Stryker
(NYSE: SYK)
reported Street-beating financial results and increased its full-year sales forecast, but decreased its profitability guidance due to the Trump Administration’s new import taxes.
SYK shares were down more than 2% to $365.56 apiece in morning trading today, the day after the company’s after-hour earnings release.
The Portage, Michigan–based orthopedic and surgical device manufacturer reported sales of $5.9 billion for the first quarter (ended March 31), up 12% from the same quarter a year ago.
Quarterly profits came in at $654 million, down 17% from the first quarter of 2024. That equaled earnings per share (EPS) of $1.69, or adjusted EPS of $2.84.
Wall Street analysts were expecting adjusted EPS of $2.73 on $5.69 billion of revenue.
“Our 2024 momentum continued into the first quarter as we delivered double-digit organic sales growth and continued to expand adjusted operating margins,” Stryker Chair and CEO Kevin Lobo said in a news release. “We remain confident in our sales and earnings power for 2025, fueled by the strength of procedural volumes, demand for our capital products and our commercial execution.”
Medtech pay analysis: Stryker increases pay for top execs, reports slightly lower wage for median employee
Stryker increased its full-year sales growth guidance to a range of 8.5% to 9.5%, up from its previous range of 8% to 9%.
Stryker cited its “first quarter results, strong demand for our capital products and our commercial momentum in the end markets in which we operate.”
“Our updated sales guidance reflects a modestly favorable pricing impact and a slightly unfavorable foreign exchange impact should foreign exchange rates hold near current levels,” the company said.
The company decreased its full-year adjusted EPS forecast to a range between $13.20 and $13.45, down from the previous range of $13.45 to $13.70.
That range does not include a dilutive impact of $0.20 to $0.30 from Stryker’s Inari Medical acquisition.
“Our updated guidance reiterates our previous guidance inclusive of dilution from the Inari acquisition while also offsetting a tariff impact of approximately $200 million, which is based on currently available information and our best estimates at this time,” the company said.
“If you see the tariffs going down, you should expect a raise from us on the bottom line, and we would have raised our earnings — without question — had the tariffs not appeared at this time,” Lobo said on a conference call to discuss the results.
The guidance also includes supply chain disruptions from the first quarter that are expected to continue.
Lobo said Stryker doesn’t anticipate major regulatory slowdowns due to the Trump Administration’s cuts at the FDA.
“We — through the trade association — called the government and said, ‘Listen, these are people that we’re funding through our user fees,'” Lobo said. “Those jobs were largely reinstated. There was a slight disruption, but it was literally a week or two and those people were brought back on on staff. … If those had stayed into effect, that probably would have had an impact. But for now, as far as we know, those resources were largely restored and things are back on a good footing.”
Stryker is the world’s fifth-largest medical device company, according to Medical Design & Outsourcing‘s 2024 Medtech Big 100 ranking by revenue.
Another major medtech manufacturer, Cardinal Health, yesterday estimated its tariff costs at $200 million to $300 million and said it has already cut employees and initiated other mitigation efforts to deal with President Donald Trump’s new import taxes and retaliation from other countries.
Mike Matsona and colleagues at Needham & Co. kept their Buy rating on Stryker stock: “While EPS upside is now less likely this year in our view given the tariffs, SYK is managing the headwinds better than peers that have had to lower 2025 EPS guidance.”
BTIG analysts Ryan Zimmerman and Iseult McMahon also kept their Buy rating, saying Stryker was “unshakeable in the face of tariffs and Inari dilution.”
Related: Intuitive’s trade war strategy holds lessons for other device developers
This story originally ran on Thursday, May 1, 2025. Updated May 2 with next-day stock price and analyst comments.
