syk-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-13149

STRYKER CORPORATION

(Exact name of registrant as specified in its charter)


Michigan			38-1239739
(State of incorporation)			(I.R.S. Employer Identification No.)

1941 Stryker Way	Portage,	Michigan	49002
(Address of principal executive offices)			(Zip Code)

	(269)	385-2600
(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.10 Par Value	SYK	New York Stock Exchange
2.125% Notes due 2027	SYK27	New York Stock Exchange
3.375% Notes due 2028	SYK28	New York Stock Exchange
0.750% Notes due 2029	SYK29	New York Stock Exchange
2.625% Notes due 2030	SYK30	New York Stock Exchange
1.000% Notes due 2031	SYK31	New York Stock Exchange
3.375% Notes due 2032	SYK32	New York Stock Exchange
3.625% Notes due 2036	SYK36	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days.Yes ☒No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant

to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant

was required to submit such files).Yes ☒No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting

company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting

company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐	Small reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐No ☒

There were 383,360,762 shares of Common Stock, $0.10 par value, on March 31, 2026.


Dollar amounts are in millions except per share amounts or as otherwise specified.	1


STRYKER CORPORATION		2026 First Quarter Form 10-Q

PART I – FINANCIAL INFORMATION


ITEM 1.	FINANCIAL STATEMENTS

Stryker Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)


	Three Months
	2026	2025
Net sales	$6,020	$5,866
Cost of sales	2,210	2,122
Gross profit	$3,810	$3,744
Research, development and engineering expenses	413	405
Selling, general and administrative expenses	2,281	2,300
Amortization of intangible assets	180	167
Goodwill and other impairments	—	35
Total operating expenses	$2,874	$2,907
Operating income	$936	$837
Interest expense	(148)	(137)
Other income	62	64
Earnings before income taxes	$850	$764
Income taxes	105	110
Net earnings	$745	$654

Net earnings per share of common stock:
Basic	$1.95	$1.71
Diluted	$1.93	$1.69

Weighted-average shares outstanding (in millions):
Basic	382.9	381.7
Effect of dilutive employee stock compensation	3.6	4.7
Diluted	386.5	386.4

Cash dividends declared per share of common stock	$0.88	$0.84

Anti-dilutive shares excluded from the calculation of dilutive employee stock options were de minimis in all periods.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)


	Three Months
	2026	2025
Net earnings	$745	$654
Other comprehensive income (loss), net of tax:
Marketable securities	—	—
Pension plans	(1)	—
Unrealized gains (losses) on designated hedges	(18)	(14)
Financial statement translation	123	(102)
Total other comprehensive income (loss), net of tax	$104	$(116)
Comprehensive income	$849	$538

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.	2


STRYKER CORPORATION		2026 First Quarter Form 10-Q

CONSOLIDATED BALANCE SHEETS


	March 31	December 31
	2026	2025
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$2,878	$4,011
Short-term investments	—	—
Marketable securities	87	89
Accounts receivable, less allowance of $225 ($216 in 2025)	3,571	4,039
Inventories:
Materials and supplies	1,473	1,349
Work in process	435	415
Finished goods	3,511	3,546
Total inventories	$5,419	$5,310
Prepaid expenses and other current assets	1,383	1,306
Total current assets	$13,338	$14,755
Property, plant and equipment:
Land, buildings and improvements	1,795	1,793
Machinery and equipment	5,835	5,744
Total property, plant and equipment	$7,630	$7,537
Less allowance for depreciation	3,743	3,661
Property, plant and equipment, net	$3,887	$3,876
Goodwill	19,188	19,291
Other intangibles, net	5,516	5,681
Noncurrent deferred income tax assets	1,193	1,098
Other noncurrent assets	3,169	3,143
Total assets	$46,291	$47,844

Liabilities and shareholders' equity
Current liabilities
Accounts payable	$1,592	$1,799
Accrued compensation	885	1,595
Income taxes	476	418
Dividends payable	337	337
Accrued expenses and other liabilities	2,526	2,645
Current maturities of debt	499	1,000
Total current liabilities	$6,315	$7,794
Long-term debt, excluding current maturities	14,224	14,859
Income taxes	403	402
Other noncurrent liabilities	2,370	2,369
Total liabilities	$23,312	$25,424
Shareholders' equity
Common stock, $0.10 par value	38	38
Additional paid-in capital	2,646	2,597
Retained earnings	20,878	20,472
Accumulated other comprehensive loss	(583)	(687)
Total shareholders' equity	$22,979	$22,420
Total liabilities and shareholders' equity	$46,291	$47,844

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.	4


STRYKER CORPORATION		2026 First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Three Months
	2026	2025
Operating activities
Net earnings	$745	$654
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	120	105
Amortization of intangible assets	180	167
Asset impairments	—	35
Share-based compensation	87	84
Sale of inventory stepped-up to fair value at acquisition	—	34
Deferred income tax (benefit) expense	(33)	14
Changes in operating assets and liabilities:
Accounts receivable	444	144
Inventories	(127)	(93)
Accounts payable	(198)	(309)
Accrued expenses and other liabilities	(654)	(504)
Income taxes	42	49
Other, net	(25)	(130)
Net cash provided by operating activities	$581	$250
Investing activities
Acquisitions, net of cash acquired	(22)	(4,749)
Purchases of marketable securities	(5)	(11)
Proceeds/(Purchases) of short-term investments	—	750
Proceeds from sales of marketable securities	7	17
Purchases of property, plant and equipment	(166)	(123)
Other investing, net	1	(20)
Net cash used in investing activities	$(185)	$(4,136)
Financing activities
Proceeds from issuance of long-term debt	—	2,979
Payments on long-term debt	(1,000)	—
Payments of dividends	(337)	(320)
Cash paid for taxes from withheld shares	(139)	(101)
Other financing, net	(34)	(24)
Net cash provided by (used in) financing activities	$(1,510)	$2,534
Effect of exchange rate changes on cash and cash equivalents	(19)	20
Change in cash and cash equivalents	$(1,133)	$(1,332)
Cash and cash equivalents at beginning of period	4,011	3,652
Cash and cash equivalents at end of period	$2,878	$2,320

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.	5


STRYKER CORPORATION		2026 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

General Information

Management believes the accompanying unaudited Consolidated

Financial Statements contain all adjustments, including normal

recurring items, considered necessary to fairly present the

financial position of Stryker Corporation and its consolidated

subsidiaries ("Stryker," the "Company," "we," "us" or "our") on

March 31, 2026 and the results of operations for the three

months 2026. The results of operations included in these

Consolidated Financial Statements may not necessarily be

indicative of our annual results. These statements should be read

in conjunction with our Annual Report on Form 10-K for 2025.

In the first quarter 2026 we announced a change in our

organizational structure. Our new Ortho Tech business combines

the orthopaedic instruments portfolio from our Instruments

business with the Mako and enabling technologies portfolio from

our Other Orthopaedics business. By bringing Mako, power tools,

cutting accessories, enabling technologies and the teams behind

these products together under one business, we are simplifying

the customer experience and striving to increase our speed to

market through focused innovation. We are reporting under this

new structure beginning with this Quarterly Report on Form 10-Q

for the period ended March 31, 2026.

Following this reorganization we will continue to have two

business segments - (i) MedSurg and Neurotechnology and (ii)

Orthopaedics, each of which comprise a reportable segment. All

historical segment financial information has been recast to

conform to this new reporting structure in our financial statements

and accompanying notes.

New Accounting Pronouncements Not Yet Adopted

In September 2025 the Financial Accounting Standards Board

(FASB) issued Accounting Standards Update (ASU) 2025-07

(Topics 815 and 606): Derivatives and Hedging: Derivatives

Scope Refinements and Revenue from Contracts with

Customers: Scope Clarification for Share-Based Noncash

Consideration from a Customer in a Revenue Contract. This

update expands the scope exception in Topic 815 to certain non-

exchange-traded contracts for which settlement is based on

operations or activities specific to one of the parties to the

contract. The update is effective for fiscal years beginning after

December 15, 2026 including interim periods within those fiscal

years. Early adoption is permitted. We are evaluating if the ASU

will have an impact on our Consolidated Financial Statements.

In September 2025 the FASB issued ASU 2025-06 (Subtopic

350-40): Intangibles - Goodwill and Other - Internal-Use

Software: Targeted Improvements to the Accounting for Internal-

Use Software. This update clarifies and modernizes the

accounting for costs related to internal-use software by removing

all references to project stages and clarifying that the probable-

to-complete threshold is not met if significant development

uncertainty exists. The update is effective for fiscal years

beginning after December 15, 2027 including interim periods

within those fiscal years. Early adoption is permitted. We are

evaluating if the ASU will have an impact on our Consolidated

Financial Statements.

In November 2024 the FASB issued ASU 2024-03 (Subtopic

220-40): Income Statement: Reporting Comprehensive Income -

Expense Disaggregation Disclosures which requires

disaggregation of certain expense captions into specified

categories in disclosures within the Notes to the Consolidated

Financial Statements. The new disclosure requirements are

effective for fiscal years beginning after December 15, 2026 and

interim periods within fiscal years beginning after December 15,

2027. Early adoption is permitted. We are evaluating these new

expanded disclosure requirements.

We evaluate all ASUs issued by the FASB for consideration of

their applicability. ASUs not included in our disclosures were

assessed and determined to be either not applicable or are not

expected to have a material impact on our Consolidated Financial

Statements.

