Will SYK's Q3 Results Reflect MedSurg Strength & Rebound in Orthopaedics?

Stryker Corporation SYK is scheduled to release third-quarter 2025 results on Oct. 30, after market close. In the last reported quarter, the company delivered an earnings surprise of 2.29%.

Q3 Estimates

The Zacks Consensus Estimate for earnings is pegged at $3.14 per share, indicating an increase of 9.4% year over year.

The consensus mark for revenues is pinned at $6.04 billion, implying growth of almost 10% from the prior-year reported figure.

Our model estimates for total sales and adjusted earnings per share are pegged at $6.04 billion and $3.15, respectively.

Factors to Note

Stryker entered the third quarter of 2025 on the back of a robust second quarter, which showcased 10.2% organic sales growth and double-digit strength in its MedSurg and Neurotechnology divisions. Several dynamics, both positive and challenging, are expected to have shaped performance across its diverse portfolio during the third quarter.

Orthopaedics: Robotics Driving Hip and Knee Strength

The orthopaedics franchise has likely remained a central growth engine, with the Mako robotic platform continuing to expand its footprint globally. The second quarter marked record installations for Mako, supported by high utilization rates and the launch of Mako 4, which integrates hip revision and spine applications. Early surgeon feedback has been strong, and demand for robotic-assisted procedures has remained resilient. Hips and knees, supported by the Insignia Hip Stem and robotic adoption, have likely sustained mid- to high-single-digit growth. Trauma and extremities should have maintained double-digit momentum, bolstered by the Pangea plating system, while shoulders might have continued to benefit from new product introductions.

However, management noted a softer June, driven by seasonal slowdowns and international fluctuations. While July showed a rebound, quarterly knee volumes might have seen modest variability compared with other segments.

Our estimate for the Orthopaedics and Spine segment sales is pegged at $2.24 billion.

MedSurg and Neurotechnology: Capital Demand Offsetting Supply Constraints

Capital equipment demand has remained a bright spot, underpinned by robust hospital CapEx budgets and a healthy order backlog. Within MedSurg, Endoscopy is expected to have sustained double-digit growth, powered by the 1788 video platform, strong sports medicine launches, and operating room infrastructure projects. Instruments and Surgical Technologies are likely to have continued to benefit from rising adoption of smoke evacuation systems amid new state-level legislation.

Medical, however, is likely to have been pressured by lingering supply-chain constraints, particularly in emergency care. While LIFEPAK 35’s U.S. uptake might have been encouraging, international momentum has potentially been delayed by regulatory approvals, limiting near-term upside.

Neurotechnology might have held steady with strong cranial and interventional spine contributions. The recent rollout of OptaBlate and Vertos’ portfolio is likely to have supported growth, while new neurovascular launches such as the Broadway catheter should have begun contributing late in the quarter.

Our sales estimate for the MedSurg and Neurotechnology segment is pegged at $3.8 billion.

Inari Integration and Tariff Pressures

Stryker has been navigating the integration of Inari Medical, with early challenges tied to destocking and salesforce transitions. While procedural demand has been healthy, the turnover of sales representatives and enforcement of non-compete agreements might have created some short-term noise. Still, management has guided for double-digit pro forma revenue growth from Inari in 2025, with acceleration expected through the second half.

On the cost side, tariff headwinds are likely to have exerted greater pressure in the third quarter. Management has estimated a $175 million annual impact, with the bulk weighted toward the second half of 2025. While pricing discipline, manufacturing efficiencies, and favorable FX trends have partly mitigated these pressures, third-quarter margins might have faced incremental strain compared with the previous quarters.

Stryker Corporation Price and EPS Surprise

Stryker Corporation price-eps-surprise | Stryker Corporation Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Stryker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is -0.17% for SYK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3 at present.

Stocks Worth a Look

Here are some medical product stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.

Globus Medical GMED has an Earnings ESP of +1.02% and a Zacks Rank #3 at present. The company is set to release third-quarter 2025 results on Nov. 6.

GMED’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 10.82%. According to the Zacks Consensus Estimate, GMED’s third-quarter EPS is expected to decline 6% from the year-ago reported figure.

Edwards Lifesciences EW has an Earnings ESP of +0.75% and a Zacks Rank #3 at present. The company is set to release third-quarter fiscal 2025 results on Oct. 30.

EW’s earnings surpassed estimates in three of the trailing four quarters and met once, with the average surprise being 5.5%. According to the Zacks Consensus Estimate, EW’s third-quarter EPS is expected to decline 11.9% from the year-ago reported figure.

McKesson MCK has an Earnings ESP of +0.78% and a Zacks Rank of 3 at present. The company is slated to release second-quarter fiscal 2026 results on Nov. 5.

MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.50. According to the Zacks Consensus Estimate, MCK’s fiscal second-quarter EPS is expected to gain 26.2% from the year-ago reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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