SYK · 8-K · 20260626PR000041

Income Tax Rate Changes

STRYKER CORP · 2026-06-26 · Importance 89 · Surprise 82 · No source text

The effective tax rate increased to 28.1% in 2025 from 14.3% in 2024, and income-tax expense increased 154.1% to $1,268 million. The 2025 increase primarily reflected the tax effect of transfers of intellectual property between tax jurisdictions, whereas the 2024 rate benefited from the tax effect of the sale of the Spinal Implants business. A $660 million tax adjustment related primarily to intellectual-property transfers increased adjusted 2025 net earnings by $660 million and reduced the adjusted effective tax rate to 15.1%. Stryker held a $403 million reserve for uncertain income-tax positions and received German assessments totaling $754 million for tax years 2010 through 2017, plus an expected additional $11 million.

Key facts

• Effective income tax rate: 28.1% in 2025; 14.3% in 2024; 13.8% in 2023 source
• Deferred income tax (benefit) expense was $392 in 2025 and $(370) in 2024. source
• Adjusted effective tax rate (non-GAAP) for 2025 shown in reconciliation: 15.1% source
• Our effective tax rate was 28.1% in 2025, 14.3% in 2024 and 13.8% in 2023. source
• Total income tax expense was $1,268 in 2025, $499 in 2024 and $508 in 2023. source
• Cash paid for income taxes, net of refunds, was $1,002 in 2025. source
• Deferred income tax assets totaled $2,470 in 2025 and $3,090 in 2024, less valuation allowances $148 and $228 respectively, resulting in net deferred income tax assets $2,322 and $2,862. source
• The amount of undistributed earnings of foreign subsidiaries determined to be indefinitely reinvested at December 31, 2025 was approximately $11.7 billion. source

Impact estimates