syk-20260630

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 June 30, 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	☐	Smaller 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 383,573,046 shares of Common Stock, $0.10 par value, on June 30, 2026.


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q

PART I – FINANCIAL INFORMATION


ITEM 1.	FINANCIAL STATEMENTS

Stryker Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)


	Three Months		Six Months
	2026	2025	2026	2025
Net sales	$6,589	$6,022	$12,609	$11,888
Cost of sales	2,091	2,181	4,301	4,303
Gross profit	$4,498	$3,841	$8,308	$7,585
Research, development and engineering expenses	434	407	847	812
Selling, general and administrative expenses	2,229	2,079	4,510	4,379
Amortization of intangible assets	175	187	355	354
Goodwill and other impairments	1	55	1	90
Total operating expenses	$2,839	$2,728	$5,713	$5,635
Operating income	$1,659	$1,113	$2,595	$1,950
Interest expense	(141)	(159)	(289)	(296)
Other income	46	62	108	126
Earnings before income taxes	$1,564	$1,016	$2,414	$1,780
Income taxes	288	132	393	242
Net earnings	$1,276	$884	$2,021	$1,538

Net earnings per share of common stock:
Basic	$3.32	$2.32	$5.27	$4.03
Diluted	$3.30	$2.29	$5.23	$3.98

Weighted-average shares outstanding (in millions):
Basic	383.5	382.2	383.2	382.0
Effect of dilutive employee stock compensation	2.5	4.2	3.0	4.4
Diluted	386.0	386.4	386.2	386.4

Cash dividends declared per share of common stock	$0.88	$0.84	$1.76	$1.68

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		Six Months
	2026	2025	2026	2025
Net earnings	$1,276	$884	$2,021	$1,538
Other comprehensive income (loss), net of tax:
Marketable securities	—	—	—	—
Pension plans	1	2	—	2
Unrealized gains (losses) on designated hedges	(13)	17	(31)	3
Financial statement translation	19	(372)	142	(474)
Total other comprehensive income (loss), net of tax	$7	$(353)	$111	$(469)
Comprehensive income	$1,283	$531	$2,132	$1,069

See accompanying notes to Consolidated Financial Statements.


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q

CONSOLIDATED BALANCE SHEETS


	June 30	December 31
	2026	2025
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$3,391	$4,011
Marketable securities	85	89
Accounts receivable, less allowance of $215 ($216 in 2025)	3,743	4,039
Inventories:
Materials and supplies	1,436	1,349
Work in process	470	415
Finished goods	3,615	3,546
Total inventories	$5,521	$5,310
Prepaid expenses and other current assets	1,678	1,306
Total current assets	$14,418	$14,755
Property, plant and equipment:
Land, buildings and improvements	1,814	1,793
Machinery and equipment	5,995	5,744
Total property, plant and equipment	$7,809	$7,537
Less allowance for depreciation	3,851	3,661
Property, plant and equipment, net	$3,958	$3,876
Goodwill	19,584	19,291
Other intangibles, net	5,742	5,681
Noncurrent deferred income tax assets	994	1,098
Other noncurrent assets	3,234	3,143
Total assets	$47,930	$47,844

Liabilities and shareholders' equity
Current liabilities
Accounts payable	$1,663	$1,799
Accrued compensation	1,105	1,595
Income taxes	224	418
Dividends payable	338	337
Accrued expenses and other liabilities	2,604	2,645
Current maturities of debt	750	1,000
Total current liabilities	$6,684	$7,794
Long-term debt, excluding current maturities	14,192	14,859
Income taxes	406	402
Other noncurrent liabilities	2,660	2,369
Total liabilities	$23,942	$25,424
Shareholders' equity
Common stock, $0.10 par value	38	38
Additional paid-in capital	2,711	2,597
Retained earnings	21,815	20,472
Accumulated other comprehensive loss	(576)	(687)
Total shareholders' equity	$23,988	$22,420
Total liabilities and shareholders' equity	$47,930	$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 Second Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Six Months
	2026	2025
Operating activities
Net earnings	$2,021	$1,538
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	241	214
Amortization of intangible assets	355	354
Asset impairments	1	90
Share-based compensation	141	133
Sale of inventory stepped-up to fair value at acquisition	—	99
Deferred income tax (benefit) expense	74	176
Changes in operating assets and liabilities:
Accounts receivable	267	257
Inventories	(240)	(226)
Accounts payable	(127)	(269)
Accrued expenses and other liabilities	(356)	(116)
Income taxes	(258)	(610)
Other, net	(277)	(279)
Net cash provided by operating activities	$1,842	$1,361
Investing activities
Acquisitions, net of cash acquired	(459)	(4,814)
Purchases of marketable securities	(19)	(27)
Proceeds/(Purchases) of short-term investments	—	750
Proceeds from sales of marketable securities	23	32
Purchases of property, plant and equipment	(368)	(306)
Proceeds from the sale of the Spinal Implants business	—	165
Other investing, net	(1)	(40)
Net cash used in investing activities	$(824)	$(4,240)
Financing activities
Proceeds (payments) on short-term borrowings, net	250	2
Proceeds from issuance of long-term debt	—	2,979
Payments on long-term debt	(1,000)	(650)
Payments of dividends	(674)	(641)
Cash paid for taxes from withheld shares	(146)	(115)
Other financing, net	(35)	(30)
Net cash provided by (used in) financing activities	$(1,605)	$1,545
Effect of exchange rate changes on cash and cash equivalents	(33)	57
Change in cash and cash equivalents	$(620)	$(1,277)
Cash and cash equivalents at beginning of period	4,011	3,652
Cash and cash equivalents at end of period	$3,391	$2,375

See accompanying notes to Consolidated Financial Statements.


