Needham increased its price target on Stryker to $454.00 from $448.00 and maintained a Buy rating after the medical technology company released fourth-quarter results that outpaced analyst estimates. The revised target implies nearly 28% upside from the cited current share price of $354.30, although InvestingPro data referenced in coverage indicates the stock is trading slightly above its Fair Value.
Stryker reported fourth-quarter 2025 revenue and earnings per share that exceeded consensus. Organic sales growth advanced to 11.0% in the quarter, up from 9.5% in the comparable quarter a year earlier, with the caveat that the year-over-year comparison benefited from an easier base. The company’s revenue growth over the last twelve months stands at 10.95%, consistent with the stronger top-line trajectory reported for the quarter.
Needham's assessment attributes Stryker’s results to broad-based strength across most business segments, with drivers that included elevated procedure volumes, the contribution from recent product launches, and a backlog in capital equipment orders. Those factors were cited as supporting continued momentum across the company’s portfolio.
On margins, Stryker recorded a modest contraction in gross margin, down 10 basis points year-over-year, while operating margin expanded by 100 basis points versus the same period last year. Over the trailing twelve months, the company sustained a gross profit margin of 65.05%. The operating margin improvement suggests some leverage on costs and revenue mix despite the slight deterioration at the gross margin level.
For 2026, management issued guidance for organic revenue growth and EPS that bracketed consensus expectations. Company guidance also acknowledged an expected incremental tariff impact of $200 million, which management indicated it intends to fully offset through other measures. Stryker’s reported price-to-earnings ratio is 46.36, a premium multiple that reflects investor confidence in the firm’s growth prospects.
Additional market response to the quarter included a set of analyst reactions. Canaccord Genuity reiterated a Buy rating and set a price target of $435, citing the robust quarterly showing. Citizens maintained a Market Outperform rating with a $440 price target, highlighting particularly strong results in the MedSurg and Neurotech divisions. BTIG adjusted its price target slightly higher to $412 from $410 while retaining a Buy stance. Across these notes, analysts pointed to notable contributions from segments such as Trauma & Extremities and Vascular.
The company reported fourth-quarter revenue of $7.2 billion, a year-over-year increase of 11.4% that topped forecasts by 0.7%. Earnings per share for the quarter were $4.47, above the consensus expectation of $4.39. These results, together with the mix of analyst target adjustments and reiterations, underpin the continuing positive trajectory cited by market participants for Stryker within the medical technology sector.
InvestingPro classifies Stryker as a prominent company in the Healthcare Equipment & Supplies industry and assigns an overall financial health rating of "GREAT." The platform notes additional content available to subscribers, including 11 more InvestingPro Tips and detailed Pro Research Reports that explore the elements driving the company’s performance and valuation.
Summary of the quarter and market reaction:
- Quarterly results beat consensus on both revenue and EPS.
- Organic sales growth rose to 11.0% from 9.5% year-over-year in the comparable quarter.
- Operating margin expanded by 100 basis points while gross margin dipped 10 basis points.
- Management guided 2026 results in a range that brackets consensus and flagged a $200 million tariff impact it plans to offset.
- Multiple brokerages maintained Buy or Outperform stances and adjusted targets following the report.