Stryker Corporation Q3 2026 Earnings Recap

Stryker shares fell 6.3% after earnings, as management said results fell short of expectations and pointed to a slowdown in hips and knees, weaker-than-expected adoption of new products, and ongoing pressure in Peripheral Vascular. The outlook offered little relief: Q4 organic growth is expected to be similar to Q3, assuming the current procedure environment continues.

Key Takeaways

• Q3 organic sales grew 7.7%; adjusted EPS was $3.52, up 10.3% year over year, with gross-margin expansion and expense discipline helping limit the impact of the sales shortfall.
• MedSurg and Neurotechnology grew 9.1%, while Orthopaedics grew 5.9%; Endoscopy and Ortho Tech posted double-digit growth.
• Hip and knee demand softened amid slower U.S. procedures, affordability concerns, more pre-authorization denials, and weakness in Europe and the Middle East. Stryker also said it was not winning at its historical rate, with Mako RPS and Triathlon Gold sales behind expectations.
• Peripheral Vascular improved sequentially, but results included one-time China joint-venture revenue that helped offset lost sales from supply disruption; the company expects availability to normalize through year-end.
• Management expects Q4 organic growth to be similar to Q3, assuming the procedure environment holds and capital demand remains strong.