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


STRYKER CORPORATION		2026 Second 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

June 30, 2026 and the results of operations for the three and six

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.

Following this reorganization we 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 were combined with the

remaining Instruments business to align with our internal

reporting structure. Ortho Tech includes sales related to

Orthopaedic Instruments of $523 and $501 and Other

Orthopaedics of $194 and $148 for the three months 2026 and

2025. For the six months 2026 and 2025 Ortho Tech includes

sales related to Orthopaedic Instruments of $1,012 and $985 and

Other Orthopaedics of $351 and $281. Instruments includes

sales related to Neuro Cranial of $681 and $616 and Enabling

Technologies of $28 and $34 for the three months 2026 and

2025. For the six months 2026 and 2025 Instruments includes

sales related to Neuro Cranial of $1,287 and $1,179 and

Enabling Technologies of $54 and $63. We have reflected these

changes in all historical periods presented.


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q


Net Sales by Business
	Three Months		Six Months
	2026	2025	2026	2025
MedSurg and Neurotechnology:
Instruments	$1,003	$918	$1,923	$1,756
Endoscopy	1,004	899	1,872	1,766
Medical	1,122	990	2,024	1,935
Vascular	496	498	1,013	904
	$3,625	$3,305	$6,832	$6,361
Orthopaedics:
Knees	$693	$640	$1,363	$1,279
Hips	479	466	939	909
Trauma and Extremities	1,072	957	2,107	1,902
Ortho Tech	717	649	1,363	1,266
Spinal Implants	3	5	5	$171
	$2,964	$2,717	$5,777	$5,527
Total	$6,589	$6,022	$12,609	$11,888


Net Sales by Geography
	Three Months		Six Months
	2026	2025	2026	2025
United States	$4,959	$4,554	$9,435	$8,994
International	1,630	1,468	3,174	2,894
Total	$6,589	$6,022	$12,609	$11,888

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 June 30, 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 June 30, 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 $997 and $1,024 on June 30,

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 six months 2026 were as

follows:


	June 30
	2026
Beginning contract liabilities	$1,024
Revenue recognized from beginning of year contract liabilities	(537)
Net advance consideration received during the period	510
Ending contract liabilities	$997

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 and six months

2026 and 2025.

NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE (LOSS)

INCOME (AOCI)


Three Months 2026	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$69	$24	$(676)	$(583)
OCI	2	(3)	22	21
Income taxes	—	—	4	4
Reclassifications to:
Cost of sales	—	(11)	—	(11)
Interest expense	—	(1)	—	(1)
Other income	(2)	—	(10)	(12)
Income taxes	1	2	3	6
Net OCI	$1	$(13)	$19	$7
Ending	$70	$11	$(657)	$(576)


Three Months 2025	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$4	$17	$(430)	$(409)
OCI	3	22	(425)	(400)
Income taxes	(1)	(3)	62	58
Reclassifications to:
Cost of sales	—	(3)	—	(3)
Interest expense	—	—	—	—
Other income	—	—	(11)	(11)
Income taxes	—	1	2	3
Net OCI	$2	$17	$(372)	$(353)
Ending	$6	$34	$(802)	$(762)


Six Months 2026	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$70	$42	$(799)	$(687)
OCI	1	(10)	156	147
Income taxes	1	1	1	3
Reclassifications to:
Cost of sales	—	(24)	—	(24)
Interest expense	—	(2)	—	(2)
Other income	(3)	—	(20)	(23)
Income taxes	1	4	5	10
Net OCI	$—	$(31)	$142	$111
Ending	$70	$11	$(657)	$(576)


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q


Six Months 2025	Pension Plans	Hedges	Financial Statement Translation	Total
Beginning	$4	$31	$(328)	$(293)
OCI	3	6	(585)	(576)
Income taxes	(1)	1	128	128
Reclassifications to:
Cost of sales	—	(5)	—	(5)
Interest expense	—	(1)	—	(1)
Other income	—	—	(22)	(22)
Income taxes	—	2	5	7
Net OCI	$2	$3	$(474)	$(469)
Ending	$6	$34	$(802)	$(762)

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.


Foreign Currency Hedges
June 2026	Cash Flow	Net Investment	Non- Designated	Total
Gross notional amount	$1,925	$2,566	$3,268	$7,759
Maximum term in years				8.2
Fair value:
Other current assets	$28	$—	$41	$69
Other noncurrent assets	3	9	—	12
Other current liabilities	(28)	(39)	(9)	(76)
Other noncurrent liabilities	(3)	(28)	—	(31)
Total fair value	$—	$(58)	$32	$(26)


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 June 30, 2026 and December 31, 2025 in

certain forward currency contracts designated as net investment

hedges, for which the maximum term is 8.2 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 June 30, 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 $180 in the six months

2026.

Currency Exchange Rate Gains (Losses) Recognized in Net

Earnings


		Three Months		Six Months
Derivative Instrument	Recognized in:	2026	2025	2026	2025
Cash Flow	Cost of sales	$11	$3	$24	$5
Net Investment	Other income	10	11	20	22
Non- Designated	Other income	3	15	2	28
	Total	$24	$29	$46	$55

Pretax gains (losses) on derivatives designated as cash flow

hedges of $8 and net investment hedges of $30 recorded in

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

income in earnings within 12 months of June 30, 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 June 30, 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 the six months 2026 we recorded $271 of contingent

consideration related to the acquisition of Amplitude Vascular

Systems, Inc. (AVS) described in Note 7.