Accounting Pronouncements Recently Adopted

On January 1, 2026 we adopted ASU 2025-05 (Topic 326):

Financial Instruments - Credit Losses: Measurement of Credit

Losses for Accounts Receivable and Contract Assets. This

update provides a practical expedient allowing entities to assume

that current conditions as of the balance sheet date will remain

unchanged for the remaining life of the asset when estimating

expected credit losses for current accounts receivable and

current contract assets arising from transactions accounting for

under Accounting Standards Codification 606, Revenue from

Contracts with Customers. The adoption of this update did not

have a material impact on our Consolidated Financial

Statements.

NOTE 2 - REVENUE RECOGNITION

Our policies for recognizing sales have not changed from those

described in our Annual Report on Form 10-K for 2025.

We disaggregate our net sales by business and geographic

location for each of our segments as we believe it best depicts

how the nature, amount, timing and certainty of our net sales and

cash flows are affected by economic factors.

In the first quarter 2026 we announced a change in our

organizational structure. Our new Ortho Tech business combines

the orthopaedic instruments portfolio (Orthopaedic Instruments)

from Instruments with Other Orthopaedics. In addition, Neuro

Cranial and the spine enabling technologies portfolio (Enabling

Technologies) from Other Orthopaedics was combined with the

remaining Instruments business to align with our internal

reporting structure. Ortho Tech includes sales related to

Orthopaedic Instruments of $489 and $484 and Other

Orthopaedics of $157 and $133. Instruments includes sales

related to Neuro Cranial of $606 and $563 and Enabling

Technologies of $26 and $29 for the three months 2026 and

2025. We have reflected these changes in all historical periods

presented.


Net Sales by Business
	Three Months
	2026	2025
MedSurg and Neurotechnology:
Instruments	$920	$838
Endoscopy	868	867
Medical	902	945
Vascular	517	406
	$3,207	$3,056
Orthopaedics:
Knees	$670	$639
Hips	460	443
Trauma and Extremities	1,035	945
Ortho Tech	646	617
Spinal Implants	2	166
	$2,813	$2,810
Total	$6,020	$5,866


Dollar amounts are in millions except per share amounts or as otherwise specified.	6


STRYKER CORPORATION		2026 First Quarter Form 10-Q


Net Sales by Geography
	Three Months 2026		Three Months 2025
	United States	International	United States	International
MedSurg and Neurotechnology:
Instruments	$766	$154	$702	$136
Endoscopy	701	167	710	157
Medical	747	155	802	143
Vascular	280	237	203	203
	$2,494	$713	$2,417	$639
Orthopaedics:
Knees	$472	$198	$464	$175
Hips	276	184	269	174
Trauma and Extremities	767	268	713	232
Ortho Tech	467	179	459	158
Spinal Implants	—	2	118	48
	$1,982	$831	$2,023	$787
Total	$4,476	$1,544	$4,440	$1,426

Costs to Obtain or Fulfill a Contract

We typically do not incur costs to fulfill a contract before a

product or service is provided to a customer due to the nature of

our products and services. Our costs to obtain contracts are

typically in the form of sales commissions paid to employees or

third-party agents. Certain sales commissions paid to employees

prior to recognition of sales are recorded as deferred contract

costs. We expense sales commissions associated with obtaining

a contract at the time of the sale or as incurred as the

amortization period is generally less than one year. These costs

have been presented within selling, general and administrative

expenses. On March 31, 2026 and December 31, 2025 deferred

contracts costs recorded in our Consolidated Balance Sheets

were not significant.

Contract Assets and Liabilities

Our contract assets primarily relate to conditional rights to

consideration for work completed but not billed at the reporting

date. On March 31, 2026 and December 31, 2025 contract

assets recorded in our Consolidated Balance Sheets were not

significant.

Our contract liabilities arise as a result of consideration received

from customers at inception of contracts for certain businesses or

where the timing of billing for services precedes satisfaction of

our performance obligations. This occurs primarily when payment

is received upfront for certain multi-period extended service

contracts. Our contract liabilities of $1,035 and $1,024 on

March 31, 2026 and December 31, 2025 are classified within

accrued expenses and other liabilities and other noncurrent

liabilities in our Consolidated Balance Sheets based on the timing

of when we expect to complete our performance obligations.

Changes in contract liabilities during the three months 2026 were

as follows:


	March 31
	2026
Beginning contract liabilities	$1,024
Revenue recognized from beginning of year contract liabilities	(288)
Net advance consideration received during the period	299
Ending contract liabilities	$1,035

Transfers and Servicing of Financial Assets

We sell certain customer lease agreements and the related

leased assets to third-party financial institutions to accelerate our

cash collection cycle. The lease receivables are sold without

recourse and are derecognized from our Consolidated Balance

Sheets at the time of sale. Under the terms of our arrangements,

we collect lease payments on behalf of the financial institutions

but maintain no other form of continuing involvement. Sales of

these lease agreements are classified as operating activities in

our Consolidated Statements of Cash Flows. Fees earned for our

servicing activities are immaterial. Revenue related to customer

lease agreements sold under these arrangements represented

less than 4% of our total revenue for the three months 2026 and

2025.

NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE (LOSS)

INCOME (AOCI)


Three Months 2026	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$70	$42	$(799)	$(687)
OCI	(1)	(7)	134	126
Income taxes	1	1	(3)	(1)
Reclassifications to:
Cost of sales	—	(13)	—	(13)
Interest expense	—	(1)	—	(1)
Other income	(1)	—	(10)	(11)
Income taxes	—	2	2	4
Net OCI	$(1)	$(18)	$123	$104
Ending	$69	$24	$(676)	$(583)


Three Months 2025	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$4	$31	$(328)	$(293)
OCI	—	(16)	(160)	(176)
Income taxes	—	4	66	70
Reclassifications to:
Cost of sales	—	(2)	—	(2)
Interest expense	—	(1)	—	(1)
Other income	—	—	(11)	(11)
Income taxes	—	1	3	4
Net OCI	$—	$(14)	$(102)	$(116)
Ending	$4	$17	$(430)	$(409)

NOTE 4 - DERIVATIVE INSTRUMENTS

We use operational and economic hedges, foreign currency

exchange forward contracts, net investment hedges (both

derivative and non-derivative financial instruments) and interest

rate derivative instruments to manage the impact of currency

exchange and interest rate fluctuations on earnings, cash flow

and equity. We do not enter into derivative instruments for

speculative purposes. We are exposed to potential credit loss in

the event of nonperformance by counterparties on our

outstanding derivative instruments but do not anticipate

nonperformance by any of our counterparties. Should a

counterparty default, our maximum loss exposure is the asset

balance of the instrument. We have not changed our hedging

strategies, accounting practices or objectives from those

disclosed in our Annual Report on Form 10-K for 2025.


Dollar amounts are in millions except per share amounts or as otherwise specified.	7


STRYKER CORPORATION		2026 First Quarter Form 10-Q


Foreign Currency Hedges
March 2026	Cash Flow	Net Investment	Non- Designated	Total
Gross notional amount	$1,242	$2,583	$3,744	$7,569
Maximum term in years				8.5
Fair value:
Other current assets	$24	$—	$49	$73
Other noncurrent assets	—	9	—	9
Other current liabilities	(16)	(47)	(10)	(73)
Other noncurrent liabilities	(1)	(28)	—	(29)
Total fair value	$7	$(66)	$39	$(20)


December 2025	Cash Flow	Net Investment	Non- Designated	Total
Gross notional amount	$1,738	$2,647	$4,391	$8,776
Maximum term in years				8.7
Fair value:
Other current assets	$33	$—	$11	$44
Other noncurrent assets	2	—	—	2
Other current liabilities	(10)	(71)	(21)	(102)
Other noncurrent liabilities	(2)	(66)	—	(68)
Total fair value	$23	$(137)	$(10)	$(124)

We had €2.3 billion at March 31, 2026 and December 31, 2025 in

certain forward currency contracts designated as net investment

hedges, for which the maximum term is 8.5 years, to hedge a

portion of our investments in certain of our entities with functional

currencies denominated in Euros. In addition to these derivative

financial instruments designated as net investment hedges, we

had €5.0 billion at March 31, 2026 and December 31, 2025 of

senior unsecured notes designated as net investment hedges to

selectively hedge portions of our investment in certain

international subsidiaries. The currency effects of our Euro-

denominated senior unsecured notes are reflected in AOCI within

shareholders' equity where they offset gains and losses recorded

on our net investment in international subsidiaries.

The total after-tax gain (loss) recognized in OCI related to

designated net investment hedges was $154 in the three months

2026.

Currency Exchange Rate Gains (Losses) Recognized in Net

Earnings


		Three Months
Derivative Instrument	Recognized in:	2026	2025
Cash Flow	Cost of sales	$13	$2
Net Investment	Other income	10	11
Non-Designated	Other income	(1)	13
	Total	$22	$26

Pretax gains (losses) on derivatives designated as cash flow

hedges of $23 and net investment hedges of $34 recorded in

AOCI are expected to be reclassified to cost of sales and other

income in earnings within 12 months of March 31, 2026. This

cash flow hedge reclassification is primarily due to the sale of

inventory that includes previously hedged purchases. A

component of the AOCI amounts related to net investment

hedges is reclassified over the life of the hedge instruments as

we elected to exclude the initial value of the component related to

the spot-forward difference from the effectiveness assessment.

