Stryker (NYSE:SYK) Shares Gap Up Following Better-Than-Expected Earnings

Stryker Corporation (NYSE:SYK)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $354.30, but opened at $369.10. Stryker shares last traded at $368.9750, with a volume of 371,383 shares trading hands.

The medical technology company reported $4.47 earnings per share for the quarter, beating analysts’ consensus estimates of $4.40 by $0.07. The company had revenue of $7.17 billion for the quarter, compared to analysts’ expectations of $7.12 billion. Stryker had a return on equity of 24.07% and a net margin of 12.07%.Stryker’s quarterly revenue was up 11.4% on a year-over-year basis. During the same period last year, the firm earned $4.01 earnings per share.

Stryker Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 30th. Shareholders of record on Wednesday, December 31st will be given a dividend of $0.88 per share. This represents a $3.52 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Wednesday, December 31st. This is a positive change from Stryker’s previous quarterly dividend of $0.84. Stryker’s payout ratio is 46.25%.

Key Stories Impacting Stryker

Here are the key news stories impacting Stryker this week:

• Positive Sentiment: Q4 results beat expectations — Adjusted EPS of $4.47 vs. $4.40 consensus and revenue $7.17B (organic sales +11%). Management also reported expanded adjusted operating margin (30.2% in Q4). This confirms healthy demand across MedSurg/Neuro and Orthopaedics and supports upside to earnings momentum. GlobeNewswire — Stryker reports 2025 operating results and 2026 outlook
• Positive Sentiment: Company raised full‑year outlook — Stryker expects 2026 organic net sales growth of 8.0%–9.5% and adjusted EPS $14.90–$15.10, citing procedural volume and capital demand; management signaled continued margin expansion. This underpins forward earnings visibility and supports valuation. Reuters — Stryker raises annual profit forecast
• Positive Sentiment: Analyst uplift — Needham raised its SYK price target to $454 and reiterated a Buy (now ~28% upside from the cited price) and other firms (Piper Sandler, BTIG, etc.) remain constructive, which can boost sentiment/flows into the stock. Benzinga — Needham raises price target
• Neutral Sentiment: FY‑2026 EPS guidance roughly in line with consensus — The $14.90–15.10 range is close to the Street estimate (~$14.96). Guidance reduces uncertainty but leaves limited surprise risk unless execution deviates. Seeking Alpha — Stryker projects 8%–9.5% organic sales growth for 2026
• Neutral Sentiment: Analyst commentary acknowledges risks but keeps Buy ratings — Needham and others emphasize sustained double‑digit growth and operating leverage even as they note external headwinds. That keeps consensus constructive but watches remain on execution. TipRanks — analyst revisit / Needham
• Negative Sentiment: Tariff and macro/legal/regulatory risks flagged — Analysts and the company call out potential tariff headwinds, regulatory and recall-related risks, and FX/market volatility that could pressure margins or growth if realized. These are watch items that could trim upside. Reuters — risk commentary
• Negative Sentiment: Insider selling and historic impairments — Recent data cited by market sites note notable insider sales activity and past goodwill/asset impairments (reminder to monitor governance and one‑off charges that can affect reported earnings). QuiverQuant summary — insider activity & impairments

Analyst Upgrades and Downgrades

A number of brokerages recently commented on SYK. Robert W. Baird set a $437.00 price objective on shares of Stryker in a research report on Friday. Citizens Jmp upgraded Stryker from a “market perform” rating to an “outperform” rating and set a $440.00 price objective for the company in a research report on Friday, December 19th. Wall Street Zen upgraded shares of Stryker from a “hold” rating to a “buy” rating in a research report on Sunday, December 21st. Sanford C. Bernstein increased their price target on shares of Stryker from $450.00 to $465.00 and gave the company an “outperform” rating in a report on Friday, January 9th. Finally, The Goldman Sachs Group set a $399.00 target price on shares of Stryker in a research report on Friday, January 9th. Twelve equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $426.95.

Insider Buying and Selling at Stryker

In other news, Director Ronda E. Stryker sold 276,173 shares of the business’s stock in a transaction on Thursday, November 6th. The stock was sold at an average price of $353.28, for a total value of $97,566,397.44. Following the completion of the transaction, the director directly owned 2,702,108 shares of the company’s stock, valued at $954,600,714.24. The trade was a 9.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CAO William E. Berry, Jr. sold 1,953 shares of the stock in a transaction on Friday, November 14th. The shares were sold at an average price of $365.49, for a total value of $713,801.97. Following the sale, the chief accounting officer directly owned 2,833 shares in the company, valued at approximately $1,035,433.17. The trade was a 40.81% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 522,118 shares of company stock worth $185,381,932. 5.90% of the stock is owned by insiders.

Institutional Trading of Stryker

A number of hedge funds have recently bought and sold shares of the company. Torren Management LLC purchased a new position in shares of Stryker during the 4th quarter worth $86,000. Rogco LP lifted its position in Stryker by 9.2% during the fourth quarter. Rogco LP now owns 1,517 shares of the medical technology company’s stock worth $533,000 after buying an additional 128 shares during the period. Ares Financial Consulting LLC acquired a new stake in Stryker in the 4th quarter worth about $40,000. R Squared Ltd grew its holdings in Stryker by 7.1% in the 4th quarter. R Squared Ltd now owns 4,314 shares of the medical technology company’s stock valued at $1,516,000 after buying an additional 286 shares during the period. Finally, M&T Bank Corp increased its stake in shares of Stryker by 10.0% during the 4th quarter. M&T Bank Corp now owns 47,160 shares of the medical technology company’s stock valued at $16,575,000 after acquiring an additional 4,287 shares during the last quarter. Institutional investors and hedge funds own 77.09% of the company’s stock.

Stryker Stock Performance

The company’s fifty day moving average price is $359.38 and its two-hundred day moving average price is $371.95. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.13 and a current ratio of 1.85. The firm has a market capitalization of $140.78 billion, a PE ratio of 48.44, a price-to-earnings-growth ratio of 2.29 and a beta of 0.89.

About Stryker

Stryker Corporation is a global medical technology company that designs, manufactures and markets a broad range of products and services for use in hospitals, surgeons’ offices and other healthcare facilities. Its primary business activities span orthopedics (including joint replacement implants, trauma and extremities products), surgical equipment and operating room technologies (such as visualization, navigation and powered instruments), neurotechnology and spine solutions, and patient-handling and emergency medical equipment.