Track market-moving stories before they get noisy

Generative AI (GenAI) is gaining practical applications across the Medical Instruments industry, moving beyond its experimental phase. Companies are using it to generate synthetic medical images, simulate disease progression, create potential drug molecules and predicttheir effects, helping accelerate the drug development process.In McKinsey’s fourth-quarter 2025 survey, 50% of U.S. healthcare leaders reported GenAI implementation, while more than 80% had deployed initial use cases. Although administrative efficiency has the greatest perceived potential, clinical productivity became the most widely adopted GenAI application among care organizations.

Meanwhile, the FDA recently released a discussion paper, Considerations for the Regulation of Generative AI-Enabled Medical Devices, highlighting the technology’s potential benefits and risks. GenAI-enabled devices could transform patient care but may also introduce risks that differ from traditional software and AI-enabled devices. The paper seeks stakeholder input on these challenges and regulatory approaches.The European Union AI Act (EU AI Act) 2024 also introduced strict requirements for high-risk AI systems, including AI-based medical software.

Fortune Business Insights projects the global AI in the healthcare market to expand at a CAGR of 43.9% through 2026-2034. Despite industry pressures, Veracyte (VCYT - Free Report) , Globus Medical (GMED - Free Report) and UFP Technologies (UFPT - Free Report) are well-positioned to benefit from continued AI adoption.

Industry Description The Zacks Medical - Instruments industry is highly fragmented, with participants engaged in research and development (R&D) in therapeutic areas. This FDA-regulated sector encompasses a vast array of products, from transcatheter valves and orthopedic devices to advanced imaging equipment and robotics. Recent trends highlight the integration of AI in diagnostics, the expansion of telemedicine, the rise of robotic-assisted surgeries and developments in 3D printing, continuous glucose monitoring systems and gene editing. The rise of GenAI is also reshaping MedTech, from speeding up patient recruitment to optimizing trial designs and improving regulatory processes. The FDA’s Total Product Life Cycle approach supports faster development of safe and effective medical devices critical to public health.

3 Trends Shaping the Future of the Medical Instruments Industry GenAI Revolution: Over the past couple of years, there has been a significant increase in the adoption of GenAI within the medical instrument space, with hyper-personalization being the primary feature of GenAI-driven treatment options. GenAI, while analyzing vast and complex genetic and molecular data, is expected to help healthcare reach new heights in terms of predictive treatment options and smart hospital systems. According to Zion Market Research, global GenAI in the healthcare market is projected to expand at a CAGR of 31.4% between 2026 and 2034. Growth is supported by the increasing use of AI-powered medical imaging, accelerated drug discovery, automated clinical documentation and growing physician burnout, which is boosting demand for intelligent workflow tools across hospitals, pharmaceutical companies and payers globally.The application of AI in the diagnostics space is growing enormously, with the market expected to witness a CAGR of 28.6% through 2026-2034.

M&A Trend: The medical instrument space has been benefiting from the ongoing merger and acquisition (M&A) trend. Smaller and midsized companies are turning to consolidation to gain scale and strengthen their competitive position, while larger players are pursuing acquisitions to enter niche markets and add specialized products and technologies to their portfolios. According to PWC’s Medtech: US Deals 2026 midyear outlook, Medtech M&A entered the second half of 2026 with continued momentum, supported by investment in innovation-led areas such as cardiovascular and neurostimulation, expansion into connected care and workflow platforms and continued carve-outs, take-privates, and other portfolio reshaping activity.Deal value reached $36.5 billion in the first half, following a decade-high level of M&A activity in 2025. Notable transactions included Boston Scientific’s $15 billion agreement to acquire Penumbra and Danaher’s $10 billion acquisition of Masimo. Medtronic also recently completed its $650 million acquisition of SPR Therapeutics, Inc., consisting of an upfront cash payment.

Business Trend Disruption: The IMF’s July 2026 World Economic Outlook projects global growth of 3% in 2026 and 3.4% in 2027, below the 3.5% average observed in 2024-25 but broadly unchanged from its April forecast on a cumulative basis. The slowdown reflects the drag from the Middle East conflict, partly offset by stronger demand from the global technology cycle as AI advances and adoption The effects vary across countries, depending largely on their exposure to the conflict and their role in the technology supply chain. Global headline inflation is expected to rise from 4.1% in 2025 to 4.7% in 2026 before easing to 3.9% in 2027. The projections were revised slightly higher from April, suggesting that the disinflation trend that began in early 2024 has stalled. The possibility of renewed Middle East conflict looms large and could extend commodity price volatility, disrupt supply chains, raise prices and weigh on financial conditions.

Zacks Industry Rank Indicates Bright Prospects The Zacks Medical Instruments industry’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates upbeat near-term prospects. The industry, housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #99, which places it in the top 40% of 248 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

We will present a few stocks that have the potential to outperform the market based on a strong earnings outlook. It is worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Underperforms S&P 500 & Sector The industry has lagged the Zacks S&P 500 composite and the sector over the past year. The industry has declined 2.5% against the broader sector’s rise of 11.8%. The S&P 500 has returned 19% in a year.

1-Year Price Performance
Image Source: Zacks Investment Research

Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 25.97X compared with the broader industry’s 21.30X and the S&P 500’s 20.09X.

Over the past five years, the industry has traded as high as 41.07X, as low as 24.72X and at the median of 31.39X, as the charts show below.

Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research

Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research

3 Stocks to Buy Right Now Veracyte: Based in California, Veracyte is a cancer diagnostics company, offering tests for prostate, thyroid, bladder and breast cancer. In the United States, it provides laboratory-developed tests through CLIA-certified labs in South San Francisco and San Diego, while the Prosigna breast cancer test is available internationally through laboratories and hospitals as an in vitro diagnostic. Its Afirma test leads the thyroid nodule molecular diagnostics market, driven by greater use among existing physicians, an expanding ordering-physician base and market share gains.

Veracyte sports a Zacks Rank #1 (Strong Buy) at present. The Zacks Consensus Estimate for the company’s 2026 EPS and revenues calls for 8.4% and 14.4% growth, respectively. 

You can see the complete list of today's Zacks #1 Rank stocks here. 

Price & Consensus: VCYT
Image Source: Zacks Investment Research

Globus Medical: Based in Pennsylvania, Globus Medical is a renowned musculoskeletal technology company, advancing care throughout spine, orthopedic trauma, joint reconstruction, biomaterials and enabling technologies. In 2023, the company expanded its spine business through the NuVasive merger and broadened into neuromodulation and pain treatment with the Nevro acquisition in 2025. Globus Medical’s International sales represented 21% of total net sales in the first half of 2026, spanning 61 countries outside the United States.

At present, GMED carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate calls for 25.4% EPS growth and 8.8% revenue growth for the company in 2026.

Price & Consensus: GMED
Image Source: Zacks Investment Research

UFP Technologies: Massachusetts-based UFP is a contract development and manufacturing organization specializing in comprehensive solutions for medical devices, sterile packaging and other advanced engineered custom products. The company’s single-use and single-patient products support minimally invasive surgery, infection prevention, wound care, wearables and orthopedic care. UFP boasts a strong acquisition pipeline, completing three deals in the second quarter of 2026 and recently expanding its capabilities through the acquisition of CI Medical.

Presently, UFPT carries a Zacks Rank #2. The Zacks Consensus Estimate for the company’s 2026 EPS and revenue implies 8% and 9.1% growth, respectively.  

Price & Consensus: UFPT
Image Source: Zacks Investment Research

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

BP (BP - Free Report) : This integrated energy company, which is engaged in the oil and gas business worldwide, has seen the Zacks Consensus Estimate for its current year earnings increasing 25.4% over the last 60 days.

Crawford & Company (CRD.B - Free Report) : This company, which provides construction and solid waste disposal services principally in Thailand, has seen the Zacks Consensus Estimate for its current year earnings increasing 14.1% over the last 60 days.

Healthcare Services Group (HCSG - Free Report) : This company, which provides housekeeping, laundry, linen, facility maintenance and food services to the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals, has seen the Zacks Consensus Estimate for its current year earnings increasing 12.9% over the last 60 days.

Interface (TILE - Free Report) : This company, which is the world's largest manufacturer of modular carpet, which it markets under the Interface and FLOR brands, has seen the Zacks Consensus Estimate for its current year earnings increasing 11.9% over the last 60 days.

Globus Medical (GMED - Free Report) : This medical device company, that develops and commercializes healthcare solutions for patients with musculoskeletal disorders, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 day.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Globus Medical (GMED - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this medical device company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Globus Medical is 20%, investors should actually focus on the projected growth. The company's EPS is expected to grow 25.3% this year, crushing the industry average, which calls for EPS growth of 12.6%.

Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, Globus Medical has an S/TA ratio of 0.59, which means that the company gets $0.59 in sales for each dollar in assets. Comparing this to the industry average of 0.58, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Globus Medical is well positioned from a sales growth perspective too. The company's sales are expected to grow 8.8% this year versus the industry average of 4%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Globus Medical have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.3% over the past month.

Bottom LineGlobus Medical has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Globus Medical well for outperformance, so growth investors may want to bet on it.

AUDUBON, Pa., Aug. 26, 2026 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal technology company, today announced the acquisition of Higgs Boson Health, a digital healthcare experience company based in Durham, NC and incubated out of Duke University. With a mission to transform healthcare experience through digital innovation, Higgs Boson will position Globus Medical to shape patient and provider experience throughout the full episode of care.

“Higgs Boson employs highly experienced teams of software developers and AI scientists who will be joining our team to power our vision of a seamless digital healthcare environment to simplify a patient’s journey through our healthcare system while enhancing real-time information and surgical intelligence available to healthcare providers with the ultimate goal of getting to 95% good outcomes at 10 years for all musculoskeletal surgeries,” said David Paul, Founder and Executive Chairman.

“The acquisition of Higgs Boson and its digital solutions represents the next step in our strategy of enhancing the Globus ecosystem,” commented Keith Pfeil, President and Chief Executive Officer. “As we continue to build out the ecosystem, the Higgs Boson technology will be part of our surgical intelligence pillar, bringing together outcomes and analytics in a closed-loop manner that fosters continuous learning, integrating along the full patient journey with the goal of improving patient outcomes.”

About Globus Medical, Inc.

Globus Medical, Inc. is a leading global musculoskeletal technology company dedicated to solving unmet clinical needs and changing lives. We innovate with inspired urgency, provide world-class education and clinical support, and advance care throughout spine, orthopedic trauma, joint reconstruction, biomaterials and enabling technologies. Additional information can be accessed at www.globusmedical.com.