Interest Rate Hedges

Pretax gains of $6 recorded in AOCI related to interest rate

hedges closed in conjunction with debt issuances are expected to

be reclassified to interest expense in earnings within 12 months

of March 31, 2026. The cash flow effect of interest rate hedges is

recorded in cash flow from operations.

NOTE 5 - FAIR VALUE MEASUREMENTS

Our policies for managing risk related to foreign currency, interest

rates, credit and markets and our process for determining fair

value have not changed from those described in our Annual

Report on Form 10-K for 2025.

In 2025 we assumed contingent consideration liabilities with a fair

value of $90 related to previous acquisitions made by Inari

Medical, Inc. (Inari). Refer to Note 7 for further information on the

acquisition of Inari.

There were no significant transfers into or out of any level of the

fair value hierarchy in 2026.


Assets Measured at Fair Value
	March 31	December 31
	2026	2025
Cash and cash equivalents	$2,878	$4,011
Short-term investments	—	—
Trading marketable securities	299	307
Level 1 - Assets	$3,177	$4,318
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$48	$52
United States treasury debt securities	39	37
Total available-for-sale marketable securities	$87	$89
Foreign currency exchange forward contracts	82	46
Level 2 - Assets	$169	$135
Total assets measured at fair value	$3,346	$4,453


Liabilities Measured at Fair Value
	March 31	December 31
	2026	2025
Deferred compensation arrangements	$299	$307
Level 1 - Liabilities	$299	$307
Foreign currency exchange forward contracts	$102	$170
Level 2 - Liabilities	$102	$170
Contingent consideration:
Beginning	$518	$452
Additions	—	123
Change in estimate and foreign exchange	2	24
Settlements	(39)	(81)
Ending	$481	$518
Level 3 - Liabilities	$481	$518
Total liabilities measured at fair value	$882	$995


Fair Value of Available for Sale Securities by Maturity
	March 31	December 31
	2026	2025
Due in one year or less	$39	$41
Due after one year through three years	$48	$48

On March 31, 2026 and December 31, 2025 the aggregate

difference between the cost and fair value of available-for-sale

marketable securities was nominal. Interest income on cash and

cash equivalents and short-term investments and income from

marketable securities was $34 and $38 in the three months 2026

and 2025, which was recorded in other income.

Our investments in available-for-sale marketable securities had a

minimum credit quality rating of A2 (Moody's), A (Standard &

Poor's) and A (Fitch). We do not plan to sell the investments, and

it is not more likely than not that we will be required to sell the

investments before recovery of their amortized cost basis, which

may be maturity.

NOTE 6 - CONTINGENCIES AND COMMITMENTS

We are involved in various ongoing proceedings, legal actions

and claims arising in the normal course of business, including

proceedings related to product, labor, tax, intellectual property


Dollar amounts are in millions except per share amounts or as otherwise specified.	8


STRYKER CORPORATION		2026 First Quarter Form 10-Q

and other matters. The outcomes of these matters will generally

not be known for prolonged periods of time. In certain of the legal

proceedings the claimants seek damages as well as other

compensatory and equitable relief that could result in the

payment of significant claims and settlements and/or the

imposition of injunctions or other equitable relief. For legal

matters for which management had sufficient information to

reasonably estimate our future obligations, a liability representing

management's best estimate of the probable loss, or the

minimum of the range of probable losses when a best estimate

within the range is not known, is recorded. The estimates are

based on consultation with legal counsel, previous settlement

experience and settlement strategies. If actual outcomes are less

favorable than those estimated by management, additional

expense may be incurred, which could unfavorably affect future

operating results. We are self-insured for certain claims and

expenses. The ultimate cost to us with respect to product liability

claims could be materially different than the amount of the current

estimates and accruals and could have a material adverse effect

on our financial position, results of operations and cash flows.


Leases
	March 31	December 31
	2026	2025
Right-of-use assets	$529	$519
Lease liabilities, current	$161	$153
Lease liabilities, non-current	$350	$348

Other information:
Weighted-average remaining lease term (years)	4.7	5.0
Weighted-average discount rate	3.77%	3.77%


	Three Months
	2026	2025
Operating lease cost	$56	$53

Other Contractual Obligations and Commitments

Our outstanding balances of confirmed invoices in the supplier

financing program were $70 and $75 at March 31, 2026 and

December 31, 2025 and are included within accounts payable in

our Consolidated Balance Sheets.

NOTE 7 - ACQUISITIONS

We acquire stock in companies and various assets that continue

to support our capital deployment and product development

strategies. In the three months 2026 and 2025 cash paid for

acquisitions, net of cash acquired was $22 and $4,749.

In February 2025 we completed the acquisition of Inari for $80

per share, or an aggregate purchase price of $4,810, net of cash

acquired. Inari's product portfolio includes minimally invasive

products for the treatment of venous thromboembolism. Inari is

part of our Peripheral Vascular business within MedSurg and

Neurotechnology. Goodwill attributable to the acquisition reflects

the strategic benefits of expanding our market presence,

diversifying our product portfolio and advancing innovations. This

goodwill is not deductible for tax purposes. Share-based awards

for Inari employees vested upon our acquisition and a charge of

$139 was recorded in selling, general and administrative

expenses in the three months 2025.

The purchase price allocation for Inari is:


Purchase Price Allocation of Acquired Net Assets
		2025
		Inari
Tangible assets acquired:
Accounts receivable		$78
Inventory		215
Deferred income tax assets		134
Other assets		84
Deferred income tax liabilities		(489)
Other liabilities		(189)
Intangible assets:
Developed technologies		1,458
Customer relationships		330
Other intangibles		72
Goodwill		3,117
Purchase price, net of cash acquired of $64		$4,810
Weighted average amortization period at acquisition (years):
Developed technologies		13
Customer relationships		13
Other intangibles		9

On May 7, 2026 we acquired Amplitude Vascular Systems, Inc.

(AVS) for approximately $435 in cash and up to $400 in future

milestone payments. AVS is developing a next-generation

intravascular lithotripsy platform designed to treat complex

peripheral arterial disease. We plan to integrate AVS into our

Vascular business within MedSurg and Neurotechnology.


Consolidated Estimated Amortization Expense
Remainder of 2026	2027	2028	2029	2030
$557	$682	$634	$618	$599

NOTE 8 - DEBT AND CREDIT FACILITIES

We have lines of credit issued by various financial institutions that

are available to fund our day-to-day operating needs. Certain of

our credit facilities require us to comply with financial and other

covenants. We were in compliance with all covenants on

March 31, 2026.

On March 31, 2026 there were no borrowings outstanding under

our revolving credit facility or our commercial paper program

which allows for maturities up to 397 days from the date of

issuance. The maximum amount of our commercial paper that

can be outstanding at any time is $3,000.

In March 2026 we repaid $1,000 of 3.500% senior unsecured

notes. The following table summarizes our total debt at March 31:


Dollar amounts are in millions except per share amounts or as otherwise specified.	9


STRYKER CORPORATION		2026 First Quarter Form 10-Q


Summary of Total Debt
			March 31	December 31
	Rate	Due	2026	2025
Senior unsecured notes:
	3.500%	March 15, 2026	—	1,000
	4.550%	February 10, 2027	499	498
	2.125%	November 30, 2027	860	881
	4.700%	February 10, 2028	697	697
	3.650%	March 7, 2028	599	599
	4.850%	December 8, 2028	597	597
	3.375%	December 11, 2028	687	704
	0.750%	March 1, 2029	916	939
	4.250%	September 11, 2029	745	744
	4.850%	February 10, 2030	794	794
	1.950%	June 15, 2030	995	995
	2.625%	November 30, 2030	741	759
	1.000%	December 3, 2031	855	876
	3.375%	September 11, 2032	911	934
	4.625%	September 11, 2034	741	741
	5.200%	February 10, 2035	990	990
	3.625%	September 11, 2036	679	695
	4.100%	April 1, 2043	393	393
	4.375%	May 15, 2044	396	396
	4.625%	March 15, 2046	985	984
	2.900%	June 15, 2050	643	643
Other			—	—
Total debt			$14,723	$15,859
Less current maturities			499	1,000
Total long-term debt			$14,224	$14,859

			March 31	December 31
			2026	2025
Unamortized debt issuance costs			$67	$70
Borrowing capacity on existing facilities			$2,907	$2,911
Fair value of senior unsecured notes			$13,975	$15,344

The fair value of the senior unsecured notes was estimated using

quoted interest rates, maturities and amounts of borrowings

based on quoted active market prices and yields that took into

account the underlying terms of the debt instruments.

Substantially all of our debt is classified within Level 2 of the fair

value hierarchy.

Interest expense on outstanding debt and credit facilities,

including required fees incurred totaled $142 and $132 for the

three months 2026 and 2025.

NOTE 9 - INCOME TAXES

Our effective tax rates were 12.4% and 14.4% in the three

months 2026 and 2025. The effective tax rates for the three

months 2026 and 2025 reflect the continued lower effective

income tax rates as a result of our European operations and

certain discrete tax items.

Income tax authorities in various jurisdictions globally conduct

routine audits of our income tax returns to determine if they agree

with our interpretations of income tax regulations. Any audit

assessment, draft audit assessment, or final audit report received

is reviewed for new information and evaluated for proper financial

statement treatment.

