Shares of medical technology company Stryker (SYK) continued their downward trajectory, plunging 6.64% in pre-market trading on Friday. This decline follows a 5.66% drop in after-hours trading on Thursday, despite the company reporting second-quarter earnings that exceeded analyst expectations and raising its full-year guidance.

For the second quarter, Stryker reported adjusted earnings per share of $3.13, surpassing the FactSet analyst consensus of $3.07. Revenue came in at $6.0 billion, also beating expectations of $5.9 billion. The company saw strong performance across its segments, with MedSurg and Neurotechnology net sales increasing 17.3% year-over-year. In response to these positive results, Stryker raised its full-year 2025 guidance, now expecting organic net sales growth of 9.5% to 10.0% and adjusted earnings per share in the range of $13.40 to $13.60.

Despite these seemingly positive developments, investors appear to be focusing on other factors. The sharp sell-off suggests that Stryker's stock may have been priced for perfection going into the earnings report. Analysts speculate that the adjusted operating income margin of 25.7%, while an improvement from the previous year, could have fallen short of some investors' expectations. Additionally, Stryker mentioned an estimated net impact from tariffs in 2025 of approximately $175 million, which may be weighing on sentiment. The continued decline in pre-market trading indicates that investors are reassessing their positions in light of these factors, despite Wells Fargo raising its target price for Stryker to $445 from $435.