We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stryker's Q2 Results Likely to Reflect Recovery of Q1 Deferred Orders
Read MoreHide Full Article
Key Takeaways
Stryker's Q2 is expected to benefit from deferred revenue recovery after the prior cyber disruption.
SYK is seeing strong Mako adoption, healthy procedure volumes and continued orthopaedics momentum.
Stryker expects pricing, manufacturing gains and revenue recovery to help offset cost pressures.
Stryker Corporation (SYK - Free Report) is scheduled to release second-quarter 2026 results on July 30, after market close. In the last reported quarter, the company delivered a negative earnings surprise of 12.57%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.46 per share, indicating an increase of 10.5% year over year.
The consensus mark for revenues is pinned at $6.56 billion, implying growth of 8.9% from the prior-year reported figure.
Stryker is expected to report another quarter of healthy underlying performance, supported by resilient procedural demand, continued robotic surgery adoption and strong capital equipment orders. While the company’s first-quarter results were significantly disrupted by a cyber incident that delayed shipments and revenue recognition, management emphasized that underlying market demand remained healthy and reaffirmed full-year organic sales growth guidance of 8-9.5%.
The upcoming quarterly results are likely to reflect the initial recovery from deferred first-quarter revenues, particularly from revenue recognition catch-up in Orthopaedics, while additional recovery from delayed capital equipment shipments is also expected to continue through the second half of the year.
Within the Orthopaedics segment, growth is likely to have been supported by robust procedural volumes, continued market share gains and sustained momentum for the Mako robotic platform. The company delivered a record first quarter for Mako installations despite the cyber disruption, with utilization rates continuing to improve globally.
New product launches, including Mako 4, Mako Shoulder, Mako RPS and Triathlon Gold, are expected to have supported customer interest, while the recently formed Ortho Tech business should have improved commercial execution by combining Mako, enabling technologies and orthopaedic instruments under one organization. Trauma is also likely to have benefited from continued adoption of the Pangea plating system, with European approvals providing an additional growth opportunity.
The MedSurg and Neurotechnology segment is expected to have experienced a more gradual recovery, as capital-intensive businesses such as Medical and Endoscopy were more heavily affected by production shutdowns during the cyber incident. Management indicated that delayed manufacturing of made-to-order products, including beds and other capital equipment, would primarily recover during the second half of the year. Nevertheless, underlying hospital capital spending remains healthy, with an elevated order backlog supporting demand. Continued adoption of LIFEPAK 35, Smart Hospital solutions integrating Vocera and care.ai, and upcoming launches such as Sonopet 4 should provide additional growth support.
Meanwhile, margins are expected to improve sequentially as production normalizes, although tariff-related costs and higher input prices may continue to weigh on gross margin. First-quarter profitability was pressured by lower manufacturing absorption, tariffs and higher interest expense following the Inari acquisition.
However, management maintained its full-year adjusted EPS guidance of $14.90-$15.10, reflecting confidence that deferred revenue recovery, continued pricing discipline, manufacturing efficiencies and operational excellence initiatives will offset near-term cost headwinds as the year progresses.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Stryker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for SYK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3 at present.
SYK’s Share Price Performance
So far this year, Stryker’s shares have lost 6% compared with the industry’s 20.4% decline. The S&P 500 has gained 7.5% during the said period.
Image Source: Zacks Investment Research
Stocks Worth a Look
Here are some stocks worth considering from the broader medical sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS indicates an improvement of 16.4% from the year-ago reported figure.
Henry Schein (HSIC - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #3 (Hold) at present. The company is scheduled to release second-quarter 2026 results on Aug. 4.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.74%. The Zacks Consensus Estimate for HSIC’s second-quarter EPS implies an improvement of 10.9% from the year-ago reported figure.
Agilent Technologies (A - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present.
A’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.61%. The Zacks Consensus Estimate for A’s third-quarter fiscal 2026 EPS calls for an improvement of 8% from the year-ago reported figure.
