1.62B | 1.58B | 1.41B | 1.29B | 1.23B | 1.13B | 905M | 971M | 862M | 787M | 715M | 625M | 614M | 536M | 471M | 462M | 393.9M | 336.2M | 367.8M | 375.3M | 324.6M | 284.7M | 211M | 180.2M | 141.4M | 142.1M | 122.2M | 105.2M | 61.1M | 56.9M | 56.9M |
| R&D % of Revenue | - | 6.3% | 6.26% | 6.31% | 6.67% | 6.62% | 6.31% | 6.52% | 6.34% | 6.32% | 6.31% | 6.28% | 6.35% | 5.94% | 5.44% | 5.56% | 5.38% | 5% | 5.47% | 6.25% | 6% | 5.84% | 4.95% | 4.97% | 4.7% | 5.46% | 5.34% | 5% | 5.54% | 5.81% | 6.25% |
| Other Operating Expenses | 3M | 902M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 45.4M | 28.9M | 38.4M | 109.4M | 101.7M | 37.6M | 33.3M | 34.7M |
| Operating Income | 5.39B | 4.89B | 5.06B | 4.28B | 3.73B | 3.76B | 3.03B | 3.39B | 3.1B | 2.77B | 2.58B | 2.25B | 2.23B | 2.1B | 1.92B | 1.97B | 1.85B | 1.72B | 1.55B | 1.33B | 1.13B | 966M | 841.2M | 680.3M | 547.5M | 472M | 358M | -118.4M | 188.8M | 183.9M | 134.2M |
| Operating Margin % | 21.34% | 19.47% | 22.4% | 20.89% | 20.24% | 22% | 21.1% | 22.76% | 22.82% | 22.24% | 22.75% | 22.64% | 23.04% | 23.27% | 22.14% | 23.73% | 25.28% | 25.64% | 23.13% | 22.12% | 20.85% | 19.83% | 19.74% | 18.77% | 18.18% | 18.14% | 15.64% | -5.63% | 17.11% | 18.76% | 14.75% |
| Operating Income Growth % | - | -3.4% | 18.22% | 14.65% | -0.77% | 24.27% | -10.63% | 9.15% | 12.18% | 7.37% | 14.43% | 1.03% | 6.19% | 9.49% | -2.74% | 6.51% | 7.35% | 10.94% | 17.09% | 17.76% | 16.67% | 14.84% | 23.65% | 24.26% | 16% | 31.84% | 402.36% | -162.71% | 2.66% | 37.03% | -14.69% |
| EBITDA | 6.64B | 6.08B | 6.11B | 5.31B | 4.73B | 4.75B | 3.84B | 4.17B | 3.83B | 3.41B | 3.12B | 2.65B | 2.61B | 2.41B | 2.19B | 2.45B | 2.26B | 2.11B | 1.94B | 1.69B | 1.46B | 1.26B | 1.09B | 910M | 733.6M | 644M | 526.6M | 44.4M | 226.4M | 217.2M | 168.9M |
| EBITDA Margin % | 26.27% | 24.22% | 27.05% | 25.9% | 25.65% | 27.78% | 26.76% | 27.99% | 28.14% | 27.39% | 27.58% | 26.63% | 26.95% | 26.67% | 25.34% | 29.52% | 30.89% | 31.37% | 28.9% | 28.23% | 26.99% | 25.78% | 25.62% | 25.1% | 24.36% | 24.75% | 23% | 2.11% | 20.52% | 22.16% | 18.56% |
| EBITDA Growth % | 5.89% | -0.47% | 15.11% | 12.19% | -0.44% | 23.78% | -7.83% | 8.86% | 12.26% | 9.16% | 17.89% | 1.61% | 8.35% | 9.66% | -10.52% | 8.46% | 7.19% | 8.64% | 14.63% | 16.1% | 16.16% | 15% | 20.01% | 24.05% | 13.91% | 22.29% | 1086.04% | -80.39% | 4.24% | 28.6% | -9.19% |
| D&A (Non-Cash Add-back) | 1.25B | 1.19B | 1.05B | 1.03B | 998M | 990M | 812M | 778M | 723M | 642M | 546M | 397M | 378M | 307M | 277M | 481M | 410.2M | 385.3M | 387.6M | 366.6M | 331.8M | 289.9M | 250.9M | 229.7M | 186.1M | 172M | 168.6M | 162.8M | 37.6M | 33.3M | 34.7M |