Safe Harbor Statements

All statements included in this press release other than statements of historical fact are forward-looking statements and may be identified by their use of words such as “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and other similar terms. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially from those predicted. These risks and uncertainties include, but are not limited to, the risks and costs associated with health epidemics, pandemics and similar outbreaks, factors affecting our quarterly results, our ability to manage our growth, our ability to sustain our profitability, demand for our products, our ability to compete successfully (including without limitation our ability to convince surgeons to use our products and our ability to attract and retain sales and other personnel), our ability to rapidly develop and introduce new products, our ability to develop and execute on successful business strategies, our ability to comply with laws and regulations that are or may become applicable to our businesses, our ability to safeguard our intellectual property, our success in defending legal proceedings brought against us, trends in the medical device industry, general economic conditions, the successful integration of businesses that we have acquired or may acquire in the future, and other risks. For a discussion of these and other risks, uncertainties, and other factors that could affect our results, refer to the disclosures contained in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”), including the sections labeled “Risk Factors” and “Cautionary Note Concerning Forward-Looking Statements,” and in our subsequent filings with the SEC. These documents are available at www.sec.gov. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. Except as may be required by applicable law, we undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof. As used herein, the “Company”, “Globus”, “Globus Medical”, “we”, “us”, and “our” refers to Globus Medical, Inc.

Contact:
Brian Kearns
Senior Vice President, Corporate Development and Investor Relations
Phone: (610) 930-1800
Email: [email protected]
www.globusmedical.com

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Globus Medical (GMED - Free Report) Audubon, PA-based Globus Medical, Inc. is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. The company currently has its sales operations distributed across 65 counties worldwide and sells through a mix of direct sales representatives and independent distributors.

GMED is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Medical stock. GMED has a Momentum Style Score of B, and shares are up 2.1% over the past four weeks.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.19 to $4.93 per share. GMED also boasts an average earnings surprise of +27.9%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GMED should be on investors' short list.

Shares of Globus Medical (GMED - Free Report) have gained 2.8% over the past four weeks to close the last trading session at $82.54, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $103.2 indicates a potential upside of 25%.

The average comprises 15 short-term price targets ranging from a low of $82.00 to a high of $125.00, with a standard deviation of $14.59. While the lowest estimate indicates a decline of 0.7% from the current price level, the most optimistic estimate points to a 51.4% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in GMED. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why GMED Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 5.3%, as four estimates have moved higher compared to no negative revision.

Moreover, GMED currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much GMED could gain, the direction of price movement it implies does appear to be a good guide.

Globus Medical is rated a buy, targeting a 17.5% return over four quarters with a constant 10.56x EV/EBITDA multiple. GMED's base business is compounding faster than headline growth, with international sales rising 18% and gross margin expanding by 200bps, excluding accounting effects. SG&A leverage drove operating margin improvement, while integration of Nevro remains a known, sized, and management-dated drag.

Globus Medical (GMED - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Globus Medical basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Globus Medical imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Globus MedicalFor the fiscal year ending December 2026, this medical device company is expected to earn $4.93 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Globus Medical. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.3%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Globus Medical to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

3 Medical Device Stocks Giving Investors a Different Healthcare PlayGlobus Medical NYSE: GMED reported second-quarter 2026 revenue of $789.6 million, up 6% from a year earlier, as growth in its spine and trauma businesses helped offset declines in enabling technologies and Nevro sales. The company reaffirmed its full-year revenue outlook while raising its adjusted earnings forecast, citing margin expansion and operating leverage in the first half.

Fully diluted GAAP earnings per share were $1.10, while non-GAAP diluted earnings per share reached a quarterly record of $1.34, up 56% from the prior-year quarter. Adjusted EBITDA margin increased to 35.4% from 28.0% a year earlier.

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“We completed an exceptional Q2, positioning us for a strong 2026 as we move into the second half of the year,” President and Chief Executive Officer Keith Pfeil said on the company’s earnings call.

Spine and Trauma Drive Musculoskeletal Growth Musculoskeletal revenue totaled $763.5 million, rising 8% year over year and 4% sequentially. Excluding Nevro, the company’s base business grew 9%, led by 7% growth in U.S. spine revenue and 14% reported growth in international spine revenue.

Pfeil said U.S. spine growth reflected procedural volumes, competitive sales-force recruiting, robotic pull-through and product launches. The company said competitive hires in the second quarter were double the first-quarter level and represented its second-highest onboarding total in eight quarters.

Several U.S. spine products posted double-digit growth, including SABLE, ELSA, HEDRON C, Reline-C and Reline Open, according to management. Its DuraPro power tools product grew more than 250% during the quarter.

International spine revenue rose 12% on a constant-currency basis. The company cited mid-teens growth in Italy, Spain and Poland, along with broad-based growth in Asia-Pacific markets and gains in Brazil and Colombia. Pfeil said improved set deliveries and inventory availability supported deeper penetration in markets where Globus already operates.

Trauma revenue increased 31% year over year and 18% sequentially. Management attributed the performance to share gains in its core trauma portfolio and normalized supply for the PRECICE product line, which enabled the company to meet U.S. demand and expand availability in markets outside the United States.

The company launched three products in the quarter: the AUTOBAHN Hip Fastener and TENSOR Suture Button System for trauma procedures, as well as Reline 1 for minimally invasive spine procedures.

Capital Model Shift Pressures Enabling Technologies Revenue Enabling Technologies revenue was $26.1 million, down 26% year over year. Chief Financial Officer Kyle Kline said the decline was tied to Globus’ strategy of offering customers more flexible ways to acquire capital equipment rather than relying principally on cash sales.

While revenue from the segment declined, management said placements of ExcelsiusGPS and ExcelsiusHub units—whether sold, leased or rented—rose 11% sequentially and 25% from a year earlier. More than 137,000 procedures have now been performed using the company’s robotic technology.

Pfeil said the company views 2026 as a transition year for the capital-acquisition strategy. The longer-term objective is to increase implant, disposable and service revenue after equipment is installed and customers are trained.

“The goal here is to drive enduring musculoskeletal growth,” Pfeil said, specifically pointing to U.S. and international spine opportunities.

Nevro Integration Continues Nevro revenue declined 14.3% year over year and $1.7 million sequentially, though Pfeil said second-quarter sales were essentially flat with the first quarter and in line with the company’s expectations. Globus acquired Nevro in 2025 and has been integrating its pain-management business into its operating model.

Management said it filled roughly 75% of open Nevro sales roles during the second quarter. Its near-term focus is on recruiting, training and raising trial volumes, which Pfeil said are expected to improve through the second half and return to historical levels late in the fourth quarter.

Kline said Nevro’s adjusted EBITDA margin improved to 22.4% in the second quarter from 11.8% in the first quarter and negative 1.4% in the prior-year quarter, reflecting cost-control and synergy actions implemented during 2025.

Management said it expects trial-volume recovery by year-end and believes the business can improve its top-line performance by the end of 2026, but it did not provide a separate outlook for Nevro.

Margins Improve as Company Raises Earnings Outlook GAAP gross margin was 66.8%, compared with 63.3% a year earlier. Adjusted gross margin rose 200 basis points to 69.4%, marking the company’s seventh consecutive quarter of expansion. Kline attributed the improvement to higher sales, favorable mix, manufacturing and supply-chain initiatives, and merger-related synergies, partly offset by higher freight costs.

Globus reiterated its expectation for 2026 adjusted gross margin of 69% to 70%. Kline said the company expects to reach the low-70% range by the end of the year and targets a return to a mid-70% gross-margin profile in 2027.

The company plans to increase research and development investment in the second half, with full-year R&D expense expected to be 5% to 6% of sales. Pfeil said the investments will span spine, trauma, joints, neuro, pain and software capabilities.

Globus expects to launch its patient-specific SCRIPT lumbar spacers and rods later in the third quarter. Pfeil said the products can be produced in approximately seven to 10 days and will integrate with the company’s Excelsius technology platform and spinal implant systems.

Guidance and Capital Allocation Globus reaffirmed 2026 revenue guidance of $3.18 billion to $3.22 billion, representing projected growth of 8.2% to 9.6% over 2025. Kline said the company remained cautious on the second half because of the enabling-technology business model transition, the ongoing Nevro recovery and more difficult comparisons in spine.

The company raised its full-year non-GAAP diluted earnings-per-share forecast to $4.95 to $5.05 from $4.70 to $4.80. The revised range implies growth of 24.4% to 26.9% from 2025.

Cash, cash equivalents and marketable securities totaled $840.5 million at June 30, up from $629.1 million at year-end 2025. During the quarter, Globus repurchased $136.1 million of stock, or 1.6 million shares, leaving $253.9 million under its existing repurchase authorization.

Management said its capital-allocation priorities remain internal product development, investments in manufacturing and commercial infrastructure, share repurchases, and evaluation of complementary acquisitions.

About Globus Medical (NYSE:GMED)Globus Medical, Inc NYSE: GMED is a leading medical device company specializing in musculoskeletal solutions for spine and orthopaedic applications. Founded in 2003 by David C. Paul and headquartered in Audubon, Pennsylvania, the company develops, manufactures and markets implantable devices and surgical instruments designed to treat spinal disorders and promote bone healing. Its product portfolio encompasses solutions for minimally invasive and open surgical procedures, including interbody fusion devices, pedicle screw systems, and biologics used to enhance fusion outcomes.

In addition to its core spine business, Globus Medical has expanded into robotics and navigation systems to support precision and efficiency in the operating room.

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Globus Medical, Inc. (GMED) Q2 2026 Earnings Call Transcript

AUDUBON, Pa., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal technology company, today announced its financial results for the second quarter ended June 30, 2026.

Second Quarter 2026:

Worldwide net sales were $789.6 million, an increase of 5.9%, or an increase of 5.6% on a constant currency basis.GAAP net income for the quarter was $151.6 million.GAAP diluted earnings per share (“EPS”) was $1.10, a decrease of 26.2%, primarily driven by the bargain purchase gain of $110.5 million recognized in the prior year quarter related to the Nevro acquisition. Non-GAAP diluted EPS was $1.34, an increase of 55.8%.
“Momentum continued into the second quarter with 6% overall revenue growth, or 9% growth excluding Nevro, driven by share gains across a majority of our underlying businesses, most notably US Spine, growing 7% and International Spine, growing 14% as-reported and 12% on a constant currency basis,” commented Keith Pfeil, President and Chief Executive Officer. “The depth of our product portfolio and exclusive selling model positions us to lead with innovation and commercial outreach, driving our ability to grow share over the long-term. Our priority remains centered on achieving improved surgical outcomes through the Globus ecosystem, bringing together patient selection, surgical techniques with complementary implants and technology to drive the surgical procedure, through a closed-loop surgical intelligence ecosystem.”