NOTE 10 - SEGMENT INFORMATION

We segregate our operations into two reportable business

segments: (i) MedSurg and Neurotechnology and (ii)

Orthopaedics which aligns to our internal reporting structure and

how our Chief Operating Decision Maker (CODM) assesses the

performance and allocates resources. The CODM is the Chief

Executive Officer. The CODM makes decisions on resource

allocation, assesses performance of the business, and monitors

budget versus actual results using segment operating income.

Information about total assets by segment is not disclosed

because such information is not regularly provided to, or used by,

our CODM.


Segment Results
	Three Months
	2026	2025
MedSurg and Neurotechnology	$3,207	$3,056
Orthopaedics	2,813	2,810
Net sales	$6,020	$5,866
MedSurg and Neurotechnology	$1,291	$1,175
Orthopaedics	823	775
Cost of sales	$2,114	$1,950
MedSurg and Neurotechnology	$231	$208
Orthopaedics	146	158
Segment research, development and engineering expenses	$377	$366
MedSurg and Neurotechnology	$930	$859
Orthopaedics	880	925
Segment selling, general and administrative expenses	$1,810	$1,784
MedSurg and Neurotechnology	$55	$48
Orthopaedics	119	107
Segment depreciation and amortization	$174	$155
Corporate and Other	$43	$39
Amortization of intangible assets	180	167
Total depreciation and amortization	$397	$361
MedSurg and Neurotechnology	$700	$757
Orthopaedics	846	854
Segment operating income	$1,546	$1,611
Items not allocated to segments:
Corporate and Other	$(275)	$(267)
Inventory stepped up to fair value	—	(34)
Acquisition and integration-related charges	(19)	(185)
Amortization of intangible assets	(180)	(167)
Structural optimization and other special charges	(118)	(41)
Goodwill and other impairments	—	(35)
Medical device regulation	(5)	(12)
Recall-related matters	(10)	(33)
Regulatory and legal matters	(3)	—
Consolidated operating income	$936	$837


Segment Capital Spending	Three Months
	2026	2025
Purchases of property, plant and equipment:
MedSurg and Neurotechnology	$58	$33
Orthopaedics	41	49
Total segment purchases of property, plant and equipment	$99	$82
Corporate and Other	67	41
Total purchases of property, plant and equipment	$166	$123


Dollar amounts are in millions except per share amounts or as otherwise specified.	10


STRYKER CORPORATION		2026 First Quarter Form 10-Q

NOTE 11 - SALE OF SPINAL IMPLANTS BUSINESS

In April 2025 we completed the sale of the disposal group to the

Viscogliosi Brothers, LLC. The fair value of the consideration

received of $245 was measured using a discounted cash flow

analysis based upon the selling price and unobservable inputs,

such as market conditions and the rate used to discount the

estimated future cash flows to their present value based on

factors including the disposal group’s cost of equity and market

yield rates, which are Level 3 inputs.

Deferred consideration receivable was $269 at March 31, 2026.

Other amounts due from Viscogliosi Brothers, LLC are not

material.

Amounts due from purchasers in connection with divestitures,

including deferred consideration, are assessed periodically for

collectability. This assessment involves significant judgment and

considers, among other factors, the purchaser’s financial

condition, operating performance and ability to meet its

contractual obligations. The carrying value of such amounts may

be adjusted if, based on the facts and circumstances available,

collection is no longer considered probable.

NOTE 12 - GOODWILL AND OTHER INTANGIBLE ASSETS

We test goodwill annually for impairment at October 31 or

whenever events or circumstances indicate that goodwill may be

impaired. When it is unlikely that goodwill of a reporting unit is

impaired, we perform a qualitative assessment that may be

periodically supplemented with a corroborative quantitative

analysis.

In the first quarter 2026 we changed our organizational structure.

Our new Ortho Tech business combines the orthopaedic

instruments portfolio from our Instruments business with the

Mako and enabling technologies portfolios from our Other

Orthopaedics business.

Following this reorganization we will continue to have two

reportable segments, MedSurg and Neurotechnology and

Orthopaedics. The reorganization impacts the composition of the

Instruments and Joint Replacement reporting units and results in

a new reporting unit representing the Ortho Tech business.

We assessed goodwill for impairment for the impacted reporting

units immediately before and after the reorganization and

concluded that there was no impairment of goodwill for any of the

reporting units impacted by the reorganization.

In connection with this reorganization we reallocated the goodwill

associated with the impacted businesses using the relative fair

value approach, resulting in a reallocation of $518 of goodwill

from the MedSurg and Neurotechnology segment to the

Orthopaedics segment.


Changes in the Net Carrying Value of Goodwill by Segment
	MedSurg and Neurotechnology	Orthopaedics	Total
December 31, 2025	$12,556	$6,735	$19,291
Reallocation of goodwill	(518)	518	—
Additions and adjustments	(74)	—	(74)
Foreign exchange and other	(19)	(10)	(29)
March 31, 2026	$11,945	$7,243	$19,188


Dollar amounts are in millions except per share amounts or as otherwise specified.	11


STRYKER CORPORATION		2026 First Quarter Form 10-Q


ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ABOUT STRYKER

Stryker Corporation ("we" or the "Company") is a global leader in

medical technologies and, together with our customers, we are

driven to make healthcare better. We offer innovative products

and services in MedSurg, Neurotechnology, and Orthopaedics

that help improve patient and healthcare outcomes. Alongside

our customers around the world, we impact more than 150 million

patients annually. Our goal is to achieve sales growth at the high-

end of the medical technology (MedTech) industry and maintain

our long-term capital allocation strategy that prioritizes: (1)

Acquisitions, (2) Dividends and (3) Share repurchases.

In the first quarter 2026 we announced a change in our

organizational structure. Our new Ortho Tech business combines

the orthopaedic instruments portfolio from our Instruments

business with our Mako and enabling technologies portfolio from

our Other Orthopaedics business. By bringing Mako, power tools,

cutting accessories, enabling technologies and the teams behind

these products together under one business, we are simplifying

the customer experience and striving to increase our speed to

market through focused innovation.

Following this reorganization we will continue to have two

business segments - (i) MedSurg and Neurotechnology and (ii)

Orthopaedics, each of which comprise a reportable segment. All

historical financial segment information has been recast to

conform to this new presentation.

MedSurg and Neurotechnology products include surgical

equipment, patient and caregiver safety technologies, and a

comprehensive line of products for traditional brain and open

skull-based surgical procedures orthobiologic and biosurgery

products, including synthetic bone grafts and vertebral

augmentation (Instruments), endoscopic and communications

systems (Endoscopy), patient handling, emergency medical

equipment, intensive care disposable products, clinical

communication and artificial intelligence-assisted virtual care

platform technology (Medical), and minimally invasive products

for the treatment of acute ischemic and hemorrhagic stroke and

venous thromboembolism (Vascular). Orthopaedics products

include implants and surgical equipment such as navigation

systems and robotics used in total joint replacements, such as

hip, knee and shoulder, ankle and trauma and extremities

surgeries. We bring patients and physicians advanced implant

designs and specialized instrumentation that make orthopaedic

surgery and recovery simpler, faster and more effective. We

support surgeons with technologies, products and services they

need to support each patient’s clinical challenge.

Macroeconomic Environment

In 2025 the United States government announced new tariffs on

goods imported into the United States from dozens of countries,

including China and the European Union member states. In 2026

the United States Supreme Court issued a ruling in Learning

Resources, Inc. v. Trump striking down certain tariffs previously

imposed under the International Emergency Economic Powers

Act. While this ruling may lead to potential refunds for tariffs paid

during 2025, and the United States government subsequently

announced a process for seeking such refunds, the availability,

timing, and amount of such refunds remain uncertain and subject

to further legal and administrative developments. Following this

decision the United States administration announced the

invocation of alternative authorities, including Section 122 of the

Trade Act of 1974, to impose new tariffs on imports. These further

actions may increase costs and impact our operational results.

We continue to monitor and evaluate the situation. The overall

macroeconomic and geopolitical environment, including tariffs or

changes in trade policies, slower economic growth or recession,

market volatility and inflation, and uncertainty regarding all of the

foregoing, pose risks that could impact our business and results

of operations. For more information about these risks, see Item

1A. "Risk Factors" in our Annual Report on Form 10-K for 2025.

Overview of the Three Months

In the three months 2026 we achieved sales growth of 2.6% from

2025. Excluding the impact of acquisitions and divestitures, sales

grew 1.0% in constant currency. We reported operating income

margin of 15.5%, net earnings of $745 and net earnings per

diluted share of $1.93. Excluding the impact of certain items,

adjusted operating income margin(1) contracted by 180 basis

points to 21.1%, with adjusted net earnings(1) of $1,004 and

adjusted net earnings per diluted share(1) of $2.60, a decrease of

8.5% from 2025.

Recent Developments

In the first quarter 2026 we identified a cybersecurity incident

which caused disruptions to our business operations. We worked

diligently, together with third-party experts and law enforcement,

to contain and neutralize the impact of the incident and restore

operations. Our investigation of the incident remains ongoing. For

more information about risks relating to the impact of the

cybersecurity incident to our business, financial condition and

results of operations, see Item 1A. “Risk Factors” in Part II of this

Form 10-Q.

(1) Refer to "Non-GAAP Financial Measures" for a discussion of non-

GAAP financial measures used in this report and a reconciliation to the

most directly comparable GAAP financial measure.


