Stryker's Q2 2026 sales rose 9.4% to $6.59B on 9.0% organic, volume-driven growth after its March cyber incident; reported EPS jumped 44% to $3.30, helped by a $158M tariff reversal, while adjusted EPS rose 17.9% to $3.69.
Revenue
$6.6B
+9.4% YoY
Net income
$1.3B
+44.3% YoY
Diluted EPS
$3.30
+44.1% YoY
Operating margin
25.2%
Stryker bounces back from its March cyberattack: Q2 sales up 9.4%, with a one-off tariff refund lifting reported profit
Stryker's second quarter of 2026 (April–June) was its first full quarter after the cybersecurity incident it first reported on March 11, 2026, and sales growth accelerated sharply. Net sales rose 9.4% to $6,589 million, and organic growth (growth excluding currency moves and acquisitions or divestitures, so it shows how much more the existing business actually sold) was 9.0%, all of it from shipping more units rather than raising prices. That is a big step up from the first quarter, when reported sales grew only about 2.6% ($6,020 million vs. $5,866 million, derived from the six-month and second-quarter figures).
Reported profit rose much faster than sales: net earnings climbed 44.3% to $1,276 million and diluted EPS rose 44.1% to $3.30. But about a third of that jump comes from items that won't recur. The biggest was a $158 million "reversal of 2025 tariffs", which Stryker booked as a reduction in its cost of goods. On Stryker's own adjusted basis, which strips out that reversal and other one-offs, EPS grew 17.9% to $3.69. That is still a strong quarter, just less dramatic than the headline number.
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Net sales
$6,589M
$6,022M
+9.4%
Organic sales growth
9.0%
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Operating margin is the share of sales left after running the business (making products, selling, R&D), before interest and tax. "Adjusted" figures are Stryker's own non-GAAP measures that exclude acquisition costs, amortization of acquired intangibles, restructuring and other items the company treats as one-off.
What drove sales
The 10-Q says constant-currency sales rose 9.0% "from increased unit volume," due to "higher product shipments across most MedSurg and Neurotechnology businesses and all Orthopaedics businesses." Currency added 0.4 points; acquisitions and divestitures netted to roughly zero this quarter.
MedSurg and Neurotechnology (hospital equipment, surgical instruments, endoscopy, neurovascular and peripheral vascular devices) sales grew 9.7% to $3,625 million, with 9.2% organic growth: 9.1 points from volume and 0.1 from price.
Business
Q2 2026
Q2 2025
Reported
Constant currency
Instruments
$1,003M
$918M
+9.3%
+9.0%
Endoscopy
$1,004M
$899M
+11.7%
+11.3%
Medical
$1,122M
$990M
+13.4%
+13.0%
Vascular
$496M
$498M
−0.7%
−1.8%
Vascular was the only business line to shrink. US Vascular sales fell 6.7% to $250 million, and international rose 6.3%. The filing gives no specific reason for the US decline. Over the full six months Vascular is still up 11.9%, partly because the Inari Medical acquisition (completed February 2025, for treating blood clots in veins) was only in the base for part of Q1 2025.
Orthopaedics (knee and hip implants, trauma and extremities, and the new "Ortho Tech" unit) sales grew 9.1% to $2,964 million, with 8.6% organic growth, all from volume.
Business
Q2 2026
Q2 2025
Reported
Constant currency
Knees
$693M
$640M
+8.4%
+8.0%
Hips
$479M
$466M
+2.9%
+2.6%
Trauma & Extremities
$1,072M
$957M
+11.9%
+11.5%
Ortho Tech
$717M
$649M
+10.3%
+10.0%
Hips were the weak spot at 2.6% constant-currency growth, and international hip sales were flat. Stryker reorganized its reporting in Q1 2026. Ortho Tech now combines orthopaedic instruments ($523 million in the quarter) with "Other Orthopaedics," which includes the Mako robotic-surgery platform ($194 million, up from $148 million). Spinal Implants is almost gone ($3 million vs. $5 million) after the business was sold in 2025.
By geography, US sales rose 8.9% to $4,959 million and international sales rose 11.0% to $1,630 million (9.2% in constant currency).
