Stryker Q3 sales, adjusted profit miss estimates despite higher unit volumes

By Reuters News


Overview

  • U.S. medical technologies firm's Q3 net sales rose 7.7% to $6.52 bln but missed analyst expectations

  • Adjusted EPS for Q3 increased 10.3% but missed analyst expectations

  • Company repurchased $1 bln in stock and expanded buyback program by $3 bln


Outlook

  • Stryker sees FY2026 organic net sales growth of 6.5%-7.0%

  • Company expects FY2026 adj EPS of $14.80 to $14.90

  • Company expects modestly positive pricing and a slightly favorable foreign-exchange impact in FY2026


Result Drivers

  • UNIT VOLUME - Co said organic net sales growth in Q3 was primarily driven by increased unit volume

  • MEDSURG AND NEUROTECHNOLOGY - Segment sales rose 9.2%, mainly due to higher unit volume

  • IMPAIRMENT CHARGE - Q3 GAAP earnings fell as company recorded $293 mln in goodwill impairment charges


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 net sales

Miss

$6.50 bln

$6.62 bln (24 Analysts)

Q3 Adjusted EPS

Miss

$3.52

$3.55 (24 Analysts)

Q3 EPS

$1.96


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

  • Wall Street's median 12-month price target for Stryker Corporation is $360.00, about 18.4% above its October 28 closing price of $304.00

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago


Reuters Recommended Reads

  • Oct 28 - Boston Scientific Q3 revenue beats estimates despite cybersecurity disruption

  • Oct 28 - GE Healthcare Q3 profit beats estimates on advanced imaging segment

  • Oct 28 - Biogen tops quarterly estimates on rare-disease drug strength


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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