| EBIT | 4.92B | 5.12B | 3.89B | 4.03B | 3.02B | 2.62B | 2.27B | 2.85B | 2.62B | 2.31B | 2.15B | 1.84B | 1.27B | 1.31B | 1.77B | 1.78B | 1.81B | 1.64B | 1.61B | 1.39B | 1.11B | 962.3M | 723.8M | 671.3M | 564.7M | 472.6M | 430M | 364.7M | 188.9M | 184M | 134.2M |
| Net Interest Income | -793M | -486M | -257M | -281M | -243M | -269M | -213M | -132M | -145M | -187M | -199M | -94M | -85M | -71M | -20M | -24M | -28.8M | 39.4M | 67.2M | 63.3M | 31.9M | 5.6M | -2.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 52M | 121M | 139M | 75M | 94M | 68M | 102M | 155M | 119M | 60M | 29M | 14M | 28M | 24M | 47M | 70M | 48.7M | 53.9M | 97.7M | 85.5M | 41.4M | 13.3M | 4.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 845M | 607M | 396M | 356M | 337M | 337M | 315M | 287M | 264M | 247M | 228M | 108M | 113M | 95M | 67M | 94M | 77.5M | 14.5M | 30.5M | 22.2M | 9.5M | 7.7M | 6.8M | 22.6M | 40.3M | 67.9M | 96.6M | 122.6M | 0 | 0 | 0 |
| Other Income/Expense | -793M | -375M | -1.57B | -608M | -1.05B | -1.48B | -1.07B | -826M | -748M | -704M | -656M | -517M | -1.07B | -887M | -212M | -285M | -121M | -100M | 26.3M | 43M | -23.2M | -11.4M | -124.2M | -27.8M | -86.9M | -66.3M | -131.4M | -170.6M | -98M | 11.4M | 32M |
| Pretax Income | 4.6B | 4.51B | 3.49B | 3.67B | 2.68B | 2.28B | 1.95B | 2.56B | 2.36B | 2.06B | 1.92B | 1.74B | 1.16B | 1.21B | 1.71B | 1.69B | 1.73B | 1.62B | 1.58B | 1.37B | 1.1B | 1B | 717M | 652.5M | 506.7M | 405.7M | 334.9M | 29.8M | 60M | 195.3M | 166.2M |
| Pretax Margin % | 18.2% | 17.97% | 15.45% | 17.92% | 14.54% | 13.33% | 13.62% | 17.21% | 17.32% | 16.58% | 16.96% | 17.44% | 11.99% | 13.44% | 19.7% | 20.3% | 23.63% | 24.15% | 23.52% | 22.83% | 20.42% | 20.6% | 16.82% | 18% | 16.82% | 15.59% | 14.63% | 1.42% | 5.44% | 19.93% | 18.26% |
| Income Tax | 1.26B | 1.27B | 499M | 508M | 325M | 287M | 355M | 479M | -1.2B | 1.04B | 274M | 296M | 645M | 206M | 407M | 341M | 456.2M | 516.5M | 432.4M | 383.4M | 326.1M | 311M | 251.3M | 199M | 161.1M | 133.9M | 113.9M | 10.4M | 20.4M | 70M | 61.7M |
| Effective Tax Rate % | 27.46% | 28.09% | 14.29% | 13.83% | 12.11% | 12.58% | 18.17% | 18.7% | -50.81% | 50.56% | 14.26% | 17.06% | 55.6% | 17% | 23.87% | 20.23% | 26.38% | 31.81% | 27.36% | 27.98% | 29.54% | 31% | 35.05% | 30.5% | 31.79% | 33% | 34.01% | 34.9% | 34% | 35.84% | 37.12% |
| Net Income | 3.34B | 3.25B | 2.99B | 3.17B | 2.36B | 1.99B | 1.6B | 2.08B | 3.55B | 1.02B | 1.65B | 1.44B | 515M | 1.01B | 1.3B | 1.34B | 1.27B | 1.11B | 1.15B | 1.02B | 777.7M | 675.2M | 465.7M | 453.5M | 345.6M | 267M | 221M | 19.4M | 39.6M | 125.3M | 104.5M |
| Net Margin % | 13.21% | 12.92% | 13.25% | 15.44% | 12.78% | 11.66% | 11.14% | 13.99% | 26.12% | 8.2% | 14.54% | 14.47% | 5.32% | 11.15% | 14.99% | 16.19% | 17.4% | 16.47% | 17.08% | 16.96% | 14.39% | 13.86% | 10.93% | 12.51% | 11.48% | 10.26% | 9.65% | 0.92% | 3.59% | 12.78% | 11.48% |
