Stryker is still recovering from a March cyberattack that took out its order processing, shipping and manufacturing for nearly a month and ate into its first-quarter results.
CEO Kevin Lobo told investors on Thursday that the company has ramped up production to address an order backlog that he expects to reach a “manageable level” by the end of the third quarter.
“We feel good about the overall health of our businesses, and they're going to recover at different points in time,” Lobo said during an earnings call.
Stryker reported revenue growth of more than 9% to $6.6 billion in the second quarter. Its net earnings increased by about 44% to $1.3 billion, which CFO Preston Wells said included tariff refunds.
The finance executive called out some ongoing challenges for Stryker. The company still faces costs related to the cyberattack, including losses from manufacturing and IT charges as it works through remediation, Wells said. The company is also managing costs around oil and raw materials.
Lobo shared an update on manufacturing. With medical beds, the company still has a “tremendous number of orders” to catch up on, the CEO said.
“Making beds takes time, and we were out of production for a long period of time,” Lobo said.
Stryker is also working through a supply disruption with its Inari Medical business, a maker of thrombectomy systems that the company acquired last year for about $4.9 billion. Lobo did not share details of what caused the disruption, but said an issue with a plant that makes most of Inari’s products caused significant backorders.
Stryker narrowed its organic sales growth forecast for 2026 to a range of 8.3% to 9.3%, compared with a previous range of 8% to 9.5%.
Some analysts questioned how Stryker plans to catch up in the second half of the year. BTIG analyst Ryan Zimmerman wrote in a research note that even if the third quarter is solid, the onus falls to the fourth quarter.
Lobo said Stryker already has the orders, so demand for capital equipment isn’t a concern, adding that all the company has to do is make and ship the products.
“Honestly, on a $25 billion business, to be growing at around the 9% range, it's still a pretty good year, given that we were knocked out for almost an entire month,” Lobo told investors.
