Description

Stryker: Can 2.1x Leverage Support Both A Recovery And An Active Acquisition Pipeline?

Stryker’s first quarter of 2026 results were significantly influenced by a cyber incident late in the quarter, which disrupted global business operations and delayed shipments and revenue recognition across its diverse portfolio. Despite this interruption, the company reported 2.4% organic sales growth worldwide, with 1.9% growth in the U.S. and 3.9% internationally, reflecting underlying demand resilience and solid market fundamentals. The disruption’s impact varied considerably across business lines due to differing go-to-market models, production cycles, and inventory arrangements. For example, the orthopaedic segment, with greater consigned inventory at hospitals, was less affected in terms of procedural volume, although revenue recognition was deferred. Conversely, capital equipment businesses with made-to-order products experienced more significant delays. Financially, adjusted earnings per share fell 8.5% year-over-year to $2.