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Gary Campbell promoted to President, Americas
Brian Hatcher promoted to President, Recon, S.E.T., CMFT, Neuro and Biosurgery
Bradley Kessler promoted to President, Americas – Robotics, Technology and Data

, /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced leadership appointments designed to streamline its Americas and Global Business Group organizations for greater focus and agility.

Effective October 1, Gary Campbell will be promoted to President, Americas, and Brian Hatcher will be promoted to President, Recon, S.E.T., CMFT, Neuro and Biosurgery. The company also announced the promotion of Bradley Kessler to President, Americas – Robotics, Technology and Data. Campbell, Hatcher and Kessler will report directly to Ivan Tornos, Chairman, President and CEO of Zimmer Biomet.  

"We talk often about our People and Culture strategic imperative to have the right talent, in the right roles, at the right times," said Tornos. "These well-deserved promotions do exactly that, while helping to accelerate our U.S. go-to-market transformation and sharpen ownership of our most important commercial priorities. Gary, Brian and Brad are seasoned operators and proven Zimmer Biomet leaders with deep experience in the businesses and markets they will now lead. Their promotions reinforce my strong confidence in both our 2026 outlook and our growth potential in 2027 and beyond."

As part of this restructuring, Kevin Thornal, Group President, Global Businesses and the Americas, will leave the company on September 30, 2026, following a transition period.

Tornos added, "On behalf of the entire Zimmer Biomet team, I want to thank Kevin for his leadership and contributions to our company. We wish him all the best in his next chapter."

2026 Outlook 
Zimmer Biomet also announced today that the Company is reiterating its full-year 2026 financial outlook provided on August 5, 2026.

About Gary Campbell
As President, Americas, Campbell will be responsible for commercial strategy and execution across the United States, Canada and Latin America. He will continue to lead the evolution of the company's U.S. go-to-market model, building a specialized and dedicated organization designed to increase productivity and accelerate growth.

Campbell has served as Zimmer Biomet's vice president and general manager, Orthopedics – North America since September 2024. Since joining the company in 2019, Campbell has held multiple commercial leadership roles of increasing responsibility. Previously, Campbell served in several sales and marketing roles at Enovis. He holds a bachelor's degree from Texas State University.

About Brian Hatcher  
As President, Recon, S.E.T., CMFT, Neuro and Biosurgery, Hatcher will lead global portfolio strategy and execution across most of the company's businesses, expanding his current remit to include Global Knees and Hips. He will continue to play an integral role in the company's innovation and diversification strategy, including delivering organic and inorganic opportunities in higher growth markets. Lou Galrao, President of Reconstruction (Knees and Hips), will report to Hatcher.  

During his 16-year career with Zimmer Biomet, Hatcher has held multiple roles in research, marketing, general management and business leadership. He was named to his first Global President role in 2021 and currently serves as Zimmer Biomet's President of S.E.T. and CMFT. Hatcher began his medical technology career with roles at OrbusNeich and later Medtronic. He holds a bachelor's degree in chemistry and a Ph.D. in biomedical engineering, both from the University of Florida.  

About Brad Kessler
As President, Americas – Robotics, Technology and Data, Kessler will be responsible for driving commercial strategy, growth and adoption of the company's broad portfolio of robotics, digital and technology solutions in the Americas, as well as its global service and capital solutions contracting business. Under Kessler's leadership, the company will accelerate the expansion of its specialized robotics salesforce in advance of the highly anticipated launch of the Monogram next-generation orthopedic robot, which is expected in 2027.

Kessler brings to the role more than two decades of commercial experience in orthopedics. Currently vice president and general manager, Robotics, Technology and Data Solutions, Kessler has held multiple commercial leadership roles of increasing responsibility since he joined Zimmer Biomet in 2015. Prior to joining Zimmer Biomet, Kessler spent nearly 10 years in sales at Stryker. He holds a bachelor's degree from Texas A&M University and an Executive MBA from the Cox School of Business at Southern Methodist University.

About Zimmer Biomet
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation. 

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.

Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning Zimmer Biomet's expectations, plans, outlook, prospects, and product and service offerings, including new product launches and potential clinical successes. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially. For a list and description of some of such risks and uncertainties, see Zimmer Biomet's periodic reports filed with the U.S. Securities and Exchange Commission ("SEC"). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in Zimmer Biomet's filings with the SEC. Forward-looking statements speak only as of the date they are made, and Zimmer Biomet disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this news release are cautioned not to rely on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in this news release.