Dollar amounts are in millions except per share amounts or as otherwise specified.	12


STRYKER CORPORATION		2026 First Quarter Form 10-Q


CONSOLIDATED RESULTS OF OPERATIONS
	Three Months
			Percent Net Sales		Percentage
	2026	2025	2026	2025	Change
Net sales	$6,020	$5,866	100.0%	100.0%	2.6%
Gross profit	3,810	3,744	63.3	63.8	1.8
Research, development and engineering expenses	413	405	6.9	6.9	2.0
Selling, general and administrative expenses	2,281	2,300	37.9	39.2	(0.8)
Amortization of intangible assets	180	167	3.0	2.8	7.8
Goodwill and other impairments	—	35	—	0.6	nm
Interest expense	(148)	(137)	(2.5)	(2.3)	8.0
Other income	62	64	1.0	1.1	(3.1)
Income taxes	105	110	nm	nm	(4.5)
Net earnings	$745	$654	12.4%	11.1%	13.9%

Net earnings per diluted share	$1.93	$1.69			14.2%
Adjusted net earnings per diluted share(1)	$2.60	$2.84			(8.5)%

nm - not meaningful


Geographic and Segment Net Sales
	Three Months
			Percentage Change
	2026	2025	As Reported	Constant Currency
Geographic:
United States	$4,476	$4,440	0.8%	0.8%
International	1,544	1,426	8.3	1.5
Total	$6,020	$5,866	2.6%	1.0%
Segment:
MedSurg and Neurotechnology	$3,207	$3,056	5.0%	3.6%
Orthopaedics	2,813	2,810	0.1	(1.8)
Total	$6,020	$5,866	2.6%	1.0%


Supplemental Net Sales Growth Information
	Three Months
			Percentage Change
					United States	International
	2026	2025	As Reported	Constant Currency	As Reported	As Reported	Constant Currency
MedSurg and Neurotechnology:
Instruments	$920	$838	9.9%	8.7%	9.1%	14.0%	7.0%
Endoscopy	868	867	0.1	(1.0)	(1.2)	6.0	—
Medical	902	945	(4.6)	(5.6)	(6.9)	8.3	1.1
Vascular	517	406	27.5	24.0	37.9	17.0	10.5
	$3,207	$3,056	5.0%	3.6%	3.2%	11.7%	5.1%
Orthopaedics:
Knees	$670	$639	4.7%	2.8%	1.4%	13.5%	6.1%
Hips	460	443	3.7	1.2	2.3	6.0	(0.3)
Trauma and Extremities	1,035	945	9.5	7.4	7.6	15.3	6.8
Ortho Tech	646	617	4.8	3.2	2.0	12.9	6.5
	$2,811	$2,644	6.3%	4.3%	4.0%	12.2%	4.9%
Spinal Implants	2	166	(98.9)	(99.0)	(100.0)	(96.2)	(96.6)
	$2,813	$2,810	0.1%	(1.8)%	(2.0)%	5.5%	(1.3)%
Total	$6,020	$5,866	2.6%	1.0%	0.8%	8.3%	1.5%

Note: In the first quarter 2026 we announced a change in our organizational structure. Our new Ortho Tech business combines the

orthopaedic instruments portfolio (Orthopaedic Instruments) from Instruments with Other Orthopaedics. In addition, Neuro Cranial and

the spine enabling technologies portfolio (Enabling Technologies) from Other Orthopaedics was combined with the remaining

Instruments business to align with our internal reporting structure. Ortho Tech includes sales related to Orthopaedic Instruments of $489

and $484 and Other Orthopaedics of $157 and $133. Instruments includes sales related to Neuro Cranial of $606 and $563 and

Enabling Technologies of $26 and $29 for the three months 2026 and 2025. We have reflected these changes in all historical periods

presented.


Dollar amounts are in millions except per share amounts or as otherwise specified.	13


STRYKER CORPORATION		2026 First Quarter Form 10-Q

Consolidated Net Sales

Consolidated net sales increased 2.6% in the three months 2026

as reported and 1.0% in constant currency, as foreign currency

exchange rates positively impacted net sales by 1.6%. Excluding

the 1.4% impact of acquisitions and divestitures, net sales in

constant currency increased by 2.1% from increased unit volume

and 0.3% due to higher prices. The unit volume increase was due

to higher product shipments across most MedSurg and

Neurotechnology businesses and all Orthopaedics businesses.

MedSurg and Neurotechnology Net Sales

MedSurg and Neurotechnology net sales increased 5.0% in the

three months 2026 as reported and 3.6% in constant currency, as

foreign currency exchange rates positively impacted net sales by

1.4%. Excluding the 2.7% impact of acquisitions and divestitures,

net sales in constant currency increased by 0.3% from increased

unit volume and 0.6% from higher prices. The unit volume

increase was due to higher shipments across the Instruments

and Vascular businesses.

Orthopaedics Net Sales

Orthopaedics net sales increased 0.1% in the three months 2026

as reported but decreased 1.8% in constant currency, as foreign

currency exchange rates positively impacted net sales by 1.9%.

Excluding the 5.9% impact of acquisitions and divestitures, net

sales in constant currency increased 4.1% from increased unit

volume. The unit volume increase was due to higher shipments

across all Orthopaedics businesses.

Gross Profit

Gross profit was $3,810 and $3,744 in the three months 2026

and 2025. The key components of the change were:


	Gross Profit Percent Net Sales
Three Months 2025	63.8%
Sales pricing	10 bps
Volume and mix	10 bps
Manufacturing and supply chain costs	(200) bps
Structural optimization and other special charges	70 bps
Inventory stepped up to fair value	60 bps
Three Months 2026	63.3%

Gross profit as a percentage of net sales in the three months

2026 decreased to 63.3% from 63.8% in 2025 driven by higher

manufacturing and supply chain costs primarily due to idle

production time related to the cybersecurity incident.

Research, Development and Engineering Expenses

Research, development and engineering expenses increased $8

or 2.0% in the three months 2026. Expenses as a percentage of

net sales of 6.9% in the three months 2026 remained flat with

2025.

Selling, General and Administrative Expenses

Selling, general and administrative expenses decreased $19 or

0.8% in the three months 2026. As a percentage of net sales,

expenses decreased to 37.9% from 39.2% in 2025, primarily due

to continued spend discipline and lower acquisition and

integration-related charges. Expenses in the three months 2025

included a charge of $139 for share-based awards for Inari

employees that vested upon our acquisition.

Amortization of Intangible Assets

Amortization of intangible assets was $180 and $167 in the three

months 2026 and 2025. Refer to Note 7 to our Consolidated

Financial Statements for further information.

Goodwill and other impairments

Goodwill and other impairments was $35 in the three months

2025.

Operating Income

Operating income was $936 and $837 in the three months 2026

and 2025. Operating income as a percentage of net sales in the

three months 2026 increased to 15.5% from 14.3% in 2025.

Refer to the discussion above for the primary drivers of the

change.

MedSurg and Neurotechnology operating income as a

percentage of net sales decreased to 21.8% in the three months

2026 from 24.8% in 2025. Orthopaedics operating income as a

percentage of net sales decreased to 30.1% in the three months

2026 from 30.4% in 2025. The key components of the change

were:


	Operating Income Percent Net Sales
	MedSurg and Neurotechnology	Orthopaedics
Three Months 2025	24.8%	30.4%
Sales pricing	20 bps	0 bps
Volume	20 bps	(10) bps
Manufacturing and supply chain costs	(220) bps	(190) bps
Research, development and engineering expenses	(40) bps	40 bps
Selling, general and administrative expenses	(80) bps	130 bps
Three Months 2026	21.8%	30.1%

The decrease in MedSurg and Neurotechnology operating

income as a percentage of net sales for the three months was

primarily driven by higher manufacturing and supply chain costs

due to idle production time related to the cybersecurity incident,

higher selling, general and administrative expenses, and higher

research, development and engineering expenses partially offset

by higher unit volumes and prices.

The decrease in Orthopaedics operating income as a percentage

of net sales for the three months was primarily driven by higher

manufacturing and supply chain costs due to idle production time

related to the cybersecurity incident and lower unit volumes

partially offset by lower selling, general and administrative

expenses and research, development and engineering expenses.

Interest Expense

Interest expense was $148 and $137 in the three months 2026

and 2025. The increase in interest expense in the three months

2026 from 2025 was primarily due to 2025 debt issuances.

Other Income

Other income was $62 and $64 in the three months 2026 and

2025. The decrease in other income in the three months 2026

from 2025 was primarily due to lower interest income in 2026.

Income Taxes

Our effective tax rates were 12.4% and 14.4% in the three

months 2026 and 2025. The effective tax rates for the three

months 2026 and 2025 reflect the continued lower effective

income tax rates as a result of our European operations and

certain discrete tax items.

Our future results of operations could be affected by changes in

the effective tax rate as a result of changes in tax laws,

regulations and judicial rulings. We are continuing to evaluate the

impact of tax reform in the countries in which we operate as new

guidance is published and new regulations are adopted.


Dollar amounts are in millions except per share amounts or as otherwise specified.	14


STRYKER CORPORATION		2026 First Quarter Form 10-Q

Net Earnings

Net earnings increased to $745 or $1.93 per diluted share in the

three months 2026 from $654 or $1.69 per diluted share in 2025.

Refer to the discussion above for the primary drivers of the

change.

