Stryker announced an upward revision to its full-year profit outlook after reporting a stronger-than-expected fourth quarter, citing robust sales of implants and other medical devices.
The company now projects full-year earnings per share of $14.90 to $15.10, up from its earlier range of $13.50 to $13.60. The revised guidance follows adjusted fourth-quarter earnings of $4.47 per share, modestly ahead of the $4.40-per-share consensus of analysts polled by LSEG.
Investors responded positively in after-hours trading, with Stryker shares rising as much as 3% following the disclosure.
On a top-line basis, Stryker reported quarterly revenue of $7.17 billion for the period ended December 31, exceeding the LSEG-derived estimate of $7.12 billion. Segment results showed continued momentum in higher-growth areas: sales at the medical surgery and neurotechnology unit increased 17.5% to $4.6 billion, while orthopedics revenue advanced 2.2% to $2.6 billion.
CEO Kevin A. Lobo framed the performance as part of a broader growth trajectory, noting that the company has surpassed $25 billion in annual revenue and is entering 2026 with significant momentum to deliver growth at the high end of MedTech. His comments emphasized the company’s confidence in sustaining strong demand in its core product lines.
That optimism is tempered by an explicit cost pressure tied to recent trade policy actions. Management said tariffs implemented by the U.S. administration have affected the business and that it expects tariff-related costs in 2026 of roughly $400 million - about $200 million more than the impact recorded in the prior year. Lobo added that this additional cost will be realized in the first half of the year.
Stryker previously indicated that it intends to mitigate tariff effects by optimizing its manufacturing footprint. The company reiterated that plan alongside the updated guidance.
The quarterly results and guidance adjustment reflect a combination of stronger surgical procedure demand, particularly for implants and device-related sales, and emerging cost headwinds related to trade measures. Management’s actions will be watched closely as the additional tariff impact is expected to land in the near term while offset efforts continue.
Summary
Stryker raised its full-year EPS guidance to $14.90 to $15.10 after posting adjusted Q4 EPS of $4.47 on revenue of $7.17 billion. Sales growth was led by the medical surgery and neurotechnology unit and by orthopedics. Management warned that U.S. tariffs will add about $400 million in costs in 2026, to be realized in the first half, and plans to offset tariff effects through manufacturing footprint optimization.