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
	June 30	December 31
	2026	2025
Cash and cash equivalents	$3,391	$4,011
Trading marketable securities	336	307
Level 1 - Assets	$3,727	$4,318
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$47	$52
United States treasury debt securities	38	37
Total available-for-sale marketable securities	$85	$89
Foreign currency exchange forward contracts	81	46
Level 2 - Assets	$166	$135
Total assets measured at fair value	$3,893	$4,453


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q


Liabilities Measured at Fair Value
	June 30	December 31
	2026	2025
Deferred compensation arrangements	$336	$307
Level 1 - Liabilities	$336	$307
Foreign currency exchange forward contracts	$107	$170
Level 2 - Liabilities	$107	$170
Contingent consideration:
Beginning	$518	$452
Additions	271	123
Change in estimate and foreign exchange	7	24
Settlements	(40)	(81)
Ending	$756	$518
Level 3 - Liabilities	$756	$518
Total liabilities measured at fair value	$1,199	$995


Fair Value of Available for Sale Securities by Maturity
	June 30	December 31
	2026	2025
Due in one year or less	$31	$41
Due after one year through three years	$54	$48

On June 30, 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, short-term investments and income from

marketable securities was $26 and $24 in the three months 2026

and 2025, and $60 and $62 in the six 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

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
	June 30	December 31
	2026	2025
Right-of-use assets	$521	$519
Lease liabilities, current	$159	$153
Lease liabilities, non-current	$345	$348

Other information:
Weighted-average remaining lease term (years)	4.6	5.0
Weighted-average discount rate	3.80%	3.77%


	Three Months		Six Months
	2026	2025	2026	2025
Operating lease cost	$53	$52	$109	$105

Other Contractual Obligations and Commitments

Our outstanding balances of confirmed invoices in the supplier

financing program were $78 and $75 at June 30, 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 six months 2026 and 2025 cash paid for

acquisitions, net of cash acquired was $459 and $4,814.

In May 2026 we completed the acquisition of AVS for net cash

consideration of $435 and up to $400 in future milestone

payments that had a fair value of $271 at the acquisition date.

AVS is developing a next-generation intravascular lithotripsy

platform designed to treat complex peripheral arterial disease.

AVS is part of our Peripheral Vascular business within MedSurg

and Neurotechnology. Acquired in-process research and

development intangible assets represent projects where the

related product has not yet received regulatory approval. The

purchase price allocation for AVS is based on preliminary

valuations, primarily related to in-process research and

development. Goodwill attributable to the acquisition reflects the

strategic benefits of expanding our peripheral vascular portfolio.

This goodwill is not deductible for tax purposes.

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 six months 2025.


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q

The purchase price allocations for AVS and Inari are:


Purchase Price Allocation of Acquired Net Assets
	2026	2025
	AVS	Inari
Tangible assets acquired:
Accounts receivable	$—	$78
Inventory	—	215
Deferred income tax assets	3	134
Other assets	14	84
Deferred income tax liabilities	(99)	(489)
Other liabilities	(14)	(189)
Intangible assets:
Developed technologies	—	1,458
In-process research and development	404	—
Customer relationships	—	330
Other intangibles	—	72
Goodwill	398	3,117
Purchase price, net of cash acquired of $10 and $64	$706	$4,810
Weighted average amortization period at acquisition (years):
Developed technologies	—	13
Customer relationships	—	13
Other intangibles	—	9

Consolidated estimated annual amortization expense for definite-

lived intangible assets is:


Remainder of 2026	2027	2028	2029	2030
$351	$715	$634	$617	$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

June 30, 2026.

On June 30, 2026 we had $250 outstanding under our

commercial paper programs 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 June 30:


Summary of Total Debt
			June 30	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	854	881
	4.700%	February 10, 2028	698	697
	3.650%	March 7, 2028	599	599
	4.850%	December 8, 2028	597	597
	3.375%	December 11, 2028	683	704
	0.750%	March 1, 2029	911	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	737	759
	1.000%	December 3, 2031	850	876
	3.375%	September 11, 2032	906	934
	4.625%	September 11, 2034	741	741
	5.200%	February 10, 2035	990	990
	3.625%	September 11, 2036	675	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
Commercial paper			250	—
Other			1	—
Total debt			$14,942	$15,859
Less current maturities			750	1,000
Total long-term debt			$14,192	$14,859

			June 30	December 31
			2026	2025
Unamortized debt issuance costs			$63	$70
Borrowing capacity on existing facilities			$2,910	$2,911
Fair value of senior unsecured notes			$14,024	$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 $136 and $159 for the

three months 2026 and 2025 and $278 and $296 for the six

months 2026 and 2025.

NOTE 9 - INCOME TAXES

Our effective tax rates were 18.4% and 16.3% in the three and

six months 2026 and 13.0% and 13.6% in the three and six

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

2026 increased from the three and six months 2025 due to the

2025 tax benefit related to the sale of the Spinal Implants

business. The effective tax rates for the three and six 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.