“US Spine, again, led the way in growth for the organization, marking our fifth straight quarter of above-market revenue growth, with continued strength across our entire product portfolio. This broad-based growth, paired with adjusted gross margin expansion of 200 basis points compared to the second quarter of the prior year, drove record second quarter non-GAAP net income and diluted earnings per share,” said Kyle Kline, Chief Financial Officer. “The strength of our second-quarter performance reflects disciplined execution across the business, including margin expansion, operating leverage, and synergy realization, which position us to deliver sustained earnings growth, and enhanced shareholder returns throughout the year.”

Worldwide net sales for the second quarter of 2026 were $789.6 million, an as-reported increase of 5.9% over the second quarter of 2025. U.S. net sales for the second quarter of 2026 increased by 3.0% compared to the second quarter of 2025. International net sales increased by 18.0% over the second quarter of 2025 on an as-reported basis and increased by 16.2% on a constant currency basis.

GAAP net income for the second quarter of 2026 was $151.6 million, a decrease of 25.3% over the same period in the prior year. The decrease in GAAP net income was primarily driven by the bargain purchase gain of $110.5 million recognized in the prior year quarter related to the Nevro acquisition. GAAP diluted EPS for the second quarter was $1.10, compared to $1.49 for the second quarter of 2025, a decrease of 26.2%. Non-GAAP diluted EPS for the second quarter of 2026, which excludes, among other costs, amortization of intangibles, merger and acquisition-related costs, and restructuring-related costs, was $1.34, compared to $0.86 in the second quarter of 2025, an increase of 55.8%.

2026 Annual Guidance

The Company reaffirms its guidance for full-year 2026 revenue to be in the range of $3.18 billion to $3.22 billion and updates its guidance for non-GAAP fully diluted EPS to be in the range of $4.95 to $5.05 from the previous range of $4.70 to $4.80.

Conference Call Information

Globus Medical will hold a teleconference to discuss its 2026 second quarter results with the investment community at 4:30 p.m. Eastern Time today. Participants may access the conference call live via webcast on the Investors page of Globus Medical’s website at http://www.investors.globusmedical.com/news-events/events-webcasts.

To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The audio archive will be available after the call on the Investor page of the Globus Medical website.

About Globus Medical, Inc.

Globus Medical, Inc. is a leading global musculoskeletal technology company dedicated to solving unmet clinical needs and changing lives. We innovate with inspired urgency, provide world-class education and clinical support, and advance care throughout spine, orthopedic trauma, joint reconstruction, biomaterials and enabling technologies. Additional information can be accessed at www.globusmedical.com.

Non-GAAP Financial Measures

To supplement our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management uses certain non-GAAP financial measures. For example, non-GAAP Adjusted EBITDA, which represents net income before interest income, net and other non-operating expenses, provision for income taxes, depreciation and amortization, stock-based compensation expense, provision for litigation, merger and acquisition related costs, restructuring related costs, certain foreign currency acquisition-related impacts, bargain purchase gains, and gains and losses from strategic investments, is useful as an additional measure of operating performance, and particularly as a measure of comparative operating performance from period to period, as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our capital structure, asset base, income taxes and interest income and expense. We no longer include acquisition of in-process research and development as an adjustment to non-GAAP Adjusted EBITDA. Our management also uses non-GAAP Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections. Provision for litigation represents costs incurred for litigation settlements or unfavorable verdicts when the loss is known or considered probable and the amount can be reasonably estimated, or in the case of a favorable settlement, when income is realized. Merger and acquisition related costs represents the change in fair value of business-acquisition-related contingent consideration; costs related to integrating recently acquired businesses, including but not limited to costs to exit or convert contractual obligations, severance, retention bonus, duplicative costs and information system conversion; and specific costs related to the consummation of the acquisition process such as banker fees, legal fees, and other acquisition related professional fees. Restructuring related costs include severance, retention bonus, accelerated stock-based compensation expense, legal and tax fees for legal entity reorganization and costs associated with consolidating facilities. We also adjusted for certain foreign currency impacts related to the acquisition costs and gains/losses on strategic investments within other assets as we believe these impacts are not a measure of our operating performance.

In addition, for the period ended June 30, 2026 and for other comparative periods, we are presenting non-GAAP net income and non-GAAP diluted EPS, which represent net income and diluted EPS excluding the provision for litigation, amortization of intangibles, merger and acquisition related costs, restructuring related costs, certain foreign currency impacts, gains and losses from strategic investments, bargain purchase gains, certain income tax net benefits and non-recurring tax adjustments, and the tax effects of all of the foregoing adjustments. We no longer include acquisition of in-process research and development as an adjustment to non-GAAP net income. We also present non-GAAP gross profit, which excludes the impacts of any inventory acquisition-related costs within cost of goods sold. The tax effect adjustment represents the tax effect of the pre-tax non-GAAP adjustments excluded from non-GAAP net income. The tax impact of the non-GAAP adjustments is calculated based on the consolidated effective tax rate on a GAAP basis, applied to the non-GAAP adjustments, unless the underlying item has a materially different tax treatment, in which case the estimated tax rate applicable to the adjustment is used. We believe these non-GAAP measures are also useful indicators of our operating performance, and particularly as additional measures of comparative operating performance from period to period as they remove the effects of the foregoing items, which we believe are not reflective of underlying business trends.

Additionally, for the period ended June 30, 2026 and for other comparative periods, we also define the non-GAAP measure of free cash flow as the net cash provided by operating activities, adjusted for the impact of restricted cash, less the cash impact of purchases of property and equipment. We believe that this financial measure provides meaningful information for evaluating our overall financial performance for comparative periods as it facilitates an assessment of funds available to satisfy current and future obligations and fund acquisitions. Furthermore, the non-GAAP measure of constant currency net sales growth is calculated by translating current year net sales at the same average exchange rates in effect during the applicable prior year period. We believe constant currency net sales growth provides insight to the comparative increase or decrease in period net sales, in dollar and percentage terms, excluding the effects of fluctuations in foreign currency exchange rates. We are also presenting base business revenue growth, excluding the contribution from Nevro Corp. (“Nevro”), which we acquired in 2025. We believe these provide insight to how the Company is performing without the impact of our most recent acquisition.

Non-GAAP Adjusted EBITDA, non-GAAP net income, non-GAAP diluted EPS, non-GAAP gross profit, free cash flow, constant currency net sales growth, base business revenue growth, and day-adjusted basis sales are not calculated in conformity with GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. These measures do not include certain expenses that may be necessary to evaluate our liquidity or operating results. Our definitions of these non-GAAP measures may differ from that of other companies and therefore may not be comparable. The tables included in this release reconcile the GAAP financial measures to the non-GAAP financial measures discussed above for the three months ended June 30, 2026.

We are unable to present a quantitative reconciliation of our expected fully diluted GAAP EPS to non-GAAP diluted EPS as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of provision for litigation, amortization of intangibles, merger and acquisition-related costs, restructuring related costs, certain foreign currency acquisition-related impacts, bargain purchase gains, certain income tax net benefits from non-recurring tax adjustments, gains and losses from strategic investments, and the tax effects of all of the foregoing adjustments. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Income.

Safe Harbor Statements

All statements included in this press release other than statements of historical fact are forward-looking statements and may be identified by their use of words such as “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and other similar terms. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially from those predicted. These risks and uncertainties include, but are not limited to, the risks and costs associated with health epidemics, pandemics and similar outbreaks, factors affecting our quarterly results, our ability to manage our growth, our ability to sustain our profitability, demand for our products, our ability to compete successfully (including without limitation our ability to convince surgeons to use our products and our ability to attract and retain sales and other personnel), our ability to rapidly develop and introduce new products, our ability to develop and execute on successful business strategies, our ability to comply with laws and regulations that are or may become applicable to our businesses, our ability to safeguard our intellectual property, our success in defending legal proceedings brought against us, trends in the medical device industry, general economic conditions, the successful integration of businesses that we have acquired or may acquire in the future, and other risks. For a discussion of these and other risks, uncertainties, and other factors that could affect our results, refer to the disclosures contained in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”), including the sections labeled “Risk Factors” and “Cautionary Note Concerning Forward-Looking Statements,” and in our subsequent filings with the SEC. These documents are available at www.sec.gov. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. Except as may be required by applicable law, we undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof. As used herein, the “Company”, “Globus”, “Globus Medical”, “we”, “us”, and “our” refers to Globus Medical, Inc.

