SYK · 10-Q · 2026Q2 · Full report

Operating Expense Trends

STRYKER CORP · 2026-07-31 · Importance 49 · Surprise 32 · From source text

Research, development and engineering expense increased 6.6% in the second quarter to approximately $435 million and 4.3% in the first half to approximately $841 million, while expense ratios remained near 6.6% and 6.7% of sales. Selling, general and administrative expense increased $150 million, or 7.2%, in the quarter to $2,229 million, but declined to 33.8% of sales from 34.5% through spending discipline and lower acquisition and integration charges. Six-month SG&A increased $131 million, or 3.0%, to $4,510 million and declined to 35.8% of sales from 36.8%, despite a $139 million share-based award charge for Inari employees that vested upon acquisition. Lower acquisition-related costs were partly offset by higher structural optimization and other special charges.

Key facts

• Goodwill and other impairments three months 2026: $1 million and three months 2025: $55 million; six months 2026: $1 million and six months 2025: $90 million. source
• Three months 2026 selling, general and administrative expenses increased $150 or 7.2% and were 33.8% of net sales (down from 34.5%). source
• Amortization of intangible assets three months 2026: $175 million; three months 2025: $187 million. Six months 2026: $355 million; six months 2025: $354 million. source
• Interest expense three months 2026: $141 million and three months 2025: $159 million; six months 2026: $289 million and six months 2025: $296 million, decrease due to lower outstanding debt and credit facilities partially offset by higher average interest rates. source
• Three months 2026 research, development and engineering expenses increased $27 or 6.6%, and were 6.6% of net sales. source
• Six months 2026 research, development and engineering expenses increased $35 or 4.3%, and were 6.7% of net sales. source

Impact estimates