Stryker(US:SYK)2026-01-29 21:11Financial Performance - Fourth quarter net sales increased by 11.4% to $7.2 billion, with organic net sales growth of 11.0%[3] - Full year net sales reached $25.1 billion, reflecting an 11.2% increase, with organic net sales growth of 10.3%[8] - Reported net earnings for the fourth quarter were $0.8 billion, a 55.5% increase, and $3.2 billion for the full year, an 8.5% increase[6] - Adjusted net earnings per diluted share for the fourth quarter increased by 11.5% to $4.47, and for the full year increased by 11.8% to $13.63[7] - The company surpassed $25 billion in revenue, entering 2026 with significant momentum[2] Segment Performance - MedSurg and Neurotechnology segment reported net sales of $4.6 billion for the fourth quarter, up 17.5%, and $15.6 billion for the full year, up 15.7%[4] - Orthopaedics segment net sales were $2.6 billion for the fourth quarter, a 2.2% increase, and $9.5 billion for the full year, a 4.3% increase[5] - The MedSurg and Neurotechnology segment saw a sales growth of 15.7% in 2025, totaling $15.647 billion compared to $13.518 billion in 2024[24] - The Orthopaedics segment reported a sales increase of 4.3% in 2025, totaling $9.469 billion compared to $9.077 billion in 2024[24] Earnings and Margins - Adjusted operating income margin for the fourth quarter increased by 100 basis points to 30.2%[7] - Reported gross profit margin for the fourth quarter was 64.5%[6] - Gross profit margin for Q4 2025 was 64.5%, slightly up from 64.9% in Q4 2024[32] - Total revenue for 2025 was $16,065 million, representing a 64.0% gross profit margin, compared to $14,440 million and 63.9% in 2024[36] Cash Flow and Assets - Net cash provided by operating activities rose to $5.044 billion in 2025, compared to $4.242 billion in 2024, marking a 19% increase[22] - Total assets increased to $47.844 billion in 2025, up from $42.971 billion in 2024, representing a growth of 11.5%[20] - Cash and cash equivalents grew to $4.011 billion in 2025, up from $3.652 billion in 2024, an increase of 9.8%[20] Debt and Liabilities - Long-term debt increased to $14.859 billion in 2025 from $12.188 billion in 2024, reflecting a rise of 21.9%[20] - The company’s total current liabilities rose to $7.794 billion in 2025, compared to $7.616 billion in 2024, an increase of 2.3%[20] Future Outlook - The company expects 2026 organic net sales growth to be in the range of 8.0% to 9.5% and adjusted net earnings per diluted share to be between $14.90 and $15.10[9] - The company anticipates continued growth in revenue and earnings driven by new product launches and market expansion strategies[32] Costs and Adjustments - Acquisition and integration-related costs for 2025 totaled $335 million, significantly higher than $108 million in 2024, driven by employee retention and workforce reductions[38] - Goodwill and other impairments in 2025 amounted to $170 million, a decrease from $977 million in 2024, indicating improved asset management[38] - The effective tax rate for adjusted earnings in 2025 was 15.1%, compared to 14.8% in 2024, indicating a slight increase in tax efficiency[36]