Stryker 10-Q Details $293M Peripheral Vascular Goodwill Impairment; Q3 EPS Falls to $1.96
SYK is trading near its 52-week low of $267 (10% above the low).
Summary
Stryker's third-quarter 10-Q puts numbers on the previously flagged weakness in Peripheral Vascular: a $293M non-cash goodwill impairment that cut GAAP EPS to $1.96, with sensitivity analysis showing up to $823M more at risk if discount rates rise.
Key Events · Earnings and Guidance · SYK
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$293M Peripheral Vascular Impairment
Interim goodwill impairment charge of $293M in Q3 2026, driven by reduced forecasted cash flows from near-term operational and supply constraints and a longer expected period to achieve growth and market recovery.
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GAAP Earnings Drop 12.3%
Net earnings fell to $753M, or $1.96 per diluted share, from $859M ($2.22) a year earlier; the effective tax rate rose to 24.5% from 16.5% partly on the non-deductible impairment.
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Further Impairment Risk Quantified
About $3,259M of goodwill remains in the Peripheral Vascular unit; a 100 bps increase in discount rate implies $823M of incremental impairment, a 100 bps cut to long-term operating margin implies $497M.
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Cash Flow and Buyback Backdrop
Nine-month operating cash flow was $3,303M versus $2,901M; $1,000M of 3.500% notes were repaid in March 2026 and $1,000M of shares repurchased, leaving cash at $3,271M.
Analysis · SYK · Industrial Applications And Services
The quarter itself was already public: 7.7% organic growth, $3.52 adjusted EPS, and a $3B buyback increase were all disclosed October 29. What is new in this 10-Q is the size and fragility of the write-down. Stryker took a $293M non-cash goodwill impairment on its Peripheral Vascular unit because forecasted cash flows were cut on near-term operational and supply constraints and a longer path to growth. That charge, plus a 24.5% effective tax rate versus 16.5% a year ago, dragged GAAP net earnings down 12.3% to $753M. The filing also discloses that roughly $3,259M of goodwill remains in that unit and that a 100 bps higher discount rate alone would imply another $823M of impairment — so the risk of a second charge is real, not theoretical. Cash generation remains solid at $3,303M for nine months, and the balance sheet is comfortably investment grade.
How filings like this one have moved
In the 30 days to Oct 30, 2026, 30.6% of the 1568 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SYK was trading at $294.55 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $113B. The 52-week trading range was $267.00 to $389.33. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.