Yahoo Finance

Medical technology company Stryker (NYSE:SYK) announced better-than-expected revenue in Q1 CY2025, with sales up 11.9% year on year to $5.87 billion. Its non-GAAP profit of $2.84 per share was 4% above analysts’ consensus estimates.

Is now the time to buy SYK? Find out in our full research report (it’s free).

Stryker (SYK) Q1 CY2025 Highlights:

• Revenue: $5.87 billion vs analyst estimates of $5.68 billion (11.9% year-on-year growth, 3.2% beat)

• Adjusted EPS: $2.84 vs analyst estimates of $2.73 (4% beat)

• Adjusted EBITDA: $1.45 billion vs analyst estimates of $1.42 billion (24.7% margin, 2% beat)

• Adjusted EPS guidance for the full year is $13.33 at the midpoint, missing analyst estimates by 1%

• Operating Margin: 14.3%, down from 18.5% in the same quarter last year

• Free Cash Flow Margin: 2.2%, up from 0.7% in the same quarter last year

• Organic Revenue rose 10.1% year on year, in line with the same quarter last year

• Market Capitalization: $149.9 billion

StockStory’s Take

Stryker’s first quarter results reflected healthy demand across both its MedSurg & Neurotechnology and Orthopaedics divisions, with management highlighting double-digit growth in its U.S. trauma, extremities, neurocranial, and surgical technologies segments. CEO Kevin Lobo emphasized the outperformance of new product platforms, especially the Mako robotic system and Pangea trauma plating system, as key contributors to market share gains. Management also pointed to continued strength in international markets, particularly Australia, New Zealand, Japan, and Europe, as a foundation for ongoing growth.

Looking ahead, Stryker’s 2025 guidance reflects the company’s expectation for continued high-single-digit organic sales growth, while acknowledging several headwinds. CFO Preston Wells noted that tariffs—estimated to impact costs by $200 million this year—will require ongoing mitigation through pricing, supply chain optimization, and disciplined spending. Management cited strong order backlogs and robust demand for capital equipment as supportive factors, but recognized supply chain disruptions in the medical business and the need to integrate recent acquisitions like Inari Medical as considerations for the remainder of the year.

Key Insights from Management’s Remarks

Stryker’s management attributed the quarter’s performance to broad-based demand, new product uptake, and successful execution in core and emerging markets. The following insights summarize the major drivers behind the company’s recent financial results:

• Robotic Surgery Momentum: The Mako robotic platform set a Q1 record for installations, with high utilization rates globally. Management expects continued growth in hips and knees as Mako expands into new indications and geographies.

• Product Innovation Pipeline: Recent launches, such as the LIFEPAK 35 defibrillator and the Pangea trauma plating system, drove meaningful sales growth. LIFEPAK 35 is set to expand into Europe and Japan, while Pangea will enter Australia and Canada this year and Japan in 2026.

• International Expansion: Stryker underscored strong growth in Australia, New Zealand, Japan, and Europe, citing these markets as significant future catalysts. The company expects regulatory delays to cause a lag between U.S. and international product uptake, but sees a multi-year runway for international sales.

• M&A and Portfolio Optimization: The acquisition of Inari Medical was completed, integrating into the vascular division. Stryker also finalized the sale of its U.S. Spinal Implants business, sharpening its strategic focus and capital allocation.

• Capital Equipment Demand: Management reported double-digit growth across capital businesses and stated that hospital capital spending remains robust, with a healthy order backlog and no current signs of a slowdown.