Earnings Preview: What To Expect From Stryker Corporation’s Report

Stryker Corporation (SYK) is a global medical technology company that develops and manufactures surgical equipment, neurotechnology, patient-care solutions, and orthopedic implants. Its operations span joint replacements, trauma products, navigation systems, endoscopy, and emergency-care devices, serving hospitals and healthcare providers worldwide. The company is headquartered in Portage, Michigan and has a market capitalization of $108.38 billion.

Stryker is expected to report its third-quarter results for fiscal 2026 on Oct. 29, after the market closes. Ahead of the release, Wall Street analysts are optimistic about the company’s bottom-line trajectory. 

Analysts expect Stryker to report diluted earnings of $3.59 per share for Q3, up 12.5% year-over-year (YOY). The company has a strong history of beating consensus estimates, topping them in three of the trailing four quarters. For full fiscal year 2026, Wall Street analysts expect Stryker’s diluted EPS to grow 9.7% to $14.95, followed by an 11.2% improvement to $16.62 in fiscal 2027.

Over the past 52 weeks, the stock has dropped 22.6%, while it is down 18.6% over the past six months. Stryker’s stock fell on a 2026 cyberattack, peripheral vascular manufacturing constraints, CEO-transition concerns, and weaker investor sentiment. Meanwhile, the broader S&P 500 Index ($SPX) has increased by 17.3% and 13.4% over the same periods, respectively. Therefore, the stock has underperformed the broader market. 

We now compare Stryker’s performance with that of its sector. The State Street Health Care Select Sector SPDR ETF (XLV) has gained 19.5% over the past 52 weeks and 14.7% over the past six months. As a result, the stock has underperformed its sector over these periods.

Stryker is dealing with supply chain issues in its peripheral vascular business after a March cyberattack. The stock fell in September after the company’s CFO, Preston Wells, announced that while the company hoped the issues would be resolved by the third quarter, they will likely persist in the fourth quarter. He also noted slower-than-expected hip sales over the summer, partly due to a softer year for joint replacements in Europe. 

Meanwhile, Stryker announced a strategic alliance with CMR Surgical, under which it will make a $400 million investment in CMR Surgical to support global commercialization of the Versius portfolio, with Stryker having an exclusive option to acquire 100% of CMR Surgical’s outstanding equity in the future. 

Wall Street analysts remain bullish on Stryker’s future. Among the 29 analysts covering the stock, the consensus rating is “Strong Buy.” The rating configuration is more bullish than it was a month ago, with 19 “Strong Buy” ratings now, up from 18. The ratings are rounded off by three “Moderate Buys” and seven “Holds.” The mean price target of $357.30 implies a 26.5% upside from current levels, while the Street-high price target of $420 implies 48.6% upside. 

On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.