Non-GAAP Financial Measures

We supplement the reporting of our financial information

determined under accounting principles generally accepted in the

United States (GAAP) with certain non-GAAP financial measures,

including percentage sales growth in constant currency;

percentage organic sales growth; adjusted gross profit; adjusted

selling, general and administrative expenses; adjusted research,

development and engineering expenses; adjusted operating

income; adjusted other income (expense), net; adjusted income

taxes; adjusted effective income tax rate; adjusted net earnings;

and adjusted net earnings per diluted share (Diluted EPS). We

believe these non-GAAP financial measures provide meaningful

information to assist investors and shareholders in understanding

our financial results and assessing our prospects for future

performance. Management believes percentage sales growth in

constant currency and the other adjusted measures described

above are important indicators of our operations because they

exclude items that may not be indicative of or are unrelated to our

core operating results and provide a baseline for analyzing trends

in our underlying businesses. Management uses these non-

GAAP financial measures for reviewing the operating results of

reportable business segments and analyzing potential future

business trends in connection with our budget process and bases

certain management incentive compensation on these non-GAAP

financial measures. To measure percentage sales growth in

constant currency, we remove the impact of changes in foreign

currency exchange rates that affect the comparability and trend

of sales. Percentage sales growth in constant currency is

calculated by translating current and prior year results at the

same foreign currency exchange rate. To measure percentage

organic sales growth, we remove the impact of changes in

foreign currency exchange rates, acquisitions and divestitures,

which affect the comparability and trend of sales. Percentage

organic sales growth is calculated by translating current year and

prior year results at the same foreign currency exchange rates

excluding the impact of acquisitions and divestitures. To measure

earnings performance on a consistent and comparable basis, we

exclude certain items that affect the comparability of operating

results and the trend of earnings. The income tax effect of each

adjustment was determined based on the tax effect of the

jurisdiction in which the related pre-tax adjustment was recorded.

These adjustments are irregular in timing and may not be

indicative of our past and future performance. The following are

examples of the types of adjustments that may be included in a

period:

1.Acquisition and integration-related costs. Costs related to

integrating recently acquired businesses (e.g., costs

associated with the termination of sales relationships,

employee retention and workforce reductions, manufacturing

integration costs and other integration-related activities),

changes in the fair value of contingent consideration,

amortization of inventory stepped-up to fair value, specific

costs (e.g., deal costs and costs associated with legal entity

rationalization) related to the consummation of the

acquisition process and legal entity rationalization and

acquisition-related tax items.

2.Amortization of purchased intangible assets. Periodic

amortization expense related to purchased intangible assets.

3.Structural optimization and other special charges. Costs

associated with employee retention and workforce

reductions, the closure or transfer of manufacturing and

other facilities (e.g., site closure costs, contract termination

costs and redundant employee costs during the work

transfers), product line exits (primarily inventory, long-lived

asset and specifically-identified intangible asset write-offs),

certain long-lived and intangible asset write-offs and

impairments and other charges.

4.Medical device regulations. Costs specific to updating our

quality system, product labeling, asset write-offs and product

remanufacturing to comply with the new medical device

reporting regulations and other requirements of the

European Union.

5.Recall-related matters. Changes in our best estimate of the

probable loss, or the minimum of the range of probable

losses when a best estimate within a range is not known, to

resolve the Rejuvenate, LFIT V40, Wright legacy hip

products and other product recalls.

6.Regulatory and legal matters. Changes in our best estimate

of the probable loss, or the minimum of the range of

probable losses when a best estimate within a range is not

known, to resolve certain regulatory or other legal matters

and the amount of favorable awards from settlements.

7.Tax matters. Impact of accounting for certain significant and

discrete tax items.

Because non-GAAP financial measures are not standardized, it

may not be possible to compare these financial measures with

other companies' non-GAAP financial measures having the same

or similar names. These adjusted financial measures should not

be considered in isolation or as a substitute for reported sales

growth, gross profit, selling, general and administrative expenses,

research, development and engineering expenses, operating

income, other income (expense), net, income taxes, effective

income tax rate, net earnings and net earnings per diluted share,

the most directly comparable GAAP financial measures. These

non-GAAP financial measures are an additional way of viewing

aspects of our operations when viewed with our GAAP results

and the reconciliations to corresponding GAAP financial

measures at the end of the discussion of Consolidated Results of

Operations below. We strongly encourage investors and

shareholders to review our financial statements and publicly-filed

reports in their entirety and not to rely on any single financial

measure.

The weighted-average diluted shares outstanding used in the

calculation of adjusted net earnings per diluted share are the

same as those used in the calculation of reported net earnings

per diluted share for the respective period.


Dollar amounts are in millions except per share amounts or as otherwise specified.	15


STRYKER CORPORATION		2026 First Quarter Form 10-Q


Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Three Months 2026	Gross Profit	Selling, General & Administrative Expenses	Research, Development & Engineering Expenses	Operating Income	Other Income (Expense), Net	Income Taxes	Net Earnings	Effective Tax Rate	Diluted EPS
Reported	$3,810	$2,281	$413	$936	$(86)	$105	$745	12.4%	$1.93
Reported percent net sales	63.3%	37.9%	6.9%	15.5%	(1.4)%	nm	12.4%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—	—	—	—	—	—	—	—	—
Other acquisition and integration-related (a)	2	(13)	(4)	19	—	4	15	0.1	0.04
Amortization of purchased intangible assets	—	—	—	180	—	30	150	0.6	0.38
Structural optimization and other special charges (b)	14	(104)	—	118	(11)	25	82	1.1	0.21
Goodwill and other impairments (c)	—	—	—	—	—	—	—	—	—
Medical device regulations (d)	—	—	(5)	5	—	1	4	—	0.01
Recall-related matters (e)	1	(9)	—	10	—	2	8	0.1	0.02
Regulatory and legal matters (f)	—	(3)	—	3	—	1	2	—	0.01
Tax matters (g)	—	—	—	—	—	2	(2)	0.2	—
Adjusted	$3,827	$2,152	$404	$1,271	$(97)	$170	$1,004	14.5%	$2.60
Adjusted percent net sales	63.6%	35.8%	6.7%	21.1%	(1.6)%	nm	16.7%


Three Months 2025	Gross Profit	Selling, General & Administrative Expenses	Research, Development & Engineering Expenses	Operating Income	Other Income (Expense), Net	Income Taxes	Net Earnings	Effective Tax Rate	Diluted EPS
Reported	$3,744	$2,300	$405	$837	$(73)	$110	$654	14.4%	$1.69
Reported percent net sales	63.8%	39.2%	6.9%	14.3%	(1.2)%	nm	11.1%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	34	—	—	34	—	8	26	0.5	0.07
Other acquisition and integration-related (a)	13	(171)	(1)	185	—	6	179	(2.5)	0.47
Amortization of purchased intangible assets	—	—	—	167	—	34	133	1.4	0.35
Structural optimization and other special charges (b)	22	(19)	—	41	—	14	27	1.0	0.07
Goodwill and other impairments (c)	—	—	—	35	—	9	26	0.7	0.06
Medical device regulations (d)	1	—	(11)	12	—	3	9	0.1	0.02
Recall-related matters (e)	31	(2)	—	33	—	8	25	0.5	0.06
Regulatory and legal matters (f)	—	—	—	—	—	1	(1)	—	—
Tax matters (g)	—	—	—	—	—	(19)	19	(2.4)	0.05
Adjusted	$3,845	$2,108	$393	$1,344	$(73)	$174	$1,097	13.7%	$2.84
Adjusted percent net sales	65.5%	35.9%	6.7%	22.9%	(1.2)%	nm	18.7%

nm - not meaningful

(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:


	Three Months
	2026	2025
Employee retention and workforce reductions	$3	$16
Changes in the fair value of contingent consideration	3	(2)
Manufacturing integration costs	5	4
Stock compensation payments upon a change in control	—	139
Other integration-related activities	8	28
Adjustments to Operating Income	$19	$185
Other income taxes related to acquisition and integration-related costs	4	6
Adjustments to Income Taxes	$4	$6
Adjustments to Net Earnings	$15	$179

(b) Structural optimization and other special charges represent the costs associated with:


	Three Months
	2026	2025
Employee retention and workforce reductions	$7	$32
Closure/transfer of manufacturing and other facilities	5	5
Product line exits	2	3
Termination of sales relationships in certain countries	81	—
Other charges	23	1
Adjustments to Operating Income	$118	$41
Adjustments to Other Income (Expense), Net	$(11)	$—
Adjustments to Income Taxes	$25	$14
Adjustments to Net Earnings	$82	$27


Dollar amounts are in millions except per share amounts or as otherwise specified.	16


STRYKER CORPORATION		2026 First Quarter Form 10-Q


	Three Months
	2026	2025
Certain long-lived and intangible asset write-offs and impairments	$—	$34
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)	—	1
Adjustments to Operating Income	$—	$35
Adjustments to Income Taxes	$—	$9
Adjustments to Net Earnings	$—	$26

(d) Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device

reporting regulations and other requirements of the new medical device regulations in the European Union.

(e) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to

resolve certain recall-related matters.

(f) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to

resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.