View the Zacks #1 Rank List
Image: Bigstock
Stryker's Q2 Results Likely to Reflect Recovery of Q1 Deferred Orders
Key Takeaways
Stryker Corporation (SYK - Free Report) is scheduled to release second-quarter 2026 results on July 30, after market close. In the last reported quarter, the company delivered a negative earnings surprise of 12.57%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.46 per share, indicating an increase of 10.5% year over year.
The consensus mark for revenues is pinned at $6.56 billion, implying growth of 8.9% from the prior-year reported figure.
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote
Factors to Note
Stryker is expected to report another quarter of healthy underlying performance, supported by resilient procedural demand, continued robotic surgery adoption and strong capital equipment orders. While the company’s first-quarter results were significantly disrupted by a cyber incident that delayed shipments and revenue recognition, management emphasized that underlying market demand remained healthy and reaffirmed full-year organic sales growth guidance of 8-9.5%.
The upcoming quarterly results are likely to reflect the initial recovery from deferred first-quarter revenues, particularly from revenue recognition catch-up in Orthopaedics, while additional recovery from delayed capital equipment shipments is also expected to continue through the second half of the year.
Within the Orthopaedics segment, growth is likely to have been supported by robust procedural volumes, continued market share gains and sustained momentum for the Mako robotic platform. The company delivered a record first quarter for Mako installations despite the cyber disruption, with utilization rates continuing to improve globally.
New product launches, including Mako 4, Mako Shoulder, Mako RPS and Triathlon Gold, are expected to have supported customer interest, while the recently formed Ortho Tech business should have improved commercial execution by combining Mako, enabling technologies and orthopaedic instruments under one organization. Trauma is also likely to have benefited from continued adoption of the Pangea plating system, with European approvals providing an additional growth opportunity.
The MedSurg and Neurotechnology segment is expected to have experienced a more gradual recovery, as capital-intensive businesses such as Medical and Endoscopy were more heavily affected by production shutdowns during the cyber incident. Management indicated that delayed manufacturing of made-to-order products, including beds and other capital equipment, would primarily recover during the second half of the year. Nevertheless, underlying hospital capital spending remains healthy, with an elevated order backlog supporting demand. Continued adoption of LIFEPAK 35, Smart Hospital solutions integrating Vocera and care.ai, and upcoming launches such as Sonopet 4 should provide additional growth support.
Meanwhile, margins are expected to improve sequentially as production normalizes, although tariff-related costs and higher input prices may continue to weigh on gross margin. First-quarter profitability was pressured by lower manufacturing absorption, tariffs and higher interest expense following the Inari acquisition.
However, management maintained its full-year adjusted EPS guidance of $14.90-$15.10, reflecting confidence that deferred revenue recovery, continued pricing discipline, manufacturing efficiencies and operational excellence initiatives will offset near-term cost headwinds as the year progresses.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Stryker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for SYK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3 at present.
SYK’s Share Price Performance
So far this year, Stryker’s shares have lost 6% compared with the industry’s 20.4% decline. The S&P 500 has gained 7.5% during the said period.
Image Source: Zacks Investment Research
Stocks Worth a Look
Here are some stocks worth considering from the broader medical sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #2 at present. The company is set to release fourth-quarter fiscal 2026 results on Aug. 11. You can see the complete list of today’s Zacks #1 Rankstocks here.
CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS indicates an improvement of 16.4% from the year-ago reported figure.
Henry Schein (HSIC - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #3 (Hold) at present. The company is scheduled to release second-quarter 2026 results on Aug. 4.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.74%. The Zacks Consensus Estimate for HSIC’s second-quarter EPS implies an improvement of 10.9% from the year-ago reported figure.
Agilent Technologies (A - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present.
A’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.61%. The Zacks Consensus Estimate for A’s third-quarter fiscal 2026 EPS calls for an improvement of 8% from the year-ago reported figure.