Stryker (SYK) Stock Forecast & Price Target

Stryker's recent financial performance reflects solid growth across multiple segments, with knee implants experiencing a notable increase of 7.6% in the U.S. and 8.8% internationally, fueled by the successful implementation of robotic-assisted knee procedures. The company achieved an operating margin of 30.2%, surpassing expectations, while overall sales of $4.562 billion exceeded consensus estimates of $4.495 billion, indicative of robust demand and operational efficiency. Furthermore, strong results in Peripheral Vascular and MedSurg areas demonstrate broad-based strength and a favorable trajectory for future growth, bolstering a positive outlook for Stryker's stock.

The analysis indicates a negative outlook on Stryker's stock primarily due to anticipated deceleration in organic revenue growth, projected to slow to 8% or less, stemming from unsuccessful new product launches and negative impacts from acquisitions. Additionally, the downward revision of gross margins by 30 basis points for FY26 reflects increasing tariff headwinds, with gross margin at 65.2%, slightly below consensus expectations. Furthermore, Stryker's stock performance has lagged behind its peers, with a notable decline of approximately 11.8% from its July 2025 peak and concerns regarding potential risks such as slower orthopedic market growth and challenges in hospital capital spending.