Stryker cuts 2026 sales outlook after weaker orthopedic growth

Stryker lowers its full-year sales outlook

Stryker reduced its 2026 organic sales-growth guidance to 6.5% to 7.0% from 8.3% to 9.3%, while also lowering adjusted EPS guidance to $14.80 to $14.90 from $14.95 to $15.10. The company’s third-quarter revenue was $6.52 billion, below the $6.62 billion expected, and adjusted EPS was $3.52 versus $3.55 expected, according to a report published October 30.

The sales reduction was considerably steeper than the adjusted EPS reduction. Reporting on the company’s results cited stronger adjusted operating margins as a cushion, while the lower outlook reflected weaker conditions in several orthopedic markets.

Hips and knees temper growth

CFO Preston Wells put year-to-date hip and knee market growth at about 2.5%. Stryker’s U.S. knee sales grew 1.3% organically, while U.S. hip sales fell 0.6%. Management cited higher insurance premiums and deductibles, more pre-authorization denials, and soft markets in Europe and the Middle East.

The company also reported that adoption of Mako RPS and Triathlon Gold was slower than planned. CEO Kevin Lobo said “Mako RPS is off to a slow start” and added that “we’ve got to get our sales force playing offense.” A cyber incident earlier in 2026, a July SAP rollout in orthopaedics, and a peripheral vascular supply disruption also weighed on results.

Other businesses offset part of the slowdown

MedSurg and Neurotechnology grew 9.1% organically, while Ortho Tech sales rose 15.8%, supported by continued Mako strength. Management described the capital-equipment order book as “strong and elevated,” though the report did not provide a dollar value or independently confirm the demand interpretation.

Adjusted operating margin expanded 60 basis points to 26.2%. A $293 million goodwill impairment reduced GAAP EPS to $1.96, distinct from the company’s adjusted EPS measure.

Capital returns and product pipeline

Stryker repurchased $1.0 billion of stock during the quarter and added $3.0 billion to its buyback authorization. In a related earnings-call transcript dated October 29, CFO Preston Wells said the company’s weighted-average market-growth estimate, previously about 6%, had moved “a little bit of a tick down.”

Management’s named catalysts included a powered hip-impaction product, an AVS IVL launch pending FDA approval, Peerless 2 FlowTriever data, a next-generation Neptune platform, and the CMR Surgical soft-tissue-robotics partnership. These items represent product, data, approval or partnership developments rather than confirmed sales or regulatory clearance.

Market reaction and the 2027 setup

Stryker shares fell about 10% before the market opened Friday to $279.98, compared with Thursday’s close of $311.75, according to October 30 reporting. The report said the stock was already down roughly 20% for the year before the guidance cut.

The company did not provide formal 2027 guidance. Management expects growth at the high end of its markets, and Lobo said the new outlook assumes hip and knee volumes remain around their current levels. Formal 2027 guidance was expected in early next year, making the next year’s initial outlook a key measure of whether the reset stabilizes.