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q

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		Six Months
	2026	2025	2026	2025
MedSurg and Neurotechnology	$3,625	$3,305	$6,832	$6,361
Orthopaedics	2,964	2,717	5,777	5,527
Net sales	$6,589	$6,022	$12,609	$11,888
MedSurg and Neurotechnology	$1,343	$1,264	$2,634	$2,438
Orthopaedics	822	767	1,661	1,556
Cost of sales	$2,165	$2,031	$4,295	$3,994
MedSurg and Neurotechnology	$255	$228	$486	$437
Orthopaedics	155	153	309	318
Segment research, development and engineering expenses	$410	$381	$795	$755
MedSurg and Neurotechnology	$945	$909	$1,873	$1,768
Orthopaedics	850	781	1,695	1,669
Segment selling, general and administrative expenses	$1,795	$1,690	$3,568	$3,437
MedSurg and Neurotechnology	$63	$58	$120	$114
Orthopaedics	129	116	258	230
Segment depreciation and amortization	$192	$174	$378	$344
Corporate and Other	$37	$26	$66	$53
Amortization of intangible assets	175	187	355	354
Total depreciation and amortization	$404	$387	$799	$751
MedSurg and Neurotechnology	$1,019	$846	$1,719	$1,604
Orthopaedics	1,008	900	1,854	1,754
Segment operating income	$2,027	$1,746	$3,573	$3,358
Items not allocated to segments:
Corporate and Other	$(220)	$(201)	$(495)	$(469)
Inventory stepped up to fair value	—	(65)	—	(99)
Acquisition and integration-related charges	(25)	(78)	(44)	(263)
Amortization of intangible assets	(175)	(187)	(355)	(354)
Structural optimization and other special charges	(95)	(11)	(213)	(52)
Goodwill and other impairments	(1)	(55)	(1)	(90)
Medical device regulation	(5)	(7)	(10)	(19)
Recall-related matters	(2)	(22)	(12)	(55)
Regulatory and legal matters	(3)	(7)	(6)	(7)
Reversal of 2025 tariffs	158	—	158	—
Consolidated operating income	$1,659	$1,113	$2,595	$1,950


Segment Capital Spending	Six Months
	2026	2025
Purchases of property, plant and equipment:
MedSurg and Neurotechnology	$155	$86
Orthopaedics	90	110
Total segment purchases of property, plant and equipment	$245	$196
Corporate and Other	123	110
Total purchases of property, plant and equipment	$368	$306

NOTE 11 - GOODWILL AND OTHER INTANGIBLE ASSETS

In the first quarter 2026 we changed our organizational structure

as further described in Note 1.

Following this reorganization we 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.

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.


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


STRYKER CORPORATION		2026 Second 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.

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.

Overview of the Three and Six Months

In the three months 2026 we achieved sales growth of 9.4% from

2025. Excluding the impact of acquisitions and divestitures, sales

grew 9.0% in constant currency. We reported operating income

margin of 25.2%, net earnings of $1,276 and net earnings per

diluted share of $3.30. Excluding the impact of certain items,

adjusted operating income margin(1) increased by 170 basis

points to 27.4%, with adjusted net earnings(1) of $1,424 and

adjusted net earnings per diluted share(1) of $3.69, an increase of

17.9% from 2025.

In the six months 2026 we achieved sales growth of 6.1% from

2025. Excluding the impact of acquisitions and divestitures, sales

grew 5.8% in constant currency. We reported operating income

margin of 20.6%, net earnings of $2,021 and net earnings per

diluted share of $5.23. Excluding the impact of certain items,

adjusted operating income margin(1) increased by 10 basis points

to 24.4%, with adjusted net earnings(1) of $2,428 and adjusted

net earnings per diluted share(1) of $6.29, an increase of 5.4%

from 2025.

(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.


CONSOLIDATED RESULTS OF OPERATIONS
	Three Months					Six Months
			Percent Net Sales		Percentage			Percent Net Sales		Percentage
	2026	2025	2026	2025	Change	2026	2025	2026	2025	Change
Net sales	$6,589	$6,022	100.0%	100.0%	9.4%	$12,609	$11,888	100.0%	100.0%	6.1%
Gross profit	4,498	3,841	68.3	63.8	17.1	8,308	7,585	65.9	63.8	9.5
Research, development and engineering expenses	434	407	6.6	6.8	6.6	847	812	6.7	6.8	4.3
Selling, general and administrative expenses	2,229	2,079	33.8	34.5	7.2	4,510	4,379	35.8	36.8	3.0
Amortization of intangible assets	175	187	2.7	3.1	(6.4)	355	354	2.8	3.0	0.3
Goodwill and other impairments	1	55	—	0.9	nm	1	90	—	0.8	nm
Interest expense	(141)	(159)	(2.1)	(2.6)	(11.3)	(289)	(296)	(2.3)	(2.5)	(2.4)
Other income	46	62	0.7	1.0	(25.8)	108	126	0.9	1.1	(14.3)
Income taxes	288	132	nm	nm	118.2	393	242	nm	nm	62.4
Net earnings	$1,276	$884	19.4%	14.7%	44.3%	$2,021	$1,538	16.0%	12.9%	31.4%

Net earnings per diluted share	$3.30	$2.29			44.1%	$5.23	$3.98			31.4%
Adjusted net earnings per diluted share(1)	$3.69	$3.13			17.9%	$6.29	$5.97			5.4%

nm - not meaningful


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q


SALES GROWTH ANALYSIS
	Three Months				Six Months
			Percentage Change				Percentage Change
	2026	2025	As Reported	Constant Currency	2026	2025	As Reported	Constant Currency
MedSurg and Neurotechnology:
Instruments
United States	$840	$776	8.4%	8.4%	$1,606	$1,478	8.7%	8.7%
International	163	142	13.9	12.3	317	278	13.9	9.6
Total	$1,003	$918	9.3%	9.0%	$1,923	$1,756	9.6%	8.9%
Endoscopy
United States	$819	$742	10.2%	10.2%	$1,520	$1,452	4.6%	4.6%
International	185	157	18.8	16.5	352	314	12.4	8.1
Total	$1,004	$899	11.7%	11.3%	$1,872	$1,766	6.0%	5.3%
Medical
United States	$945	$840	12.6%	12.6%	$1,692	$1,642	3.1%	3.1%
International	177	150	17.9	15.0	332	293	13.2	8.1
Total	$1,122	$990	13.4%	13.0%	$2,024	$1,935	4.6%	3.9%
Vascular
United States	$250	$268	(6.7)%	(6.7)%	$530	$471	12.5%	12.5%
International	246	230	6.3	4.0	483	433	11.3	7.1
Total	$496	$498	(0.7)%	(1.8)%	$1,013	$904	11.9%	9.9%
MedSurg and Neurotechnology
United States	$2,854	$2,626	8.7%	8.7%	$5,348	$5,043	6.1%	6.1%
International	771	679	13.3	11.1	1,484	1,318	12.5	8.1
Total	$3,625	$3,305	9.7%	9.2%	$6,832	$6,361	7.4%	6.5%