GLOBUS MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands, except per share amounts) 2026   2025   2026  2025
Net sales$789,612  $745,342  $1,549,466  $1,343,463        Cost of Sales and Operating expenses:       Cost of sales (exclusive of amortization of intangibles) 241,439   248,765   475,505   444,162Research and development 36,321   39,954   72,831   73,016Selling, general and administrative 286,823   303,622   584,598   546,421Amortization of intangibles 29,560   30,189   59,086   58,991Acquisition-related costs 11,080   33,156   17,457   34,213Restructuring costs 1,957   13,547   7,169   13,547        Operating income/(loss) 182,432   76,109   332,820   173,113        Other income/(expense), net       Interest income/(expense), net 7,074   693   12,508   2,374Foreign currency transaction gain/(loss) (860)  38   (2,973)  4,308Bargain purchase gain —   110,561   1,118   110,561Other income/(expense) 1,171   772   3,418   1,485Total other income/(expense), net 7,385   112,064   14,071   118,728        Income/(loss) before income taxes 189,817   188,173   346,891   291,841Income tax provision/(benefit) 38,248   (14,673)  71,020   13,533        Net income/(loss)$151,569  $202,846  $275,871  $278,308        Other comprehensive income/(loss), net of tax:       Unrealized gain/(loss) on marketable securities (551)  2   (1,711)  317Foreign currency translation gain/(loss) (2,657)  12,404   (2,439)  16,783Total other comprehensive income/(loss), net of tax (3,208)  12,406   (4,150)  17,100Comprehensive income/(loss)$148,361  $215,252  $271,721  $295,408        Earnings per share:       Basic$1.12  $1.50  $2.04  $2.05Diluted$1.10  $1.49  $2.00  $2.01Weighted average shares outstanding:       Basic 135,054   135,205   135,209   135,981Diluted 137,384   136,499   137,787   138,137 GLOBUS MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
  June 30, December 31,(In thousands, except share and per share values)2026
 2025
ASSETS   Current assets:   Cash and cash equivalents$507,745 $526,156Short-term marketable securities 87,397  31,087Accounts receivable, net of allowances $44,371 and $33,434, respectively 692,176  678,938Inventories 810,897  759,277Prepaid expenses and other current assets 70,195  65,426Income taxes receivable 47,102  64,727Total current assets 2,215,512  2,125,611Property and equipment, net 533,528  564,452Operating lease right of use assets 59,155  63,786Long-term marketable securities 245,358  71,819Intangible assets, net 692,624  745,064Goodwill 1,438,216  1,435,033Other assets 79,238  78,781Deferred income taxes 224,627  218,215Total assets$5,488,258 $5,302,761    LIABILITIES AND EQUITY   Current liabilities:   Accounts payable$106,941 $98,852Accrued expenses 300,728  333,586Operating lease liabilities 14,385  14,738Income taxes payable 6,036  4,155Business acquisition liabilities 23,276  19,513Deferred revenue 27,981  27,655Total current liabilities 479,347  498,499Business acquisition liabilities, net of current portion 82,113  81,995Operating lease liabilities 96,807  103,918Deferred income taxes and other tax liabilities 42,342  23,756Other liabilities 19,046  21,343Total liabilities 719,655  729,511    Equity:   Class A common stock; $0.001 par value. Authorized 500,000,000 shares; issued and outstanding 111,822,190 and 112,625,126 shares at June 30, 2026 and December 31, 2025, respectively 112  113Class B common stock; $0.001 par value. Authorized 275,000,000 shares; issued and outstanding 22,430,097 and 22,430,097 shares at June 30, 2026 and December 31, 2025, respectively 22  22Additional paid-in capital 3,230,186  3,169,812Accumulated other comprehensive income/(loss) 11,196  15,346Retained earnings 1,527,087  1,387,957Total equity 4,768,603  4,573,250Total liabilities and equity$5,488,258 $5,302,761 GLOBUS MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
   Six Months Ended
June 30,(In thousands) 2026   2025 Cash flows from operating activities:   Net income$275,871  $278,308 Adjustments to reconcile net income to net cash provided by operating activities:   Bargain purchase gain (1,118)  (110,561)Depreciation and amortization 139,355   136,284 Provision for excess and obsolete inventory 9,795   10,933 Amortization of acquisition accounting fair value step up —   12,673 Stock-based compensation expense 26,000   26,823 Allowance for expected credit losses 10,398   4,554 Change in fair value of business acquisition liabilities 16,059   5,389 Change in deferred income taxes 15,748   (41,236)(Gain)/loss on disposal of assets, net 5,558   6,131 Payment of business acquisition-related liabilities (2,596)  (15,764)Net (gain)/loss from foreign currency adjustment 218   (11,342)(Increase) decrease in:   Accounts receivable (27,211)  20,395 Inventories (44,551)  (11,722)Prepaid expenses and other assets (459)  852 Increase (decrease) in:   Accounts payable 5,389   (4,085)Accrued expenses and other liabilities (35,738)  (13,841)Income taxes payable/receivable 19,387   (38,626)Net cash provided by/(used in) operating activities 412,105   255,165 Cash flows from investing activities:   Purchases of marketable securities (254,013)  (1,750)Sales and maturities of marketable securities 21,483   174,238 Purchases of property and equipment (72,783)  (82,665)Acquisition of businesses, net of cash acquired and purchases of intangible and other assets (6,409)  (257,546)Net cash provided by/(used in) investing activities (311,722)  (167,723)Cash flows from financing activities:   Payment of business acquisition-related liabilities (13,720)  (7,864)Net proceeds from exercise of stock options 36,932   15,920 Payments related to tax withholdings for share-based compensation (3,453)  (2,953)Repurchase of common stock (136,058)  (215,451)Repayment of senior convertible notes —   (449,985)Net cash provided by/(used in) financing activities (116,299)  (660,333)Effect of foreign exchange rates on cash (2,495)  17,899 Net increase/(decrease) in cash and cash equivalents (18,411)  (554,992)Cash and cash equivalents at beginning of period 526,156   784,438 Cash and cash equivalents at end of period$507,745  $229,446     Supplemental disclosures of cash flow information:   Income taxes paid, net$30,603  $93,226 Non-cash investing and financing activities:   Accrued purchases of property and equipment$13,390  $13,454  Supplemental Financial InformationNet Sales by Product Category:

  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands)2026
 2025
 2026
 2025
Musculoskeletal Solutions$763,540 $710,182 $1,496,524 $1,286,115Enabling Technologies 26,072  35,160  52,942  57,348Total net sales$789,612 $745,342 $1,549,466 $1,343,463 Liquidity and Capital Resources:
  June 30, December 31,(In thousands)2026
 2025
Cash and cash equivalents$507,745 $526,156Short-term marketable securities 87,397  31,087Long-term marketable securities 245,358  71,819Total cash, cash equivalents and marketable securities$840,500 $629,062
The following tables reconcile GAAP to non-GAAP financial measures.

Non-GAAP Adjusted EBITDA Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands, except percentages) 2026   2025   2026   2025 Net income/(loss)$151,569  $202,846  $275,871  $278,308 Interest (income)/expense, net (7,074)  (693)  (12,508)  (2,374)Provision for income taxes 38,248   (14,673)  71,020   13,533 Depreciation and amortization 70,084   70,631   140,205   136,705 EBITDA 252,827   258,111   474,588   426,172 Stock-based compensation expense 13,383   13,258   25,997   26,310 Provision for litigation, net 62   (2,621)  196   (3,908)Merger and acquisition-related costs(1) 11,290   40,393   17,731   41,499 Net (gain) loss from strategic investments (364)  (1,248)  (1,189)  (1,309)Non-cash acquisition-related foreign currency impacts (119)  (8,565)  (217)  (12,337)Restructuring costs 2,760   19,915   9,147   20,649 Bargain purchase gain —   (110,561)  (1,118)  (110,561)Adjusted EBITDA$279,839  $208,682  $525,135  $386,515         Net income/(loss) as a percentage of net sales 19.2%  27.2%  17.8%  20.7%Adjusted EBITDA as a percentage of net sales 35.4%  28.0%  33.9%  28.8% (1)  Merger and acquisition-related costs represent certain costs associated with acquisitions. These costs, presented on a before-tax effect basis, are included in Non-GAAP Merger and Acquisition-related Costs Table.

Non-GAAP Merger and Acquisition-related Costs Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands)2026
 2025
 2026
 2025
Amortization of inventory fair value step up$— $5,967 $— $6,016Change in fair value of business acquisition liabilities 9,707  5,235  16,059  5,402Employee-related costs(b) 1,373  27,418  1,398  27,418Other acquisition-related costs(a) 210  1,773  274  2,663Merger and acquisition-related costs$11,290 $40,393 $17,731 $41,499 (a)  Primarily comprised of legal fees, advisory and consulting fees.
(b)  Primarily comprised of severance, share based compensation and termination fees.

Non-GAAP Net Income Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands) 2026   2025   2026   2025 Net income/(loss)$151,569  $202,846  $275,871  $278,308 Provision for litigation, net 62   (2,621)  196   (3,908)Amortization of intangibles 29,560   30,189   59,086   58,991 Merger and acquisition -related costs(1) 11,290   40,393   17,731   41,499 Net gain/(loss) on strategic investments (364)  (1,248)  (1,189)  (1,309)Non-cash acquisition-related foreign currency impacts (119)  (8,565)  (217)  (12,337)Restructuring costs 2,760   19,915   9,147   20,649 Bargain purchase gain —   (110,561)  (1,118)  (110,561)Provision for income tax benefit from non-recurring tax adjustments —   (34,815)  —   (34,815)Tax effect of adjusting items (10,464)  (18,751)  (20,317)  (24,907)Non-GAAP net income/(loss)$184,294  $116,782  $339,190  $211,610  (1)  See footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table for the detail for these costs.

Non-GAAP Gross Profit Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands) 2026   2025   2026   2025 Net sales$789,612  $745,342  $1,549,466  $1,343,463 Cost of sales (exclusive of amortization of intangibles) 241,439   248,765   475,505   444,162 Amortization of intangibles 21,090   24,643   42,221   46,851 Gross Profit$527,083  $471,934  $1,031,740  $852,450         Amortization of inventory fair value step up —   5,967   —   6,016 Amortization of intangibles 21,090   24,643   42,221   46,851 Adjusted Gross Profit$548,173  $502,544  $1,073,961  $905,317         Gross Profit % of Net Sales 66.8%  63.3%  66.6%  63.5%Adjusted Gross Profit % of Net Sales 69.4%  67.4%  69.3%  67.4% Non-GAAP Diluted Earnings Per Share Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands) 2026   2025   2026   2025 Diluted earnings per share, as reported$1.10  $1.49  $2.00  $2.01 Provision for litigation, net —   (0.02)  —   (0.03)Amortization of intangibles 0.22   0.22   0.43   0.43 Merger and acquisition -related costs(1) 0.08   0.29   0.13   0.30 Net (gain) loss from strategic investments —   (0.01)  (0.01)  (0.01)Non-cash acquisition-related foreign currency impacts —   (0.06)  —   (0.09)Restructuring costs 0.02   0.14   0.07   0.15 Bargain purchase gain —   (0.80)  (0.01)  (0.80)Provision for income tax benefit from non-recurring tax adjustments —   (0.26)  —   (0.25)Tax effect of adjusting items (0.08)  (0.14)  (0.15)  (0.18)Non-GAAP diluted earnings per share$1.34  $0.86  $2.46  $1.53  (1) See footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table above for the detail of these costs.
 *Amounts may not add due to rounding.

Non-GAAP Free Cash Flow Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands) 2026   2025   2026   2025 Net cash provided by operating activities$209,742  $77,865  $412,105  $255,165 Purchases of property and equipment (33,168)  (46,562)  (72,783)  (82,665)Free cash flow$176,574  $31,303  $339,322  $172,500  Non-GAAP Net Sales on a Constant Currency Basis Comparative Table:
  Three Months Ended
June 30, Reported
Net Sales
Growth
 Currency
Impact on
Current
Period Net Sales
 Constant
Currency
Net Sales
Growth
(In thousands, except percentages)2026
 2025
   United States$619,105 $600,784 3.0% $— 3.0%International 170,507  144,558 18.0%  2,580 16.2%Total net sales$789,612 $745,342 5.9% $2,580 5.6%  Six Months Ended
June 30, Reported
Net Sales
Growth
 Currency
Impact on
Current
Period Net Sales
 Constant
Currency
Net Sales
Growth
(In thousands, except percentages)2026
 2025
   United States$        1,223,993         $        1,084,641         12.8% $        —         12.8%International         325,473                  258,822         25.8%          11,554         21.3%Total net sales$        1,549,466         $        1,343,463         15.3% $        11,554         14.5%
Investor Contact:

Brian Kearns
Senior Vice President, Corporate Development and Investor Relations
Phone: (610) 930-1800
Email: [email protected]
www.globusmedical.com

Posted by Defense World Staff on Aug 6th, 2026

Amundi raised its position in Globus Medical, Inc. (NYSE:GMED – Free Report) by 12.2% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 74,520 shares of the medical device company’s stock after purchasing an additional 8,126 shares during the quarter. Amundi owned 0.05% of Globus Medical worth $6,421,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also modified their holdings of GMED. Sanctuary Advisors LLC grew its position in Globus Medical by 2.3% in the first quarter. Sanctuary Advisors LLC now owns 6,611 shares of the medical device company’s stock valued at $570,000 after acquiring an additional 151 shares in the last quarter. SBI Securities Co. Ltd. increased its stake in Globus Medical by 98.2% during the 4th quarter. SBI Securities Co. Ltd. now owns 337 shares of the medical device company’s stock worth $29,000 after buying an additional 167 shares during the period. Parallel Advisors LLC lifted its stake in shares of Globus Medical by 45.1% in the third quarter. Parallel Advisors LLC now owns 557 shares of the medical device company’s stock worth $32,000 after acquiring an additional 173 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Globus Medical by 74.3% in the second quarter. EverSource Wealth Advisors LLC now owns 462 shares of the medical device company’s stock valued at $27,000 after purchasing an additional 197 shares during the last quarter. Finally, Allworth Financial LP raised its position in shares of Globus Medical by 1.6% in the 4th quarter. Allworth Financial LP now owns 12,545 shares of the medical device company’s stock valued at $1,095,000 after purchasing an additional 199 shares in the last quarter. 95.16% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Globus Medical In related news, Director David D. Davidar sold 25,000 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $80.76, for a total transaction of $2,019,000.00. Following the completion of the sale, the director directly owned 510,175 shares of the company’s stock, valued at $41,201,733. This represents a 4.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 18.38% of the stock is owned by insiders.

