Stryker faces near-term disruption from cyberattack but strong robotics adoption and international growth suggest underlying momentum remains intact.

What happened: Stryker Corporation, a medical technology leader in orthopaedics and surgical equipment, suffered a cyberattack in the first quarter of 2026 that disrupted manufacturing and delayed shipments, reducing first-quarter profitability. Management has reaffirmed full-year guidance and characterized the recovery as successful, though the company expects additional investments in cybersecurity and operational resilience.

Why it matters: The company's core markets remain healthy—underlying demand is strong, hospital capital spending is stable, and Stryker recorded record first-quarter Mako (robotic surgery) installations globally with rising utilization rates. International operations in Japan, Europe, India, Korea and East Asia are emerging as major growth engines, with years of commercial investment beginning to pay off and additional product approvals driving momentum.

What to watch: First-quarter adjusted gross margin fell 190 basis points and operating margin fell 180 basis points due to lost manufacturing absorption, tariffs and lower operating leverage; inflationary pressures from input costs and freight remain largely outside management's control. Stryker's expansion into newer businesses like peripheral vascular intervention and AI-enabled hospital solutions offers growth but increases execution complexity and regulatory risk in unfamiliar markets.