Stryker Corporation (SYK) Business Profile

What it does

Stryker is a medical technology company that sells equipment, implants and other products used in hospitals and other healthcare facilities. Its businesses cover medical and surgical care, treatments for vascular and neurological conditions, and orthopaedics. Most products are marketed directly to doctors, hospitals and other healthcare facilities.

In medical and surgical care, Stryker sells operating-room equipment, endoscopic camera and communications systems, hospital beds, emergency medical equipment and disposable products. It also offers clinical communication and virtual-care technology. Its vascular products include devices used to treat strokes and blood clots, while its neurotechnology range includes products for brain and skull surgery.

In orthopaedics, Stryker sells implants for hip, knee, shoulder, ankle and trauma procedures. Its Mako robotic-arm assisted technology supports joint replacement surgery. The Mako platform combines robotics with planning and guidance tools; applications include procedures involving the hip, knee and shoulder.

Stryker was incorporated in Michigan in 1946 and is headquartered in Portage. Kevin A. Lobo was chair and chief executive officer as of January 31, 2026, and Spencer S. Stiles was subsequently appointed the next CEO. The company had approximately 56,000 employees globally at the end of 2025.

How it makes money

Stryker earns sales from two reporting segments: MedSurg and Neurotechnology, and Orthopaedics. In 2025, MedSurg and Neurotechnology represented 62% of net sales and Orthopaedics represented 38%.

MedSurg and Neurotechnology sells products across several hospital departments. Instruments includes surgical equipment and navigation systems; Endoscopy includes camera and communications systems; and Medical includes patient handling equipment, emergency equipment, disposables and clinical communication technology. Vascular sells minimally invasive products for stroke and blood-clot treatment. Neuro Cranial sells products for brain and skull surgery, as well as bone graft and other surgical products.

Orthopaedics primarily sells implants used in joint replacement and trauma and extremities surgery. It also sells robotic and guidance technology, including Mako. Mako applications combine a robotic arm with tools that support surgical planning and preparation for particular implants. The product range spans equipment used over multiple procedures as well as implants and disposable products used in care.

In 2025, Stryker’s sales growth included higher shipment volumes across all businesses and higher prices overall. Excluding acquisitions and divestitures, constant-currency sales increased by 9.9% from increased unit volume and 0.4% from higher prices. Orthopaedics had a small negative price contribution, while MedSurg and Neurotechnology had a positive one.

In the third quarter of 2026, organic sales growth was 7.7%. Stryker’s growth measure excludes the effects of acquisitions and divestitures and changes in currency.

Customers and how it sells

Stryker markets most of its products directly to doctors, hospitals and other healthcare facilities. Surgeons use its implants and robotic technology, while other products serve operating-room teams, hospital caregivers and emergency medical providers. Its clinical communication and virtual-care products also support care teams.

Products are sold through company-owned subsidiaries and branches, as well as third-party dealers and distributors. Stryker sells in approximately 61 countries. Mako SmartRobotics was available in more than 45 countries in 2025, and its applications span hip, knee and shoulder procedures.

The company serves both the United States and international markets. In the third quarter of 2026, MedSurg and Neurotechnology organic sales grew in both the United States and internationally; the company identified Australia, Germany, Canada and India among the countries contributing to international growth. Orthopaedics also grew in both the United States and international markets during the quarter.

Care settings can affect demand. Stryker identifies ambulatory surgery centers as sites where joint replacement procedures are performed, alongside hospitals. Its capital equipment customers include facilities investing in operating-room infrastructure and renovations.

Suppliers and costs

Stryker uses raw materials, components, finished devices and third-party services in its production and distribution processes. Essential raw materials are generally available from multiple sources, but some materials come from a single supplier. The company also relies on outside service providers, including sterilization providers. It does not name those suppliers in the available business description.

Substantially all products Stryker manufactures are stocked in inventory, while certain MedSurg products are assembled to order. The company’s costs include manufacturing and supply-chain expenses, research and development, sales and administrative expenses, and amortization of acquired intangible assets.

In 2025, gross profit was 64.0% of net sales. Research, development and engineering expenses were 6.5% of net sales, while selling, general and administrative expenses were 34.4%. The latter increased from the prior year, primarily because of acquisition-related costs and continued investment to support growth.

