Winners And Losers In Q4: Comparing Stryker (NYSE:SYK) To Other Diversified Medical Devices & Supplies Stocks

Q4 Review: Medical Devices & Supplies - Diversified Stocks

As the latest earnings season wraps up, it's an ideal moment to reflect on which companies excelled and which struggled. Here’s an overview of how diversified medical devices and supplies stocks performed in the fourth quarter, beginning with Stryker (NYSE:SYK).

Industry Overview

The medical devices sector is characterized by consistent demand, but it also requires substantial investment in research, development, and regulatory compliance. Companies in this industry benefit from ongoing revenue streams, thanks to consumables, service contracts, and technology upgrades. However, high development costs, lengthy approval processes, and the necessity for clinical trials can impact both profitability and timelines. Additionally, healthcare providers and insurers continue to exert downward pressure on prices to control costs.

Looking ahead, demographic shifts—particularly aging populations—are expected to increase the prevalence of chronic diseases, fueling demand for medical treatments and monitoring technologies. Innovations in digital health, such as remote monitoring and smart devices, are likely to create new opportunities by encouraging more frequent technology upgrades. On the flip side, the industry must contend with ongoing pricing and reimbursement challenges as value-based care becomes more widespread. The growing importance of cybersecurity for connected devices also introduces new risks and complexities for manufacturers.

Q4 Performance Snapshot

Among the six diversified medical device and supply companies tracked, fourth-quarter results were mixed. Collectively, these firms exceeded analysts’ revenue expectations by 1.9%, while guidance for the upcoming quarter was generally in line with forecasts.

Despite these results, share prices have faced headwinds, with the group’s average stock price declining 5.1% since the latest earnings announcements.

Stryker (NYSE:SYK)

Stryker, a leader in healthcare innovation, impacts over 150 million patients each year with its advanced medical devices and equipment. The company’s portfolio spans orthopedics, surgical instruments, neurotechnology, and patient care solutions.

For the fourth quarter, Stryker reported $7.17 billion in revenue, representing an 11.4% increase year-over-year and surpassing analyst estimates by 0.8%. The company delivered a solid quarter, narrowly beating expectations for organic revenue growth.

“We concluded 2025 on a high note, achieving double-digit growth in both sales and adjusted earnings per share for the fourth quarter and full year. Additionally, we expanded our adjusted operating margin by at least 100 basis points for the second year in a row,” said Kevin A. Lobo, Stryker’s Chair and CEO.

Since releasing its results, Stryker’s stock has risen 1.3% and is currently trading at $359.00.

Top Performer: Neogen (NASDAQ:NEOG)

Neogen, established in 1981, operates at the crossroads of food safety and animal health. The company produces diagnostic tests and related products to detect harmful substances in food and pharmaceuticals, supporting animal health and safety.

In Q4, Neogen posted $224.7 million in revenue, a 2.8% decrease from the previous year, but still outperformed analyst expectations by 7.2%. The company delivered an impressive quarter, beating both earnings per share and revenue estimates.

Neogen achieved the largest positive surprise relative to analyst forecasts among its peers. The market responded favorably, with the stock climbing 29.3% since the report and currently trading at $9.55.

Weakest Performer: Abbott Laboratories (NYSE:ABT)

Abbott Laboratories, founded in 1888 by Dr. Wallace Abbott, offers a broad portfolio of healthcare products, including medical devices, diagnostics, nutritional items, and branded generic medicines.

For the quarter, Abbott reported $11.46 billion in revenue, a 4.4% year-over-year increase, but missed analyst expectations by 2.9%. The company fell short on both total and organic revenue estimates, making it the weakest performer in the group relative to analyst forecasts. As a result, Abbott’s stock has declined 8.6% since the earnings release and is now priced at $110.36.

Baxter (NYSE:BAX)

Baxter International, with roots going back to 1931, supplies critical healthcare products—including dialysis therapies, IV solutions, infusion systems, surgical tools, and patient monitoring technologies—to hospitals and clinics in over 100 countries.

In the fourth quarter, Baxter generated $2.97 billion in revenue, up 8% from the prior year and beating analyst estimates by 5.7%. However, the company missed full-year and quarterly EPS guidance, resulting in a less favorable overall performance. Since reporting, Baxter’s stock has dropped 21.1% and is currently valued at $17.57.

Boston Scientific (NYSE:BSX)

Founded in 1979, Boston Scientific is dedicated to advancing less-invasive medical procedures. The company develops devices used in minimally invasive treatments for cardiovascular, urological, neurological, and gastrointestinal conditions.

Boston Scientific reported $5.29 billion in revenue for Q4, a 15.9% increase year-over-year, matching analyst expectations. The company narrowly exceeded organic revenue estimates but slightly missed next quarter’s EPS guidance. Despite leading its peers in revenue growth, Boston Scientific’s stock has fallen 23.5% since the earnings announcement and now trades at $70.06.

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