SOURCE Zimmer Biomet Holdings, Inc.

It has been about a month since the last earnings report for Zimmer Biomet (ZBH - Free Report) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Zimmer due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

ZBH Q2 Earnings & Revenues Top EstimatesZimmer Biomet posted second-quarter 2026 adjusted earnings per share of $2.07, which beat the Zacks Consensus Estimate of $2.01 by 3%. The adjusted figure was unchanged year over year.

The quarter’s adjustments included intangible asset amortization, restructuring and other cost-reduction initiatives, inventory and manufacturing-related charges, acquisition and integration costs, litigation expenses and other charges.

GAAP earnings were $1.03 per share compared with 77 cents in the year-ago period.

RevenuesNet sales of $2.18 billion increased 4.8% year over year. The figure also surpassed the Zacks Consensus Estimate of $2.13 billion by 2.3%. Sales increased 4.7% on a constant-currency basis and 4% on an organic constant-currency basis. The organic measure excludes the impact of the Paragon 28 acquisition.

Revenues by GeographySales generated in the United States totaled $1.24 billion, up 5.6% year over year. International sales grossed $937 million, reflecting growth of 3.7% on a reported basis and 3.5% on a constant currency basis.

Segmental AnalysisThe company currently reports under four product categories: Knees, Hips, S.E.T. and Technology & Data, Bone Cement and Surgical.

Sales in the Knees unit improved 0.4% year over year to $828.9 million. At constant exchange rate or CER, revenues increased 0.1%. U.S. Knees sales rose 1.4%, while international sales declined 0.9% on a reported basis and 1.5% at CER.

Hips sales increased 5% year over year to $562.7 million and rose 5.1% at CER. U.S. Hips revenues advanced 5.9%, while international sales grew 4% on a reported basis and 4.2% at CER.

Revenues in the S.E.T. unit rose 6.4% year over year to $586 million. Sales increased 6.2% at CER.

Technology & Data, Bone Cement and Surgical revenues surged 21.1% to $199.4 million. At CER, sales increased 21.5%, marking the strongest growth among Zimmer Biomet’s product categories.

Margin PerformanceAdjusted gross margin, after excluding intangible asset amortization and inventory and manufacturing-related charges, was 71.1%. This compared with approximately 72.3% in the year-ago quarter. Cost of products sold, excluding intangible asset amortization, increased 7.3% to $635.5 million. Selling, general and administrative expenses rose 10.4% to $899.3 million, while research and development expenses declined 7.5% to $104.8 million.

Adjusted operating profit was $559.7 million compared with $578.5 million a year earlier. The adjusted operating margin contracted 210 basis points to 25.7%.

Cash PositionZimmer Biomet exited the second quarter of 2026 with cash and cash equivalents of $410 million compared with $591.9 million at the end of 2025.

Net cash provided by operating activities was $447.9 million in the quarter compared with $378.2 million in the year-ago period. Free cash flow increased to $308.3 million from $247.7 million.

For the first six months of 2026, operating cash flow totaled $807.2 million. The company repurchased $500.8 million of common stock and paid $93.4 million in dividends during the period.

2026 Guidance RaisedZimmer Biomet updated its financial guidance for 2026. Reported revenue growth is now expected in the range of 3.9-4.9%, up from the prior projection of 2.5-4.5%. Constant-currency revenue growth is projected between 3.4% and 4.4%, compared with the earlier range of 2-4%. Organic constant-currency growth is expected in the band of 2.25-3.25%, up from 1-3%.

Adjusted earnings for the full year are now expected in the range of $8.47-$8.59 per share. The previous guidance called for adjusted earnings of $8.40-$8.55. 

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.

VGM ScoresCurrently, Zimmer has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Zimmer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ZBH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

WARSAW, Ind., Aug. 28, 2026 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that its Board of Directors has approved the payment of a quarterly cash dividend to stockholders for the third quarter of 2026.

Zimmer Biomet (NYSE:ZBH) reported second-quarter 2026 net sales of $2.177 billion, up 4.8% on a reported basis and 4.0% on an organic constant-currency basis, as growth in hips, specialty businesses and technology helped offset weaker performance in certain other product lines.

