Stryker reported $6.1 billion in sales and $1.1 billion in operating profit for the quarter ending September 30, 2025, which was above both Wall Street’s expectations and management’s guidance.
Stryker Beats Expectations for Third Quarter 2025
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Jason BeachStryker CorporationKevin LobosPreston Wells
| Stryker Corporation 2025 Report ($000s): 3 Months Ended 09/30/25 | ||||||
| 3 Month Sales | 9 Month Sales | |||||
| 2024 | 2025 | % Change | 2024 | 2025 | % Change | |
| $5,494,000 | $6,057,000 | 10.25% | $16,159,000 | $17,945,000 | 11.05% | |
| Op Profit | Op Profit | |||||
| 2024 | 2025 | % Change | 2024 | 2025 | % Change | |
| $1,085,000 | $1,135,000 | 4.61% | $3,108,000 | $3,085,000 | -0.74% | |
| 19.75% | 18.74% | 19.23% | 17.19% | |||
| EPS | EPS | |||||
| 2024 | 2025 | % Change | 2024 | 2025 | % Change | |
| $2.16 | $2.22 | 2.78% | $6.35 | $6.20 | -2.36% | |
| 2025 Sales Estimate | 2026 Sales Estimate | |||||
| Consensus | Change | Consensus | Change | |||
| $22,590,000 | 0.02% | $26,300,000 | 16.40% | |||
Source: RRY Publications, LLC
Stryker Raises Full Year Guidance as Sales Continue Positive Trajectory
Kevin Lobo, Chair and CEO of Stryker, Preston Wells, VP and CFO, and Jason Beach, VP of Finance and Investor Relations, shared updates from the company’s third quarter 2025 performance in a recent earnings call.
Lobo reported that Stryker delivered 9.5% organic sales growth in Q3 2025 and achieved 11.1% adjusted EPS growth.
He said, “Important contributors included strong procedural volumes, and Mako and CapEx demand.”
This, he said, led to the decision to raise the full-year guidance to 9.8%-10.2% organic growth and $13.50-$13.60 EPS.
Lobo added that there was strong growth in MedSurg and Neurotechnology and Orthopedics. In the U.S., growth occurred in the vascular, trauma and extremities, neurocranial, and instrument businesses.
Beach added, “We delivered our best-ever Q3 for Mako installations, both in the U.S. and worldwide. Mako continues to see high utilization rates, further bolstering our number one position in U.S. hips and knees.”
Stryker also undertook two new small acquisitions during the quarter: Guard Medical’s NP Seal which focuses on negative pressure wound treatment and Advanced Medical Balloons which focuses on novel patient care products.
Analysts Question Stryker About Price Pressure in Orthopedic Market
During the call, Ryan Zimmerman with BTIG asked about the health of the orthopedics market, and how Stryker is preparing to capitalize on any disruption that may come of that, particularly with price pressure this quarter.
Lobo explained, “Listen, we’re in a great position with our knee business. It’s not new. This has been building over a number of years with our lead in cementless, the tremendous adoption of Mako for knees.
“We also have the new hinge, which is the revision system for knees. This momentum has just been building. With every Mako that gets installed, we know there’s going to be a high adoption of our products.”
“We’ve been growing above the market for quite some time. It was a terrific quarter, especially if you consider last year, we had a very big Q3. The knee business is performing extremely well.”
Wells added, “As far as pricing is concerned, when we think about where we are, we’re pleased with the fact that we’ve been able to drive positive price for the overall organization over the last several quarters. That’s really come out of the work that happened a few years ago. We’re still driving that.”
Jenny Rabinowitz at Goldman Sachs Group asked for more details on the smaller product acquisitions this quarter so Lobo gave more color.
He said, “The NP Seal product is a negative pressure wound treatment that does not require capital equipment. Today, the other options on the market have a pump that’s required. This is a really elegant solution, easy to use for the customer, and a lower-cost solution that drops right into the sales bag of our orthopedic instrument sales reps. They’re already there in the procedure, so it’s a beautiful tuck-in.”
“The other product, the balloon, is for fecal incontinence, and that’s part of the Sage business, which works in the intensive care units of hospitals and a very good product solution for a really troubling condition that patients have to go through. It provides them with dignity and provides really good care. We’re really excited about that solution. That’s new for us. We have not been in the fecal incontinence space thus far.”
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This is a fascinating development. In my practice we've seen similar outcomes with the revised protocol. The key differentiator seems to be patient selection criteria. Has anyone else noticed the correlation with BMI thresholds?
Great point. I'd push back slightly on the conclusion, the sample size in the cited study is too small to draw population-level inferences. That said, the directional signal is compelling and worth a larger RCT.
We implemented a similar approach last year. Early results are promising but we're still gathering 12-month follow-up data. Happy to share our protocol if anyone is interested.
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