The medical-device maker grew organic sales 7.7% but missed estimates on revenue and adjusted earnings, and now expects 6.5% to 7.0% organic growth for the year. Illumina fell 11% after reporting revenue that trailed some forecasts.
Two health-care companies reported on Thursday night, and both learned how little room investors are leaving for a miss.
Stryker
Stryker's third-quarter net sales rose 7.7% to $6.5 billion, all of it organic. MedSurg and Neurotechnology sales grew 9.2% to $3.7 billion, and Orthopaedics 5.7%. Analysts had expected revenue of about $6.62 billion.
Adjusted earnings rose 10.3% to $3.52 a share, below the $3.55 expected. The adjusted operating margin was 26.2%. GAAP net earnings fell 12.3% to $753 million.
"The third quarter did fall short of our expectations," said Lobo, the chief executive. "The underlying fundamentals of the business remain strong."
For the full year, Stryker now expects organic sales growth of 6.5% to 7.0% and adjusted earnings of $14.80 to $14.90 a share.
The company bought back $1.0 billion of its own stock in the quarter and raised its repurchase authorization by $3.0 billion in October.
Stryker shares had risen 2.42% to $311.36 during Thursday's regular session. After the report they fell about 9.6% to about $281.45 in extended trading.
Illumina
Illumina's adjusted earnings, which exclude tariff refunds, were $1.44 a share, above the $1.36 analysts expected. Reported revenue of $1.13 billion was below the roughly $1.15 billion consensus. That figure was reduced by $37 million of tariff refunds the company expects to credit to customers; excluding refunds, revenue was $1.17 billion, which some providers counted as a beat. Illumina raised its 2026 outlook, excluding refunds, to revenue of $4.64 billion to $4.66 billion and adjusted earnings of $5.40 to $5.45 a share, from $4.60 billion to $4.64 billion and $5.30 to $5.40. Its shares fell about 11% to about $258.23 in extended trading from $290.06.
What the reactions say
A 7.7% organic growth rate would be a good quarter for most medical-device companies. Stryker's own chief executive said it was not good enough for Stryker, and investors took him at his word. Illumina's decline is harder to read. The company raised its outlook and cited robust placements of its NovaSeq X sequencers, while its reported revenue line was below consensus.
Blip or slowdown?
The blip view: Stryker still grew organic sales 7.7% and adjusted earnings 10.3%, its buybacks continue, and its chief executive says the fundamentals are strong.
The slowdown view: Stryker missed on both revenue and adjusted earnings and says so itself, while Illumina's reported revenue fell short of consensus.
What to watch
Stryker's call commentary on what fell short, its 2027 outlook, Illumina's instrument orders, and results from other medical-technology companies.