SYK · Earnings call · 2026Q3T · Full report

Market Demand Trends

STRYKER CORP · 2026-10-29 · Importance 32 · Surprise 24

Management estimates the hip and knee replacement market is growing about 2.5% year to date, a step down from growth in recent years, and says it slowed further in the third quarter. In the U.S., affordability concerns tied to insurance premiums and deductibles and increased pre-authorization denials are slowing procedures and delaying patient access. Management describes the slowdown as concentrated in hips and knees, with extremities and MedSurg volumes more insulated. It expects the procedure environment observed in the quarter to continue near term, while noting the timing of any market recovery is uncertain.

Key facts

• Stryker said the U.S. hip and knee market was experiencing slower procedural growth amid affordability concerns related to higher insurance premiums and deductibles.
• Stryker reported increased pre-authorization denials that were creating friction and delaying patient access to treatment.
• Stryker said U.S. Endoscopy growth was supported by robust demand for operating-room infrastructure and renovations and strong Sports Medicine performance driven by shoulder implant products.
• Stryker estimated hip and knee market growth at about 2.5% in 2026, a step down from the prior 5–6 years.
• Stryker said the U.S. hip and knee slowdown was not materially affecting extremities, especially upper extremities, which remained high growth.
• Stryker said its weighted-average end-market growth estimate had been about 6% at the investor conference a year earlier and had ticked down due to joint replacement and hip-and-knee market conditions.
• Stryker said favorable demographics and expanded access through sites such as ASCs support the long-term attractiveness of the large-joint reconstruction market.
• Stryker said economic pressure can lead patients to delay joint replacement because of difficulty paying higher deductibles, and that demand has historically improved as economic conditions improve.