Stryker’s third quarter was marked by broad-based demand and resilient procedural volumes across its business segments, with management highlighting sustained organic sales growth and margin discipline. CEO Kevin Lobo attributed the results to strong performance in both Orthopedics and MedSurg & Neurotechnology, particularly emphasizing the impact of high Mako robotic system installations and robust growth in Trauma, Vascular, and Instruments. Lobo noted that “procedure volumes are very healthy, which affects, obviously, our implants as well as our small capital,” and pointed to a solid U.S. environment for both product and capital spending. Despite some lingering supply chain disruptions in the Medical segment, Stryker’s leadership cited strong execution and order books as key drivers for the quarter.
Is now the time to buy SYK? Find out in our full research report (it’s free for active Edge members).
Stryker (SYK) Q3 CY2025 Highlights:
- Revenue: $6.06 billion vs analyst estimates of $6.03 billion (10.2% year-on-year growth, in line)
- Adjusted EPS: $3.19 vs analyst estimates of $3.13 (1.9% beat)
- Adjusted EBITDA: $1.67 billion vs analyst estimates of $1.65 billion (27.6% margin, 1.1% beat)
- Management slightly raised its full-year Adjusted EPS guidance to $13.55 at the midpoint
- Operating Margin: 18.7%, down from 19.7% in the same quarter last year
- Organic Revenue rose 9.5% year on year vs analyst estimates of 9% growth (46.7 basis point beat)
- Market Capitalization: $136.8 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Stryker’s Q3 Earnings Call
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Robert Marcus (JPMorgan): Asked how Stryker sees global procedure volumes and capital trends. CEO Kevin Lobo explained that procedure growth remains strong and hospital capital spending is healthy, with some variability in the Medical segment due to supply chain issues, but overall a robust outlook.
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Larry Biegelsen (Wells Fargo): Inquired about sustaining 10% organic growth and the impact of tariffs on future margins. Lobo emphasized the durability of Stryker’s growth trajectory and reiterated that M&A remains the primary use of capital, while CFO Wells acknowledged tariff headwinds but affirmed margin expansion efforts.
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Ryan Zimmerman (BTIG): Questioned the durability of U.S. Knee growth and the potential effects of pricing pressure. Lobo attributed growth to Mako adoption and cementless implants, and Wells noted that pricing power remains above historical levels due to improved contracting and product innovation.
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Travis Steed (Bank of America): Sought details on Inari integration and whether current growth rates are sustainable. Lobo indicated that double-digit growth is expected to continue, with stocking headwinds to be resolved by early next year, setting the stage for further acceleration.
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Joanne Wuensch (Citibank): Asked about margin expansion beyond current levels and performance in the Trauma segment. Lobo deferred detailed margin targets to the upcoming Investor Day but highlighted robust growth in Trauma, particularly in Shoulders and Core Trauma, driven by recent product launches.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will track (1) the pace of new product adoption, especially expanded Mako software and recently launched Vascular and Medical solutions; (2) the execution and international scaling of the Inari business, particularly as integration matures; and (3) ongoing margin management amid persistent tariff headwinds. Additional acquisitions and further supply chain normalization will also be important milestones for assessing Stryker’s ability to deliver on its growth and profitability targets.
Stryker currently trades at $353.50, down from $369.01 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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