Orthopaedics:
Knees
United States	$488	$460	6.2%	6.2%	$960	$924	3.8%	3.8%
International	205	180	14.0	12.4	403	355	13.7	9.2
Total	$693	$640	8.4%	8.0%	$1,363	$1,279	6.6%	5.3%
Hips
United States	$296	$283	4.9%	4.9%	$572	$552	3.6%	3.6%
International	183	183	—	(0.8)	367	357	2.9	(0.6)
Total	$479	$466	2.9%	2.6%	$939	$909	3.3%	1.9%
Trauma and Extremities
United States	$791	$702	12.5%	12.5%	$1,558	$1,415	10.1%	10.1%
International	281	255	10.3	8.5	549	487	12.7	7.7
Total	$1,072	$957	11.9%	11.5%	$2,107	$1,902	10.7%	9.4%
Ortho Tech
United States	$530	$483	9.5%	9.5%	$997	$942	5.8%	5.8%
International	187	166	12.8	11.8	366	324	12.9	9.2
Total	$717	$649	10.3%	10.0%	$1,363	$1,266	7.6%	6.7%
	$2,961	$2,712	9.2%	8.8%	$5,772	$5,356	7.7%	6.5%
Spinal Implants
United States	$—	$—	(100.0)%	(100.0)%	$—	$118	(100.0)%	(100.0)%
International	3	5	(36.7)	(40.9)	5	53	(90.2)	(91.2)
Total	$3	$5	(36.7)%	(40.9)%	$5	$171	(96.9)%	(97.1)%
Orthopaedics
United States	$2,105	$1,928	9.1%	9.1%	$4,087	$3,951	3.4%	3.4%
International	859	789	8.9	7.6	1,690	1,576	7.2	3.0
Total	$2,964	$2,717	9.1%	8.7%	$5,777	$5,527	4.5%	3.3%

Geographic:
United States	$4,959	$4,554	8.9%	8.9%	$9,435	$8,994	4.9%	4.9%
International	1,630	1,468	11.0	9.2	3,174	2,894	9.7	5.3
Total	$6,589	$6,022	9.4%	9.0%	$12,609	$11,888	6.1%	5.0%

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 were combined with the remaining

Instruments business to align with our internal reporting structure. Ortho Tech includes sales related to Orthopaedic Instruments of $523

and $501 and Other Orthopaedics of $194 and $148 for the three months 2026 and 2025. For the six months 2026 and 2025 Ortho

Tech includes sales related to Orthopaedic Instruments of $1,012 and $985 and Other Orthopaedics of $351 and $281. Instruments

includes sales related to Neuro Cranial of $681 and $616 and Enabling Technologies of $28 and $34 for the three months 2026 and

2025. For the six months 2026 and 2025 Instruments includes sales related to Neuro Cranial of $1,287 and $1,179 and Enabling

Technologies of $54 and $63. 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 Second Quarter Form 10-Q

Consolidated Net Sales

Consolidated net sales increased 9.4% in the three months 2026

as reported and 9.0% in constant currency, as foreign currency

exchange rates positively impacted net sales by 0.4%. Net sales

in constant currency increased by 9.0% from increased unit

volume. The unit volume increase was due to higher product

shipments across most MedSurg and Neurotechnology

businesses and all Orthopaedics businesses.

Consolidated net sales increased 6.1% in the six months 2026 as

reported and 5.0% in constant currency as foreign currency

exchange rates positively impacted net sales by 1.1%. Excluding

the (0.8)% impact of acquisitions and divestitures, net sales in

constant currency increased by 5.6% from increased unit volume

and 0.2% due to higher prices. The unit volume increase was due

to higher product shipments across all MedSurg and

Neurotechnology businesses and all Orthopaedics businesses.

MedSurg and Neurotechnology Net Sales

MedSurg and Neurotechnology net sales increased 9.7% in the

three months 2026 as reported and 9.2% in constant currency, as

foreign currency exchange rates positively impacted net sales by

0.5%. Net sales in constant currency increased by 9.1% from

increased unit volume and 0.1% from higher prices. The unit

volume increase was due to higher shipments across most

Medsurg and Neurotechnology businesses.

MedSurg and Neurotechnology net sales increased 7.4% in the

six months 2026 as reported and 6.5% in constant currency, as

foreign currency exchange rates positively impacted net sales by

0.9%. Excluding the 1.3% impact of acquisitions and divestitures,

net sales in constant currency increased by 4.9% from increased

unit volume and 0.3% from higher prices. The unit volume

increase was due to higher shipments across all MedSurg and

Neurotechnology businesses.

Orthopaedics Net Sales

Orthopaedics net sales increased 9.1% in the three months 2026

as reported and 8.7% in constant currency, as foreign currency

exchange rates positively impacted net sales by 0.4%. Excluding

the 0.1% impact of acquisitions and divestitures, net sales in

constant currency increased 8.6% from increased unit volume.

The unit volume increase was due to higher shipments across all

Orthopaedics businesses.

