Stryker (SYK) Stock Forecast & Price Target

Stryker is viewed positively because its MedSurg and Neurotechnology businesses are still delivering healthy organic growth, including 9.1% overall MedSurg growth, 13% U.S. Endoscopy growth to $1.02B, and 10% U.S. Medical growth to $1.08B, with management seeing no sign of a procedural slowdown and an elevated order book. Its outlook is also supported by durable competitive advantages in reconstructive orthopedics and operating room equipment, plus a growing pipeline of innovation and acquisitions, including the $400M preferred investment in CMR Surgical, the AVS vascular acquisition, and new product catalysts such as SonoPet3 and the next Neptune version. Strong cash generation and capital discipline further reinforce the thesis, as shown by $1B of 3Q repurchases, a new $3B authorization, and expectations for high-end MedTech sales growth, 30bps+ operating margin expansion, double-digit EPS growth, and robust free cash flow for years to come.

Stryker is facing a more challenged fundamental setup as 3Q26 sales of $6.52B and adjusted EPS of $3.52 both missed estimates, while full-year 2026 organic growth guidance was cut to 6.5%–7.0% from 8.3%–9.3%. The key drag is its Orthopaedics franchise, where hips and knees slowed amid a softer market, weaker procedure approvals, SAP-related disruption, and slower share gains, with management acknowledging it has not been winning at its historical rate. Although MedSurg, Endoscopy, and capital demand remain healthier and margins still expanded to 65.4% gross margin and 26.2% operating margin, the revision of 2026 EPS to $14.80-$14.90 signals that near-term execution risk and end-market deceleration outweigh those strengths.