Zimmer Biomet Exceeds Q4 Profit and Revenue Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
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Should l Buy ZBH?
Source: Newsfilter
- Significant Sales Growth: Zimmer Biomet reported fourth-quarter net sales of $2.24 billion, reflecting a 10.9% year-over-year increase, driven by strong demand for joint replacement devices, surpassing analysts' expectations of $2.23 billion and showcasing the company's competitive position in the market.
- Profit Exceeds Expectations: The company reported an adjusted profit of $2.42 per share, beating analysts' estimate of $2.40 per share, indicating sustained profitability despite a 2026 profit forecast that falls below the market average estimate of $8.48 per share.
- Strong Market Demand: As insurers report rising medical-loss ratios, indicating increased patient scheduling, Zimmer's hips and knees segments achieved sales increases of 7.9% and 6%, respectively, highlighting a recovery in the medical device industry.
- Shift in Sales Model: CEO Ivan Tornos noted that the transition to a primarily direct and specialized U.S. sales model is expected to weigh on 2026 sales growth, but it is intended to support the company's long-term expansion strategy.
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Analyst Views on ZBH
Wall Street analysts forecast ZBH stock price to rise
18 Analyst Rating
4 Buy
11 Hold
3 Sell
Hold
Current: 95.180
Low
88.00
Averages
100.47
High
120.00
Current: 95.180
Low
88.00
Averages
100.47
High
120.00
About ZBH
Zimmer Biomet Holdings, Inc. is a global medical technology company. It designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; CMFT; surgical products; and a suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. Its segments include Americas, EMEA, and Asia Pacific. Its products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Its knee brands include the Persona Knee, NexGen Knee Implants, Vanguard Knee and Oxford Partial Knee. Its hip brands include the Taperloc Hip System, Avenir Complete Hip System, Arcos Modular Hip System and G7 Acetabular System. It also focused on a suite of orthopedic robotics, enabling solutions and analytics to address the needs of surgeons pre-, intra- and post-operatively. Its portfolio features imageless robotics through its ROSA Robotics platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analyzing Earnings in the Healthcare Sector: AZN, EW, and ZBH Compared
Earnings Reports in Healthcare Sector: Companies in the healthcare sector are reporting earnings that provide insights into their development progress and potential growth opportunities, particularly with the release of new drugs and medical devices.
AstraZeneca's Strong Performance: AstraZeneca reported a strong quarterly performance, with significant sales growth driven by its cancer medicines, which accounted for a large portion of its revenue, prompting positive investor sentiment.
Zimmer Biomet's Market Position: Zimmer Biomet is experiencing high demand for its orthopedic products, contributing to revenue growth, although it faces challenges from tariffs that may impact future earnings.
Investment Recommendations: Analysts are recommending specific stocks in the healthcare sector for investors to consider, highlighting potential growth opportunities and the importance of monitoring earnings and market conditions.
See More
Zimmer Biomet Q4 2025 Earnings Call Insights
- Sales Growth Performance: Zimmer Biomet reported net sales of $2.244 billion for Q4 2025, reflecting a 10.9% year-over-year increase, with U.S. business growing 5.7%, demonstrating the company's resilience in maintaining stable growth despite tariff pressures and the integration of three acquisitions.
- Profitability Improvement: The adjusted earnings per share reached $2.42, up 4.8% year-over-year, and despite dilution from the Paragon 28 transaction, the company successfully increased its adjusted gross margin to 72.4% through lower manufacturing costs and an optimized product mix.
- Cautious Future Outlook: Management anticipates organic revenue growth for 2026 to decline to 1% to 3%, with adjusted EPS guidance set at $8.30 to $8.45, reflecting a cautious stance regarding potential short-term disruptions from the U.S. sales force transition.
- Accelerated Strategic Transformation: The company is accelerating its transition to a specialized U.S. sales channel, expecting most of this transformation to be completed by the end of 2027, aiming to drive more durable and consistent growth, although short-term market volatility may be encountered.
See More
Zimmer Biomet Reports 2025 Revenue Growth but Lowers 2026 Outlook
- 2025 Revenue Performance: Zimmer Biomet achieved $8.23 billion in revenue for 2025, reflecting a 7.2% increase from 2024, indicating strong ongoing demand across its core business lines, although shares fell due to disappointing 2026 guidance.
- 2026 Earnings Outlook: The company expects earnings per share to range between $8.30 and $8.45, with revenue growth projected at 2.5% to 4.5%, falling short of analysts' expectations of $8.48, which reflects market caution regarding future growth.
