Stryker (SYK) AI Stock Analysis

• Market Cap: $137.92B
• Dividend Yield: 0.95%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 43.0
• Beta (1Y): 0.67
• Revenue Growth: 10.95%
• EPS Growth: -18.32%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 4.47
• Shares Outstanding: 382,423,650
• 10 Day Avg. Volume: 2,014,651
• 30 Day Avg. Volume: 1,586,315
• PEG Ratio: 5.16
• Price to Book (P/B): 5.99
• Price to Sales (P/S): 5.35
• P/FCF Ratio: 31.36
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 5.95
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: 26.76
• 1Y Price Target: $432.21
• Price Target Upside: 19.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 15.01
• Revenue Forecast (FY): $27.23B

• Rating: 72 Outperform
• Price Target: $410.00 ▲(13.68% Upside)

The score is driven primarily by strong financial performance (consistent growth, solid margins, improving leverage, and strong cash flow) and a constructive earnings outlook (8.0%–9.5% organic growth guidance with continued robotics momentum). These positives are tempered by premium valuation (P/E ~42) and only moderately supportive technicals (below the 200-day average), alongside cited headwinds like tariffs and higher interest expense.

Positive Factors

Cash generation

Stryker's strong free cash flow growth and high conversion provide durable financial flexibility: supports ongoing R&D, capital equipment investment, dividends, and M&A firepower. Reliable cash generation reduces refinancing risk and underpins long‑term strategic optionality.

Robotics leadership

A >3,000 Mako installed base and rising utilization create durable competitive advantages: recurring consumables, service revenue, and higher switching costs. Continued adoption of Mako 4 and new applications reinforces long‑term orthopaedic leadership and margin tailwinds.

Diversified revenue growth

Broad‑based growth across MedSurg, Neurotechnology and Orthopaedics, and strong U.S. and international organic expansion, indicate portfolio diversification that reduces dependence on any single product or region, supporting more stable revenue and resilience to cyclical shocks.

Negative Factors

Tariff headwind

A ~$400M tariff headwind for 2026 is a persistent near‑term structural cost that erodes gross margins and cash flow unless offset by pricing or cost reductions. The scale and multi‑quarter timing can pressure profitability and complicate long‑range margin targets.

Vascular competition

Sustained competitive pressure in the ischemic vascular business may limit share gains and margin expansion in that segment. Addressing it likely requires ongoing R&D, pricing investments, or strategic repositioning, which can weigh on segment profitability and growth durability.

Europe capital softness & regulatory delays

Weaker European capital spending and EU MDR‑related launch delays can structurally slow international capital equipment revenue and defer product commercialization. Prolonged timing shifts compress near‑term growth and can postpone anticipated margin and install‑base benefits.

Stryker Business Overview & Revenue Model

Company Description

Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use in hip and knee joint replacements, and trauma and extremities surgeries. This segment also offers spinal implant products comprising cervical, thoracolumbar, and interbody systems that are used in spinal injury, deformity, and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical device products that are used in various medical specialties. This segment also provides neurotechnology products, which include products used for minimally invasive endovascular techniques; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 75 countries. Stryker Corporation was founded in 1941 and is headquartered in Kalamazoo, Michigan.

How the Company Makes Money

Stryker generates revenue primarily through the sale of its diverse range of medical devices and equipment. The company's revenue model is based on several key streams: the sale of orthopedic implants and instruments, surgical navigation systems, endoscopy equipment, and other medical technologies. Additionally, Stryker earns revenue from services related to its products, including training, maintenance, and repair services. Significant partnerships with hospitals, healthcare systems, and distributors enhance Stryker's market reach and contribute to its earnings. The company also invests in research and development to innovate and launch new products, which further drives revenue growth.

Stryker Financial Statement Overview

Summary

Strong, durable fundamentals: steady revenue growth through 2025, solid profitability (2025 gross margin ~61%, net margin ~13%), improving leverage (debt-to-equity down to ~0.66), and consistently healthy free cash flow (2025 FCF ~$4.3B). Main offsets are gradual margin compression vs. 2023 and still-meaningful absolute debt (~$14.9B).