Analyst Upgrades and Downgrades Several research firms have recently commented on GMED. UBS Group began coverage on Globus Medical in a research note on Tuesday, July 28th. They set a “neutral” rating and a $82.00 target price for the company. Royal Bank Of Canada cut their target price on shares of Globus Medical from $120.00 to $115.00 and set an “outperform” rating on the stock in a research note on Monday, July 13th. Stifel Nicolaus reduced their price target on shares of Globus Medical from $95.00 to $80.00 and set a “hold” rating on the stock in a research report on Wednesday, July 8th. Piper Sandler cut their price objective on Globus Medical from $115.00 to $100.00 and set an “overweight” rating on the stock in a research note on Monday, June 15th. Finally, Truist Financial reduced their target price on Globus Medical from $115.00 to $100.00 and set a “buy” rating on the stock in a report on Thursday, July 16th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, Globus Medical has a consensus rating of “Moderate Buy” and an average price target of $102.08.

Get Our Latest Research Report on Globus Medical

Globus Medical Price Performance NYSE:GMED opened at $80.64 on Thursday. The business has a 50 day simple moving average of $79.35 and a 200 day simple moving average of $85.34. The firm has a market capitalization of $10.95 billion, a P/E ratio of 18.75, a P/E/G ratio of 1.68 and a beta of 0.95. Globus Medical, Inc. has a 12-month low of $52.68 and a 12-month high of $101.40.

Globus Medical (NYSE:GMED – Get Free Report) last posted its earnings results on Thursday, May 7th. The medical device company reported $1.12 EPS for the quarter, beating the consensus estimate of $0.92 by $0.20. Globus Medical had a return on equity of 13.46% and a net margin of 18.92%.The firm had revenue of $759.85 million for the quarter, compared to analysts’ expectations of $740.35 million. During the same period last year, the firm earned $0.68 EPS. The firm’s revenue was up 27.0% compared to the same quarter last year. Research analysts anticipate that Globus Medical, Inc. will post 4.74 EPS for the current fiscal year.

Globus Medical Profile (Free Report)

Globus Medical, Inc (NYSE:GMED) is a leading medical device company specializing in musculoskeletal solutions for spine and orthopaedic applications. Founded in 2003 by David C. Paul and headquartered in Audubon, Pennsylvania, the company develops, manufactures and markets implantable devices and surgical instruments designed to treat spinal disorders and promote bone healing. Its product portfolio encompasses solutions for minimally invasive and open surgical procedures, including interbody fusion devices, pedicle screw systems, and biologics used to enhance fusion outcomes.

In addition to its core spine business, Globus Medical has expanded into robotics and navigation systems to support precision and efficiency in the operating room.

Recommended Stories Five stocks we like better than Globus Medical SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Want to see what other hedge funds are holding GMED? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Globus Medical, Inc. (NYSE:GMED – Free Report).

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Key Takeaways Globus Medical and Resmed report as sector earnings are projected to decline 15.2%. Globus Medical may gain from U.S. Spine strength, Nevro revenues and ExcelsiusGPS adoption. Resmed may benefit from device demand, resupply growth, AI tools and the VirtuOx acquisition. As the second-quarter earnings season progresses, this week marks an important period for many medical-sector companies. Per the latest Earnings Preview report, the Medical sector’s earnings might have suffered due to a dull macroeconomic scenario, including policy uncertainty, cost inflation and tariff-related impacts. However, the sector is expected to have benefited from strong long-term fundamentals, including expanding global demand, ongoing innovation and a large and diverse product base.

Going by the broader Medical sector’s scorecard, 32.2% of the companies in the sector, representing 35.9% of its market capitalization, reported earnings through Feb. 4. Earnings grew 18.1% year over year on revenue growth of 6.8%. Of the total index members, 94.7% reported earnings and revenue beat.

Overall, the sector’s second-quarter earnings are expected to decline 15.2% despite 6.1% revenue growth. This compares with the first-quarter earnings decrease of 2.3% on revenue growth of 7.1%. Based on the latest trends, the Medical sector is among the three sectors expected to post a year-over-year earnings decline in the second quarter of 2026.

Major industry players like Globus Medical (GMED - Free Report) and Resmed (RMD - Free Report) are set to report tomorrow. 

Factors Likely to Influence MedTech Stocks' Financial ResultsAccording to a report by McKinsey & Company, hospital budget constraints remain a key risk, as many healthcare providers continue to operate under financial pressure, which could lead to delays or reductions in capital expenditures on high-cost medical equipment, such as MRI and CT scanners, surgical robots and advanced imaging systems. 

Reimbursement pressure is another concern, as changes to Medicare, Medicaid, or private insurer payment policies could reduce hospital revenues and limit spending on new medical technologies. Together, these factors might have acted as headwinds for MedTech players in the second quarter. 

Rising AI adoption should have supported demand for diagnostic software, imaging tools, clinical decision support and workflow automation. For instance, GE HealthCare posted strong revenue growth driven by robust Advanced Imaging Solutions (“AIS”) portfolio. Healthcare services and technology are also expected to have grown faster than many traditional healthcare segments, benefiting companies focused on digital platforms, analytics and cloud-based solutions. 

Growth in specialty drugs, oncology, rare diseases and precision medicine should have increased demand for infusion systems, diagnostics, monitoring devices and laboratory equipment. Abbott’s Cancer Diagnostics business grew 13%, driven by mid-teens growth in the Cologuard colorectal cancer screening test. An increasing aging population could have driven long-term demand for cardiovascular devices, potentially benefiting companies such as Edwards Lifesciences, whose transcatheter aortic valve replacement (TAVR) and structural heart products are widely used in the treatment of elderly patients with heart valve disease.

The growing adoption of healthcare data and analytics might have supported companies with robust digital platforms and proprietary clinical data. In addition, stronger merger and acquisition activity could have provided growth opportunities for innovative small- and mid-cap MedTech companies.

MedTech Stocks to WatchGlobus Medical: Globus Medical is expected to have benefited from the continued strength of its U.S. Spine business. Categories such as standard fixation and MIS pedicle screws, expandable TLIF (Transforaminal Lumbar Interbody Fusion), ALIF (Anterior Lumbar Interbody Fusion), posterior cervical and cervical plating may have been key contributors to the performance. Further, strong performance across the EMEA and Latin America regions likely supported International Spine business performance. 

The Nevro acquisition should have benefited revenues. Additionally, Enabling Technologies revenues might have been supported by growing adoption of the ExcelsiusGPS platform and an expanding lease-and-rental model that likely drove recurring implant revenues.

The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $786.9 million, suggesting 5.6% growth from the year-ago reported figure. The Zacks Consensus Estimate for net earnings of $1.12 per share indicates a 30.3% increase from the year-ago reported figure.

During the second quarter, the company’s shares lost 9.9% compared with the industry’s 1.3% decline. 

Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is not the case here, as you can see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Globus Medical has an Earnings ESP of 0.00%. The company currently carries a Zacks Rank #3.

Resmed: Resmed’s Mask and other sales arm is expected to have witnessed continued growth in resupply and new patient setups, while the VirtuOx acquisition must have contributed to incremental revenues. Device sales numbers are likely to reflect the ongoing combined availability of the company’s AirSense 10 and AirSense 11 sleep devices, supporting underlying global demand. The company’s use of ML, AI and generative AI technology in its digital health products might have positively impacted its overall top line. Redmed’s Residential Care Software arm might have been affected by a challenging growth environment for the senior living and long-term care vertical. 

In June, ResMed completed its acquisition of Noctrix Health, Inc., expanding its clinical sleep health portfolio with therapies for the treatment of Restless Legs Syndrome (“RLS”).

The Zacks Consensus Estimate for the company’s fiscal fourth-quarter revenues is pegged at $1.46 billion, indicating an increase of 8.4% from the year-ago reported figure. The Zacks Consensus Estimate for EPS suggests a 13.7% rise to $2.90.

During the fiscal fourth quarter, the company’s shares fell 12.4% compared with the industry’s 10.2% decline. 

Resmed has an Earnings ESP of -1.39%. The company currently carries a Zacks Rank #3.

Key Takeaways Globus Medical will report Q2 results on Aug. 6, with revenues expected to rise 5.6% year over year.GMED may gain from Spine, Trauma and Nevro integration, with Musculoskeletal revenues expected to rise 6.1%.GMED's Enabling Technologies revenues are projected to grow 6.5% as ExcelsiusGPS adoption supports demand. Globus Medical (GMED - Free Report) is scheduled to report second-quarter 2026 results on Aug. 6, after market closes.

In the last reported quarter, the company’s adjusted earnings per share (EPS) of $1.12 beat the Zacks Consensus Estimate by 21.74%. Globus Medical’s earnings topped estimates in each of the trailing four quarters, the average surprise being 26.26%.

GMED’s Q2 EstimatesThe Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $786.9 million, suggesting 5.6% growth from the year-ago reported figure.

The Zacks Consensus Estimate for second-quarter 2026 net earnings of $1.12 per share indicates a 30.3% increase from the year-ago reported figure. The estimate has remained unchanged in the past 60 days.

Here’s a quick look at how the company is positioned leading up to this announcement.

Factors Shaping GMED’s Q2 PerformanceWithin Musculoskeletal Solutions, Globus Medical is expected to have benefited from the continued strength of its U.S. Spine business. Categories such as standard fixation and MIS pedicle screws, expandable TLIF (Transforaminal Lumbar Interbody Fusion), ALIF (Anterior Lumbar Interbody Fusion), posterior cervical and cervical plating may have been key contributors to the performance.  Meanwhile, power tools and products like DuraPro are likely to have helped the company continue capturing market share while creating incremental cross-selling opportunities.