U.S. organic constant-currency sales rose 4.6%, while international sales increased 3.1%. Chairman, President and CEO Ivan Tornos said the U.S. result reflected progress in the company’s sales-force transformation, product launches and commercial execution.

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GAAP diluted earnings per share increased to $1.03 from $0.77 a year earlier. Adjusted EPS was $2.07, unchanged from the prior-year quarter. Interim CFO Paul Stellato said higher revenue and a lower share count were offset by expected dilution from the Paragon 28 acquisition and investments in the U.S. commercial organization.

Hips, Technology Drive Growth Hip sales grew 5.1% on a constant-currency basis, including 5.9% growth in the United States and 4.2% internationally. Tornos attributed U.S. hip performance to adoption of the company’s “triple play” offering: the Z1 Triple Taper Hip Stem, the HAMMR surgical impactor and OrthoGrid navigation technology for direct anterior hip procedures.

Z1 now accounts for more than 40% of Zimmer Biomet’s U.S. hip systems, according to Tornos, while HAMMR was used in more than 25% of U.S. primary hip cases. OrthoGrid recorded its strongest quarter to date, with first-half case volume matching its full-year 2025 level.

In Japan, the company said demand for its iodine-coated hip technology exceeded expectations. Tornos said the product is intended to address the risk of periprosthetic joint infection after joint replacement and is drawing interest from existing customers as well as competitive accounts. He said Zimmer Biomet is pursuing pathways to bring the technology to additional countries, including discussions with the Food and Drug Administration regarding a potential U.S. path.

Knee sales increased 0.1% during the quarter. U.S. knee growth of 1.4% was partly offset by a 1.5% international decline, which management said was heavily affected by China and core emerging markets.

The company’s sports, extremities and trauma, or S.E.T., business grew 3.4% organically on a constant-currency basis, accelerating 180 basis points from the first quarter. U.S. S.E.T. sales rose at a mid-single-digit rate, while Paragon 28 sales increased in the mid-teens. Craniomaxillofacial and thoracic sales grew at a double-digit rate, and upper-extremity sales increased at an upper-single-digit rate. Those gains were partly offset by continued pressure in trauma and restorative therapies.

Technology and data, bone cement and surgical sales grew 21.5%. Tornos said U.S. technology sales rose more than 50%, supported by record capital sales of ROSA with OptimiZe and TMINI systems as well as an early contribution from the next-generation ROSA Shoulder launch. He said the robotic shoulder system can be used in both anatomic and reverse shoulder procedures.

Margins, Cash Flow and Capital Returns Pricing was an 80-basis-point headwind in the quarter, within the company’s full-year expectation of up to 100 basis points of pricing pressure. Adjusted gross margin declined 120 basis points year over year to 71.1%, reflecting higher manufacturing costs, partly offset by geographic and product mix. Adjusted operating margin fell 210 basis points to 25.7% as Zimmer Biomet continued investing in its U.S. sales channel.

Operating cash flow totaled $448 million, up 18% from the prior year, while free cash flow rose 24% to $308 million. The company ended the quarter with about $410 million in cash and cash equivalents.

Zimmer Biomet repurchased $500 million of  stock in the first half, including $250 million in the second quarter. It now plans to repurchase up to $1 billion of shares during 2026, $250 million above its prior expectation.

Full-Year Outlook Raised Management raised its outlook for 2026 organic constant-currency revenue growth to 2.25% to 3.25%, from prior guidance of 1% to 3%. Reported sales growth is now expected to be 3.9% to 4.9%, compared with the previous 2.5% to 4.5% range.

The company continues to expect foreign exchange to provide an approximately 50-basis-point benefit to full-year sales growth, though it expects currency to be a 50-basis-point headwind in the third quarter. Paragon 28 is expected to contribute 110 basis points to reported sales growth for the year, above the prior expectation of about 100 basis points.

Zimmer Biomet raised adjusted EPS guidance to $8.47 to $8.59, from $8.40 to $8.55. It maintained expectations for gross margin of about 71%, net interest and other non-operating expense of $295 million, an 18% adjusted tax rate and free-cash-flow growth of 9% to 11%.