Income Statement

Revenue has expanded steadily from $14.4B (2020) to $25.1B (2025), with growth positive in every year after 2020. Profitability is strong for the industry, with 2025 gross margin ~61% and net margin ~13%. However, margins have drifted down versus 2023 (net margin ~15% and higher operating profitability), suggesting some mix, cost, or investment pressure even as scale improves.

Balance Sheet

Leverage is moderate and improving: debt-to-equity declined from ~1.01 (2020) to ~0.66 (2025) while equity rose to $22.4B, indicating strengthening capitalization. Returns on equity remain solid (~14–17% across the period), though down from the 2023 peak. The main watch item is still absolute debt (~$14.9B in 2025), which, while manageable, leaves less flexibility if operating conditions weaken.

Cash Flow

Cash generation is healthy and improving, with operating cash flow rising from $3.3B (2020) to $5.0B (2025) and free cash flow to $4.3B. Free cash flow consistently tracks net income well (roughly ~0.78–0.85x), supporting earnings quality. The key weakness is volatility in year-to-year free cash flow growth (notably a decline in 2022), and the cash conversion profile suggests some ongoing working-capital/cash timing noise despite strong overall generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.12B	22.59B	20.50B	18.45B	17.11B
Gross Profit	15.43B	13.98B	12.49B	11.04B	10.71B
EBITDA	5.69B	4.94B	5.06B	4.02B	3.61B
Net Income	3.25B	2.99B	3.17B	2.36B	1.99B
Balance Sheet
Total Assets	47.84B	42.97B	39.91B	36.88B	34.63B
Cash, Cash Equivalents and Short-Term Investments	4.10B	4.49B	3.05B	1.93B	3.02B
Total Debt	14.86B	14.12B	13.49B	13.53B	12.90B
Total Liabilities	25.42B	22.34B	21.32B	20.27B	19.75B
Stockholders Equity	22.42B	20.63B	18.59B	16.62B	14.88B
Cash Flow
Free Cash Flow	4.28B	3.49B	3.14B	2.04B	2.74B
Operating Cash Flow	5.04B	4.24B	3.71B	2.62B	3.26B
Investing Cash Flow	-4.87B	-3.00B	-962.00M	-2.92B	-859.00M
Financing Cash Flow	113.00M	-525.00M	-1.59B	-749.00M	-2.37B

Stryker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 360.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYK, the sentiment is Negative. The current price of 360.66 is below the 20-day moving average (MA) of 361.22, above the 50-day MA of 359.76, and below the 200-day MA of 373.94, indicating a neutral trend. The MACD of 0.80 indicates Negative momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYK.

Stryker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDT	80 Outperform	$130.56B	27.87	9.81%	2.76%	5.34%	13.15%
EW	79 Outperform	$46.29B	33.96	13.59%	―	0.19%	65.58%
ZBH	73 Outperform	$17.46B	21.33	6.41%	1.05%	5.47%	-23.03%
SYK	72 Outperform	$137.92B	42.95	15.08%	0.95%	10.95%	-18.32%
ABT	70 Outperform	$188.15B	29.23	―	1.88%	6.37%	142.39%
BSX	68 Neutral	$111.97B	38.93	―	―	21.62%	54.80%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Stryker Corporate Events

Stryker Appoints Spencer Stiles as New COO

On December 4, 2025, Stryker announced the appointment of Spencer Stiles as President and Chief Operating Officer, effective January 1, 2026. Stiles, a 27-year veteran of the company, will lead Stryker’s global businesses, strategy, and mergers & acquisitions. This leadership change aims to sustain high growth and leverage the company’s portfolio. Dylan Crotty will succeed Stiles as Group President, Orthopaedics, also effective January 1, 2026. Crotty, who has been with Stryker for 27 years, is recognized for his strong operational leadership and collaboration.

The most recent analyst rating on (SYK) stock is a Buy with a $450.00 price target. To see the full list of analyst forecasts on Stryker stock, see the SYK Stock Forecast page.