Why reported profit jumped so much more than sales
Gross margin, the share of each sales dollar left after the cost of making the product, rose 4.5 points to 68.3%. The 10-Q breaks that increase down:
Reversal of 2025 tariffs: +260 bps (a basis point, or bp, is one-hundredth of a percentage point). The filing describes this as "a reduction of certain import tariffs." It is a $158 million one-time credit, worth $133 million after tax or $0.34 per share.
Inventory step-up: +110 bps. In Q2 2025, acquired inventory (mainly Inari's) was still being expensed at its higher acquisition-date value, which cost $65 million. That drag is gone now.
Volume and mix: +70 bps, and structural optimization charges: +40 bps.
Manufacturing and supply chain costs: −30 bps.
Stryker excludes the tariff reversal from its adjusted numbers. On that basis, adjusted gross margin was 66.0%, up from 65.4%.
Operating expenses grew more slowly than sales. SG&A (selling, general and administrative costs) rose 7.2% but fell to 33.8% of sales from 34.5%, which the company attributes to "continued spend discipline and lower acquisition and integration-related charges." R&D was 6.6% of sales, compared with 6.8%. The prior-year quarter also carried a $55 million impairment charge, against $1 million this year.
The segments show the same improvement. MedSurg & Neurotechnology operating margin rose to 28.1% from 25.6%, mainly from lower SG&A (+140 bps), lower manufacturing costs (+60 bps) and volume (+60 bps). Orthopaedics rose to 34.0% from 33.1%.
Tax went the other way. The effective tax rate rose to 18.4% from 13.0% because Q2 2025 included a tax benefit from the Spinal Implants sale. So the reported net earnings growth of 44.3% was helped by the tariff reversal and a cleaner quarter overall, and held back by the higher tax rate. Adjusted net earnings rose 17.6% to $1,424 million.
Takeaway: The underlying story is a volume-driven recovery: 9.0% organic growth with almost no help from pricing, and adjusted operating margin up 1.7 points to 27.4%. The 44% reported EPS jump overstates it. A $158 million tariff reversal alone added $0.34, so the adjusted EPS growth of 17.9% is the better measure of how the business performed.
First half in context: the cyber incident's cost
The six-month figures show what Q1 cost. Constant-currency sales rose 5.8% excluding acquisitions and divestitures (5.6% from volume, 0.2% from price). Manufacturing and supply chain costs cut 100 bps off first-half gross margin, which the 10-Q attributes "primarily due to idle production time related to the cybersecurity incident in the first quarter 2026." Even so, operating cash flow for the half rose to $1,842 million from $1,361 million, which the company attributes to working-capital changes. Stryker also repaid $1,000 million of maturing notes and paid $674 million in dividends. Cash and marketable securities were $3,476 million at June 30, down from $4,100 million at year-end.
Outlook
Management narrowed its full-year 2026 guidance to:
Organic net sales growth of 8.3%–9.3%, including "a modestly positive pricing impact"
Adjusted EPS of $14.95–$15.10
Currency "slightly favorable" to both sales and adjusted EPS if rates hold
CEO Kevin Lobo said the company enters the second half "with regained momentum."
Our view: The guidance sets a high bar for the second half. First-half organic growth was about 5.8%, so reaching 8.3%–9.3% for the full year requires second-half organic growth well into double digits. That means Q2's 9.0% pace has to keep rising, not just hold. That is plausible if Q1 orders and procedures disrupted by the cyberattack are still being recovered, but Q2 volume already included some of that catch-up. The EPS range is less demanding: $6.29 of adjusted EPS in the first half implies about $8.66–$8.81 in the second half, a step up from Q2's $3.69 run rate, but seasonally the second half is typically Stryker's strongest. Three things to watch in Q3: whether US Vascular returns to growth after falling 6.7% this quarter, whether hips pick up from 2.6% constant-currency growth, and whether segment mix starts to weigh on gross margin. The 10-Q warns it will, because the lower-margin MedSurg and Neurotechnology segment is expected to keep growing faster than Orthopaedics.
Source: Stryker Form 10-Q for the quarter ended June 30, 2026, filed July 31, 2026, together with the Q2 2026 earnings release (8-K Exhibit 99.1, July 30, 2026) for guidance and non-GAAP reconciliations. Figures are in US dollars.