Sales Transformation and Longer-Term Strategy Tornos said the company’s move toward a dedicated, specialized U.S. sales organization is progressing with less customer disruption and sales-force turnover than initially expected. Zimmer Biomet expects to complete the transformation by the end of 2027. The company has added, or is in the process of adding, 200 technical representatives and has increased investments in retention, compensation and sales-excellence initiatives.

Management also outlined operational initiatives including shifting some research-and-development activity to a global capability center in India, constructing a manufacturing facility in Costa Rica and applying artificial intelligence to operating expenses.

Looking ahead, Tornos said Zimmer Biomet expects to introduce more than 50 products over the next 36 months and plans to continue evaluating acquisitions in higher-growth reconstruction, S.E.T. and adjacent markets. The company aims to reach a weighted average market growth rate of 5% to 6% by the end of the decade.

About Zimmer Biomet (NYSE:ZBH) Zimmer Biomet (NYSE: ZBH) is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company’s product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.

A Closer Look at Healthcare Sector Earnings: AZN vs. EW vs. ZBHZimmer Biomet NYSE: ZBH reported second-quarter 2026 net sales of $2.177 billion, up 4.8% on a reported basis and 4.0% on an organic constant-currency basis, as growth in hips, specialty businesses and technology helped offset weaker performance in certain other product lines.

U.S. organic constant-currency sales rose 4.6%, while international sales increased 3.1%. Chairman, President and CEO Ivan Tornos said the U.S. result reflected progress in the company’s sales-force transformation, product launches and commercial execution.

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Intuitive Surgical Leads the Pack in Robotic Surgery InnovationGAAP diluted earnings per share increased to $1.03 from $0.77 a year earlier. Adjusted EPS was $2.07, unchanged from the prior-year quarter. Interim CFO Paul Stellato said higher revenue and a lower share count were offset by expected dilution from the Paragon 28 acquisition and investments in the U.S. commercial organization.

Hips, Technology Drive Growth Hip sales grew 5.1% on a constant-currency basis, including 5.9% growth in the United States and 4.2% internationally. Tornos attributed U.S. hip performance to adoption of the company’s “triple play” offering: the Z1 Triple Taper Hip Stem, the HAMMR surgical impactor and OrthoGrid navigation technology for direct anterior hip procedures.

2 Robotic Surgery Stocks Challenging Intuitive Surgical's LeadZ1 now accounts for more than 40% of Zimmer Biomet’s U.S. hip systems, according to Tornos, while HAMMR was used in more than 25% of U.S. primary hip cases. OrthoGrid recorded its strongest quarter to date, with first-half case volume matching its full-year 2025 level.

In Japan, the company said demand for its iodine-coated hip technology exceeded expectations. Tornos said the product is intended to address the risk of periprosthetic joint infection after joint replacement and is drawing interest from existing customers as well as competitive accounts. He said Zimmer Biomet is pursuing pathways to bring the technology to additional countries, including discussions with the Food and Drug Administration regarding a potential U.S. path.

Knee sales increased 0.1% during the quarter. U.S. knee growth of 1.4% was partly offset by a 1.5% international decline, which management said was heavily affected by China and core emerging markets.

The company’s sports, extremities and trauma, or S.E.T., business grew 3.4% organically on a constant-currency basis, accelerating 180 basis points from the first quarter. U.S. S.E.T. sales rose at a mid-single-digit rate, while Paragon 28 sales increased in the mid-teens. Craniomaxillofacial and thoracic sales grew at a double-digit rate, and upper-extremity sales increased at an upper-single-digit rate. Those gains were partly offset by continued pressure in trauma and restorative therapies.

Technology and data, bone cement and surgical sales grew 21.5%. Tornos said U.S. technology sales rose more than 50%, supported by record capital sales of ROSA with OptimiZe and TMINI systems as well as an early contribution from the next-generation ROSA Shoulder launch. He said the robotic shoulder system can be used in both anatomic and reverse shoulder procedures.

Margins, Cash Flow and Capital Returns Pricing was an 80-basis-point headwind in the quarter, within the company’s full-year expectation of up to 100 basis points of pricing pressure. Adjusted gross margin declined 120 basis points year over year to 71.1%, reflecting higher manufacturing costs, partly offset by geographic and product mix. Adjusted operating margin fell 210 basis points to 25.7% as Zimmer Biomet continued investing in its U.S. sales channel.

