SYK · 8-K · 20260730PR000048

Operating Income and Margins

STRYKER CORP · 2026-07-30 · Importance 78 · Surprise 74 · From source text

Reported gross profit increased 17.1% year over year to $4.498 billion, and reported gross margin expanded to 68.3% from 63.8%. Reported operating income increased 49.1% to $1.659 billion, lifting operating margin to 25.2% from 18.5%. Adjusted operating margin increased 170 basis points to 27.4%, while adjusted gross margin was 66.0%. The quarter included a $158 million reversal of 2025 tariffs, partially offset by $95 million of structural optimization and other special charges and $175 million of purchased-intangible amortization.

Key facts

• Selling, general and administrative expenses for Q2 2026 were $2,229 million, a 7.2% increase versus Q2 2025. source
• Cost of sales for Q2 2026 was $2,091 million, a (4.1)% change versus Q2 2025 ($2,181 million). source
• STRYKER CORP reversed 2025 tariffs, shown as $(158) million adjustment to gross profit and operating income for three months and six months 2026. source
• For the three months ended June 30, 2026, operating income was $1,659 million, a 49.1% increase versus 2025. source
• For the six months ended June 30, 2026, operating income was $2,595 million, a 33.1% increase versus 2025. source
• For three months 2026, STRYKER CORP recorded goodwill and other impairments of $1 million. source
• Adjusted operating income margin for Q2 2026 increased 170 bps to 27.4%. source
• Research, development and engineering expenses for Q2 2026 were $434 million, a 6.6% increase versus Q2 2025. source

Impact estimates