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.
SYK Stock Gains 3.8% Since March-End: What's Driving the Uptrend?
Read MoreHide Full Article
Key Takeaways
Stryker posted 9% organic sales growth and 17.9% adjusted EPS growth in the second quarter.
Mako installations hit a record, while rising utilization and new applications broaden its growth runway.
Hospital capital backlogs, international gains and new product launches support Stryker's second-half outlook.
Stryker (SYK - Free Report) stock has gained 3.8% since the beginning of the second quarter, outperforming its industry’s 0.6% growth, as investors respond to resilient demand, improving production and strong momentum across its diversified portfolio.
The company’s second-quarter results reinforce the case for this outperformance. Organic sales increased 9%, while adjusted earnings per share (EPS) jumped 17.9%, despite a cybersecurity disruption and peripheral vascular supply constraints. Stryker exited the quarter with elevated hospital capital-product backlogs, record Mako installations and broad-based international growth.
With several new products entering commercialization and procedural demand remaining healthy, the company appears well positioned for another solid second half, although operational and macroeconomic risks remain.
Image Source: Zacks Investment Research
Factors Driving SYK’s Growth in 2026
Mako Robotics Continues to Expand Stryker’s Growth Runway: Mako remains a key structural growth driver for Stryker. The company delivered its best-ever second quarter for Mako installations in the United States and internationally, while utilization continued to rise.
Orthopedics grew 8.6% organically in the second quarter, including 6.2% growth in U.S. knees and 4.9% in hips. Mako’s expansion into shoulder, spine and hip revisions should further broaden its contribution.
Hospital Capital Spending Is Supporting Growth: Hospital capital demand provides another important catalyst. Stryker exited the second quarter with an elevated backlog, particularly across products such as ProCuity Beds and Smart Care. U.S. Medical sales increased 13.1%, while Endoscopy rose 10.2%. The company expects continued strength in hospital capital spending through the remainder of 2026, creating a favorable setup for equipment-driven revenue growth.
International Markets Are Becoming Increasingly Important: Stryker’s international operations continue to provide a meaningful growth offset to U.S. market variability. International organic sales increased 8.9% in the second quarter, with strong performances across Australia, New Zealand, Germany, Canada, South Korea, Japan, India and Brazil. MedSurg and Neurotechnology delivered 10.5% international growth. Stryker can leverage products that have already proven successful in the United States to accelerate adoption across these markets.
Product Innovation Is Broadening the Growth Base: Stryker’s innovation pipeline should support growth beyond its established franchises. Mako RPS is now commercially available in the United States, while Triathlon Gold, Triathlon Medial Stabilized Insert and Incompass Total Ankle Replacement continue to advance. Pangea Trauma is scheduled for a full European launch in the fourth quarter, while SONOPET 3 is also nearing launch. This steady product cadence complements Stryker’s historically broad portfolio diversification.
Stryker appears to be maintaining a stronger growth trajectory than several major orthopedic peers. Zimmer Biomet (ZBH - Free Report) delivered 4% organic constant-currency growth in the second quarter, with hips rising 5.1%, while its knees business was nearly flat. However, Zimmer Biomet is gaining momentum in robotics, with record capital sales driven by ROSA and TMINI and U.S. technology sales increasing more than 50%.
Medtronic (MDT - Free Report) is also becoming a more relevant robotics competitor, with Hugo procedures growing at two to three times the market rate and early U.S. adoption gaining momentum. Meanwhile, CONMED (CNMD - Free Report) delivered 6% organic growth, led by AirSeal and Buffalo Filter, although its smaller scale limits direct competition with Stryker.
Compared with Zimmer Biomet, Medtronic, and CONMED, Stryker’s 9% organic growth, diversified portfolio, and Mako scale provide a clear competitive advantage. Nevertheless, Zimmer Biomet, Medtronic and CONMED are strengthening specialized portfolios that could pressure individual Stryker franchises.
Risks and Challenges
The second half of 2026 will still involve execution risks. Peripheral vascular supply disruptions resulted in lost sales during the second quarter, although management expects backorders to become manageable by the end of the third quarter. Stryker continues to incur costs associated with cybersecurity remediation and stabilization. Tariff, oil and raw-material pressures remain additional uncertainties. Potential softness in discretionary procedures and changes in Medicare reimbursement for large-joint procedures could affect orthopedic demand, although management expects underlying procedure volumes to remain resilient.
Conclusion
Stryker’s advance since March-end reflects improving fundamentals, particularly Mako adoption, hospital capital demand, international expansion and product innovation. Its diversified portfolio and 9% organic growth remain compelling advantages. However, operational disruptions and macroeconomic pressures warrant monitoring.