Operating cash flow totaled $448 million, up 18% from the prior year, while free cash flow rose 24% to $308 million. The company ended the quarter with about $410 million in cash and cash equivalents.

Zimmer Biomet repurchased $500 million of stock in the first half, including $250 million in the second quarter. It now plans to repurchase up to $1 billion of shares during 2026, $250 million above its prior expectation.

Full-Year Outlook Raised Management raised its outlook for 2026 organic constant-currency revenue growth to 2.25% to 3.25%, from prior guidance of 1% to 3%. Reported sales growth is now expected to be 3.9% to 4.9%, compared with the previous 2.5% to 4.5% range.

The company continues to expect foreign exchange to provide an approximately 50-basis-point benefit to full-year sales growth, though it expects currency to be a 50-basis-point headwind in the third quarter. Paragon 28 is expected to contribute 110 basis points to reported sales growth for the year, above the prior expectation of about 100 basis points.

Zimmer Biomet raised adjusted EPS guidance to $8.47 to $8.59, from $8.40 to $8.55. It maintained expectations for gross margin of about 71%, net interest and other non-operating expense of $295 million, an 18% adjusted tax rate and free-cash-flow growth of 9% to 11%.

Sales Transformation and Longer-Term Strategy Tornos said the company’s move toward a dedicated, specialized U.S. sales organization is progressing with less customer disruption and sales-force turnover than initially expected. Zimmer Biomet expects to complete the transformation by the end of 2027. The company has added, or is in the process of adding, 200 technical representatives and has increased investments in retention, compensation and sales-excellence initiatives.

Management also outlined operational initiatives including shifting some research-and-development activity to a global capability center in India, constructing a manufacturing facility in Costa Rica and applying artificial intelligence to operating expenses.

Looking ahead, Tornos said Zimmer Biomet expects to introduce more than 50 products over the next 36 months and plans to continue evaluating acquisitions in higher-growth reconstruction, S.E.T. and adjacent markets. The company aims to reach a weighted average market growth rate of 5% to 6% by the end of the decade.

About Zimmer Biomet (NYSE:ZBH)Zimmer Biomet NYSE: ZBH is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company's product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Zimmer Biomet Holdings, Inc. (ZBH) Q2 2026 Earnings Call Transcript

Zimmer Biomet (ZBH - Free Report) came out with quarterly earnings of $2.07 per share, beating the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $2.07 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.99%. A quarter ago, it was expected that this orthopedic device maker would post earnings of $1.86 per share when it actually produced earnings of $2.09, delivering a surprise of +12.37%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Zimmer, which belongs to the Zacks Medical - Products industry, posted revenues of $2.18 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.25%. This compares to year-ago revenues of $2.08 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Zimmer shares have added about 6.6% since the beginning of the year versus the S&P 500's gain of 13%.

What's Next for Zimmer?While Zimmer has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Zimmer was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.88 on $2.05 billion in revenues for the coming quarter and $8.48 on $8.53 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus 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.

One other stock from the same industry, CeriBell, Inc. (CBLL - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.

This company is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -18.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

CeriBell, Inc.'s revenues are expected to be $27.22 million, up 28.4% from the year-ago quarter.

Second quarter net sales of $2.177 billion increased 4.8% on a reported basis, 4.7% on a constant currency1 basis and 4.0% on an organic constant currency1 basis Second quarter diluted earnings per share were $1.03, an increase of 33.8%; adjusted1 diluted earnings per share were $2.07, consistent with the prior year period Company updates full-year 2026 financial guidance , /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE: ZBH) and (SIX: ZBH) today reported financial results for the quarter ended June 30, 2026.  The Company reported second quarter net sales of $2.177 billion, an increase of 4.8% over the prior year period, an increase of 4.7% on a constant currency1 basis and an increase of 4.0% on an organic constant currency1 basis.  Net earnings for the second quarter were $198.3 million, or $399.6 million on an adjusted1 basis.

Diluted earnings per share were $1.03 for the second quarter, an increase of 33.8%, and adjusted1 diluted earnings per share were $2.07, consistent with the prior year period.  Zimmer Biomet generated $447.9 million in operating cash flow and $308.3 million of free cash flow1 in the second quarter.

1 Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.

