Title
Earning Preview: Stryker—Revenue Expected to Rise 11.98% This Quarter, Majority of Institutions Maintain Bullish Stance
Abstract
Stryker Corporation will report fourth-quarter 2025 results on January 29, 2026 Post Market, with consensus pointing to continued double-digit growth in revenue and earnings as investors assess margin trajectory, segment mix, and any updates to outlook under the company’s newly appointed Chief Operating Officer.
Market Forecast
The market’s current consensus anticipates fourth-quarter revenue of 7.12 billion US dollars, up 11.98% year over year, adjusted EPS of 4.39, up 13.47% year over year, and EBIT of 2.12 billion US dollars, up 16.56% year over year; no explicit gross margin or net margin forecast has been provided. Within the business mix, MedSurg and Neurotechnology remains the largest revenue contributor and is expected to carry solid order momentum into quarter end, while Orthopaedics benefits from healthy procedure activity and recent execution consistency. The most promising near-term opportunity centers on Orthopaedics, which generated 2.25 billion US dollars last quarter within a company-wide growth backdrop of 10.25% year over year, supported by broad product breadth and steady hospital utilization patterns.
Last Quarter Review
Stryker Corporation’s prior quarter delivered revenue of 6.06 billion US dollars, gross margin of 64.93%, GAAP net profit attributable to the parent company of 859.00 million US dollars, net profit margin of 14.18%, and adjusted EPS of 3.19, with year-over-year growth of 10.25% for revenue, 14.22% for EBIT, and 11.15% for EPS. A notable operational highlight was modest outperformance versus consensus across all three headline lines: revenue exceeded estimates by 0.18%, EBIT by 0.65%, and adjusted EPS by 1.82%. By business, MedSurg and Neurotechnology generated 3.80 billion US dollars, accounting for 62.79% of revenue, and Orthopaedics delivered 2.25 billion US dollars, accounting for 37.21%, with overall company revenue rising 10.25% year over year.
Current Quarter Outlook
MedSurg and Neurotechnology: The Core Operating Engine
MedSurg and Neurotechnology remains Stryker Corporation’s largest revenue driver, contributing 3.80 billion US dollars last quarter and representing 62.79% of total sales. The durability of this engine is built around a broad portfolio spanning capital equipment and recurring disposables, which supports steadier quarter-to-quarter trends through replenishment cycles and hospital procedure volumes. Into the fourth quarter, investors will look for confirmation that the order cadence observed through the fall has supported both shipments and backlog visibility, a dynamic that typically helps mitigate the normal year-end budget noise. A meaningful read-through for this segment will be any commentary on replacement cycles and customer order linearity; the degree of stability there can signal both resilience of demand and the quality of revenue mix for gross margin stewardship. With the prior quarter’s gross margin at 64.93%, the segment will be central to how the company frames margin narrative for the full-year bridge and the early 2026 setup, even though no explicit margin forecast for the quarter has been communicated. On balance, the segment’s size, breadth of products, and consistent demand patterns position it as the anchor for the quarter’s revenue and operating performance, with incremental upside potential if capital spending at hospital customers remains constructive through year-end closes.
Orthopaedics: High-Visibility Growth and Execution Leverage
Orthopaedics posted 2.25 billion US dollars last quarter, representing 37.21% of revenue, and appears well placed to benefit from healthy procedure volumes into the fourth quarter. Seasonality in the closing months can be supportive as hospitals complete scheduled cases, and Stryker Corporation’s breadth in reconstructive implants and related enabling technologies tends to help capture that demand. Analysts tracking recent trends have emphasized consistent execution and momentum in the most recent quarter, a signal that supports expectations for double-digit year-over-year growth in consolidated results this quarter. For Orthopaedics specifically, the key watch items are case volumes, pricing mix, and the interaction between procedural activity and pull-through on adjunct product lines across instruments and navigation. The quarter’s EBIT estimate of 2.12 billion US dollars, up 16.56% year over year, implicitly reflects operating leverage that should benefit from steady utilization, assuming cost discipline and supply continuity remain intact. The combination of steady case flow and a diversified offering can help sustain the narrative of balanced growth between core implants and enabling ecosystems, supporting both top-line and margin quality.
What Will Move the Stock: Guidance, Margins, and Leadership Execution
The stock’s near-term direction will be most sensitive to the interaction between reported results, the new-quarter qualitative outlook, and any updates to the company’s framework for 2026. Investors will parse commentary on gross margin mix, given a 64.93% starting point last quarter, alongside progress on operating expense efficiency and any signals around net profit margin relative to last quarter’s 14.18%. With consensus looking for adjusted EPS of 4.39 this quarter, up 13.47% year over year, management’s tone on demand durability and pricing discipline can influence how the market extrapolates into the first half of 2026. A second factor is any color on capital equipment order flow and hospital budget cadence as the new calendar year begins; the clarity of that narrative can drive multiple expansion if it aligns with the 11.98% revenue growth implied by estimates. Finally, execution under the newly appointed President and Chief Operating Officer, Spencer Stiles, who assumed the role effective January 01, 2026, will draw attention as investors assess continuity in strategy, focus on innovation and operating rigor, and the cadence of business development. Clear alignment between the operational roadmap and the stronger-than-average EBIT growth expected this quarter can reinforce confidence in both earnings quality and sustainability.
Analyst Opinions
Bullish opinions dominate the collected views in the last six months, representing 100.00% of directional calls versus 0.00% bearish. Well-known institutions and analysts reinforce this majority stance with consistent Buy recommendations and constructive previews of Stryker Corporation’s upcoming quarterly results. J.P. Morgan’s Robbie Marcus reiterated a Buy rating, highlighting continued momentum into year-end and supportive multi-quarter growth drivers. Wells Fargo maintained a Buy with a 456.00 US dollars price target, citing robust execution, durable demand conditions across key businesses, and confidence in the company’s earnings trajectory. Canaccord Genuity reaffirmed a Buy with a 435.00 US dollars target, noting sustained top-line strength and the potential for operating leverage to outpace revenue growth as cost efficiencies accrue. Needham’s Michael Matson reiterated a Buy with a 448.00 US dollars target, pointing to strong third-quarter performance and strategic initiatives that aim to sustain double-digit earnings growth. TD Cowen’s Josh Jennings maintained a Buy with a 435.00 US dollars target, pointing to raised expectations after a solid prior quarter and the potential for continued upside if the company’s largest franchises maintain their pace. BTIG’s Ryan Zimmerman reaffirmed a Buy with a 410.00 US dollars target, emphasizing constructive demand signals across the portfolio and a favorable setup for the new year. The common thread across these bullish previews is that the market has been reassured by the combination of healthy recent results, raised expectations into year-end, and a line of sight to another quarter of double-digit revenue and EPS growth. The consensus forecast embedded in the numbers—revenue of 7.12 billion US dollars, adjusted EPS of 4.39, and EBIT of 2.12 billion US dollars—leans toward balanced execution across segments, with incremental upside hinging on margin commentary and the magnitude of any qualitative guidance for early 2026. In-depth, the bullish camp expects the quarter to demonstrate that last quarter’s upside versus estimates—0.18% on revenue, 0.65% on EBIT, and 1.82% on adjusted EPS—was not an anomaly but rather a byproduct of sustained demand, portfolio breadth, and disciplined cost control. This framing sets the bar for management’s tone and detail at the update on January 29, 2026 Post Market. If the company can pair in-line to modestly better results with constructive commentary on gross margin stewardship and operating leverage, bulls anticipate that forward estimates for 2026 can be reiterated or incrementally nudged higher, reinforcing the overweight bias expressed by the majority of covering institutions.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments