Stryker (SYK) Q4 2025 earnings summary

Executive summary

• Achieved outstanding Q4 and full-year 2025 results, with organic sales growth of 11% for Q4 and 10.3% for the year, surpassing $25 billion in sales.

• Double-digit organic sales growth across Neurocranial, Endoscopy, Instruments, and Trauma and Extremities businesses globally.

• U.S. organic sales growth was 11.2%, and international organic sales growth was 7.5%, led by emerging markets, South Korea, and Japan.

• Adjusted operating income margin expanded by 100 bps to 30.2% in Q4 and 26.3% for the year, marking a second consecutive year of at least 100 basis points of adjusted operating margin expansion.

• Strategic initiatives included new business units, active M&A, and specialized sales force splits, fueling growth and innovation.

Financial highlights

• Q4 organic sales growth of 11% compared to 10.2% in Q4 2024; full-year organic sales growth of 10.3%.

• Adjusted EPS for Q4 was $4.47, up 11.5% year-over-year; full-year adjusted EPS was $13.63, up 11.8%.

• Adjusted gross margin for Q4 was 65.2%, 10 basis points lower year-over-year due to tariffs, offset by business mix and cost improvements.

• Adjusted operating margin reached 30.2% of sales, 100 basis points higher than Q4 2024.

• Year-to-date cash from operations was $5 billion, up $802 million from 2024, with free cash flow at 81% of adjusted net earnings.

Outlook and guidance

• 2026 organic net sales growth expected in the range of 8%-9.5%.

• Adjusted net earnings per share guidance for 2026 is $14.90-$15.10.

• Modestly positive price impact and slightly favorable foreign exchange expected in 2026.

• Full-year tariff impacts for 2026 projected at $400 million, with $200 million incremental over 2025.