Stryker Corp. reported first‑quarter 2026 results on April 30, 2026, with net sales of $6.02 billion, a 2.6% quarter‑over‑quarter increase. Earnings per diluted share were $1.93, falling short of the consensus estimate of $2.98, while adjusted EPS was $2.60. Adjusted operating income margin contracted to 21.1% from 22.9% in the prior quarter, reflecting a 180‑basis‑point decline.
The revenue miss was largely driven by the material impact of the March cyber‑incident, which disrupted order processing, manufacturing, and shipping. The incident, combined with tariff costs and higher interest expenses, weighed on sales and contributed to the shortfall against the Street forecast of $6.29 billion.
EPS also slipped below expectations because the cyber‑attack forced the company to incur additional operating costs and to delay certain capital projects. The resulting cost inflation and the loss of revenue from delayed orders pushed the reported EPS below analyst estimates.
Margin contraction can be attributed to a mix of factors: tariff impacts, higher interest expenses, and geographic variability in capital spending. These headwinds offset the benefit of a favorable product mix and cost‑control initiatives, leading to the 180‑basis‑point drop in adjusted operating income margin.
Management emphasized resilience in the face of the cyber‑incident. "I am pleased with our team's ability to recover quickly from the cyber incident and continue delivering for our customers and their patients. We remain committed to meeting our full year guidance for organic sales growth and adjusted earnings per share as our underlying business momentum remains strong," CEO Kevin A. Lobo said. The company reiterated its full‑year 2026 guidance of 8.0%–9.5% organic net sales growth and adjusted EPS of $14.90 to $15.10.
Stryker also announced a restructuring that created a new Ortho Tech business, combining the orthopaedic instruments portfolio from its Instruments business with the Mako and enabling technologies portfolio from its Other Orthopaedics business. "Our new Ortho Tech business combines the orthopaedic instruments portfolio from our Instruments business with the Mako and enabling technologies portfolio from our Other Orthopaedics business. By bringing Mako, power tools, cutting accessories, enabling technologies and the teams behind these products together under one business, we are simplifying the customer experience and striving to increase our speed to market through focused innovation," Lobo added. The move is intended to streamline the customer experience and accelerate innovation in a key growth area.
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