Stryker (SYK) Stock Forecast & Price Target

Stryker has displayed robust financial growth, evidenced by a 7.6% increase in knee procedures in the U.S. and 8.8% growth outside the U.S., attributed to advancements in robotic-assisted technologies and rising adoption of Mako systems. The company's operating margin improved to 30.2%, exceeding expectations and reflecting efficient management, while organic sales growth reached 11.0% in the fourth quarter, indicating strong overall demand across diverse product offerings. Additionally, Stryker's sales of $4.562 billion surpassed analyst consensus, highlighting broad-based strength across most business segments propelled by strong procedure volumes and an expanding product portfolio.

Stryker's stock outlook is negatively influenced by several fundamental factors, including a projected slowdown in organic revenue growth to 8% or less due to unsuccessful new product launches and revenue dis-synergies from acquisitions. The company's gross margin has experienced a decline of 10 basis points year-over-year, indicating pressures on profitability, particularly with anticipated tariff headwinds impacting gross margins for fiscal year 2026. Additionally, Stryker has lagged behind its peers and historical performance, evidenced by a trading downturn of approximately 11.8% from its 2025 yearly high, further exacerbating concerns related to its valuation at a forward P/E of around 21 times.