As you might know, Stryker Corporation (NYSE:SYK) last week released its latest first-quarter, and things did not turn out so great for shareholders. Stryker missed earnings this time around, with US$6.0b revenue coming in 4.9% below what the analysts had modelled. Statutory earnings per share (EPS) of US$1.93 also fell short of expectations by 15%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, Stryker's 26 analysts are now forecasting revenues of US$27.3b in 2026. This would be a credible 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 46% to US$12.74. In the lead-up to this report, the analysts had been modelling revenues of US$27.3b and earnings per share (EPS) of US$12.16 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The average the analysts price target fell 6.4% to US$392, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Stryker, with the most bullish analyst valuing it at US$465 and the most bearish at US$315 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Stryker's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Stryker'shistorical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 9.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.0% per year. So although Stryker is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Stryker following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Stryker going out to 2028, and you can see them free on our platform here..

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.