Stryker officials have high hopes for 2026 with Mako RPS

 Stryker (NYSE: SYK)

 posted 2025 fourth-quarter results that surpassed Wall Street expectations.

Company officials see a strong 2026, especially with the first total knee cases successfully starting this month for Mako RPS, a handheld version of its popular Mako orthopedic surgical robotics system. The company plans to show off Mako RPS at the American Academy of Orthopaedic Surgeons meeting in New Orleans in March.

“If you want a robot that can do multiple applications, obviously that’s not possible with this. But if you think about in the [amblatory surgery center], some surgeons not wanting the complexity of Mako, I think it’s going to open up new customers for us that weren’t ready for Mako but want something better than using the manual instruments,” CEO Kevin Lobo said during the company’s earnings call.

“We’re using the intellectual property from Mako to provide some haptic boundaries, and the feedback has been incredible from the surgeons using it. This is easy to use. It provides tremendous value.”

The medical device giant reported an adjusted Q4 earnings per share (EPS) of $4.47, beating analysts’ consensus of $4.40. Stryker’s full-year adjusted earnings per share was $13.63, up 11.8% from 2024, driven by sales growth and a return to pre-COVID operating margins.

Quarter four revenue totaled $7.2 billion, ahead of the predicted $7.12 billion. Overall, Stryker saw an 11.2% increase in full-year revenue, reported as $25.1 billion.

“Having surpassed $25 billion in revenue, we enter 2026 with significant momentum and are poised to continue delivering growth at the high end of medtech,” Lobo said in a news release.

Stryker’s MedSurg and Neurotechnology units reported $4.6 billion in fourth-quarter revenue and $15.6 billion for the full year, a 17.5% and 15.7% increase, respectively. Orthopedic net sales totalled $2.6 billion for Q4 and $9.5 billion for the full year, a 2.2% and 4.3% increase, respectively.

Operating margin improved by over 100 basis points for a second consecutive year. On the company’s earnings call, Stryker VP and CFO Preston Wells attributed that to increased sales growth and operating margin expansion that was partially offset by tariffs, higher interest expense and a higher effective tax rate.

Also on the call, Lobo said Stryker’s emphasis on specialized sales forces has been the “secret sauce” for the company.

“We bring those constant innovations, add in little tuck-in acquisitions, split sales forces and that just fuels continuous growth,” said Lobo.

For 2026, Stryker anticipates organic net sales growth of 8 to 9.5% and an adjusted earnings per share between $14.90 and $15.10.

Lobo cited the Q4 results and the upcoming debut of its Triathlon Gold, a total knee replacement system for people with metal sensitivities, and a handheld addition to its Mako robotic system, Mako RPS, as driving factors for a strong 2026 outlook.

SYK shares were up more than 3% to $366.28 apiece in after-hours trading.

BTIG analysts led by Ryan Zimmerman kept their Buy rating on SYK shares: “While shares underperformed in 2025, SYK continues to deliver robust above market top-line growth consistently year-in and year-out, expanding OMs in the face of tariffs, and improving leverage and free cash flow. In any market environment, we think that is a powerful combination.”

Stryker ended 2025 on a high note, according to Mike Matson and colleagues at Needham & Co. “SYK continues to benefit from healthy procedure growth, robust hospital capital spending, and numerous new product launches, and we reiterate our Buy rating.”

https://www.massdevice.com/strykers-2025-q4-earnings-exceed-wall-street-predictions/