Stryker Corporation
Stryker Corporation operates as a medical technology company in the United States and internationally. It operates through two segments, MedSurg and Neurotechnology, and Orthopaedics. The MedSurg and Neurotechnology segment offers surgical equipment, patient and caregiver safety technologies, navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, clinical communication and artificial intelligence-assisted virtual care platform technology, and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke and venous thromboembolism; traditional brain and open skull based surgical procedures products; and orthobiologic and biosurgery products, including synthetic bone grafts and vertebral augmentation products. The Orthopaedics segment provides implants for use in total joint replacements, such as hip, knee and shoulder, ankle, and trauma and extremities surgeries; and Mako Shoulder, which expands the smart robotics suite of applications. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 61 countries. Stryker Corporation was founded in 1941 and is headquartered in Portage, Michigan.
What does it do?
Stryker makes the tools and equipment that surgeons use every day in hospitals. Think replacement knees and hips, the robotic arms that guide surgeons during operations, the beds that move patients safely, and the stretchers paramedics use in ambulances. If you or someone you know has had a joint replacement, there's a good chance a Stryker product was involved. They sell to hospitals and surgical centers in over 75 countries.
Aging populations in the US, Europe, and Japan mean more people need joint replacements and surgeries every year — that demand isn't going away. Stryker is also one of the leaders in surgical robotics, a fast-growing area where hospitals are spending heavily to modernize. At $118 billion in market value, it's one of the largest medical device companies in the world, making it a bellwether for the entire sector.
How does it make money?
Stryker makes money through two main divisions. The first — MedSurg and Neurotechnology — sells surgical equipment, hospital beds, emergency stretchers, and brain-related medical tools, and is the larger of the two. The second — Orthopaedics — sells implants like artificial hips, knees, and trauma repair products. Total revenue hit $25.1 billion in the latest year, up from $22.6 billion the prior year, an 11% jump. Crucially, many of their products require repeat purchases of disposables and software, giving Stryker sticky, recurring income on top of equipment sales.
Why do investors care?
The core growth story is simple: more people are getting older, and older people need more surgeries. But the more exciting piece is Mako, Stryker's robotic surgery system, which is gaining adoption in hospitals worldwide and creates a locked-in ecosystem — once a hospital buys Mako, they keep buying Stryker implants to go with it. For the thesis to work, Stryker needs to keep winning hospital contracts, grow its robotics footprint, and successfully integrate acquisitions it makes to expand into new areas.
Deep Dive
MemberA full investor briefing on Stryker Corporation — history, leadership, risks, and outlook.