GMED likely continued to prioritize competitive recruiting within its Spine business during the second quarter, with efficient onboarding of sales representatives with required sets and inventories continuing to remain a key differentiator. Such efforts may have favorably supported the company's top-line performance in the second quarter of 2026.

Further, strong performance across the EMEA and Latin America regions likely supported International Spine business results. Its direct and distributor businesses in overseas markets are expected to have witnessed broad-based growth.

The Trauma business is also expected to have made a very strong contribution in the second quarter. The ANTHEM Elbow plating system may have again emerged as a standout product, with demand exceeding expectations and prompting the company to deploy additional sets to support adoption. Growth in the Precice Limb Lengthening portfolio may have been driven by the company’s ability to fully meet market demand following the transition of manufacturing from the former NuVasive facilities to Globus Medical in early 2025.

We also expect favorable revenue contribution from the Nevro acquisition. Since acquiring Nevro, Globus Medical has been focused on rightsizing the business to drive profitable sales growth while reducing excess spending to quickly adopt the Globus approach. Management highlighted meaningful profitability improvements in 2025 following a series of organizational and operational changes. The impact of those cost control measures was also evident in the first quarter of 2026 and hence likely continued to support second-quarter performance.

Our model projects Musculoskeletal Solutions revenues to improve 6.1% year over year in the second quarter of 2026.

Enabling Technologies is also expected to have delivered a solid performance in the second quarter of 2026. Amid increasing competition in the rapidly evolving robotics space, adoption of Globus Medical’s ExcelsiusGPS platform continues to be supported for its standard for ease and floor-mounted navigation-based robotic approach.

Management highlighted that the deal pipeline remains strong, although the mix is moving toward leases and rentals rather than outright sales. While this shift reduces upfront revenue recognition compared with the historical sales model, it aligns with the strategy of refocusing the company’s capital approach to drive implant and other recurrent revenue product pull-through.

Going by our model, Enabling Technologies revenues are projected to grow 6.5% year over year.

Earnings Whispers for GMEDPer our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is not the case here, as you can see below:

Earnings ESP: Globus Medical has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Picks

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:

CVS Health (CVS - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 5.

CVS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.79%. The Zacks Consensus Estimate for the company’s second-quarter EPS indicates an increase of 3.3% from the year-ago quarter’s figure.

Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #2. The company is slated to release fourth-quarter fiscal 2026 results on Aug. 11.

CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 16.4% from the year-ago quarter’s figure.

Cencora, Inc. (COR - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is slated to release third-quarter fiscal 2026 results on Aug. 5.

COR’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 1.59%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.3% from the year-ago quarter’s figure.

Posted by Defense World Staff on Jul 28th, 2026

American Capital Management Inc. grew its stake in Globus Medical, Inc. (NYSE:GMED – Free Report) by 36.4% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 663,049 shares of the medical device company’s stock after purchasing an additional 176,837 shares during the period. Globus Medical makes up about 3.1% of American Capital Management Inc.’s holdings, making the stock its 10th largest holding. American Capital Management Inc. owned approximately 0.49% of Globus Medical worth $57,128,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Invesco Ltd. raised its position in shares of Globus Medical by 1,235.2% during the 4th quarter. Invesco Ltd. now owns 3,886,405 shares of the medical device company’s stock valued at $339,322,000 after buying an additional 3,595,339 shares during the period. Bank of Montreal Can raised its position in Globus Medical by 15,317.1% in the fourth quarter. Bank of Montreal Can now owns 3,373,260 shares of the medical device company’s stock valued at $294,519,000 after purchasing an additional 3,351,380 shares during the period. Alliancebernstein L.P. increased its position in shares of Globus Medical by 1,303.9% during the 3rd quarter. Alliancebernstein L.P. now owns 2,055,183 shares of the medical device company’s stock worth $117,700,000 after purchasing an additional 1,908,795 shares during the last quarter. Fuller & Thaler Asset Management Inc. purchased a new stake in Globus Medical in the 4th quarter valued at about $90,411,000. Finally, Norges Bank purchased a new stake in Globus Medical in the 4th quarter valued at about $89,922,000. Institutional investors and hedge funds own 95.16% of the company’s stock.

Analyst Ratings Changes GMED has been the topic of a number of research analyst reports. Piper Sandler reduced their price target on shares of Globus Medical from $115.00 to $100.00 and set an “overweight” rating on the stock in a research note on Monday, June 15th. Zacks Research cut shares of Globus Medical from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Wall Street Zen downgraded shares of Globus Medical from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 9th. Wells Fargo & Company cut their target price on Globus Medical from $104.00 to $103.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Finally, BMO Capital Markets started coverage on Globus Medical in a research note on Wednesday, July 8th. They set an “outperform” rating and a $94.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat, Globus Medical presently has a consensus rating of “Moderate Buy” and an average price target of $103.75.

Read Our Latest Analysis on GMED

Globus Medical Trading Up 2.3% Globus Medical stock opened at $78.27 on Tuesday. Globus Medical, Inc. has a twelve month low of $51.79 and a twelve month high of $101.40. The stock’s fifty day simple moving average is $79.77 and its 200-day simple moving average is $85.92. The firm has a market capitalization of $10.62 billion, a P/E ratio of 18.20, a P/E/G ratio of 1.58 and a beta of 0.95.

Globus Medical (NYSE:GMED – Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The medical device company reported $1.12 EPS for the quarter, topping the consensus estimate of $0.92 by $0.20. The company had revenue of $759.85 million during the quarter, compared to analysts’ expectations of $740.35 million. Globus Medical had a net margin of 18.92% and a return on equity of 13.46%. The firm’s revenue was up 27.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.68 EPS. Globus Medical has set its FY 2026 guidance at 4.700-4.800 EPS. Sell-side analysts predict that Globus Medical, Inc. will post 4.74 earnings per share for the current year.

Insider Buying and Selling at Globus Medical In related news, Director David D. Davidar sold 25,000 shares of the company’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $80.76, for a total value of $2,019,000.00. Following the completion of the sale, the director directly owned 510,175 shares of the company’s stock, valued at $41,201,733. This represents a 4.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 18.38% of the company’s stock.

Globus Medical Profile (Free Report)

Globus Medical, Inc (NYSE:GMED) is a leading medical device company specializing in musculoskeletal solutions for spine and orthopaedic applications. Founded in 2003 by David C. Paul and headquartered in Audubon, Pennsylvania, the company develops, manufactures and markets implantable devices and surgical instruments designed to treat spinal disorders and promote bone healing. Its product portfolio encompasses solutions for minimally invasive and open surgical procedures, including interbody fusion devices, pedicle screw systems, and biologics used to enhance fusion outcomes.

In addition to its core spine business, Globus Medical has expanded into robotics and navigation systems to support precision and efficiency in the operating room.

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Posted by Defense World Staff on Jul 23rd, 2026

Bank of New York Mellon Corp lessened its holdings in Globus Medical, Inc. (NYSE:GMED – Free Report) by 1.4% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 742,551 shares of the medical device company’s stock after selling 10,681 shares during the period. Bank of New York Mellon Corp owned about 0.55% of Globus Medical worth $63,978,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Invesco Ltd. raised its position in Globus Medical by 1,235.2% in the fourth quarter. Invesco Ltd. now owns 3,886,405 shares of the medical device company’s stock worth $339,322,000 after acquiring an additional 3,595,339 shares during the period. Bank of Montreal Can boosted its stake in shares of Globus Medical by 15,317.1% during the 4th quarter. Bank of Montreal Can now owns 3,373,260 shares of the medical device company’s stock worth $294,519,000 after acquiring an additional 3,351,380 shares during the last quarter. Sculptor Capital LP grew its position in shares of Globus Medical by 31.9% during the 2nd quarter. Sculptor Capital LP now owns 2,760,688 shares of the medical device company’s stock valued at $162,936,000 after acquiring an additional 667,850 shares during the period. Madison Avenue Partners LP grew its position in shares of Globus Medical by 3.0% during the 4th quarter. Madison Avenue Partners LP now owns 2,624,751 shares of the medical device company’s stock valued at $229,167,000 after acquiring an additional 76,588 shares during the period. Finally, Alliancebernstein L.P. grew its position in shares of Globus Medical by 1,303.9% during the 3rd quarter. Alliancebernstein L.P. now owns 2,055,183 shares of the medical device company’s stock valued at $117,700,000 after acquiring an additional 1,908,795 shares during the period. Hedge funds and other institutional investors own 95.16% of the company’s stock.

Globus Medical Stock Performance GMED stock opened at $75.48 on Thursday. The company’s fifty day moving average price is $79.82 and its 200-day moving average price is $86.21. Globus Medical, Inc. has a one year low of $51.79 and a one year high of $101.40. The company has a market capitalization of $10.25 billion, a PE ratio of 17.55, a price-to-earnings-growth ratio of 1.57 and a beta of 0.95.

Globus Medical (NYSE:GMED – Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The medical device company reported $1.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $0.20. The company had revenue of $759.85 million for the quarter, compared to the consensus estimate of $740.35 million. Globus Medical had a net margin of 18.92% and a return on equity of 13.46%. Globus Medical’s revenue for the quarter was up 27.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.68 EPS. Globus Medical has set its FY 2026 guidance at 4.700-4.800 EPS. On average, research analysts predict that Globus Medical, Inc. will post 4.74 EPS for the current fiscal year.

Insider Transactions at Globus Medical In other Globus Medical news, Director David D. Davidar sold 25,000 shares of the stock in a transaction on Friday, June 5th. The shares were sold at an average price of $80.76, for a total transaction of $2,019,000.00. Following the completion of the transaction, the director owned 510,175 shares in the company, valued at $41,201,733. This trade represents a 4.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 18.38% of the stock is currently owned by insiders.

Analyst Ratings Changes A number of equities analysts recently commented on GMED shares. Needham & Company LLC raised their target price on Globus Medical from $114.00 to $117.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Piper Sandler cut their price target on Globus Medical from $115.00 to $100.00 and set an “overweight” rating for the company in a report on Monday, June 15th. Zacks Research cut Globus Medical from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Wells Fargo & Company decreased their price objective on Globus Medical from $104.00 to $103.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Finally, Wall Street Zen cut Globus Medical from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 9th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Globus Medical presently has an average rating of “Moderate Buy” and an average target price of $103.75.

