# Stryker (SYK) Q2 2025 Financial Results Summary
Portage, Michigan – July 31, 2025 – Stryker (NYSE: SYK) reported its operating results for the second quarter of 2025. Below is a summary of the financial performance of the company.
## Key Financial Metrics
– **Net Sales**: Increased by **11.1%** to **$6.0 billion**.
– **Organic Net Sales**: Increased by **10.2%**.
– **Reported Operating Income Margin**: Stands at **18.5%**.
– **Adjusted Operating Income Margin**: Increased by **110 basis points (bps)** to **25.7%**.
– **Reported Earnings Per Share (EPS)**: Increased by **7.0%** to **$2.29**.
– **Adjusted EPS**: Increased by **11.4%** to **$3.13**.
## Sales Performance Overview
– **Total Net Sales**:
– **Q2 2025**: $6.0 billion.
– **Q2 2024**: $5.4 billion.
– Change: **11.1%** growth compared to the same quarter a year ago.
– **Sales Growth by Segment**:
– **MedSurg and Neurotechnology**:
– Q2 2025: $3.8 billion.
– Year-over-Year (YoY): Increased by **17.3%**.
– Organic Growth: **11.0%**.
– **Orthopaedics**:
– Q2 2025: $2.2 billion.
– YoY: Increased by **2.0%**.
– Organic Growth (excluding divestitures): **10.7%**.
## Earnings Analysis
– **Reported Net Earnings**: Increased to **$884 million**, a growth of **7.2%** compared to the previous year.
– **Net Earnings Per Diluted Share**: Increased to **$2.29**, growing **7.0%** YoY.
– **Gross Profit Margin**: Reported at **63.8%**.
– **Adjusted Gross Profit Margin**: **65.4%**.
– **Adjusted Net Earnings**: Totaled **$1.2 billion**, an increase of **11.6%** YoY.
– **Adjusted Net Earnings Per Diluted Share**: Increased to **$3.13**, representing an **11.4%** increase.
## Cash Flow and Capital Management
– **Dividends**: Quarterly dividends paid amounted to **$641 million**, slightly higher than **$609 million** in the previous year.
– **Share Repurchase**: There are no reported share repurchase activities in the quarter.
## 2025 Outlook
– **Full Year Organic Net Sales Growth**: Revised guidance now expects a growth range of **9.5% to 10.0%**.
– **Adjusted Net Earnings Per Diluted Share**: Projected in the range of **$13.40 to $13.60**.
– **Impact of Tariffs**: Estimated net impact from tariffs for 2025 is approximately **$175 million**.
## Conclusion
Stryker has demonstrated robust growth in both its net sales and earnings in Q2 2025, continuing to reflect strong demand for its products and effective operational execution. The company has updated its outlook for the year, reflecting confidence in ongoing demand and operational capabilities.
### CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions)
| Three Months | Six Months | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Net sales | 6,022 | 5,422 | 11,888 | 10,665 |
| Cost of sales | 2,181 | 2,006 | 4,303 | 3,916 |
| Gross profit | 3,841 | 3,416 | 7,585 | 6,749 |
| % of sales | 63.8% | 63.0% | 63.8% | 63.3% |
| Research, development and engineering expenses | 407 | 363 | 812 | 731 |
| Selling, general and administrative expenses | 2,079 | 1,831 | 4,379 | 3,668 |
| Amortization of intangible assets | 55 | 16 | 90 | 19 |
| Goodwill and other impairments | 187 | 155 | 354 | 308 |
| Total operating expenses | 2,681 | 2,366 | 5,042 | 4,624 |
| Operating income | 1,113 | 825 | 2,543 | 2,125 |
| % of sales | 18.5% | 19.4% | 21.4% | 19.9% |
| Other income (expense), net | -97 | -53 | -170 | -102 |
| Earnings before income taxes | 1,016 | 772 | 2,373 | 2,023 |
| Income taxes | 132 | 173 | 242 | 308 |
| Net earnings | 884 | 825 | 1,538 | 1,613 |
| Net earnings per share | ||||
| Basic | 2.32 | 2.17 | 4.03 | 4.24 |
| Diluted | 2.29 | 2.14 | 3.98 | 4.19 |
| Weighted-average shares used to compute net income per share, basic | 382.2 | 381.0 | 382.0 | 380.7 |
| Weighted-average shares used to compute net income per share, diluted | 386.4 | 385.4 | 386.4 | 385.2 |
### CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)
| June 30 | December 31 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $2,375 | $3,652 |
| Short-term investments | — | $750 |
| Marketable securities | 89 | 91 |
| Accounts receivable, net | 3,918 | 3,987 |
| Inventories | 5,289 | 4,774 |
| Prepaid expenses and other current assets | 1,332 | 1,593 |
| Total current assets | $13,003 | $14,847 |
| Property, plant and equipment, net | 3,702 | 3,448 |
| Goodwill and other intangibles, net | 25,145 | 20,250 |
| Noncurrent deferred income tax assets | 1,375 | 1,742 |
| Other noncurrent assets | 3,106 | 2,684 |
| Total assets | $46,331 | $42,971 |
| Liabilities and shareholders’ equity | ||
| Current liabilities | $7,288 | $7,616 |
| Long-term debt, excluding current maturities | 14,829 | 12,188 |
| Income taxes | 395 | 349 |
| Other noncurrent liabilities | 2,628 | 2,184 |
| Shareholders’ equity | 21,191 | 20,634 |
| Total liabilities and shareholders’ equity | $46,331 | $42,971 |
