Stryker falls after earnings miss and reduced 2026 outlook

What happened

Stryker (SYK) fell 6.4% on October 30, 2026, after third-quarter results missed expectations and the company cut its 2026 outlook, citing persistent supply problems and execution challenges. The firm reported adjusted earnings per share of $3.52 on Oct. 29, 2026, 0.8% below estimates, and published an earnings-call transcript and operating-results release, according to GlobeNewsWire and Benzinga. After the shortfall and the guidance reduction, analysts trimmed forecasts and the stock fell sharply, Benzinga and Zacks Investment Research reported.

How big was the move

The stock closed at $291.86, trading 2.6 times its 20-day average volume as it fell 6.4% on the day and fell 5.0% over the last five sessions. It opened 7.6% below the previous close and the day’s move was 2.9 times a typical daily move for this stock. The S&P 500 fell 1.8% on the day and the healthcare sector median fell 2.4%, leaving the stock 4.0 percentage points worse than the sector median. Market value stood at $117.81 billion.

The technical picture

The stock sat 0.3% below its 20-day moving average and 0.3% below its 50-day moving average, while it remained 9.9% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend, and the relative strength index (14 days) was 48, in a neutral range. The shares were 25.0% below the 52-week high, had risen 6.9% over one month but fallen 14.5% over three months and 21.0% over one year, and were 31.0 percentage points behind the S&P 500 over one year. Volatility was 35% annualized over 60 days, higher than 91% of its own readings over five years, and the stock’s beta of 0.56 indicates it tends to move less than the market.

Fundamentals and valuation

For the four quarters through September 30, 2026, Stryker reported revenue of $26.30 billion, which grew 7.9% from a year earlier, and diluted earnings per share of $9.39, which rose 23.4% from a year earlier. Gross margin was 65.5% compared with 63.3% a year earlier and operating margin was 21.3% versus 20.9% a year earlier. Free-cash-flow margin was 17.4% and return on invested capital was 9.8%; the balance sheet showed net debt of 1.6 times EBITDA and share count over one year decreased by 0.5%.

Valuation metrics showed a price to trailing earnings of 31.1 times trailing earnings and price to forward earnings of 19.5 times expected earnings, with a free-cash-flow yield of 3.9%. The price to trailing earnings was lower than 95% of its own readings over the past five years (five-year median: 42.4 times earnings). PromtFinance scores ranked Stryker as Strong on Value (86) and Quality (81), Neutral on Growth (53), Weak on Momentum (31) and Very weak on Revisions (12), with Stability at 87 (Strong). Those measures suggest the stock trades at a historically lower earnings multiple even as momentum and analyst revisions remain weak.

Earnings and analyst expectations

Stryker’s Oct. 29, 2026, report showed adjusted EPS of $3.52 against $3.55 expected, 0.8% below estimates; the company said demand for hip and knee procedures was softer, MedSurg remained strong, and peripheral vascular products faced ongoing manufacturing problems that have constrained supply and complicated capital-equipment sales. The company published an earnings-call transcript and operating-results release on Oct. 29–30, 2026, according to GlobeNewsWire and Benzinga. The firm has had zero consecutive quarters beating estimates, an average surprise over the last four reports of 1.6% below estimates, and a typical two-day reaction after recent reports of a 0.4% fall.

Analysts’ consensus price target was $365.89, 25.4% above the closing price, based on 52 analysts; 71% of ratings were Buy or Strong Buy and the consensus rating was Buy. Analysts will monitor whether Stryker’s steps to fix peripheral vascular manufacturing issues and to steady capital-equipment execution restore confidence ahead of the next report on February 4, 2027.

What to watch

• Oct. 29–30, 2026: Published earnings-call transcript and operating-results release reporting adjusted EPS of $3.52 and organic sales growth of 7.7%, per GlobeNewsWire and Benzinga
• Oct. 29–30, 2026: Company reduced its 2026 outlook, citing weaker joint-replacement volumes and persistent peripheral vascular manufacturing problems, reported by Benzinga and Zacks Investment Research
• Next report: February 4, 2027
• Consensus price target: $365.89, 25.4% above the closing price
• Net debt of 1.6 times EBITDA and free-cash-flow margin of 17.4%