| Net Income Growth % | 16.72% | 8.45% | -5.43% | 34.22% | 18.25% | 24.7% | -23.24% | -41.37% | 248.33% | -38.07% | 14.45% | 179.42% | -48.81% | -22.5% | -3.49% | 5.62% | 14.99% | -3.52% | 12.82% | 30.82% | 15.18% | 44.99% | 2.69% | 31.22% | 29.44% | 20.81% | 1039.18% | -51.01% | -68.4% | 19.9% | 20.11% |
| Net Income (Continuing) | 3.34B | 3.25B | 2.99B | 3.17B | 2.36B | 1.99B | 1.6B | 2.08B | 3.55B | 1.02B | 1.65B | 1.44B | 515M | 1.01B | 1.3B | 1.34B | 1.27B | 1.11B | 1.15B | 986.7M | 771.4M | 643.6M | 465.7M | 453.5M | 345.6M | 271.8M | 221M | 19.4M | 60M | 125.3M | 104.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16.7M | 35.7M | 85.9M |
| EPS (Diluted) | 8.63 | 8.40 | 7.76 | 8.25 | 6.17 | 5.22 | 4.20 | 5.48 | 9.34 | 2.68 | 4.35 | 3.78 | 1.34 | 2.63 | 3.39 | 3.45 | 3.19 | 2.77 | 2.78 | 2.44 | 1.89 | 1.57 | 1.08 | 1.07 | 0.81 | 0.67 | 0.55 | 0.05 | 0.15 | 0.32 | 0.27 |
| EPS Growth % | 16.76% | 8.25% | -5.94% | 33.71% | 18.2% | 24.29% | -23.36% | -41.33% | 248.51% | -38.39% | 15.08% | 182.09% | -49.05% | -22.42% | -1.74% | 8.15% | 15.16% | -0.36% | 13.93% | 29.1% | 20.38% | 45.37% | 0.93% | 32.1% | 20.9% | 21.82% | 1000% | -66.67% | -53.13% | 18.52% | 17.39% |
| EPS (Basic) | - | 8.49 | 7.86 | 8.34 | 6.23 | 5.29 | 4.26 | 5.57 | 9.50 | 2.73 | 4.40 | 3.82 | 1.36 | 2.66 | 3.41 | 3.48 | 3.21 | 2.79 | 2.81 | 2.48 | 1.91 | 1.60 | 1.10 | 1.09 | 0.83 | 0.69 | 0.56 | 0.05 | 0.16 | 0.33 | 0.27 |
| Diluted Shares Outstanding | 386.5M | 382.2M | 385.6M | 383.7M | 382.2M | 382.3M | 380.3M | 379.9M | 380.3M | 380.1M | 378.5M | 380.9M | 382.8M | 382.1M | 383M | 389.5M | 399.5M | 399.4M | 413.6M | 417.2M | 411.48M | 410.8M | 409.3M | 423.83M | 426.67M | 398.51M | 401.82M | 388M | 393.44M | 391.56M | 394.34M |
| Basic Shares Outstanding | 382.9M | 382.2M | 381M | 379.6M | 378.2M | 377M | 375.5M | 374M | 374.1M | 374M | 374.1M | 376.6M | 378.5M | 378.6M | 380.6M | 386.5M | 396.4M | 397.4M | 408.1M | 409.7M | 407.17M | 403.7M | 401.2M | 416.06M | 416.39M | 386.96M | 391.15M | 388M | 387.1M | 385.54M | 387.04M |
| Dividend Payout Ratio | - | 39.56% | 40.73% | 35.99% | 44.57% | 47.64% | 53.97% | 37.35% | 19.79% | 62.35% | 34.49% | 36.21% | 89.71% | 39.86% | 24.96% | 20.74% | 18.71% | 17.92% | 11.81% | 8.82% | 5.73% | 5.36% | 6.01% | 5.23% | 5.7% | 5.88% | 5.75% | 59.79% | 26.77% | 7.74% | 4.21% |
Elective procedure volume volatility
As reported in recent financial statements, Stryker's top-line expansion has decelerated to 2.6% in 2026Q1, a notable departure from the double-digit growth observed throughout 2025, suggesting that the company's reliance on elective procedure volumes may be encountering a period of heightened sensitivity to broader healthcare staffing constraints.