Orthopaedics net sales increased 4.5% in the six months 2026 as

reported and 3.3% in constant currency, as foreign currency

exchange rates positively impacted net sales by 1.2%. Excluding

the (3.1)% impact of acquisitions and divestitures, net sales in

constant currency increased 6.4% from increased unit volume.

The unit volume increase was due to higher shipments across all

Orthopaedics businesses.

Gross Profit

Gross profit was $4,498 and $3,841 in the three months 2026

and 2025. The key components of the change were:


	Gross Profit Percent Net Sales
Three Months 2025	63.8%
Volume and mix	70 bps
Manufacturing and supply chain costs	(30) bps
Structural optimization and other special charges	40 bps
Inventory stepped up to fair value	110 bps
Reversal of 2025 tariffs	260 bps
Three Months 2026	68.3%

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

2026 increased to 68.3% from 63.8% in 2025 primarily driven by

a reduction of certain import tariffs and lower amortization of

inventory stepped up to fair value.

Gross profit was $8,308 and $7,585 in the six months 2026 and

2025. The key components of the change were:


	Gross Profit Percent Net Sales
Six Months 2025	63.8%
Sales pricing	10 bps
Volume and mix	40 bps
Manufacturing and supply chain costs	(100) bps
Structural optimization and other special charges	50 bps
Inventory stepped up to fair value	80 bps
Reversal of 2025 tariffs	130 bps
Six Months 2026	65.9%

Gross profit as a percentage of net sales in the six months 2026

increased to 65.9% from 63.8% in 2025 driven by a reduction of

certain import tariffs and lower amortization of inventory stepped

up to fair value partially offset by higher manufacturing and

supply chain costs primarily due to idle production time related to

the cybersecurity incident in the first quarter 2026.

While segment mix was not a significant driver of the change in

gross profit as a percent of net sales between the six months

2026 and 2025, we generally expect segment mix to have an

unfavorable impact for the foreseeable future as we anticipate

more rapid sales growth in our lower gross margin MedSurg and

Neurotechnology segment than our Orthopaedics segment.

Research, Development and Engineering Expenses

Research, development and engineering expenses increased

$27 or 6.6% in the three months 2026 and $35 or 4.3% in the six

months 2026. Expenses as a percentage of net sales of 6.6% in

the three months and 6.7% in the six months 2026 remained

relatively flat with 6.8% in the three and six months 2025.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $150 or

7.2% in the three months 2026. As a percentage of net sales,

expenses decreased to 33.8% from 34.5% in 2025, primarily due

to continued spend discipline and lower acquisition and

integration-related charges partially offset by higher structural

optimization and other special charges.

Selling, general and administrative expenses increased $131 or

3.0% in the six months 2026. As a percentage of net sales,

expenses decreased to 35.8% from 36.8% in 2025, primarily due

to lower acquisition-related costs and continued spend discipline

partially offset by higher structural optimization and other special

charges. Expenses in the six 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 $175 and $187 in the three

months and $355 and $354 in the six 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 $1 and $55 in the three

months and $1 and $90 in the six months 2026 and 2025.

Operating Income

Operating income was $1,659 and $1,113 in the three months

2026 and 2025. Operating income as a percentage of net sales in

the three months 2026 increased to 25.2% from 18.5% in 2025.

Refer to the discussion above for the primary drivers of the


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q

change.

Operating income was $2,595 and $1,950 in the six months 2026

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

six months 2026 increased to 20.6% from 16.4% 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 increased to 28.1% in the three months

2026 from 25.6% in 2025. Orthopaedics operating income as a

percentage of net sales increased to 34.0% in the three months

2026 from 33.1% in 2025. The key components of the change

were:


	Operating Income Percent Net Sales
	MedSurg and Neurotechnology	Orthopaedics
Three Months 2025	25.6%	33.1%
Volume	60 bps	50 bps
Manufacturing and supply chain costs	60 bps	(20) bps
Research, development and engineering expenses	(10) bps	40 bps
Selling, general and administrative expenses	140 bps	20 bps
Three Months 2026	28.1%	34.0%

The increase in MedSurg and Neurotechnology operating income

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

driven by lower selling, general and administrative expenses,

lower manufacturing and supply chain costs and higher unit

volumes, partially offset by higher research, development and

engineering expenses.

The increase in Orthopaedics operating income as a percentage

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

unit volumes, lower research, development and engineering

expenses and lower selling, general and administrative

expenses, partially offset by higher manufacturing and supply

chain costs.

MedSurg and Neurotechnology operating income as a

percentage of net sales of 25.2% in the six months 2026

remained flat with 2025. Orthopaedics operating income as a

percentage of net sales increased to 32.1% in the six months

2026 from 31.7% in 2025. The key components of the change

were:


	Operating Income Percent Net Sales
	MedSurg and Neurotechnology	Orthopaedics
Six Months 2025	25.2%	31.7%
Sales pricing	10 bps	0 bps
Volume	40 bps	20 bps
Manufacturing and supply chain costs	(70) bps	(100) bps
Research, development and engineering expenses	(20) bps	40 bps
Selling, general and administrative expenses	40 bps	80 bps
Six Months 2026	25.2%	32.1%

MedSurg and Neurotechnology operating income as a

percentage of net sales for the six months remained flat and was

primarily driven by lower selling, general and administrative

expenses and higher unit volumes and prices, offset by higher

manufacturing and supply chain costs and research,

development and engineering expenses.

The increase in Orthopaedics operating income as a percentage

of net sales for the six months was primarily driven by lower

selling, general and administrative expenses, lower research,

development and engineering expenses and higher unit volumes,

partially offset by higher manufacturing and supply chain costs.

Interest Expense

Interest expense was $141 and $159 in the three months and

$289 and $296 in the six months 2026 and 2025. The decrease

in interest expense in the three months and six months 2026 from

2025 was due to lower outstanding debt and credit facilities

partially offset by higher average interest rates.