Stryker expects tariffs to increase certain product costs or adversely affect demand and supply chains. It is also adding production capacity, particularly for beds, as it works to match capital-equipment supply with demand.

Competitive position

Stryker competes with local and global companies across its product lines. In orthopaedic joint replacement, trauma, extremities and robotics, it identifies Zimmer Biomet, Johnson & Johnson MedTech and Smith & Nephew as leading global competitors. In surgical instruments, it also names Medtronic and CONMED. Medtronic, Johnson & Johnson MedTech, Terumo and Penumbra compete in vascular and neuro cranial products.

Endoscopy competitors include Olympus, Karl Storz, Arthrex and STERIS. In medical equipment, Stryker names Baxter, Zoll Medical, Medline and Ferno-Washington. Competition involves developing products, improving existing designs and maintaining sales forces.

Stryker uses patents to protect product designs and processes. At December 31, 2025, it owned approximately 5,600 United States patents and approximately 9,000 patents in other countries. Our reading: patents provide protection for specific designs and features, but do not shield the company from competing products.

Mako combines robotic technology with implants, planning and guidance. Our reading: the combination can support Stryker’s position with surgeons and hospitals, although the presence of other major orthopaedic and robotics competitors limits its protection. Stryker also believes its quality, service and reputation help it compete. Our reading: its broad range and direct marketing give it multiple ways to reach customers, but maintaining that position requires continued product development and sales investment.

Growth opportunities

Stryker seeks sales growth at the high end of the medical technology industry and prioritizes acquisitions, dividends and share repurchases in its capital allocation. In 2025, reported net sales grew 11.2%; excluding acquisitions and divestitures, sales grew 10.3% in constant currency.

The company develops new products and applications across its portfolio. In orthopaedics, it introduced the Mako 4 platform and expanded applications for hip and shoulder surgery. In the third quarter of 2026, Stryker said Mako sales remained strong, although sales of Mako RPS and Triathlon Gold were behind its expectations. It is working to improve adoption and competitive conversions.

Acquisitions add products and capabilities. Stryker acquired Inari, adding products for minimally invasive treatment of venous blood clots. It also announced an investment in CMR Surgical and an agreement to act as the exclusive U.S. sales agent for its Versius robotic surgery platform. Stryker said the agreement had not yet closed at the time of the third-quarter call.

For 2026, Stryker expects organic net sales growth of 6.5% to 7%, reflecting softer hip and knee procedure trends, peripheral vascular supply constraints and capital-equipment execution risk. It expects to begin commercializing AVS’s intravascular lithotripsy platform in 2027. It is also building additional bed production capacity to meet demand.

Structural risks

• Supply and production: Some materials, components, devices and services come from sole sources. Shortages or supplier disruptions can increase costs and prevent Stryker from making or supplying products. An ongoing peripheral vascular supply disruption caused lost revenue in the third quarter of 2026.

• Procedure demand and access: Stryker is seeing slower U.S. hip and knee procedure growth amid affordability concerns, as well as increased pre-authorization denials that delay treatment. It also described soft markets in Europe and the Middle East.

• Competition and execution: Stryker said it had not been winning hip and knee business at its historical rate. The cyber incident and an orthopaedics system implementation affected commercial execution and delayed its visibility into market conditions.

• Regulation and reimbursement: Medical devices face country-specific requirements, and some products need clinical testing or regulatory approval before marketing. Changes in reimbursement, healthcare cost containment or product approval can affect demand, pricing and costs.

• Acquisitions and operations: Stryker may not integrate acquisitions or realize their anticipated benefits as expected. Cybersecurity disruptions, tariffs, inflation and the ability to match capital-equipment production with demand can also affect operations and results.

Bottom line

Our reading

Stryker combines hospital equipment and consumables with implants and robotic systems used in surgery, giving it exposure to several parts of healthcare spending. [item1] Its breadth and product development support the business, but growth still depends on procedure volumes, competitive execution and reliable supply. [item1, call_prepared] Recent hip and knee softness and vascular supply disruption show how those pressures can affect results even when capital-equipment demand remains elevated. [call_prepared]