$SYK

STRYKER CORP

CIK:0000310764|SEC Filings

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 6,589	$ 6,022	$ 12,609	$ 11,888
Cost of sales	2,091	2,181	4,301	4,303
Gross profit	4,498	3,841	8,308	7,585
Research, development and engineering expenses	434	407	847	812
Selling, general and administrative expenses	2,229	2,079	4,510	4,379
Amortization of intangible assets	175	187	355	354
Asset impairments	1	55	1	90
Total operating expenses	2,839	2,728	5,713	5,635
Operating income	1,659	1,113	2,595	1,950
Interest expense	(141)	(159)	(289)	(296)
Other income	46	62	108	126
Earnings before income taxes	1,564	1,016	2,414	1,780
Income taxes	288	132	393	242
Net earnings	$ 1,276	$ 884	$ 2,021	$ 1,538
Net earnings per share of common stock:
Basic (in dollars per share)	$ 3.32	$ 2.32	$ 5.27	$ 4.03
Diluted (in dollars per share)	$ 3.30	$ 2.29	$ 5.23	$ 3.98
Weighted-average shares outstanding (in millions):
Basic (in shares)	383.5	382.2	383.2	382.0
Effect of dilutive employee stock compensation (in shares)	2.5	4.2	3.0	4.4
Diluted (in shares)	386.0	386.4	386.2	386.4
Cash dividends declared per share of common stock (in dollars per share)	$ 0.88	$ 0.84	$ 1.76	$ 1.68

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net earnings	$ 2,021	$ 1,538
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	241	214
Amortization of intangible assets	355	354
Asset impairments	1	90
Share-based compensation	141	133
Sale of inventory stepped-up to fair value at acquisition	0	99
Deferred income tax (benefit) expense	74	176
Changes in operating assets and liabilities:
Accounts receivable	267	257
Inventories	(240)	(226)
Accounts payable	(127)	(269)
Accrued expenses and other liabilities	(356)	(116)
Income taxes	(258)	(610)
Other, net	(277)	(279)
Net cash provided by operating activities	1,842	1,361
Investing activities
Acquisitions, net of cash acquired	(459)	(4,814)
Purchases of marketable securities	(19)	(27)
Proceeds/(Purchases) of short-term investments	0	750
Proceeds from sales of marketable securities	23	32
Purchases of property, plant and equipment	(368)	(306)
Proceeds from the sale of the Spinal Implants business	0	165
Other investing, net	(1)	(40)
Net cash used in investing activities	(824)	(4,240)
Financing activities
Proceeds (payments) on short-term borrowings, net	250	2
Proceeds from issuance of long-term debt	0	2,979
Payments on long-term debt	(1,000)	(650)
Payments of dividends	(674)	(641)
Cash paid for taxes from withheld shares	(146)	(115)
Other financing, net	(35)	(30)
Net cash provided by (used in) financing activities	(1,605)	1,545
Effect of exchange rate changes on cash and cash equivalents	(33)	57
Change in cash and cash equivalents	(620)	(1,277)
Cash and cash equivalents at beginning of period	4,011	3,652
Cash and cash equivalents at end of period	$ 3,391	$ 2,375

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 3,391	$ 4,011
Marketable securities	85	89
Accounts receivable, less allowance of $215 ($216 in 2025)	3,743	4,039
Inventories:
Materials and supplies	1,436	1,349
Work in process	470	415
Finished goods	3,615	3,546
Total inventories	5,521	5,310
Prepaid expenses and other current assets	1,678	1,306
Total current assets	14,418	14,755
Property, plant and equipment:
Land, buildings and improvements	1,814	1,793
Machinery and equipment	5,995	5,744
Total property, plant and equipment	7,809	7,537
Less allowance for depreciation	3,851	3,661
Property, plant and equipment, net	3,958	3,876
Goodwill	19,584	19,291
Other intangibles, net	5,742	5,681
Noncurrent deferred income tax assets	994	1,098
Other noncurrent assets	3,234	3,143
Total assets	47,930	47,844
Current liabilities
Accounts payable	1,663	1,799
Accrued compensation	1,105	1,595
Income taxes	224	418
Dividends payable	338	337
Accrued expenses and other liabilities	2,604	2,645
Current maturities of debt	750	1,000
Total current liabilities	6,684	7,794
Long-term debt, excluding current maturities	14,192	14,859
Income taxes	406	402
Other noncurrent liabilities	2,660	2,369
Total liabilities	23,942	25,424
Shareholders' equity
Common stock, $0.10 par value	38	38
Additional paid-in capital	2,711	2,597
Retained earnings	21,815	20,472
Accumulated other comprehensive loss	(576)	(687)
Total shareholders' equity	23,988	22,420
Total liabilities and shareholders' equity	$ 47,930	$ 47,844