Stryker lowered its full-year 2026 guidance after third-quarter results that the company’s chief executive said missed internal expectations.
The Portage, Mich.-based medtech company now expects organic net sales growth of 6.5% to 7% and adjusted EPS of $14.80 to $14.90. In July, Stryker projected organic growth of 8.3% to 9.3% and adjusted EPS of $14.95 to $15.10.
Chair and CEO Kevin Lobo said 7.7% organic growth and double-digit adjusted earnings growth reflected good overall performance, but fell short of the company’s expectations. “The underlying fundamentals of the business remain strong,” Mr. Lobo said in an Oct. 29 news release.
Five things to know:
- Net sales rose 7.7% year over year to $6.5 billion.
- Joint replacement lagged. Knee sales grew 1.1% to $635 million, while hip sales fell 1% to $453 million.
- Other segments grew faster. Ortho Tech sales climbed 15.8% to $754 million, and endoscopy sales rose 13.9% to $1.02 billion.
- Net earnings fell 12.3% to $753 million, weighed down by a $293 million goodwill impairment. Adjusted EPS rose 10.3% to $3.52.
- Stryker repurchased $1 billion of stock in the quarter, and its board approved a $3 billion increase to the share buyback program in October.
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