The sharp deceleration in revenue growth warrants investigation into whether this reflects a structural saturation in the Mako robotic platform or temporary macroeconomic pressures on hospital capital budgets. Investors should monitor if this trend persists, as the company's historical ability to outpace the broader MedTech market appears to be under pressure.
Based on reported figures, Stryker maintained a gross margin of 63.3% in 2026Q1, demonstrating the structural pricing power inherent in its proprietary implant designs despite the recent top-line slowdown that has challenged the company's ability to leverage its high-volume MedSurg and Orthopaedics segments effectively.
The stability of gross margins suggests that the company retains significant pricing power, likely supported by the high switching costs of its robotic ecosystem. However, the inability to translate this gross margin strength into consistent operating profitability suggests that internal cost management remains a critical variable for future performance.
According to recent SEC filings, Stryker's operating margin contracted to 15.5% in 2026Q1, indicating that the company is currently struggling to scale its operating income in proportion to gross profit, likely due to the persistent burden of its extensive direct sales force and associated commission structures.
The divergence between gross and operating margins implies that the company's decentralized operational model may be creating inefficiencies during periods of slower revenue growth. Analysts should scrutinize whether the current SG&A spend is a necessary investment for long-term market share or a sign of diminishing returns on sales force expansion.
As evidenced by the significant fluctuations in quarterly EPS, ranging from $1.41 to $2.29 over the past two years, Stryker's bottom-line quality appears impacted by non-operating items and variable stock-based compensation, which complicates the assessment of the company's underlying core profitability and sustainable earnings power.
The inconsistency in net income suggests that investors should focus on normalized earnings metrics rather than GAAP figures, which are frequently distorted by one-off charges. The variability in stock-based compensation, which reached $87 million in 2026Q1, further suggests that dilution management remains a key factor in evaluating shareholder value.
Based on the provided data, the recent contraction in operating margins to 15.5% challenges the narrative of Stryker as a high-growth, high-margin ecosystem, potentially exposing the stock to valuation compression if the market begins to re-rate the company as a slower-growing, cyclical medical device manufacturer.
Short-sellers may focus on the company's inability to maintain operating leverage during the 2026Q1 slowdown, which contradicts the 'software-driven' growth thesis. If the Mako platform's contribution to recurring revenue fails to offset the cyclicality of capital equipment sales, the current premium valuation may appear increasingly difficult to justify.
Quick answers to the most common questions about buying SYK stock.
For fiscal year 2025, Stryker Corporation (SYK) reported total revenue of $25.12B. This represents a 2659.7% increase compared to $910.1M in 1996.
Stryker Corporation (SYK) is profitable, generating $3.25B in net income for the fiscal year ending 2025 with a net profit margin of 12.9%.
Stryker Corporation (SYK) reported an operating income of $4.89B, resulting in an operating profit margin of 19.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Stryker Corporation (SYK) generated $16.07B in gross profit for the year, representing a gross profit margin of 64.0%. This demonstrates the company's core pricing power and production efficiency.