Stryker (SYK) – Return to Normal

On March 11th, Stryker (SYK) said it identified a cybersecurity incident, which when it occurred, caused disruptions to the company’s business operations. In their 8-K filing that was filed yesterday, the company said it has worked diligently, together with third-party experts and law enforcement, to contain and neutralize the impact of the incident and restore operations. The company’s investigation of the incident remains ongoing. The company added that it believes that the incident has not had, and is not reasonably likely to have, a material impact on its 2026 full-year guidance.

Separately, BofA would issue a note this week saying that they had surveyed 50 hospital CFOs on the Stryker disruption. The survey was conducted March 27th – April 8th.

Analyst Travis Stead first asked whether respondents’ hospitals’ ability to place and receive orders from SYK has returned to normal. 92% of respondents said their ability to place and receive orders is in fact back to normal.

The 4 hospital CFOs that say ordering and logistics are not back to normal wrote:

“Still not comfortable with Stryker ability to deliver. We are nearing a normal state but understand the integrity of the software is still a concern,”
“Still impacted. Ordering capability still somewhat diminished,”
“We have not returned to normal as we have pivoted to Smith and Nephew as our vendor diversification,”
“Delays in ordering based on the cyberattack.”

Then, BofA asked respondents how many SYK procedures as % of total procedures in Q1 were delayed vs canceled. 24 out of 50 respondents had 0 delayed or canceled procedures. In aggregate an average of 4.1% of procedures were delayed while only 1.1% were canceled. They would remind investors that about 75% of SYK’s revenue is procedures and 25% capital.