Zimmer Biomet Reports Decline in Q4 Profit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy ZBH?
Source: NASDAQ.COM
- 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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ZBH?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ZBH
Wall Street analysts forecast ZBH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZBH is 100.47 USD with a low forecast of 88.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
4 Buy
11 Hold
3 Sell
Hold
Current: 89.910
Low
88.00
Averages
100.47
High
120.00
Current: 89.910
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.
Zimmer Biomet Set to Announce Q4 Earnings on February 10
- Earnings Announcement: Zimmer Biomet is set to announce its Q4 earnings on February 10 before market open, with consensus EPS estimated at $2.40, reflecting a 3.9% year-over-year growth, indicating stable profitability that could positively impact stock performance.
- Revenue Expectations: The anticipated revenue for Q4 is $2.22 billion, representing a 9.9% year-over-year increase, which underscores the company's strong performance in the medical device market; exceeding this estimate could further bolster investor confidence.
- Historical Performance: Over the past two years, Zimmer Biomet has beaten EPS estimates 100% of the time and revenue estimates 75% of the time, showcasing reliability in financial forecasting that may attract more investor interest.
- Revision Trends: In the last three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates experienced two upward revisions and four downward changes, reflecting a cautious market sentiment regarding the company's future performance, necessitating close attention to the upcoming earnings report.
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
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
ZBH's 15% Stock Drop Triggers Investigation into Revenue Guidance
- Stock Price Collapse: Zimmer Biomet Holdings, Inc. (ZBH) experienced a 15% stock drop on November 5, 2025, due to significant revenue misses in Latin America, resulting in a substantial loss of market value and a severe blow to investor confidence.
- Revenue Guidance Scrutiny: Despite management's claims of “very high” confidence in second-half growth in August 2025, subsequent cancellations of distributor orders and revenue shortfalls have raised serious questions about the validity of their previous assurances, potentially misleading investors.
- Legal Investigation Launched: Hagens Berman is investigating whether ZBH violated federal securities laws by issuing overly optimistic guidance while concealing operational disruptions, which may have led to significant investor losses following the stock crash.
- Investor Action Call: The firm is urging affected investors to submit claims and provide information to support the investigation, highlighting a strong focus on corporate governance and transparency that could impact future investment decisions.
See More
Zimmer Biomet Set to Announce Q4 Earnings on February 10
- Earnings Announcement: Zimmer Biomet is set to announce its Q4 earnings on February 10 before market open, with consensus EPS estimated at $2.40, reflecting a 3.9% year-over-year growth, indicating stable profitability that could positively impact stock performance.
- Revenue Expectations: The anticipated revenue for Q4 is $2.22 billion, representing a 9.9% year-over-year increase, which underscores the company's strong performance in the medical device market; exceeding this estimate could further bolster investor confidence.
- Historical Performance: Over the past two years, Zimmer Biomet has beaten EPS estimates 100% of the time and revenue estimates 75% of the time, showcasing reliability in financial forecasting that may attract more investor interest.
- Revision Trends: In the last three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates experienced two upward revisions and four downward changes, reflecting a cautious market sentiment regarding the company's future performance, necessitating close attention to the upcoming earnings report.
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
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
ZBH's 15% Stock Drop Triggers Investigation into Revenue Guidance
- Stock Price Collapse: Zimmer Biomet Holdings, Inc. (ZBH) experienced a 15% stock drop on November 5, 2025, due to significant revenue misses in Latin America, resulting in a substantial loss of market value and a severe blow to investor confidence.
- Revenue Guidance Scrutiny: Despite management's claims of “very high” confidence in second-half growth in August 2025, subsequent cancellations of distributor orders and revenue shortfalls have raised serious questions about the validity of their previous assurances, potentially misleading investors.
- Legal Investigation Launched: Hagens Berman is investigating whether ZBH violated federal securities laws by issuing overly optimistic guidance while concealing operational disruptions, which may have led to significant investor losses following the stock crash.
- Investor Action Call: The firm is urging affected investors to submit claims and provide information to support the investigation, highlighting a strong focus on corporate governance and transparency that could impact future investment decisions.
See More
