Stryker (SYK), the medical-technology company, reported third-quarter net sales of $6.5 billion, up 7.7% on both a reported and organic basis, compared with 2.6% reported growth in the first quarter. Organic growth slowed from 9.0% in the second quarter.

Chair and CEO Kevin A. Lobo said the quarter delivered 7.7% organic sales growth and double-digit adjusted earnings growth, and that while the absolute performance was good, it fell short of the company’s expectations. He said the underlying fundamentals remain strong and that the company expects a solid fourth-quarter performance and good momentum heading into 2027.

MedSurg and Neurotechnology net sales were $3.7 billion, up 9.2% reported and 9.1% organically, a slower pace than 9.7% reported growth in the second quarter. Orthopaedics net sales were $2.9 billion, up 5.7% reported and 5.9% organically, after 9.1% reported growth in the prior quarter. The company said organic growth in both segments was primarily driven by increased unit volume.

Reported net earnings were $753 million, down 12.3% from a year earlier, and diluted earnings were $1.96 a share, down 11.7%. That reversed a 44.1% increase to $3.30 a share in the second quarter. Adjusted net earnings were $1.4 billion, up 10.1%, and adjusted diluted earnings were $3.52 a share, up 10.3%.

Reported operating income margin was 15.9%. Adjusted operating income margin was 26.2%, down 120 basis points from 27.4% in the second quarter. Reported net earnings included charges for acquisition and integration-related activities, amortization of purchased intangible assets, structural optimization and other special charges, goodwill and other impairments, medical-device regulatory costs, recall-related matters, regulatory and legal matters and tax matters.

Goodwill and other impairments were $293 million in the three months ended September 30, 2026, including a $293 million goodwill impairment. Structural optimization and other special charges added $153 million of operating-income adjustments, including $77 million related to the Spinal Implants sale. Spinal Implants sales were $4 million, with U.S. sales at zero.

The company is updating full-year 2026 guidance. It now expects organic net sales growth of 6.5% to 7.0%, down from the 8.3% to 9.3% range issued after the second quarter, and adjusted net earnings per diluted share of $14.80 to $14.90, down from $14.95 to $15.10. Sales guidance includes a modestly positive pricing impact. Foreign exchange is expected to have a slightly favorable impact on both sales and adjusted earnings should rates hold near current levels.

Stryker repurchased $1.0 billion of common stock in the third quarter. In October 2026 the board approved a $3.0 billion increase to the existing share-repurchase program.