Check Out Our Latest Stock Analysis on GMED

Globus Medical Company Profile (Free Report)

Globus Medical, Inc (NYSE:GMED) is a leading medical device company specializing in musculoskeletal solutions for spine and orthopaedic applications. Founded in 2003 by David C. Paul and headquartered in Audubon, Pennsylvania, the company develops, manufactures and markets implantable devices and surgical instruments designed to treat spinal disorders and promote bone healing. Its product portfolio encompasses solutions for minimally invasive and open surgical procedures, including interbody fusion devices, pedicle screw systems, and biologics used to enhance fusion outcomes.

In addition to its core spine business, Globus Medical has expanded into robotics and navigation systems to support precision and efficiency in the operating room.

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When investors think of the health care sector, most imagine the stability of pharmaceutical giants or the high-risk/high-reward profile of up-and-coming clinical stage drug developers. Medical device companies operate within a unique ecosystem and are often easy to overlook. The fact that these firms have unique business models, revenue drivers, and innovation cycles may make them appealing as a supplement—or even an alternative—to better-known corners of the health care space.

Investors seeking the advantages of companies that don't depend on the approval of blockbuster drugs, can more easily make incremental innovations, or can derive revenue from recurring procedures, may want to consider the companies below. These and other similar firms stand to benefit from growing specialized demand for procedures such as spine surgery, sleep apnea treatment, and stroke treatment.

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Globus Grows Its Product Lineup and Revenue FollowsGlobus Medical Today

$76.68 -0.33 (-0.42%)

As of 11:01 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$51.79▼

$101.40P/E Ratio17.83

Price Target$103.75

Globus Medical, Inc. NYSE: GMED is an $11-billion firm designing and building implantable devices and surgical instruments used to treat spinal disorders. The firm has been quietly thriving thanks to strong organic revenue growth and margin improvements: in Q1 2026, for instance, revenue grew by 27% year over year (YOY) to nearly $760 million and earnings per share (EPS) climbed to $1.12 from 68 cents. Both of these figures were solidly above analyst expectations.

Management credits the growth to improving market share, operational discipline, stronger free cash flow, and the introduction of dozens of new products. The company's U.S. business in particular is thriving, having seen three consecutive quarters of at least 10% growth, but its international segment and enabling technologies business are also growing.

The company's products are widely favored and gaining additional traction thanks to Globus' strong sales approach, and it continues to receive new clearances from the FDA to expand its lineup. This has allowed the firm to raise its full-year EPS guidance by 30 cents to a range of $4.70-$4.80.

Despite these positive attributes, shares of GMED have slumped by about 7% year to date (YTD), though analysts expect a reversal and upside potential of nearly 29%. More than two-thirds of the 16 ratings for GMED are Buys.

Inspire's Fundamentals Are Strong, Despite Near-Term HeadwindsInspire Medical Systems Today

INSP

Inspire Medical Systems

$51.59 +0.99 (+1.95%)

As of 11:02 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$38.91▼

$147.03P/E Ratio11.45

Price Target$81.26

Nearly a third of U.S. adults over the age of 20 have obstructive sleep apnea (OSA), giving Inspire Medical Systems Inc. NYSE: INSP more than 80 million potential domestic customers. The company makes implantable neurostimulation devices to treat OSA. These devices are rapidly becoming a popular alternative to traditional continuous positive airway pressure (CPAP) options.

Still, INSP shares have experienced a major sell-off so far this year, falling by 44% YTD. The likely reason for this is the company's recent revenue slowdown: in the latest quarter, revenue climbed by under 2% YOY and management cut full-year sales guidance to between $825 million and $875 million as a result of prior-authorization delays.

The key consideration for investors is that these delays are not a fundamental reflection of weakness in Inspire's products, but a temporary slowdown in procedures due to external headwinds. Strong trial results for new products and improvements to adjusted EBITDA margin, operating cash flow, and more all point to the likelihood that momentum will pick up again. Analysts even see earnings growing by a massive 54% in the coming year.

This means that investors willing to wait out the current challenges may find INSP shares at a relative bargain based on a price-to-earnings (P/E) ratio of 11.4. The stock has 59% upside, even as analysts are somewhat hesitant given the current environment, assigning a Hold rating overall.

Earnings Challenges Linger, But Penumbra's New Study Could Be TransformativePenumbra Today

$318.36 +0.04 (+0.01%)

As of 11:02 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$221.26▼

$362.41P/E Ratio73.31

Price Target$360.33

Penumbra Inc. NYSE: PEN creates products to improve outcomes after strokes, aneurysms, and related medical events. After a share price spike early in the year, PEN stock has been gradually declining, though it remains up modestly YTD as of mid-July. The company's financials show some important strengths, including almost 16% YOY growth in revenue in Q1 2026, driven by global embolization and access gains. Gross profit margin is also expanding, having climbed by 1% YOY to 67.6% for the quarter.

At the same time, the company faces challenges, including a sizable earnings miss and a one-cent YOY decline in EPS last quarter. It's understandable, then, that analysts would be somewhat cautious: PEN receives a Hold rating overall, despite the most recent analyst rating being an enthusiastic reiterated Outperform by Evercore. This could be due to the company's upcoming FORWARD study, which aims to collect data on mechanical thrombectomy in the management of acute ischemic stroke. This is a promising avenue and one in which Penumbra has a distinct advantage over competitors.

Should You Invest $1,000 in Globus Medical Right Now?Before you consider Globus Medical, you'll want to hear this.

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NEW YORK, July 16, 2026 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of Globus Medical, Inc. (NYSE: GMED) breached their fiduciary duties to shareholders. The investigation concerns potential self-dealing. Shareholders may be entitled to damages and corporate governance reforms.

If you are a long-term GMED stockholder please contact Justin Kuehn, Esq. by email at [email protected], or call (833) 672-0814. The consultation and case are free with no obligation to you. Kuehn Law pays all case costs and does not charge its investor clients. Shareholders should contact the firm immediately as there may be limited time to enforce your rights.  

Why Your Participation Matters:

As a shareholder your voice matters, and by getting involved, you contribute to the integrity and fairness of the financial markets. Your investment. Your voice. Your future.™  

For additional information, please visit Shareholder Derivative Litigation - Kuehn Law.

Attorney advertising. Prior results do not guarantee similar outcomes.

Contacts:
Kuehn Law, PLLC
Justin Kuehn, Esq.
53 Hill Street, Suite 605
Southampton, NY 11968
[email protected]
(833) 672-0814

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

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Stock to Watch: Globus Medical (GMED - Free Report) Audubon, PA-based Globus Medical, Inc. is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. The company currently has its sales operations distributed across 65 counties worldwide and sells through a mix of direct sales representatives and independent distributors.

GMED is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.59; value investors should take notice.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.08 to $4.74 per share. GMED also boasts an average earnings surprise of +26.3%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, GMED should be on investors' short list.

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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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Stock to Watch: Globus Medical (GMED - Free Report) Audubon, PA-based Globus Medical, Inc. is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. The company currently has its sales operations distributed across 65 counties worldwide and sells through a mix of direct sales representatives and independent distributors.

GMED is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.86; value investors should take notice.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.28 to $4.74 per share. GMED boasts an average earnings surprise of +26.3%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, GMED should be on investors' short list.

Key Takeaways Globus Medical faces inflation, geopolitical and rate uncertainty that can disrupt supply chains. Globus Medical saw SG&A rise and incurred restructuring costs tied to integration efforts. Globus Medical posted a $2.1M FX loss despite strong international sales growth in Q1 2026. Globus Medical (GMED - Free Report) operates in a challenging environment caused by interest rate uncertainty, inflation and geopolitical tensions, which can disrupt supply chains and increase costs. While gross margin improved to 69.2% in the first quarter of 2026, it remains below management’s long-term target of the mid-70% range, leaving limited room to absorb higher costs. 

Selling, general and administrative expenses rose to $297.8 million from $242.8 million a year earlier, mainly due to higher compensation and benefit costs associated with increased sales volume. The company also incurred restructuring expenses as it continues integration and synergy initiatives, which could lead to fluctuations in near-term operating costs.

Globus Medical’s international business adds another source of uncertainty. International net sales reached $155.0 million in the first quarter of 2026, increasing 35.6% year over year on a reported basis and 27.8% on a constant currency basis, highlighting the impact of exchange rate movements on reported results. 

The company recorded a $2.1 million foreign currency transaction loss during the quarter, which reduced other income. With significant operations in regions such as Japan, the Eurozone, the United Kingdom and Australia, ongoing currency fluctuations could continue to affect revenue growth, profit margins and operating expenses over time.

Peer UpdateMedtronic’s (MDT - Free Report) operations remain vulnerable to cost inflation, reimbursement constraints, geopolitical disruption and changing global trade policies. It also embedded a roughly 1-point EPS drag from higher fuel and transportation costs tied to the recent shift in the geopolitical environment. 

Medtronic generates a large portion of sales internationally, leaving reported results sensitive to exchange rates. Foreign exchange added $819 million to fiscal 2026 revenues, but fiscal 2027 guidance assumes a neutral to $100 million revenue drag.

Edwards Lifesciences’ (EW - Free Report) extensive global operations and overseas manufacturing facilities and suppliers bring certain financial, economic, political and other risks. The business is also currently experiencing staffing shortages within the hospital systems. 

In the first quarter of 2026, these issues resulted in a 20.2% increase in COGS and a year-over-year decline of 64 basis points in gross margin. Foreign exchange is a major headwind for Edwards due to a considerable percentage of its revenues coming from outside the United States. Foreign exchange rates negatively impacted the second quarter gross profit margin by 60 basis points compared to the prior year.

GMED’s Stock Price PerformanceOver the past year, GMED shares have surged 37.1%, outperforming the industry’s 4.6% decline. 

Image Source: Zacks Investment Research

GMED’s ValuationGMED currently trades at a forward 12-month price-to-sales (P/S) of 3.26X compared with the industry median of 4.49X.

Image Source: Zacks Investment Research

GMED Stock Estimate TrendIn the past 30 days, GMED's EPS estimate for 2026 has moved north to $4.74. 

Image Source: Zacks Investment Research

GMED currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways GMED launched new elbow, navigation, drill and AMS implant products to expand its portfolio. GMED's R&D was 4.8% of Q1 2026 sales; full-year spending is expected at 5-6% of net sales. Globus Medical gained FDA clearances for patient-specific lumbar spacers and rods in Q2. Globus Medical (GMED - Free Report) continues to invest in research and development (R&D) and product cadence as a core part of its competitive positioning. Per the company, its team-oriented approach, active surgeon input and demonstrated capabilities position it to maintain a rapid rate of product launches. 

In 2025, the company launched ANTHEM Elbow Fracture System, a fully comprehensive plating portfolio designed to address a wide spectrum of elbow fractures. The company also launched DuraPro with Navigation, a next-generation, oscillating system designed to safeguard delicate tissue. In addition to DuraPro, it launched Verzera, a navigated high-speed drill system integrated with the ExcelsiusGPS and ExcelsiusHub system. In addition, Globus Medical expanded the Advanced Materials Science (“AMS”) implant portfolio with the COHERE ALIF Spacer. 

