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Call sheet · Q1'26

Stryker (SYK)

Q1'26 earnings call · held April 30, 2026 · compared with the Q4'25 call · management-credibility review
9/12
Disclosure score
1 high, 3 medium, 2 low flags
Financial quality
Bottom line
The sleeper story everyone will miss: this cyber 'crisis' is actually a gift that lets Stryker smooth earnings and beat lowered expectations for the rest of the year while underlying demand never wavered. Kevin's confident guidance reaffirmation despite 2.4% Q1 growth signals they know exactly what's in their pipeline. The binding constraint isn't demand or competitive pressure - it's their sudden decision to hide segment-level performance behind the cyber excuse, which is a major transparency regression from a historically open management team. Preston's quote says it all: 'I will not be going into detailed sales results by business' - that's not cyber impact, that's intentional opacity. My view changes if they don't return to full segment disclosure in Q2 or if the promised revenue catch-up doesn't materialize in the specific cadence they outlined.

The 30-second version

  • The cyber incident is actually a financial engineering opportunity disguised as a crisis
  • Mako installations hit 'best ever Q1' despite cyber chaos, signaling unstoppable momentum
  • They've quietly stopped breaking out individual business performance, hiding segment weakness

What changed this quarter

MetricQ4'25Q1'26Change
Organic Sales Growth11.0% (vs 10.2% prior year)2.4% (vs strong Q1 2025 comp)Collapsed 860 bps due to cyber incident
U.S. Organic Sales Growth9.6% ortho, 13% MedSurg in Q41.9% totalDramatic deceleration across all segments
International Organic Sales Growth5.4% ortho, 10.9% MedSurg in Q43.9% totalBetter relative performance vs U.S.
Adjusted EPS$4.47 (+11.5% YoY)$2.60 (-8.5% vs Q1 2025)First negative EPS growth in years
Adjusted Gross Margin65.2% (+improvements despite tariffs)63.6% (-190 bps vs Q1 2025)Lost manufacturing absorption hit hard
Adjusted Operating Margin30.2% (+100 bps in Q4)21.1% (-180 bps vs Q1 2025)Massive deleverage from cyber disruption
Cash from Operations$5B full year (+$820M vs 2024)$581M Q1Normal seasonal outflows plus cyber impact
Mako InstallationsRecord Q4 worldwideBest ever Q1 U.S. and internationalUnstoppable momentum despite cyber chaos
Full Year Guidance8-9.5% organic growth, $14.90-15.10 EPS8-9.5% organic growth, $14.90-15.10 EPS (maintained)Zero revision despite Q1 disaster
Pricing ImpactModestly positive expected0.3% favorableMinimal contribution vs expectations

Accountability tracked

7 new promises made4 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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