Stryker Corporation — Financial Results

Revenue Growth Remained Strong and Broad-Based in 2025

Stryker grew sales by 11.2% in 2025 to $25.1 billion, with nearly all of that driven by genuine volume increases rather than acquisitions or currency tailwinds. Growth was broad across both business segments, with the faster-growing MedSurg and Neurotechnology division up 15.7% and the more mature Orthopaedics segment up 4.3%.

The Inari Medical Acquisition Supercharged the Vascular Business

Stryker acquired Inari Medical in February 2025 for approximately $5.0 billion, a company specializing in blood clot treatments. The Vascular division's 50.6% sales jump reflects this deal. The acquisition also created a new internal reporting unit carrying $3.2 billion of goodwill (the premium paid above the fair value of acquired assets), which passed its first impairment test with only a 12% cushion — meaning the business needs to hit its growth targets to avoid future write-downs.

Reported Earnings Look Messy, But Underlying Profit Growth Was Solid

Reported earnings per share (what GAAP accounting shows) jumped to $8.40 but was distorted by a large one-time tax charge related to shifting intellectual property between countries. Adjusted earnings per share — which strips out acquisition costs, amortization, impairments, and one-time items — grew 11.8% to $13.63, reflecting a more consistent picture of operating performance.

Interest Costs Rose Sharply After Funding the Inari Deal with Debt

To fund the Inari acquisition, Stryker issued $3.0 billion in new senior unsecured notes (bonds) in early 2025 at rates between 4.55% and 5.20%. Interest expense jumped 48% year-over-year to $607 million. With $16.0 billion in total debt repayments on the horizon, this is a meaningful ongoing cost to watch.

Stryker Exited Its Struggling Spinal Implants Business

After writing down nearly $1.0 billion in 2024 (including a $456M goodwill impairment and a $362M loss on the planned sale), Stryker completed the sale of its Spinal Implants business in April 2025 to a private buyer. Spinal Implants revenue collapsed from $707M in 2024 to just $185M in 2025 as the business wound down. This exit removes a chronically underperforming unit and simplifies the portfolio.

Operating Cash Flow Continues to Grow Strongly

Cash generated from day-to-day operations rose 19% to $5.0 billion in 2025, driven by higher earnings and improved working capital management. This growing cash engine funds Stryker's acquisitions-first capital strategy and supports its dividend, which increased to $3.36 per share in 2025 from $3.20 in 2024.