AI Earnings Predictions for Stryker Corporation (SYK)

EX-99.1

2 sykex991earningsq32026.htm

EX-99.1

Document

Exhibit 99.1

STRYKER REPORTS THIRD QUARTER 2026 OPERATING RESULTS

Portage, Michigan - October 29, 2026 - Stryker (NYSE:SYK) reported operating results for the third quarter of 2026:

Third Quarter Results

•Reported net sales increased 7.7% to $6.5 billion

•Organic net sales increased 7.7%

•Reported operating income margin of 15.9%

•Adjusted operating income margin(1) increased 60 bps to 26.2%

•Reported EPS decreased 11.7% to $1.96

•Adjusted EPS(1) increased 10.3% to $3.52

Third Quarter Net Sales Growth Overview

ReportedForeign Currency ExchangeConstant CurrencyAcquisitions / DivestituresOrganic

MedSurg and Neurotechnology9.2 %— %9.2 %0.1 %9.1 %

Orthopaedics5.7 (0.2)5.9 — 5.9

Total7.7 %— %7.7 %— %7.7 %

“We delivered 7.7% organic sales growth and double-digit adjusted earnings growth in the quarter,” said Kevin A. Lobo, Chair and CEO. “While, in absolute terms, this reflected good overall performance, it did fall short of our expectations. The underlying fundamentals of the business remain strong, and we expect a solid performance in Q4 and good momentum heading into 2027.”

Sales Analysis

Consolidated net sales of $6.5 billion increased 7.7% in the quarter on both a reported and constant currency basis. Organic net sales increased 7.7% in the quarter primarily driven by increased unit volume.

MedSurg and Neurotechnology net sales of $3.7 billion increased 9.2% in the quarter on both a reported and constant currency basis. Organic net sales increased 9.1% in the quarter primarily driven by increased unit volume.

Orthopaedics net sales of $2.9 billion increased 5.7% in the quarter and 5.9% in constant currency. Organic net sales increased 5.9% in the quarter from increased unit volume.

Earnings Analysis

Reported net earnings of $753 million decreased 12.3% in the quarter. Reported net earnings per diluted share of $1.96 decreased 11.7% in the quarter. Reported gross profit margin and reported operating income margin were 65.2% and 15.9% in the quarter. Reported net earnings include certain items, such as charges for acquisition and integration-related activities, the amortization of purchased intangible assets, structural optimization and other special charges, goodwill and other impairments, costs to comply with certain medical device regulations, recall-related matters, regulatory and legal matters and tax matters. Excluding the aforementioned items, adjusted gross profit margin(1) was 65.4% in the quarter, and adjusted operating income margin(1) was 26.2% in the quarter. Adjusted net earnings(1) of $1.4 billion increased 10.1% in the quarter. Adjusted net earnings per diluted share(1) of $3.52 increased 10.3% in the quarter.

Share Repurchases

We repurchased $1.0 billion of our common stock in the third quarter of 2026.

In October 2026 our Board of Directors approved an increase of $3.0 billion to our existing share repurchase program. The manner, timing and amount of repurchases are determined by management based on an evaluation of market conditions, stock price, and other factors and are subject to regulatory considerations. Purchases may be made from time to time in the open market, in privately negotiated transactions, accelerated share repurchase programs or otherwise.

1

2026 Outlook

We are updating our full year 2026 guidance and now expect organic net sales growth(2) in the range of 6.5% to 7.0% and adjusted net earnings per diluted share(2) to be in the range of $14.80 to $14.90. Our sales guidance includes a modestly positive pricing impact. Additionally, foreign exchange is expected to have a slightly favorable impact on both sales and adjusted net earnings per diluted share(2) should rates hold near current levels.

(1) A reconciliation of the non-GAAP financial measures: adjusted gross profit margin, adjusted operating income and adjusted operating income margin, adjusted net earnings and adjusted net earnings per diluted share, to the most directly comparable GAAP measures: gross profit margin, operating income and operating income margin, net earnings and net earnings per diluted share, and other important information accompanies this press release.

(2) We are unable to present a quantitative reconciliation of our expected net sales growth to expected organic net sales growth as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisitions and divestitures and the impact of foreign currency exchange rates. We are unable to present a quantitative reconciliation of our expected net earnings per diluted share to expected adjusted net earnings per diluted share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of structural optimization and other special charges, acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain a

SEC.gov | Request Rate Threshold Exceeded

U.S. Securities and Exchange Commission

You’ve Exceeded the SEC’s Traffic Limit

Your request rate has exceeded the SEC’s maximum allowable requests per second. Your access to SEC.gov will be limited for 10 minutes.

Current guidelines limit each user to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that submit excessive requests.

The block will be lifted automatically by waiting 10 minutes. Continuing to exceed the SEC’s maximum allowable request rate during the time-out period will extend the duration of the time-out period. To ensure fair access for all users, please reduce the rate of your requests and visit SEC.gov again after the 10 minute time-out period has passed.

For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. For more information, contact opendata@sec.gov.

For more information, please see the SEC’s Web Site Privacy and Security Policy. Thank you for your interest in the U.S. Securities and Exchange Commission.

Reference ID: 0.ce06d217.1785673034.5f6f44fa

More Information

Internet Security Policy

By using this site, you are agreeing to security monitoring and auditing. For security purposes, and to ensure that the public service remains available to users, this government computer system employs programs to monitor network traffic to identify unauthorized attempts to upload or change information or to otherwise cause damage, including attempts to deny service to users.

Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. §§ 1001 and 1030).

To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. We reserve the right to block IP addresses that submit excessive requests. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests.

If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or expected to impact individuals browsing the SEC.gov website.

Note that this policy may change as the SEC manages SEC.gov to ensure that the website performs efficiently and remains available to all users.

Note: We do not offer technical support for developing or debugging scripted downloading processes.

SEC.gov | Request Rate Threshold Exceeded

U.S. Securities and Exchange Commission

You’ve Exceeded the SEC’s Traffic Limit

Your request rate has exceeded the SEC’s maximum allowable requests per second. Your access to SEC.gov will be limited for 10 minutes.

Current guidelines limit each user to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that submit excessive requests.

The block will be lifted automatically by waiting 10 minutes. Continuing to exceed the SEC’s maximum allowable request rate during the time-out period will extend the duration of the time-out period. To ensure fair access for all users, please reduce the rate of your requests and visit SEC.gov again after the 10 minute time-out period has passed.

For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. For more information, contact opendata@sec.gov.

For more information, please see the SEC’s Web Site Privacy and Security Policy. Thank you for your interest in the U.S. Securities and Exchange Commission.

Reference ID: 0.ce06d217.1784385178.ac3374eb

More Information

Internet Security Policy

By using this site, you are agreeing to security monitoring and auditing. For security purposes, and to ensure that the public service remains available to users, this government computer system employs programs to monitor network traffic to identify unauthorized attempts to upload or change information or to otherwise cause damage, including attempts to deny service to users.

Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. §§ 1001 and 1030).

To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. We reserve the right to block IP addresses that submit excessive requests. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests.

If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or expected to impact individuals browsing the SEC.gov website.

Note that this policy may change as the SEC manages SEC.gov to ensure that the website performs efficiently and remains available to all users.

Note: We do not offer technical support for developing or debugging scripted downloading processes.