(g) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:


	Three Months
	2026	2025
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$(20)	$(47)
Other tax matters	22	28
Adjustments to Income Taxes	$2	$(19)
Adjustments to Other Income (Expense), Net	$—	$—
Adjustments to Net Earnings	$(2)	$19

FINANCIAL CONDITION AND LIQUIDITY


	Three Months
Net cash provided by (used in):	2026	2025
Operating activities	$581	$250
Investing activities	(185)	(4,136)
Financing activities	(1,510)	2,534
Effect of exchange rate changes	(19)	20
Change in cash and cash equivalents	$(1,133)	$(1,332)

Operating Activities

Cash provided by operating activities was $581 and $250 in the

three months 2026 and 2025. The increase was primarily due to

changes in working capital accounts.

Investing Activities

Cash used in investing activities was $185 and $4,136 in the

three months 2026 and 2025. The three months 2026 included

cash paid for purchases of property, plant and equipment. The

three months 2025 included cash paid to acquire Inari and

purchases of property, plant and equipment partially offset by

proceeds from the sale of short-term investments. Refer to Note

7 to our Consolidated Financial Statements for further information

on acquisitions.

Financing Activities

Cash used in financing activities was $1,510 in the three months

2026 and cash provided by financing activities was $2,534 in the

three months 2025. In 2026, cash used was primarily driven by

repayments of $1,000 to pay off maturing unsecured notes as

described in Note 8 to our Consolidated Financial Statements

and dividend payments. Cash provided by 2025 was primarily

driven by proceeds from the issuance of various senior

unsecured notes which was partially offset by dividend payments.

Liquidity

Cash, cash equivalents, short-term investments and marketable

securities were $2,965 and $4,100 on March 31, 2026 and

December 31, 2025. Current assets exceeded current liabilities

by $7,023 and $6,961 on March 31, 2026 and December 31,

2025. We anticipate being able to support our short-term liquidity

and operating needs from a variety of sources including cash

from operations, commercial paper and existing credit lines.

We have raised funds in the capital markets and have accessed

the credit markets in the past and may continue to do so from

time-to-time. We continue to have strong investment-grade short-

term and long-term debt ratings that we believe should enable us

to refinance our debt as needed.

Our cash, cash equivalents, short-term investments and

marketable securities held in locations outside the United States

was 32% on March 31, 2026 compared to 20% on December 31,

2025.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There were no changes to our critical accounting policies and

estimates from those disclosed in our Annual Report on Form 10-

K for 2025, except as follows:

Following the reorganization discussed in Note 12 we will

continue to have two reportable segments, MedSurg and

Neurotechnology and Orthopaedics. The reorganization impacts

the composition of the Instruments and Joint Replacement

reporting units and results in a new reporting unit representing

the Ortho Tech business.

We assessed goodwill for impairment for the impacted reporting

units immediately before and after the reorganization and

concluded that there was no impairment of goodwill for any of the

reporting units impacted by the reorganization.

In connection with this reorganization we reallocated the goodwill

associated with the impacted businesses using the relative fair

value approach, resulting in a reallocation of $518 of goodwill

from the MedSurg and Neurotechnology segment to the

Orthopaedics segment.

Historical impairment assessments for our other reporting units

have indicated that their implied fair values exceed their

respective carrying amounts. We have not identified any factors

in 2026 that would lead us to believe that those reporting units

are at risk of a goodwill impairment.

Guarantees and Other Off-Balance Sheet Arrangements

We do not have guarantees or other off-balance sheet financing

arrangements, including variable interest entities, of a magnitude

that we believe could have a material impact on our financial

condition or liquidity.


Dollar amounts are in millions except per share amounts or as otherwise specified.	17


STRYKER CORPORATION		2026 First Quarter Form 10-Q

OTHER MATTERS

Legal and Regulatory Matters

We are involved in various ongoing proceedings, legal actions

and claims arising in the normal course of our business, including

proceedings related to product, labor, tax, intellectual property

and other matters. Refer to Note 6 to our Consolidated Financial

Statements for further information.

FORWARD-LOOKING STATEMENTS

This report contains statements that are not historical facts and

are considered "forward-looking statements" within the meaning

of the Private Securities Litigation Reform Act of 1995. These

statements are based on current projections about operations,

industry conditions, financial condition and liquidity. Words that

identify forward-looking statements include, without limitation,

words such as "may," "could," "will," "should," "possible," "plan,"

"predict," "forecast," "potential," "anticipate," "estimate," "expect,"

"project," "intend," "believe," "may impact," "on track," "goal,"

"strategy" and words and terms of similar substance used in

connection with any discussion of future operating or financial

performance, an acquisition or our businesses. In addition, any

statements that refer to expectations, projections or other

characterizations of future events or circumstances, including any

underlying assumptions, are forward-looking statements. Those

statements are not guarantees and are subject to risks,

uncertainties and assumptions that are difficult to predict,

including uncertainties related to the impact of the cybersecurity

incident first reported on March 11, 2026 on our operations and

financial results. Therefore, actual results could differ materially

and adversely from these forward-looking statements, historical

experience or our present expectations. Some important factors

that could cause our actual results to differ from our expectations

in any forward-looking statements include the risks discussed in

Item 1A. "Risk Factors" of our Annual Report on Form 10-K for

2025. This Form 10-Q should be read in conjunction with our

Consolidated Financial Statements and accompanying notes to

our Consolidated Financial Statements in our Annual Report on

Form 10-K for 2025. While we believe that the assumptions

underlying such forward-looking statements are reasonable,

there can be no assurance that future events or developments

will not cause such statements to be inaccurate. All forward-

looking statements contained in this report are qualified in their

entirety by this cautionary statement. We expressly disclaim any

intention or obligation to publicly update or revise any forward-

looking statement to reflect any change in our expectations or in

events, conditions or circumstances on which those expectations

may be based, or that affect the likelihood that actual results will

differ from those contained in the forward-looking statements.


ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We consider our greatest potential area of market risk exposure

to be exchange rate risk on our operating results. Quantitative

and qualitative disclosures about exchange rate risk are included

in Item 7A "Quantitative and Qualitative Disclosures About Market

Risk" of our Annual Report on Form 10-K for 2025. There were

no material changes from the information provided therein.


ITEM 4.	CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the Chief Executive

Officer and Chief Financial Officer (the Certifying Officers),

evaluated the effectiveness of the Company's disclosure controls

and procedures (as defined in Rules 13a-15(e) or 15d-15(e)

promulgated under the Securities Exchange Act of 1934, as

amended) on March 31, 2026. Based on that evaluation, the

Certifying Officers concluded the Company's disclosure controls

and procedures were effective as of March 31, 2026.

Changes in Internal Control Over Financial Reporting

There was no change to our internal control over financial

reporting during the three months 2026 that materially affected,

or is reasonably likely to materially affect, our internal control over

financial reporting.

PART II – OTHER INFORMATION


ITEM 1A.	RISK FACTORS

We are not aware of any material changes to the risk factors

included in Item 1A. "Risk Factors" in our Annual Report on Form

10-K for 2025, except for updates to the following risk factors:

BUSINESS AND OPERATIONAL RISKS

We have experienced, and in the future we, our business

partners or our third-party vendors could experience a

material failure or breach of a key information technology

system, network, process or site: We rely extensively on

information technology (IT) systems to conduct business. In

addition, we rely on networks and services, including internet

sites, cloud and software-as-a-service solutions, data hosting and

processing facilities and tools and other hardware, software

(including open-source software) and technical applications and

platforms, some of which are managed, hosted, provided and/or

used by third parties or their vendors, to assist in conducting our

business. Furthermore, numerous and evolving cybersecurity

threats have posed, and will continue to pose, risks to the

security of our IT systems, networks and product offerings, as

well as the confidentiality, availability and integrity of our data.

Emerging technologies such as generative AI may be used by

malicious actors to create more targeted phishing narratives,

spread disinformation about us or our products or otherwise

strengthen social engineering capabilities. An increasing risk of

civil unrest, political tensions, wars, or other military conflicts or

actions, such as the United States’ ongoing combat operations in

Iran, can also impact the cybersecurity threat risk landscape.

Some of our products, services, and IT systems contain or use

open-source software which poses particular risks, including

potential security vulnerabilities, licensing compliance issues and

quality issues. We, our customers and third-party hosting

services have experienced, and expect to continue to experience,

security breaches of, unauthorized access to, and disruptions of,

products or systems. For example, on March 11, 2026, we

identified and reported a cybersecurity incident affecting certain

IT systems that resulted in a disruption to our corporate network

environment and caused disruption to our business operations.

As disclosed in our Current Report on Form 8-K/A, dated April 9,

2026, filed under Item 1.05, we subsequently determined that this

incident had a material impact on our operations, with resulting

impact to our financial results for the first quarter of 2026. While

we are fully operational across our global manufacturing network

and our commercial, ordering and distribution systems have been

restored, our investigation of the incident remains ongoing and

we may experience further adverse impacts, including financially,


Dollar amounts are in millions except per share amounts or as otherwise specified.	18


STRYKER CORPORATION		2026 First Quarter Form 10-Q

reputationally or otherwise. In addition, any future breaches,

unauthorized access or disruptions could have a material

adverse effect on our business, financial condition and results of

operations, including through business interruption, loss of

revenue, regulatory fines, litigation costs, reputational harm and

increased cybersecurity expenditures. Although we have made

investments and expect to continue to make investments seeking

to address these threats, including monitoring of networks and

systems, use of AI, hiring of experts, employee training, security

policies for employees and third-party providers and designing,

developing and maintaining processes and procedures to come

into compliance with regulatory and legal enactments such as

Section 524B of the Federal Food, Drug, and Cosmetic Act in the

United States, the techniques used in these attacks change

frequently and may be difficult to detect for periods of time and

we may face difficulties in anticipating and implementing

adequate preventative measures.