View the Zacks #1 Rank List
Image: Bigstock
SYK Stock Gains 3.8% Since March-End: What's Driving the Uptrend?
Key Takeaways
Stryker (SYK - Free Report) stock has gained 3.8% since the beginning of the second quarter, outperforming its industry’s 0.6% growth, as investors respond to resilient demand, improving production and strong momentum across its diversified portfolio.
The company’s second-quarter results reinforce the case for this outperformance. Organic sales increased 9%, while adjusted earnings per share (EPS) jumped 17.9%, despite a cybersecurity disruption and peripheral vascular supply constraints. Stryker exited the quarter with elevated hospital capital-product backlogs, record Mako installations and broad-based international growth.
With several new products entering commercialization and procedural demand remaining healthy, the company appears well positioned for another solid second half, although operational and macroeconomic risks remain.
Image Source: Zacks Investment Research
Factors Driving SYK’s Growth in 2026
Mako Robotics Continues to Expand Stryker’s Growth Runway: Mako remains a key structural growth driver for Stryker. The company delivered its best-ever second quarter for Mako installations in the United States and internationally, while utilization continued to rise.
Orthopedics grew 8.6% organically in the second quarter, including 6.2% growth in U.S. knees and 4.9% in hips. Mako’s expansion into shoulder, spine and hip revisions should further broaden its contribution.
Hospital Capital Spending Is Supporting Growth: Hospital capital demand provides another important catalyst. Stryker exited the second quarter with an elevated backlog, particularly across products such as ProCuity Beds and Smart Care. U.S. Medical sales increased 13.1%, while Endoscopy rose 10.2%. The company expects continued strength in hospital capital spending through the remainder of 2026, creating a favorable setup for equipment-driven revenue growth.
International Markets Are Becoming Increasingly Important: Stryker’s international operations continue to provide a meaningful growth offset to U.S. market variability. International organic sales increased 8.9% in the second quarter, with strong performances across Australia, New Zealand, Germany, Canada, South Korea, Japan, India and Brazil. MedSurg and Neurotechnology delivered 10.5% international growth. Stryker can leverage products that have already proven successful in the United States to accelerate adoption across these markets.
Product Innovation Is Broadening the Growth Base: Stryker’s innovation pipeline should support growth beyond its established franchises. Mako RPS is now commercially available in the United States, while Triathlon Gold, Triathlon Medial Stabilized Insert and Incompass Total Ankle Replacement continue to advance. Pangea Trauma is scheduled for a full European launch in the fourth quarter, while SONOPET 3 is also nearing launch. This steady product cadence complements Stryker’s historically broad portfolio diversification.
Stryker Corporation Net Income (TTM)
Stryker Corporation net-income-ttm | Stryker Corporation Quote
Competition
Stryker appears to be maintaining a stronger growth trajectory than several major orthopedic peers. Zimmer Biomet (ZBH - Free Report) delivered 4% organic constant-currency growth in the second quarter, with hips rising 5.1%, while its knees business was nearly flat. However, Zimmer Biomet is gaining momentum in robotics, with record capital sales driven by ROSA and TMINI and U.S. technology sales increasing more than 50%.
Medtronic (MDT - Free Report) is also becoming a more relevant robotics competitor, with Hugo procedures growing at two to three times the market rate and early U.S. adoption gaining momentum. Meanwhile, CONMED (CNMD - Free Report) delivered 6% organic growth, led by AirSeal and Buffalo Filter, although its smaller scale limits direct competition with Stryker.
Compared with Zimmer Biomet, Medtronic, and CONMED, Stryker’s 9% organic growth, diversified portfolio, and Mako scale provide a clear competitive advantage. Nevertheless, Zimmer Biomet, Medtronic and CONMED are strengthening specialized portfolios that could pressure individual Stryker franchises.
Risks and Challenges
The second half of 2026 will still involve execution risks. Peripheral vascular supply disruptions resulted in lost sales during the second quarter, although management expects backorders to become manageable by the end of the third quarter. Stryker continues to incur costs associated with cybersecurity remediation and stabilization. Tariff, oil and raw-material pressures remain additional uncertainties. Potential softness in discretionary procedures and changes in Medicare reimbursement for large-joint procedures could affect orthopedic demand, although management expects underlying procedure volumes to remain resilient.
Conclusion
Stryker’s advance since March-end reflects improving fundamentals, particularly Mako adoption, hospital capital demand, international expansion and product innovation. Its diversified portfolio and 9% organic growth remain compelling advantages. However, operational disruptions and macroeconomic pressures warrant monitoring.
With SYK carrying a Zacks Rank #3 (Hold), the stock’s further upside will likely depend on continued execution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.