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Fundamental View
AS OF 04 Mar 2026Stryker benefits from a leading position in orthopedics as well as strong franchises in medical surgery and neurotechnology. The company’s sales and EBITDA growth trajectory bests most of its medical device peers.
Stryker has exhibited discipline with capital allocation. Following larger bolt-on deals in 2022 (Vocera, $3.1 bn) and 2020 (Wright Medical, $5.4 bn) management prioritized debt reduction.
We expect SYK to manage leverage in the low- to mid-2x range as it addresses its M&A needs/wants in the aftermath of the Inari purchase.
Business Description
AS OF 04 Mar 2026- Stryker (SYK) is a global manufacturer of implants used in joint replacement & trauma surgeries; surgical equipment & surgical navigation systems; endoscopic & communications systems; patient handling & emergency medical equipment; neurosurgical, neurovascular & spinal devices among other products. Stryker generated $25.1 bn of revenues in 2025 (versus $22.6 bn in 2024).
- SYK maintains two operating segments: MedSurg & Neurotechnology (62% of 2025 consolidated revenues) and Orthopaedics & Spine (38%).
- SYK's recent sizable acquisitions include: Inari Medical ($4.9 bn) in 2025, which increased its exposure to peripheral vascular diseases; Vocera ($3.1 bn enterprise value) in 2022, which increased its digital care coordination and communication categories; Wright Medical ($5.6 bn including debt) in 2020, which increased its exposure to the trauma & extremities end market; and K2M Group ($1.4 bn) in 2018, which boosted the spine portfolio.
Risk & Catalysts
AS OF 04 Mar 2026Stryker is exposed to medical procedure volumes. While volumes have been positive, owing in part to the resumption of procedures deferred during COVID, volatility could result from economic uncertainty in the year ahead.
Stryker’s M&A interest has leaned bolt-on in nature over the past several years, including the acquisitions of Inari in 2025 ($4.9 bn), Vocera in 2022 ($3.1 bn) and Wright Medical in late 2020 ($5.4 bn).
In April 2025, SYK sold its US Spinal Implants business to Viscogliosi Brothers to create a newly formed company (named VB Spine, LLC).
SYK recently held its investor day, which covered expectations for 2026-28. Management expects organic sales growth to be at the ‘high end’ of MedTech and guides to operating margin expansion of ~150 bp through 2028. M&A remains Stryker’s top capital allocation priority.
Key Metric
AS OF 04 Mar 2026| $ mn | Y21 | Y22 | Y23 | Y24 | LTM 4Q25 |
|---|---|---|---|---|---|
| Revenue | 17,108 | 18,449 | 20,498 | 22,595 | 25,116 |
| Gross Profit | 10,968 | 11,578 | 13,058 | 14,440 | 16,065 |
| R&D | (1,235) | (1,454) | (1,388) | (1,466) | (1,623) |
| SG&A | (6,427) | (6,455) | (7,121) | (7,685) | (8,651) |
| Adj. EBITDA | 4,753 | 4,755 | 5,356 | 6,142 | 7,064 |
| Total Debt | 12,479 | 13,048 | 12,995 | 13,597 | 15,859 |
| Gross Leverage | 2.6x | 2.7x | 2.4x | 2.2x | 2.2x |
| Interest Coverage | 14.1x | 14.1x | 15.0x | 15.5x | 12.1x |
CreditSight View Comment
AS OF 30 Jan 2026We maintain our Outperform recommendation on Stryker. SYK exhibits organic growth on strong procedural volumes and relatively healthy capital equipment spending. At current spreads, we like SYK versus more conservative peers, ABT and MDT, both of which carry higher leverage with less impressive organic growth. SYK offers attractive spread pickup versus both comps.
Recommendation Reviewed: January 30, 2026
Recommendation Changed: May 03, 2022
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