When cybersecurity or other technology related incidents occur,

we follow our incident response protocols and address them in

accordance with applicable governmental regulations and other

legal requirements. For example, in connection with the March

11, 2026 cybersecurity incident, we activated our incident

response protocols, engaged external cybersecurity experts to

assist in investigation, containment and remediation, notified

applicable regulatory authorities and kept our customers and

vendors informed through a number of communication channels.

Notwithstanding these efforts, our response to these incidents

and our investments to protect our product offerings and

information technology infrastructure and data may not shield us

from significant losses and potential liability nor prevent any

future interruption or breach of our systems. Moreover, given the

increasing complexity and sophistication of the techniques used

by threat actors to obtain unauthorized access or disable or

degrade systems, a cyberattack could occur and persist for an

extended period of time before being detected, and we may not

anticipate these acts or mitigate them adequately or timely, which

may compound damages before the incident is discovered or

remediated. The extent of the March 11, 2026 cyber incident and

any future cyber incident, and the steps that we may need to take

to further investigate any such incident, may not be immediately

clear, and it may take a significant amount of time before such

investigation can be completed and full and reliable information

about the incident is known. Additionally, as threats continue to

evolve and increase, and as the regulatory environment and

customer requirements related to information security, data

collection and use, and privacy become increasingly rigorous, we

may be required to devote significant additional resources to

modify and enhance our security controls and to identify and

remediate any security vulnerabilities, which could adversely

impact our net income. In addition, a significant number of our

employees work remotely, which has exposed us, and may

continue to expose us, to greater risks related to cybersecurity

and cyber-liability.

In responding to a cybersecurity incident or other disruption to

our IT systems, we have been required and in the future may be

required to use manual processes or other alternatives to our

normal systems for a period of time. These workarounds may be

less efficient, may not be sustainable for extended periods, and

may increase the risk of errors, delays or data integrity issues

(including with respect to information collected or processed

during the disruption). For example, during the March 11, 2026

cybersecurity incident, certain of our employees were unable to

access our IT systems. Any such issues could adversely affect

our ability to maintain effective processes and controls, including

processes supporting financial and operational reporting, and

could result in additional costs, remediation efforts, regulatory

scrutiny or litigation.

Hardware and software failures or delays in our key IT systems,

networks, processes or sites have disrupted and could in the

future disrupt our operations, cause the loss of confidential

information or otherwise adversely impact our business. Our

systems, networks, processes and sites may be vulnerable to

damage, disruptions and shutdown from a variety of sources,

including malfunctions in maintenance updates or security

patches, design defects, the age of the technology, network

failures, modernization or other initiatives, human acts and

natural disasters. For example, some of our IT systems contain

legacy third-party software components for which we depend on

a layered security approach to protect against exploitation, which

may not be effective. The March 11, 2026 cybersecurity incident

demonstrates that such damage or disruptions can compromise

the security of our information systems and networks with

material consequences. These issues can also arise as a result

of failures by, or in the software or hardware of, third parties,

including networks or service providers, with whom we do

business and over whom we have limited or no control.

Disruptions or failures of our systems, networks, processes or

sites have had, and could in the future have, a material impact on

our business and operations.

If our IT systems, networks or processes are damaged or cease

to function properly for any reason, the networks, service

providers, hardware or software we rely upon fail to function

properly, or we or one of our third-party providers suffer a loss or

disclosure of our business or stakeholder information due to any

number of causes ranging from catastrophic events or power

outages to improper data handling or security breaches or

unauthorized access, and our business continuity plans do not

effectively address these failures on a timely basis, we may be

exposed to reputational, competitive and business harm as well

as litigation and regulatory action and fines, penalties and

expenses related thereto.

Interruption of manufacturing operations has adversely

affected, and could in the future adversely affect, our

business: We and our suppliers have manufacturing and supply

sites all over the world. However, the manufacturing of certain of

our product lines is concentrated in one or more plants or

geographic regions. We have principal manufacturing and

distribution facilities in the United States in Arizona, California,

Florida, Illinois, Indiana, Michigan, Minnesota, New Jersey,

Puerto Rico, Tennessee, Texas, Utah and Washington, and

outside the United States in China, France, Germany, Ireland,

Mexico, the Netherlands, Poland, Switzerland and Turkey.

Damage to our facilities, to our suppliers’ or service providers’

facilities, or to our central distribution centers as a result of

natural disasters, fires, explosions or otherwise, as well as issues

in our manufacturing arising from a failure to follow specific

internal protocols and procedures, compliance concerns relating

to the quality systems regulation, equipment breakdown or

malfunction, IT system failures or cybersecurity incidents,

environmental hazard incidents or changes to environmental

regulations or other factors, could adversely affect the availability

of our products. For example, the March 11, 2026 cybersecurity

incident, which we determined to be material as disclosed in our

Current Report on Form 8-K/A, dated April 9, 2026, filed under

Item 1.05, affected certain IT systems that resulted in a disruption

to our corporate network environment and caused disruption to

our business operations. While we resumed our manufacturing

operations shortly after the March 11, 2026 incident, in the event


Dollar amounts are in millions except per share amounts or as otherwise specified.	19


STRYKER CORPORATION		2026 First Quarter Form 10-Q

of a future interruption in manufacturing, we may be unable to

move quickly to alternate means of producing and distributing

affected products to meet customer demand. In the event of a

significant interruption, we may experience lengthy delays in

resuming production or distribution of affected products due to

the need for regulatory approvals, and we may experience loss of

market share, additional expense and harm to our reputation.


ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We issued 12,757 shares of our common stock in the three

months 2026 as performance incentive awards to employees.

These shares are not registered under the Securities Act of 1933

based on the conclusion that the awards would not be events of

sale within the meaning of Section 2(a)(3) of the Act.

In March 2015 we announced that our Board of Directors had

authorized us to purchase up to $2,000 of our common stock.

The manner, timing and amount of repurchases are determined

by management based on an evaluation of market conditions,

stock price, and other factors and are subject to regulatory

considerations. Purchases are made from time-to-time in the

open market, in privately negotiated transactions or otherwise.

In the three months 2026 we did not repurchase any shares of

our common stock under our authorized repurchase program.

The total dollar value of shares of our common stock that could

be acquired under our authorized repurchase program was

$1,033 as of March 31, 2026.


ITEM 5.	OTHER INFORMATION

Certain of our officers or directors have made elections to

participate in, and are participating in, our employee stock

purchase plan and 401(k) plan and have made, and may from

time to time make, elections to have shares withheld to cover

withholding taxes due or pay the exercise price of stock options,

restricted stock units and performance stock units, which may

constitute non-Rule 10b5–1 trading arrangements (as defined in

Item 408(c) of Regulation S-K).

On February 24, 2026 Spencer Stiles, our President and Chief

Operating Officer, adopted a trading plan intended to satisfy the

affirmative defense conditions of Rule 10b5-1(c) under the

Exchange Act for the sale of shares of Stryker common stock.

The plan terminates on the earlier of the close of trading on April

30, 2027 or the date the maximum aggregate number of shares

to be sold under the plan is sold, subject to early termination for

certain specified events set forth in the plan. The maximum

aggregate number of shares to be sold under the plan is 7,849

shares.

On February 26, 2026 Robert Fletcher, our Vice President, Chief

Legal Officer, adopted a trading plan intended to satisfy the

affirmative defense conditions of Rule 10b5-1(c) under the

Exchange Act for the sale of shares of Stryker common stock.

The plan terminates on the earlier of the close of trading on April

30, 2027 or the date the maximum aggregate number of shares

to be sold under the plan is sold, subject to early termination for

certain specified events set forth in the plan. The maximum

aggregate number of shares to be sold under the plan is 15,952

shares, representing the maximum number of shares underlying

certain previously granted PSUs, excluding any dividend

equivalents, which cannot be determined until the applicable

vesting dates. Under the terms of the plan, only the net shares

remaining after satisfaction of applicable tax withholding

obligations upon vesting of the awards will be sold.


ITEM 6.	EXHIBITS


31(i)†	Certification of Principal Executive Officer of Stryker Corporation pursuant to Rule 13a-14(a).
31(ii)†	Certification of Principal Financial Officer of Stryker Corporation pursuant to Rule 13a-14(a).
32(i)††	Certification by Principal Executive Officer of Stryker Corporation pursuant to 18 U.S.C. Section 1350.
32(ii)††	Certification by Principal Financial Officer of Stryker Corporation pursuant to 18 U.S.C. Section 1350.
101.INS	iXBRL Instance Document
101.SCH	iXBRL Schema Document
101.CAL	iXBRL Calculation Linkbase Document
101.DEF	iXBRL Definition Linkbase Document
101.LAB	iXBRL Label Linkbase Document
101.PRE	iXBRL Presentation Linkbase Document
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

	* Compensation arrangement
	† Filed with this Form 10-Q
	†† Furnished with this Form 10-Q


		STRYKER CORPORATION
		(Registrant)


Date:	May 11, 2026	/s/ KEVIN A. LOBO
		Kevin A. Lobo
		Chair and Chief Executive Officer


Date:	May 11, 2026	/s/ PRESTON W. WELLS
		Preston W. Wells
		Vice President, Chief Financial Officer