| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 41 | 28.5x | 17.8x | Around median | |
Growth | 73 | 8.5% | 7.1% | Top tier | |
Quality | 85 | 10.6% | 4.5% | Top tier | |
Safety | 74 | 1.7x | 2.6x | Top tier | |
Capital Return | 62 | 1.25% | 2.12% | Around median | |
Momentum | 17 | -12.0% | 2.9% | Bottom tier | |
Sentiment | 46 | 17 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Stryker Corporation operates in medical technology through a broad portfolio that includes MedSurg and Neurotechnology and Orthopaedics. The company generates revenue from hospital products and equipment and medical procedures, including Mako robotic surgery systems, knee, hip, shoulder, and ankle implants, trauma and vascular products, Endoscopy scopes, ProCuity beds, and the SmartCare platform, which includes Vocera and care.ai. Its model combines sales of capital equipment to hospitals with products used in surgical procedures and acute and emergency care.
In quarter 2 of fiscal year 2026, revenue was $6.6 billion, gross profit was $4.5 billion, net income was $1.3 billion, and reported earnings per share were $3.30, according to EDGAR data. This equates to an approximate gross profit margin of 68.2% and a net income margin of approximately 19.7%, while the company reported an adjusted gross margin of 66% and an adjusted operating margin of 27.4%. Adjusted earnings per share were $3.69, up 17.9% from quarter 2 of fiscal year 2025.
Organic sales growth was 9% in quarter 2 of fiscal year 2026, with MedSurg and Neurotechnology growing 9.2% and Orthopaedics growing 8.6%. Endoscopy in the United States achieved organic growth of 10.2%, Medical grew 13.1%, and Trauma and Extremities grew 12.5%, while Vascular declined 6.7% due to a supply disruption in peripheral vascular. The adjusted operating margin improved by 170 basis points, supported by an improved gross margin and lower adjusted selling, general, and administrative expenses as a percentage of sales.
Analyst consensus for SYK stock is a "Buy," with an average price target of $381.59, a high target of $465, and a low target of $315; the average is approximately 3.8% below the 52-week range high of $396.86, while the range low is $281. The wide gap between the $315 and $465 targets reflects differing assessments of the pace at which backlog will be converted into revenue and the recovery from the cyber outage and peripheral vascular disruption. The data do not include a valid comparable price-to-earnings ratio, while the narrowing of the fiscal year 2026 outlook explains part of the repricing reflected in the decline following the July 30, 2026 results.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Revenue was $6.6 billion, gross profit was $4.5 billion, and net income was $1.3 billion, according to EDGAR data. Reported earnings per share were $3.30, while adjusted earnings per share were $3.69, up 17.9% from quarter 2 of fiscal year 2025. Organic sales growth also reached 9%, and the adjusted operating margin increased 170 basis points to 27.4%.
The company expects organic net sales growth between 8.3% and 9.3% during fiscal year 2026. It also expects adjusted earnings per share between $14.95 and $15.10 and an effective tax rate between 15% and 16%. This outlook depends on continued demand for capital equipment, increased production, and converting the high backlog into shipments during the second half of fiscal year 2026.
The cyber outage halted part of production during quarter 1 of fiscal year 2026, before the plants began operating steadily from April 1, 2026, according to management. In quarter 2 of fiscal year 2026, the company regained momentum and recorded organic growth of 9%, but it still faced the task of making up delayed capital equipment production. Costs associated with under-absorption of manufacturing costs and the remediation and stabilization of systems continue to limit the full flow-through of the second quarter earnings outperformance into the full-year outlook.
Automated analysis for informational purposes only — not investment advice.
Mako procedures globally exceeded 2.5 million procedures, and its systems have been deployed in 47 countries, with utilization rates rising across the installed base. The company recorded the best second quarter in its history for Mako installations during quarter 2 of fiscal year 2026, and adoption of the system also helped drive 6.2% organic growth in knee sales in the United States. Stryker expanded the platform to knee, hip, spine, and shoulder applications and fully commercially launched Mako RPS in the United States during fiscal year 2026.
A disruption at one plant within the Inari business caused supply shortages and a backlog of deferred orders, leading organic Vascular sales in the United States to decline 6.7% in quarter 2 of fiscal year 2026. Because many procedures involving these products are urgent, the company lost some sales rather than deferring them, while prioritizing its highest-volume and most loyal customers. Management expects to reduce the backlog to a manageable level by the end of quarter 3 of fiscal year 2026 and return to growth in quarters 3 and 4 of fiscal year 2026.
The company ended quarter 2 of fiscal year 2026 with approximately $3.5 billion in cash and marketable investments and generated $1.8 billion in operating cash flow since the beginning of the year. Acquisitions aimed at supporting revenue growth remain the top capital allocation priority, with management confirming a strong deal pipeline and price discipline. At the same time, the company plans to resume share repurchases during quarter 3 of fiscal year 2026 and has approximately $1 billion available under a previous authorization, with no obligation to use it in full.
