Stryker is maintaining its 2026 outlook despite its Q1 performance being impacted by a cyberattack that caused disruption across the company’s operations in March.
The medtech giant reported revenues above $6bn for Q1, indicative of a 2.6% year-over-year (YoY) uptick from around $5.8bn.
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Despite the steady YoY performance, Stryker’s revenue fell short of analysts’ expectations of $6.35bn, according to data compiled by the London Stock Exchange Group (LSEG) and seen by Reuters.
Stryker released its Q1 financials after markets closed on 30 April. The company’s shares on the Nasdaq stock exchange opened 0.6% down at $313.34 on 31 April compared to the previous day’s market close of $315.13. Stryker has a market cap of over $120bn.
The cyberattack on Stryker, for which Iranian hacktivist group Handala claimed responsibility, began in the early hours of 11 March, with Stryker’s headquarters in Cork, Ireland the first site affected by the incident.
In a Form 8-K filed with the US Securities and Exchange Commission (SEC) at the time, Stryker said the incident caused, and is expected to continue to cause, “disruptions and limitations of access to certain of the company’s information systems and business applications supporting aspects of the company’s operations and corporate functions”.
Stryker’s chief finance officer, Preston Wells, revealed during an earnings call that Q1’s adjusted earnings per share (EPS) of $2.60 was “minus 8.5%” YoY.
Nonetheless, Stryker has opted to maintain its previously outlined 2026 growth expectations of between 8% to 9.5% and still expects earnings to fall in the $14.90-$15.10 per share range.
Reflecting further on the EPS drop-off, Wells told investors the decline was driven by “limited sales growth and lost manufacturing absorption” related to the cyber incident, as well as tariffs and increased interest expense that were “partially offset” by the company’s “ongoing focus on operational excellence and a slightly favourable impact from foreign currency translation”.
It is also important to note that the cyber incident occurred towards the end of the quarter, creating an “outsized impact on sales due to delays in revenue recognition” as well as shipment delays, Wells added.
Across its business operations, Stryker’s medsurg and neurotechnology segment led the way, with revenues of around $3.2bn denoting a 5% uptick YoY. Meanwhile, Stryker’s orthopaedics portfolio generated revenue of around $2.8bn, with the total remaining flat YoY.
Commenting on Q1, Stryker CEO, Kevin Lobo said: “We remain committed to meeting our full year guidance for organic sales growth and adjusted earnings per share as our underlying business momentum remains strong.”