- Product Line Innovation: CEO Ivan Tornos highlighted the success of the 'magnificent seven' products, including the ROSA Shoulder System and the Oxford Partial Cementless Knee, both of which received FDA approval in 2024, expected to drive future market growth and product adoption cycles.
- Market Strategy Transformation: Zimmer plans to establish a stronger specialized sales force in the U.S., and while this transition may temper short-term sales guidance, Tornos is confident it will drive durable long-term growth and solidify the company's market leadership.
See More
Zimmer Biomet Exceeds Q4 Profit and Revenue Estimates
- Significant Sales Growth: Zimmer Biomet reported fourth-quarter net sales of $2.24 billion, reflecting a 10.9% year-over-year increase, driven by strong demand for joint replacement devices, surpassing analysts' expectations of $2.23 billion and showcasing the company's competitive position in the market.
- Profit Exceeds Expectations: The company reported an adjusted profit of $2.42 per share, beating analysts' estimate of $2.40 per share, indicating sustained profitability despite a 2026 profit forecast that falls below the market average estimate of $8.48 per share.
- Strong Market Demand: As insurers report rising medical-loss ratios, indicating increased patient scheduling, Zimmer's hips and knees segments achieved sales increases of 7.9% and 6%, respectively, highlighting a recovery in the medical device industry.
- Shift in Sales Model: CEO Ivan Tornos noted that the transition to a primarily direct and specialized U.S. sales model is expected to weigh on 2026 sales growth, but it is intended to support the company's long-term expansion strategy.
See More
Zimmer Biomet Q4 Earnings Beat Expectations with Strong Cash Flow
- Earnings Highlights: Zimmer Biomet reported a Q4 non-GAAP EPS of $2.42, beating expectations by $0.02, with revenue of $2.24 billion reflecting a 10.9% year-over-year increase, surpassing market estimates by $20 million, indicating robust performance in the medical device sector.
- Cash Flow Performance: The company generated $1.697 billion in operating cash flow and $1.172 billion in free cash flow for the year, demonstrating strong financial health that supports future investments and shareholder returns.
- Stock Repurchase Plan: The Board approved a new stock repurchase authorization allowing the company to buy back up to $1.5 billion in common stock starting February 9, 2026, aimed at enhancing shareholder value and boosting market confidence.
- Future Financial Guidance: The company projects revenue growth for 2026 to be between 2.5% and 4.5%, with adjusted diluted EPS expected to be in the range of $8.30 to $8.45, slightly below the consensus estimate of $8.47, reflecting a cautious outlook on future market conditions.
See More
Zimmer Biomet Reports Decline in Q4 Profit
- Profit Decline: Zimmer Biomet's Q4 net profit fell to $139.3 million, or $0.70 per share, down from $239.4 million and $1.20 per share last year, indicating significant profitability challenges faced by the company.
- Adjusted Earnings: Excluding items, adjusted earnings were reported at $479.7 million, or $2.42 per share, which, while better than the GAAP figures, still reflects ongoing challenges in cost management that impact overall profitability.
- Revenue Growth: The company reported a 10.9% year-over-year revenue increase to $2.243 billion, up from $2.023 billion last year, suggesting sustained market demand, although this growth was insufficient to offset the decline in profits.
- Market Outlook: Despite revenue growth, the decline in profitability may affect investor confidence, prompting Zimmer Biomet to implement effective strategies to improve earnings and maintain its competitive position in the medical device industry.
See More
Analyzing Earnings in the Healthcare Sector: AZN, EW, and ZBH Compared
Earnings Reports in Healthcare Sector: Companies in the healthcare sector are reporting earnings that provide insights into their development progress and potential growth opportunities, particularly with the release of new drugs and medical devices.
AstraZeneca's Strong Performance: AstraZeneca reported a strong quarterly performance, with significant sales growth driven by its cancer medicines, which accounted for a large portion of its revenue, prompting positive investor sentiment.
Zimmer Biomet's Market Position: Zimmer Biomet is experiencing high demand for its orthopedic products, contributing to revenue growth, although it faces challenges from tariffs that may impact future earnings.
Investment Recommendations: Analysts are recommending specific stocks in the healthcare sector for investors to consider, highlighting potential growth opportunities and the importance of monitoring earnings and market conditions.
See More
Zimmer Biomet Q4 2025 Earnings Call Insights
- Sales Growth Performance: Zimmer Biomet reported net sales of $2.244 billion for Q4 2025, reflecting a 10.9% year-over-year increase, with U.S. business growing 5.7%, demonstrating the company's resilience in maintaining stable growth despite tariff pressures and the integration of three acquisitions.
