Stryker Corporation

Stryker Corporation is an American medical technology company that designs, manufactures, and sells orthopaedic implants, surgical equipment, robotic surgery systems, and emergency medical products, generating $25.1 billion in revenue in fiscal 2025. Headquartered in Portage, Michigan, Stryker operates through two reportable segments — MedSurg and Neurotechnology (62% of FY2025 revenue) and Orthopaedics (38%) — and sells products in approximately 61 countries, impacting more than 150 million patients annually.

This is a story about a compounder trading at a premium that reflects its track record: 10%+ organic growth at $25 billion scale, an installed base of Mako surgical robots that doubles as a recurring-revenue engine, and a management team that has earned its valuation through disciplined capital allocation over a fourteen-year tenure. The file turns on a single question: whether the premium is durable in a world where the business just absorbed its largest-ever acquisition, a material cybersecurity incident, and a supply-chain disruption at that acquisition — all within six months — while navigating tariffs and a German tax dispute that could run to three-quarters of a billion dollars.

The Q2 2026 earnings call provided the first clean read on post-cyber momentum: 9% organic growth, a 170-basis-point adjusted operating margin expansion, and a narrowed full-year guide implying ~11% second-half organic growth to the midpoint. That is either the start of a re-acceleration that justifies the multiple, or a relief rally built on capital-equipment backlog that will normalize by year-end. The answer depends on whether Mako, Inari, and the capital-equipment flywheel are structural advantages or cyclical tailwinds — and whether the market appreciates the difference.