Stryker (NYSE: SYK) has had a difficult 2026. The medical-device giant was hit by a cyberattack earlier in the year, and several of its product lines, including orthopedics and peripheral vascular devices, have seen softer demand. But RBC Capital Markets believes the worst may be behind the company, and that 2027 could bring a return to faster growth.
In a recent note, RBC called 2026 a “transition year” for Stryker. The bank pointed to the lingering effects of the cyberattack and weaker trends in some of the company’s core businesses as reasons why the stock has struggled. Shares are down more than 19% year to date, trading around $280. RBC sees “limited upside” for the rest of 2026, but its outlook for the next phase is more upbeat.
What’s behind the rough 2026?
Stryker is one of the world’s largest medical-device companies, known for products like surgical equipment, orthopedic implants, and hospital beds. Its customers are hospitals and healthcare systems, which means its sales are closely tied to their capital spending budgets.
The cyberattack disrupted operations and likely delayed some orders. At the same time, demand in orthopedics—a key segment for Stryker—has been softer than expected. Peripheral vascular products, which treat conditions like blocked arteries, have also been weak. These headwinds combined to make 2026 a challenging year.
RBC’s view is that these issues are temporary. The bank expects that as hospitals’ equipment budgets and surgery schedules become easier to predict, Stryker’s order flow will improve. That clarity, RBC argues, should set the stage for faster growth in 2027.
Why 2027 could be different
Medical-device companies often see demand ebb and flow with hospital spending cycles. When hospitals are confident about their budgets, they tend to place larger orders for capital equipment. When uncertainty rises—whether from economic worries, staffing shortages, or operational disruptions—they delay purchases.
RBC’s optimism for 2027 is based on the idea that the current uncertainty will fade. As the effects of the cyberattack wear off and hospital planning normalizes, Stryker should see a clearer pipeline of orders. That would allow the company to accelerate growth after a year of transition.
For investors, the key takeaway is that RBC sees the current weakness as a temporary setback, not a permanent decline. The bank’s more positive view of 2027 suggests that patient investors might be rewarded, but it also acknowledges that the next few months could remain choppy.
What it means for everyday investors
Stryker is a well-known name in healthcare, and many investors hold it through mutual funds or ETFs. A stock down 19% year to date is a reminder that even strong companies can face rough patches.
RBC’s note is a single analyst’s opinion, not a guarantee. But it highlights an important point: short-term setbacks—like a cyberattack or a weak quarter—don’t always change a company’s long-term trajectory. For investors, the question is whether Stryker’s core business remains solid and whether the factors weighing on it are likely to fade.
In this case, RBC believes they are. The bank’s expectation of clearer capital orders in 2027 suggests that hospitals will eventually resume normal purchasing patterns. If that happens, Stryker could see a rebound in growth.
Of course, there are risks. The cyberattack could have longer-lasting effects than expected, and demand in orthopedics might not recover as quickly as hoped. Investors should also consider that the broader healthcare sector has been under pressure, with analysts turning cautious on some names. For a broader view, you can read about recent healthcare stock declines.
RBC’s outlook for Stryker is part of a wider trend of analysts looking ahead to 2027 for growth. Similar optimism has been seen in other sectors, such as Union Pacific's growth prospects and Apple's potential for a foldable iPhone. While each company is different, the common thread is that analysts are betting on a clearer outlook next year.
For now, Stryker investors should watch for signs that hospital spending is stabilizing. Quarterly earnings reports will show whether the cyberattack’s impact is fading and whether orthopedics demand is picking up. RBC’s note suggests that patience could pay off, but it’s not a reason to rush in.
As always, it’s wise to consider your own investment goals and risk tolerance. A single analyst’s view is just one piece of the puzzle.
