News

Stryker has revealed that it will raise its full-year outlook following a second quarter that exceeded Wall Street expectations, fueled by strong product demand and sustained business momentum.

Despite the positive results, investor reaction was initially lukewarm, with SYK shares dropping over 5% in after-hours trading.

The surgical and orthopedic device leader, headquartered in Portage, Michigan, reported earnings of $884 million, or $2.29 per share, on revenue of $6.022 billion for the quarter ending June 30, 2025. This represents a 7.2% increase in net income and an 11.1% rise in revenue compared to the same quarter last year.

Excluding one-time charges, Stryker posted adjusted earnings per share of $3.13—6¢ above analysts’ expectations of $3.07. Revenue also surpassed forecasts, which had been set at $5.93 billion.

“We again delivered double-digit sales and adjusted earnings per share growth in the second quarter,” Stryker CEO Kevin A. Lobo, said in a news release. “Our strong sales and earnings power reflect demand for our products, our durable innovation pipeline and ongoing operational execution.

Sales in the MedSurg and Neurotechnology segment climbed 17.3% to $3.8 billion. Orthopedics revenue came in at $2.2 billion, up just 2.0%, though it would have risen 10.7% when excluding the divestiture of the spinal implant division. Stryker finalized the sale of its U.S. spine implant unit to Viscogliosi Brothers in April, and VS Spine is now finalising its acquisition of the business’s international operations, announcing its expansion into Australia and New Zealand.

Company leadership now forecasts a $175 million hit from tariffs this year, reduced from the earlier estimate of $200 million. The revision follows lowered bilateral tariffs between the U.S. and China and the newly outlined U.S.–E.U. tariff agreement.

Taking the tariff changes and strong product demand into account, Stryker is now projecting sales growth of 9.5–10% for the year, with adjusted EPS between $13.40 and $13.60. That’s an increase from prior guidance of 8.5–9.5% growth and EPS of $13.20–13.45.

Still, the revised earnings outlook remains below the $13.45–13.70 EPS range the company had initially forecast earlier this year.

Source: Stryker