Shares of medical technology company Stryker (SYK) tumbled 5.66% in after-hours trading on Thursday, despite reporting second-quarter earnings that beat analyst expectations and raising its full-year guidance. The sharp sell-off suggests that investors may have already priced in high expectations for the company's performance.

For the second quarter, Stryker reported adjusted earnings per share of $3.13, surpassing the analyst consensus of $3.07. Revenue came in at $6.0 billion, also beating expectations of $5.93 billion. The company saw strong performance across its segments, with MedSurg and Neurotechnology net sales increasing 17.3% year-over-year.

In a move that would typically boost investor confidence, Stryker raised its full-year 2025 guidance. The company now expects organic net sales growth of 9.5% to 10.0% and adjusted earnings per share in the range of $13.40 to $13.60. However, this positive outlook was not enough to prevent the stock's decline in after-hours trading. The sharp sell-off despite beating expectations and raising guidance suggests that Stryker's stock may have been priced for perfection going into the earnings report. Investors might be taking profits after the stock's strong performance year-to-date, or they could be reacting to broader market concerns about the sustainability of growth in the medical technology sector.