Earnings review-Stryker (SYK) Q2 2026

Muffett Investments

Earnings Watch · Stock Analysis Division

Earnings Review

1 August 2026

◆  Healthcare · Medical Devices

Stryker Corporation

SYK NYQ · Mkt Cap: $124.9B · Q1 FY2026 Results

Report Period

Q1 FY2026

Reported: 2026-07-30

Headline Beat Expectations ✓ Beat Expectations

Key Metrics at a Glance

↑

Revenue Growth

+2.6%

YoY

↑

Operating Margin

15.5%

+68bps YoY

↑

Free Cash Flow

$415.0M

+226.8% YoY

!

Net Position

Net Debt

-$11.8B

↑

EPS (Diluted)

$8.63

N/A

Financial Metrics — Detailed Breakdown

Metric	Q1 FY2026	Q1 FY2025	YoY Change	Consensus Est.	vs. Estimate
Total Revenue	$6.0B	$5.9B	+2.6%	—	N/A
Gross Profit	$3.8B	$3.7B	+1.8%	—	N/A
Gross Margin	63.3%	63.8%	-54bps	—	N/A
Operating Income	$936.0M	$872.0M	+7.3%	—	N/A
Operating Margin	15.5%	14.9%	+68bps	—	N/A
Net Income	$745.0M	$654.0M	+13.9%	—	N/A
Net Margin	12.4%	11.1%	+123bps	—	N/A
Operating Cash Flow	$581.0M	$250.0M	+132.4%	—	N/A
Free Cash Flow	$415.0M	$127.0M	+226.8%	—	N/A
FCF Margin	6.9%	2.2%	+473bps	—	N/A
Total Debt	$14.7B	$16.8B	-12.3%	—	N/A
Cash & Equivalents	$2.9B	$2.3B	+24.1%	—	N/A
Net Cash / (Debt)	-$11.8B	-$14.5B	+18.1%	—	N/A
EPS (Diluted)	$8.63	$N/A	N/A	$—	N/A

⚠  Management Commentary — Signals

• No significant red flags detected in EDGAR filing.

📈  Price Reaction

Pre-Earnings Close

$352.25

2026-07-30

Post-Earnings Price

$348.04

Next trading session

1-Day Move

-1.20%

vs. market

52-Week Range

$281.00 – $396.86

 

−10%0%+10%

Price data sourced from Yahoo Finance. Reaction shown vs. prior trading session close.

Our Verdict

★★★★★

4 / 5 — Beat Expectations

Constructive

Stryker reported a beat expectations quarter, with revenue grew +2.6% YoY to $6.0B. operating margins expanded by 68bps to 15.5%. Free cash flow came in at $415.0M. The balance sheet remains under watch given the debt load.

• ✓Revenue grew +2.6% YoY, demonstrating continued top-line momentum.
• ✓Operating margin expanded by 68bps YoY — positive operating leverage.
• ✓Free cash flow grew +226.8% YoY — strong cash generation continues.
• ✗Total debt exceeds annual revenue — leverage warrants careful monitoring.
• →Muted price reaction (-1.2%) — results largely in-line with expectations.

This analysis is produced by Muffett Investments for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Data sourced from Yahoo Finance and SEC EDGAR. Past performance is not indicative of future results.

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