In the first quarter of 2026, R&D expenses were 4.8% of sales, with management expecting it to be 5-6% of net sales for the full year, with spend ramping methodically through the year as product efforts progress. 

The company’s early second-quarter FDA 510(k) clearances for patient-specific lumbar spacers and rods also reinforce its roadmap to link planning software, enabling technologies, and implants into a single workflow, which can deepen account relationships and increase procedure-level pull-through over time. This launch activity complements the broader post-merger strategy of compressing development timelines and keeping the portfolio fresh across spine and orthopedics.

Peer UpdateTeleflex’s (TFX - Free Report) product development activity also remains robust. Recent additions include the AC3 range Intra-Aortic Balloon Pump, which received FDA 510(k) clearance in 2025 for patient transport use. Another addition is the Ringer Perfusion Balloon Catheter, which received FDA breakthrough device designation and is supported by an IDE study as it advances toward a coronary perforation indication. In emergency medicine, QuikClot Control+ gained FDA clearance for all grades of internal and external bleeding, expanding its potential use cases.

Thermo Fisher Scientific’s (TMO - Free Report) recent product launches include the PPD CorEvitas Chronic Hand Eczema Registry, a cohort registry designed to generate real-world evidence on patients being treated for chronic hand eczema in routine clinical care and Gibco CTS DynaXS Single Use Bioreactor, designed to help cell therapy developers scale manufacturing with precise control, flexibility, and regulatory readiness.

GMED’s Stock Price PerformanceOver the past year, GMED shares have surged 34.2%, outperforming the industry’s 3.6% decline. 

Image Source: Zacks Investment Research

GMED’s ValuationGMED currently trades at a forward 12-month price-to-sales (P/S) of 3.31X compared with the industry median of 4.50X.

Image Source: Zacks Investment Research

GMED Stock Estimate TrendIn the past 30 days, GMED's EPS estimate for 2026 has moved north to $4.74. 

Image Source: Zacks Investment Research

GMED currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends Globus Medical (GMED - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this medical device company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Globus Medical is 17%, investors should actually focus on the projected growth. The company's EPS is expected to grow 17% this year, crushing the industry average, which calls for EPS growth of 12.3%.

Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, Globus Medical has an S/TA ratio of 0.6, which means that the company gets $0.6 in sales for each dollar in assets. Comparing this to the industry average of 0.59, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Globus Medical looks attractive from a sales growth perspective as well. The company's sales are expected to grow 8.4% this year versus the industry average of 5.9%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Globus Medical have been revising upward. The Zacks Consensus Estimate for the current year has surged 6.3% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Globus Medical a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Globus Medical is a potential outperformer and a solid choice for growth investors.

Investors with an interest in Medical - Instruments stocks have likely encountered both Globus Medical (GMED - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Globus Medical has a Zacks Rank of #2 (Buy), while SONOVA HOLDING has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GMED is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

GMED currently has a forward P/E ratio of 17.16, while SONVY has a forward P/E of 18.33. We also note that GMED has a PEG ratio of 1.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SONVY currently has a PEG ratio of 3.73.

Another notable valuation metric for GMED is its P/B ratio of 2.29. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SONVY has a P/B of 4.9.

These are just a few of the metrics contributing to GMED's Value grade of B and SONVY's Value grade of C.

GMED is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GMED is likely the superior value option right now.

Over the past several months, generative AI (GenAI) in the Medical Instruments industry has moved from experimental to operational use. Applications include generating synthetic medical images, simulating disease progression, creating potential drug molecules and simulatingtheir effects, to accelerate the long and costly drug development process. McKinsey’s latest survey of US healthcare leaders highlights several signals of gen AI’s maturation, with about 50% already implementing it across their organizations and more than 80% having deployed their first use cases to end users.

At the same time, regulatory bodies worldwide are adapting to this shift. The European Union AI Act (EU AI Act) 2024 introduced strict requirements for high-risk AI systems, such as AI-based medical software, including risk-mitigation systems, high-quality data sets and clear user information. As of 2025-end, the FDA’s AI/ML-Enabled Medical Devices list includes a cumulative total of more than 1400 devices, satisfying the applicable premarket requirements.

Grand View Research estimates the global AI in the healthcare market to expand at a CAGR of 38.9% from 2026 to 2033, building on a $36.67 billion valuation in 2025. Amid industry wide challenges, companies like Electromed (ELMD - Free Report) , Globus Medical (GMED - Free Report) and Intuitive Surgical (ISRG - Free Report) appear well-positioned to thrive.

Industry Description The Zacks Medical - Instruments industry is highly fragmented, with participants engaged in research and development (R&D) in therapeutic areas. This FDA-regulated sector encompasses a vast array of products, from transcatheter valves and orthopedic devices to advanced imaging equipment and robotics. Recent trends highlight the integration of AI in diagnostics, the expansion of telemedicine, the rise of robotic-assisted surgeries and developments in 3D printing, continuous glucose monitoring systems and gene editing. The rise of GenAI is also reshaping MedTech, from speeding up patient recruitment to optimizing trial designs and improving regulatory processes. The FDA’s Total Product Life Cycle approach supports faster development of safe and effective medical devices critical to public health.

3 Trends Shaping the Future of the Medical Instruments Industry GenAI Revolution: Over the past couple of years, there has been a significant increase in the adoption of GenAI within the medical instrument space, with hyper-personalization being the primary feature of GenAI-driven treatment options. GenAI, while analyzing vast and complex genetic and molecular data, is expected to help healthcare reach new heights in terms of predictive treatment options and smart hospital systems. According to Towards Healthcare, global GenAI in the healthcare market is projected to expand at a CAGR of 35.1% between 2026 and 2035, from a value of $2.65billion in 2025. Growth is being driven by rising demand for AI solutions in the healthcare industry, increasing investments and strategic partnerships between healthcare institutions and AI technology providers, as well as demand for precise and personalized treatment plans. The application of AI in the diagnostics space is growing enormously, with the market expected to witness a CAGR of 46.1% by 2034.

M&A Trend: The medical instrument space has been benefiting from the ongoing merger and acquisition (M&A) trend. It is a known fact that smaller and mid-sized industry players attempt to compete with the big shots through consolidation. The big players attempt to enter new markets through a niche product. According to a J.P. Morgan April 2026 report, medtech M&A activity in 2025 was highly concentrated, with large transactions accounting for the majority of value. At the same time, underlying deal volume remained more stable. Notable transactions in the fourth quarter include Abbott’s acquisition of Exact Sciences for $23 billion and Blackstone and TPG’s take-private deal of Hologic for $18 billion. The insight also states that medtech deal activity totaled $26.6 billion across 38 deals in the first quarter of 2026, including Boston Scientific’s $15 billion agreement to acquire Penumbra and Danaher’s agreement to acquire Masimo for $10 billion.

Business Trend Disruption: The IMF’s April 2026 World Economic Outlook notes that the outbreak of war in the Middle East in February 2026 has interrupted what had been a steady growth trajectory. Assuming a short-lived conflict,global growth is projected at 3.1% in 2026, a downward revision of 0.2 percentage points from its January forecast. Prior to the war, the agency had been preparing to raise its global growth outlook, reflecting continued economic momentum, a tech-investment boom, moderation in trade policy tensions, fiscal support in some countries and accommodating financial conditions. Global headline inflation is expected to rise from 4.1% in 2025 to 4.4% in 2026, before resuming its decline in 2027. Growth slowdown and an increase in inflation are expected to be more pronounced in emerging market and developing economies.  The IMF apprehends that fostering adaptability, maintaining credible policy frameworks and reinforcing international cooperation are essential to navigating the current shock.

Zacks Industry Rank Indicates Dull Prospects The Zacks Medical Instruments industry’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy near-term prospects. The industry, housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #139, which places it in the bottom 43% of 243 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

We will present a few stocks that have the potential to outperform the market based on a strong earnings outlook. It is worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Underperforms S&P 500 & Sector The industry has underperformed the Zacks S&P 500 composite and the sector in the past year.

The industry has declined 6.9% against the broader sector’s rise of 4.9%. The S&P 500 has returned 30.3% in a year.

1-Year Price Performance
Image Source: Zacks Investment Research

Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 24.00X compared with the broader industry’s 19.68X and the S&P 500’s 21.85X.

Over the past five years, the industry has traded as high as 41.40X, as low as 24.00X and at the median of 32.12X, as the charts show below.

Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research

Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research

3 Stocks to Buy Right Now Electromed: Electromed develops airway clearance products applying High Frequency Chest Wall Oscillation technologies in pulmonary care for patients.Its products are sold in both the homecare market and the hospital market for inpatient use.Electromed delivered its 14th consecutive quarter of year-over-year revenue and profit growth in the first quarter of 2026. With 86% of covered U.S. lives now under contract and manufacturing optimization complete, the company is well-positioned to capture the significant bronchiectasis market opportunity.

The Zacks Consensus Estimate for this Zacks Rank #1 (Strong Buy) company’s 2026 earnings per share (EPS) indicates a 41.2% rise over 2025. The consensus mark for 2026 revenues implies a 15.6% improvement. ELMD has an earnings yield of 3.1% against the industry’s negative 1% yield.

You can see the complete list of today's Zacks #1 Rank stocks here. 

Price & Consensus: ELMD
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Globus Medical: Globus Medical develops advanced products and procedures to treat a variety of musculoskeletal conditions. The company’s 2023 merger with NuVasive enhanced its global commercial reach and operational capabilities, while the acquisition of Nevro in 2025 positioned it to alter the standard of care in the neuromodulation space. In first-quarter 2026, Globus Medical’s worldwide net sales climbed 27% year over year on a reported basis, while the bottom-line surged 64.7%.

The Zacks Consensus Estimate for this Zacks Rank #1 company’s 2026 EPS calls for 17.1% growth. The consensus mark for 2026 revenues indicates an 8.8% improvement. GMED has an earnings yield of 5.8% against the industry’s negative 1% yield.

Price & Consensus: GMED
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Intuitive Surgical: Intuitive Surgical is a renowned name in minimally invasive care and robotic-assisted surgery. The company’s technologies include the da Vinci surgical systems and the Ion endoluminal system. In the first quarter of 2026, worldwide combined procedures grew nearly 17% year over year, with strong performance in the United States and Europe. Intuitive Surgical is also investing in the data and digital infrastructure that underpins its longer-term innovation road map.

The Zacks Consensus Estimate for this Zacks Rank #2 (Buy) company’s 2026 EPS implies year-over-year growth of 16.5%. The consensus mark for 2026 revenues indicates an improvement of 16.5%. ISRG has an earnings yield of 2.4% against the industry’s negative 1% yield. 

Price & Consensus: ISRG
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