Other Income

Other income was $46 and $62 in the three months and $108

and $126 in the six months 2026 and 2025. The decrease in

other income in the three and six months 2026 from 2025 was

primarily due to lower interest income in 2026.

Income Taxes

Our effective tax rates were 18.4% and 16.3% in the three and

six months 2026 and 13.0% and 13.6% in the three and six

months 2025. The effective tax rate for the three and six months

2026 increased from the three and six months 2025 due to the

2025 tax benefit related to the sale of the Spinal Implants

business. The effective tax rates for the three and six 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.

Net Earnings

Net earnings increased to $1,276 or $3.30 per diluted share in

the three months 2026 from $884 or $2.29 per diluted share in

2025. Net earnings increased to $2,021 or $5.23 per diluted

share in six months 2026 from $1,538 or $3.98 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


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q

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.


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	$4,498	$2,229	$434	$1,659	$(95)	$288	$1,276	18.4%	$3.30
Reported percent net sales	68.3%	33.8%	6.6%	25.2%	(1.4)%	nm	19.4%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—	—	—	—	—	—	—	—	—
Other acquisition and integration-related (a)	7	(14)	(4)	25	—	3	22	—	0.06
Amortization of purchased intangible assets	—	—	—	175	—	33	142	0.3	0.37
Structural optimization and other special charges (b)	5	(89)	(1)	95	(6)	20	69	0.3	0.18
Goodwill and other impairments (c)	—	—	—	1	—	—	1	—	—
Medical device regulations (d)	—	—	(5)	5	—	1	4	—	0.01
Recall-related matters (e)	(1)	(3)	—	2	—	1	1	—	—
Regulatory and legal matters (f)	—	(3)	—	3	—	—	3	—	—
Tax matters (g)	—	—	—	—	—	(39)	39	(2.5)	0.11
Reversal of 2025 tariffs	(158)	—	—	(158)	—	(25)	(133)	—	(0.34)
Adjusted	$4,351	$2,120	$424	$1,807	$(101)	$282	$1,424	16.5%	$3.69
Adjusted percent net sales	66.0%	32.2%	6.4%	27.4%	(1.5)%	nm	21.6%


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q


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	$3,841	$2,079	$407	$1,113	$(97)	$132	$884	13.0%	$2.29
Reported percent net sales	63.8%	34.5%	6.8%	18.5%	(1.6)%	nm	14.7%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	65	—	—	65	—	16	49	0.5	0.12
Other acquisition and integration-related (a)	1	(76)	(1)	78	—	20	58	0.7	0.15
Amortization of purchased intangible assets	—	—	—	187	—	39	148	1.0	0.37
Structural optimization and other special charges (b)	6	(2)	(3)	11	(9)	(2)	4	(0.2)	0.01
Goodwill and other impairments (c)	—	—	—	55	—	22	33	1.2	0.10
Medical device regulations (d)	—	—	(7)	7	—	1	6	0.1	0.02
Recall-related matters (e)	21	(1)	—	22	—	1	21	(0.3)	0.06
Regulatory and legal matters (f)	—	(7)	—	7	—	1	6	0.1	0.01
Tax matters (g)	—	—	—	—	—	(2)	2	(0.2)	—
Adjusted	$3,934	$1,993	$396	$1,545	$(106)	$228	$1,211	15.9%	$3.13
Adjusted percent net sales	65.4%	33.1%	6.6%	25.7%	(1.8)%	nm	20.1%

nm - not meaningful

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


	Three Months
	2026	2025
Termination of sales relationships	$6	$—
Employee retention and workforce reductions	(3)	29
Changes in the fair value of contingent consideration	6	3
Manufacturing integration costs	5	3
Other integration-related activities	11	43
Adjustments to Operating Income	$25	$78
Adjustments to Income Taxes	$3	$20
Adjustments to Net Earnings	$22	$58

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


	Three Months
	2026	2025
Employee retention and workforce reductions	$6	$5
Closure/transfer of manufacturing and other facilities	4	7
Product line exits	9	(10)
Termination of sales relationships in certain countries	6	(3)
Other charges	70	12
Adjustments to Operating Income	$95	$11
Adjustments to Other Income (Expense), Net	$(6)	$(9)
Adjustments to Income Taxes	$20	$(2)
Adjustments to Net Earnings	$69	$4


	Three Months
	2026	2025
Certain long-lived and intangible asset write-offs and impairments	$—	$52
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)	1	3
Adjustments to Operating Income	$1	$55
Adjustments to Income Taxes	$—	$22
Adjustments to Net Earnings	$1	$33

(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	$(55)	$(45)
Other tax matters	16	43
Adjustments to Income Taxes	$(39)	$(2)
Adjustments to Other Income (Expense), Net	$—	$—
Adjustments to Net Earnings	$39	$2


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q


Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Six 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	$8,308	$4,510	$847	$2,595	$(181)	$393	$2,021	16.3%	$5.23
Reported percent net sales	65.9%	35.8%	6.7%	20.6%	(1.4)%	nm	16.0%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—	—	—	—	—	—	—	—	—
Other acquisition and integration-related (a)	9	(27)	(8)	44	—	7	37	—	0.10
Amortization of purchased intangible assets	—	—	—	355	—	63	292	0.3	0.75
Structural optimization and other special charges (b)	19	(193)	(1)	213	(17)	45	151	0.6	0.39
Goodwill and other impairments (c)	—	—	—	1	—	—	1	—	—
Medical device regulations (d)	—	—	(10)	10	—	2	8	—	0.02
Recall-related matters (e)	—	(12)	—	12	—	3	9	—	0.02
Regulatory and legal matters (f)	—	(6)	—	6	—	1	5	—	0.01
Tax matters (g)	—	—	—	—	—	(37)	37	(1.5)	0.11
Reversal of 2025 tariffs	(158)	—	—	(158)	—	(25)	(133)	—	(0.34)
Adjusted	$8,178	$4,272	$828	$3,078	$(198)	$452	$2,428	15.7%	$6.29
Adjusted percent net sales	64.9%	33.9%	6.6%	24.4%	(1.6)%	nm	19.3%


