|
|
|
|
|||||
|
|
|
Stryker Corporation SYK reported third-quarter 2025 adjusted earnings per share (EPS) of $3.19, which beat the Zacks Consensus Estimate of $3.14 by 1.6%. The bottom line also improved 11.1% year over year. Our model estimate for the metric was pegged at $3.15 per share.
GAAP EPS was $2.22, up 2.8% from the year-ago quarter’s level.
Revenues totaled $6.06 billion, which beat the Zacks Consensus Estimate by 0.2%. The top line also improved 10.3% on a year-over-year basis and 9.6% at constant currency (cc). Our model estimated total sales of $6.04 billion. The growth reflects strong demand across the product portfolio.
Revenues in the United States amounted to $4.57 billion, up 11.4% from the prior-year quarter’s level. International sales increased 6.9% year over year to $1.49 billion, supported by product launches, emerging market strength (notably Asia), and resilient procedural volumes, despite some supply-chain headwinds in the Medical segment.
Stryker signed an agreement during the first quarter to sell its U.S. spinal implants business to Viscogliosi Brothers, LLC, a family-owned investment firm specializing in the neuro-musculoskeletal space. The new company will be called VB Spine, LLC. Stryker also plans to sell its related international business. The divestment was completed in April.
Effective from the fourth quarter, its Spine enabling technologies results are reported as part of other orthopedics. Interventional Spine results are reported as part of neurocrine. As a result, spinal implants are now reported separately within orthopedics.
MedSurg and Neurotechnology: This segment reported sales of $3.8 billion, up 14.4% year over year and 13.9% at cc. Our model estimate for sales was $3.8 billion.
In the quarter under review, MedSurg and Neurotechnology recorded organic sales growth of 8.4%, which included 9.4% of U.S. organic growth and 5.1% of international organic growth. Instruments recorded U.S. sales growth of 11.5%, led by healthy growth in the Surgical Technologies business.
Endoscopy saw 7.9% U.S. growth on the back of continued procedural demand and strong uptake of visualization and surgical instruments. Medical grew 5.6%, driven by strong Acute Care sales (ProCuity, Vocera) and a solid order environment, but was tempered by supply-chain constraints in Emergency Care and timing-related variability.
Vascular grew 136.9% organically in the United States, driven by recent launches of Surpass Elite flow diverting stent and Broadway aspiration system. Internationally, sales were up 14.3%. Neurocranial saw 17.6% growth, led by strong double-digit growth in IBS, Craniomaxillofacial and Neurosurgical businesses.
International sales were driven by growth in the Medical, Endoscopy, and Neuro Cranial businesses, with especially strong performances in South Korea and Japan.
Orthopedics: Sales in the segment amounted to $2.25 billion, up 3.9% year over year and 3.1% at cc. Organically, sales were up 11.4%, which included organic growth of 12.9% in the United States and 7.8% internationally. The knee business grew 8.4%, reflecting its market-leading position in robotic-assisted knee procedures and momentum from the continued strength of its new Mako installations. Our model estimated Orthopedics sales to be $2.24 billion.
U.S. hips business grew 8.1%, driven by Insignia hip stem success and Mako robotic platform momentum. Trauma and Extremities business surged 14%, led by strong core trauma and upper extremities growth. Spinal implants declined 66.1%, while the strength of Mako installations and solid performance in navigational technology products drove a 9.6% increase in other ortho sales. International Orthopaedics grew 7.1%, with strength in emerging markets like Japan and South Korea.
Stryker Corporation price-consensus-eps-surprise-chart | Stryker Corporation Quote
Adjusted gross profit totaled $3.93 billion in the reported quarter, up 11% from the year-ago quarter’s level. Adjusted gross margin expanded 50 basis points (bps) to 65%. The improvement was primarily driven by positive pricing, manufacturing cost improvements and mix.
Total operating expenses were $2.72 billion, up 11.7% from the year-ago quarter’s level.
Adjusted operating income totaled $1.55 billion, up 14.2% from the year-ago level. Adjusted operating margin was 25.6%, up 90 bps.
Stryker exited the third quarter with cash and cash equivalents of $3.26 billion compared with $2.38 billion at the end of the second quarter of 2025.
Cumulative net cash provided by operating activities totaled $2.9 billion compared with $2.31 billion a year ago.
Stryker raised its guidance for 2025. The company now expects total revenues to grow in the range of 9.8-10.2% on an organic basis (previously 9.5-10%). The Zacks Consensus Estimate for total revenues is pegged at $24.84 billion, implying growth of 10.6%.
SYK raised its EPS guidance to $13.50-$13.60 from $13.45-$13.60. The Zacks Consensus Estimate for earnings is pegged at $13.50 per share.
Stryker’s third-quarter performance reflected strong execution across its diversified portfolio and continued momentum in key product franchises. Growth was broad-based, led by sustained strength in Orthopedics, where Mako installations, knee and hip adoption, and trauma innovations continued to outperform the market.
The MedSurg and Neurotechnology segment also delivered healthy results, supported by solid demand in Instruments, Endoscopy, and Acute Care, although supply-chain disruptions in the Emergency Care business weighed modestly on performance. Internationally, the company benefited from contributions in Asia and emerging markets, reinforcing its global expansion opportunity.
Despite a strong quarterly performance, shares of SYK were down 2.4% during after-hours trading on Oct. 30.
Despite tariff headwinds, Stryker achieved meaningful margin improvement through disciplined cost control, pricing gains and operational efficiencies. Management’s tone remained confident, underpinned by resilient procedural volumes, healthy hospital capital spending, and a strong order backlog.
Recent tuck-in acquisitions enhance the company’s innovation pipeline and complement existing portfolios, while integration of Inari is progressing as expected. Stryker enters the final quarter of the year with solid momentum, a strengthened balance sheet, and a clear pathway toward continued growth and margin expansion in the next fiscal year.
Stryker currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks in the broader medical space are Solventum Corporation SOLV, Boston Scientific Corporation BSX and GE HealthCare GEHC.
Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.
Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.
GE HealthCare, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 5.8%. GEHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.11%.
GE HealthCare ’s shares have declined 4.1% against the industry’s 31.6% growth so far this year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 4 hours | |
| 5 hours | |
| 5 hours | |
| 5 hours | |
| 8 hours | |
| 8 hours | |
| 8 hours | |
| 9 hours | |
| 9 hours | |
| 10 hours | |
| 10 hours | |
| 11 hours | |
| 18 hours | |
| Oct-30 | |
| Oct-30 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite