AI Takeaway
Stryker delivered a strong Q1 2026 with revenue of $6.02B (+2.6% YoY), net income surging 13.9% to $745M, and operating cash flow more than doubling to $581M, reflecting solid operational leverage and disciplined cost management.
Revenue
$6.02B
++2.63% YoY
EPS (Basic)
$1.95
++14.04% YoY
Gross Margin
63.3%
-0.54% YoY
Operating Income
$936M
++11.83% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Stryker grew Q1 2026 revenue to $6.02B, up $154M or 2.6% year-over-year from $5.87B in Q1 2025, indicating continued demand across its medical device portfolio despite a modest pace of top-line expansion.
Source: Source: 10-Q Income Statement, Q1 2026
Operating income rose 11.8% YoY to $936M while SG&A expenses declined 0.8% to $2.28B, demonstrating that Stryker is generating more profit per dollar of revenue and improving operational efficiency. Operating margin expanded approximately 130 basis points to 15.5%.
Source: Source: 10-Q Income Statement, Q1 2026
Net income grew 13.9% to $745M and diluted EPS increased 14.2% to $1.93 from $1.69, significantly outpacing the 2.6% revenue growth rate and signaling strong bottom-line leverage from cost controls and potentially lower interest or tax expenses.
Source: Source: 10-Q Income Statement, Q1 2026
2 more insights available
Upgrade to unlockGross margin declined approximately 54 basis points YoY to 63.3% as cost of revenue grew 4.1%, outpacing revenue growth of 2.6%. Sustained input cost inflation or unfavorable product mix could further pressure margins if not offset by pricing or efficiency gains.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.60 versus the $3.01 analyst consensus — a -13.7% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.02B | $5.87B | +2.63% |
Cost of Revenue | $2.21B | $2.12B | +4.15% |
Gross Profit | $3.81B | $3.74B | +1.76% |
Operating Income | $936M | $837M | +11.83% |
Net Income | $745M | $654M | +13.91% |
EPS (Basic) | $1.95 | $1.71 | +14.04% |
EPS (Diluted) | $1.93 | $1.69 | +14.20% |
R&D Expense | $413M | $405M | +1.98% |
SG&A Expense | $2.28B | $2.3B | -0.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $46.29B | $46.01B | +0.62% |
Current Assets | $13.34B | $13.02B | +2.43% |
Total Liabilities | $23.31B | $25.08B | -7.03% |
Current Liabilities | $6.32B | $7.93B | -20.36% |
Cash & Equivalents | $2.88B | $2.32B | +24.05% |
Long-Term Debt | $14.22B | $14.38B | -1.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $581M | $250M | +132.40% |
Investing Cash Flow | $-185M | $-4.14B | +95.53% |
Financing Cash Flow | $-1.51B | $2.53B | -159.59% |
Dividends Paid | $337M | $320M | +5.31% |
D&A | $397M | $361M | +9.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 63.3% | 63.8% | -0.54% |
Operating Margin | 15.5% | 14.3% | +1.28% |
Net Margin | 12.4% | — | — |
ROA | 1.6% | — | — |
Current Ratio | $2.112 | — | — |
Other companies in Health Care Equipment
Stryker reported Q1 2026 revenue of $6.02B (+2.6% YoY), net income of $745M (+13.9%), and diluted EPS of $1.93 (+14.2%), all showing strong growth relative to the prior year period. Operating cash flow more than doubled to $581M, highlighting excellent cash generation in the quarter.
The key takeaways from Stryker's Q1 2026 results are strong earnings leverage — net income and EPS grew at roughly 5x the pace of revenue — and a dramatic improvement in operating cash flow to $581M from $250M a year ago. The balance sheet also improved materially, with current liabilities falling 20.4% and cash rising 24.1% to $2.88B.
Stryker's operating margin improved by approximately 130 basis points to 15.5% in Q1 2026, driven by a 0.8% decline in SG&A expenses even as revenue grew 2.6%. However, gross margin dipped slightly by about 54 basis points to 63.3%, as cost of revenue grew faster than revenue at 4.1%.
Based on the financial data, key risks include gross margin compression as input costs rise faster than revenue, a substantial long-term debt balance of $14.22B that could become costly if interest rates remain elevated, and SG&A expenses representing nearly 38% of revenue, leaving limited room for error if revenue growth slows.
Stryker's financial health appears solid: it holds $2.88B in cash, has a current ratio of 2.11, and reduced total liabilities by 7.0% YoY to $23.31B. Operating cash flow of $581M provides ample coverage for its $337M in dividends paid, and the company continues to modestly reduce its long-term debt of $14.22B.