Six 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	$7,585	$4,379	$812	$1,950	$(170)	$242	$1,538	13.6%	$3.98
Reported percent net sales	63.8%	36.8%	6.8%	16.4%	(1.4)%	nm	12.9%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	99	—	—	99	—	24	75	0.5	0.19
Other acquisition and integration-related (a)	14	(247)	(2)	263	—	26	237	(0.7)	0.62
Amortization of purchased intangible assets	—	—	—	354	—	73	281	1.1	0.72
Structural optimization and other special charges (b)	28	(21)	(3)	52	(9)	12	31	0.3	0.08
Goodwill and other impairments (c)	—	—	—	90	—	31	59	1.0	0.16
Medical device regulations (d)	1	—	(18)	19	—	4	15	0.1	0.04
Recall-related matters (e)	52	(3)	—	55	—	9	46	0.1	0.12
Regulatory and legal matters (f)	—	(7)	—	7	—	2	5	0.1	0.01
Tax matters (g)	—	—	—	—	—	(21)	21	(1.2)	0.05
Adjusted	$7,779	$4,101	$789	$2,889	$(179)	$402	$2,308	14.9%	$5.97
Adjusted percent net sales	65.4%	34.5%	6.6%	24.3%	(1.5)%	nm	19.4%

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


	Six Months
	2026	2025
Termination of sales relationships	$6	$—
Employee retention and workforce reductions	—	45
Changes in the fair value of contingent consideration	9	1
Manufacturing integration costs	10	7
Stock compensation payments upon a change in control	—	139
Other integration-related activities	19	71
Adjustments to Operating Income	$44	$263
Adjustments to Income Taxes	$7	$26
Adjustments to Net Earnings	$37	$237

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


	Six Months
	2026	2025
Employee retention and workforce reductions	$13	$38
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)	9	12
Product line exits (e.g., inventory, long-lived asset and specifically-identified intangible asset write-offs)	11	(7)
Termination of sales relationships in certain countries	87	(4)
Other charges	93	13
Adjustments to Operating Income	$213	$52
Adjustments to Other Income (Expense), Net	$(17)	$(9)
Adjustments to Income Taxes	$45	$12
Adjustments to Net Earnings	$151	$31


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q


	Six Months
	2026	2025
Certain long-lived and intangible asset write-offs and impairments	$—	$86
Product line exits (e.g., long-lived asset and specifically-identified intangible asset write-offs)	1	4
Adjustments to Operating Income	$1	$90
Adjustments to Income Taxes	$—	$31
Adjustments to Net Earnings	$1	$59

(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:


	Six Months
	2026	2025
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$(75)	$(92)
Other tax matters	38	71
Adjustments to Income Taxes	$(37)	$(21)
Adjustments to Other Income (Expense), Net	$—	$—
Adjustments to Net Earnings	$37	$21

FINANCIAL CONDITION AND LIQUIDITY


	Six Months
Net cash provided by (used in):	2026	2025
Operating activities	$1,842	$1,361
Investing activities	(824)	(4,240)
Financing activities	(1,605)	1,545
Effect of exchange rate changes	(33)	57
Change in cash and cash equivalents	$(620)	$(1,277)

Operating Activities

Cash provided by operating activities was $1,842 and $1,361 in

the six months 2026 and 2025. The increase was primarily due to

changes in working capital accounts.

Investing Activities

Cash used in investing activities was $824 and $4,240 in the six

months 2026 and 2025. The six months 2026 included cash paid

for purchases of property, plant and equipment. The six 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 $1,605 in the six months

2026 and cash provided by financing activities was $1,545 in the

six 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 financing activities in

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 $3,476 and $4,100 on June 30, 2026 and

December 31, 2025. Current assets exceeded current liabilities

by $7,734 and $6,961 on June 30, 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 51% on June 30, 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:

Refer to Note 11 for discussion on the impact of changes to our

organizational structure in the first quarter 2026 on our reportable

segments and the related goodwill.

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.

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


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


STRYKER CORPORATION		2026 Second Quarter Form 10-Q

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 June 30, 2026. Based on that evaluation, the

Certifying Officers concluded the Company's disclosure controls

and procedures were effective as of June 30, 2026.

Changes in Internal Control Over Financial Reporting

There was no change to our internal control over financial

reporting during the six 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 and Part II, Item 1A. "Risk Factors" in our Quarterly

Report on Form 10-Q for the quarter ended March 31, 2026.


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

We issued 1,929 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 six 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 June 30, 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).


10(i)*	Transition Agreement, dated May 15, 2026, between Stryker Corporation and William E. Berry, Jr. – Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K dated May 20, 2026 (Commission File No. 001-13149).
10(ii)*	Letter Agreement, dated May 15, 2026, between Stryker Corporation and Emily Baculik – Incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K dated May 20, 2026 (Commission File No. 001-13149).
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:	July 31, 2026	/s/ KEVIN A. LOBO
		Kevin A. Lobo
		Chair and Chief Executive Officer


Date:	July 31, 2026	/s/ PRESTON W. WELLS
		Preston W. Wells
		Vice President, Chief Financial Officer