- Profitability Improvement: The adjusted earnings per share reached $2.42, up 4.8% year-over-year, and despite dilution from the Paragon 28 transaction, the company successfully increased its adjusted gross margin to 72.4% through lower manufacturing costs and an optimized product mix.
- Cautious Future Outlook: Management anticipates organic revenue growth for 2026 to decline to 1% to 3%, with adjusted EPS guidance set at $8.30 to $8.45, reflecting a cautious stance regarding potential short-term disruptions from the U.S. sales force transition.
- Accelerated Strategic Transformation: The company is accelerating its transition to a specialized U.S. sales channel, expecting most of this transformation to be completed by the end of 2027, aiming to drive more durable and consistent growth, although short-term market volatility may be encountered.
See More
Zimmer Biomet Reports 2025 Revenue Growth but Lowers 2026 Outlook
- 2025 Revenue Performance: Zimmer Biomet achieved $8.23 billion in revenue for 2025, reflecting a 7.2% increase from 2024, indicating strong ongoing demand across its core business lines, although shares fell due to disappointing 2026 guidance.
- 2026 Earnings Outlook: The company expects earnings per share to range between $8.30 and $8.45, with revenue growth projected at 2.5% to 4.5%, falling short of analysts' expectations of $8.48, which reflects market caution regarding future growth.
- Product Line Innovation: CEO Ivan Tornos highlighted the success of the 'magnificent seven' products, including the ROSA Shoulder System and the Oxford Partial Cementless Knee, both of which received FDA approval in 2024, expected to drive future market growth and product adoption cycles.
- Market Strategy Transformation: Zimmer plans to establish a stronger specialized sales force in the U.S., and while this transition may temper short-term sales guidance, Tornos is confident it will drive durable long-term growth and solidify the company's market leadership.
See More
Zimmer Biomet Exceeds Q4 Profit and Revenue Estimates
- Significant Sales Growth: Zimmer Biomet reported fourth-quarter net sales of $2.24 billion, reflecting a 10.9% year-over-year increase, driven by strong demand for joint replacement devices, surpassing analysts' expectations of $2.23 billion and showcasing the company's competitive position in the market.
- Profit Exceeds Expectations: The company reported an adjusted profit of $2.42 per share, beating analysts' estimate of $2.40 per share, indicating sustained profitability despite a 2026 profit forecast that falls below the market average estimate of $8.48 per share.
- Strong Market Demand: As insurers report rising medical-loss ratios, indicating increased patient scheduling, Zimmer's hips and knees segments achieved sales increases of 7.9% and 6%, respectively, highlighting a recovery in the medical device industry.
- Shift in Sales Model: CEO Ivan Tornos noted that the transition to a primarily direct and specialized U.S. sales model is expected to weigh on 2026 sales growth, but it is intended to support the company's long-term expansion strategy.
See More
Zimmer Biomet Q4 Earnings Beat Expectations with Strong Cash Flow
- Earnings Highlights: Zimmer Biomet reported a Q4 non-GAAP EPS of $2.42, beating expectations by $0.02, with revenue of $2.24 billion reflecting a 10.9% year-over-year increase, surpassing market estimates by $20 million, indicating robust performance in the medical device sector.
- Cash Flow Performance: The company generated $1.697 billion in operating cash flow and $1.172 billion in free cash flow for the year, demonstrating strong financial health that supports future investments and shareholder returns.
- Stock Repurchase Plan: The Board approved a new stock repurchase authorization allowing the company to buy back up to $1.5 billion in common stock starting February 9, 2026, aimed at enhancing shareholder value and boosting market confidence.
- Future Financial Guidance: The company projects revenue growth for 2026 to be between 2.5% and 4.5%, with adjusted diluted EPS expected to be in the range of $8.30 to $8.45, slightly below the consensus estimate of $8.47, reflecting a cautious outlook on future market conditions.
See More
Zimmer Biomet Reports Decline in Q4 Profit
- Profit Decline: Zimmer Biomet's Q4 net profit fell to $139.3 million, or $0.70 per share, down from $239.4 million and $1.20 per share last year, indicating significant profitability challenges faced by the company.
- Adjusted Earnings: Excluding items, adjusted earnings were reported at $479.7 million, or $2.42 per share, which, while better than the GAAP figures, still reflects ongoing challenges in cost management that impact overall profitability.
- Revenue Growth: The company reported a 10.9% year-over-year revenue increase to $2.243 billion, up from $2.023 billion last year, suggesting sustained market demand, although this growth was insufficient to offset the decline in profits.
- Market Outlook: Despite revenue growth, the decline in profitability may affect investor confidence, prompting Zimmer Biomet to implement effective strategies to improve earnings and maintain its competitive position in the medical device industry.
See More