"We delivered strong second quarter results with solid top- and bottom-line performance and continued progress on our key growth drivers and commercial transformation," said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet. "With a strong first half, healthy underlying markets, go-to-market changes progressing as planned and continued momentum from our innovation cycle, we are raising our revenue and adjusted EPS guidance for the year. Importantly, we continue to advance our strategic priorities and remain confident our efforts will strengthen our business, build the boldest leader in MedTech, and better position Zimmer Biomet to deliver consistent, durable growth over the long term."

Recent Highlights

Announced increase to share repurchase expectations of up to $1 billion of its common stock during fiscal year 2026. Received U.S. FDA 510(k) clearance and completed first cases of the next generation ROSA® Shoulder System, the first in the industry to support both glenoid and humeral bone preparation for anatomic and reverse techniques. Recognized as "Best Healthcare Robotics Solution" in 2026 MedTech Breakthrough Awards ROSA® Knee with OptimiZe™. Named Chintan Desai president of the company's Asia Pacific Region to replace Sang Yi, who will depart the company on Aug. 28. Named to TIME's 2026 list of America's Best Companies, demonstrating excellence across employee satisfaction, financial results and sustainability transparency. Issued 2025 Sustainability Report, highlighting meaningful progress reducing the company's environmental footprint, strengthening communities and expanding access to care. Zimmer Biomet Institute held its inaugural Sharpening Your Edge immersive, hands-on bioskills training experience, designed to deliver immediate, practice-ready impact to early career surgeons. Geographic and Product Category Sales

The following sales tables provide results by geography and product category for the three and six-month periods ended June 30, 2026, as well as the percentage change compared to the prior year periods, on both a reported basis and a constant currency basis.  Percentage change is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28, Inc. ("Paragon 28").

NET SALES - THREE MONTHS ENDED JUNE 30, 2026

(in millions, unaudited)

Organic

Constant

Constant

Net

Currency

Currency

Sales

% Change

% Change

% Change

Geographic Results

United States

$

1,239.9

5.6

%

5.6

%

4.6

%

International

937.0

3.7

3.5

3.1

Total

$

2,177.0

4.8

%

4.7

%

4.0

%

Product Categories

Knees

United States

$

455.0

1.4

%

1.4

%

1.4

%

International

374.0

(0.9)

(1.5)

(1.5)

Total

828.9

0.4

0.1

0.1

Hips

United States

288.5

5.9

5.9

5.9

International

274.1

4.0

4.2

4.2

Total

562.7

5.0

5.1

5.1

S.E.T. *

586.0

6.4

6.2

3.4

Technology & Data, Bone Cement and Surgical

199.4

21.1

21.5

21.5

Total

$

2,177.0

4.8

%

4.7

%

4.0

%

* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

NET SALES - SIX MONTHS ENDED JUNE 30, 2026

(in millions, unaudited)

Organic

Constant

Constant

Net

Currency

Currency

Sales

% Change

% Change

% Change

Geographic Results

United States

$

2,449.3

7.1

%

7.1

%

3.9

%

International

1,814.4

6.8

3.8

2.8

Total

$

4,263.7

7.0

%

5.7

%

3.4

%

Product Categories

Knees

United States

$

924.1

1.8

%

1.8

%

1.8

%

International

733.4

3.1

(0.2)

(0.2)

Total

1,657.5

2.4

0.9

0.9

Hips

United States

566.1

5.5

5.5

5.5

International

520.7

5.2

2.7

2.7

Total

1,086.8

5.3

4.2

4.2

S.E.T. *

1,148.2

12.5

11.3

2.6

Technology & Data, Bone Cement and Surgical

371.2

18.0

16.8

16.8

Total

$

4,263.7

7.0

%

5.7

%

3.4

%

* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

Amounts reported in millions are computed based on the actual amounts.  As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding.  Percentages presented are calculated from the underlying unrounded amounts.

Financial Guidance

The Company is updating its full-year 2026 financial guidance as follows:

Projected Year Ending December 31, 2026

Previous Guidance

Updated Guidance

2026 Reported Revenue Change

2.5% - 4.5%

3.9% - 4.9%

Foreign Currency Exchange Impact

+0.5 %

+0.5 %

2026 Constant Currency Revenue Change

2.0% - 4.0%

3.4% - 4.4%

2026 Organic Constant Currency Revenue Change(1)

1.0% - 3.0%

2.25% - 3.25%

Adjusted Diluted EPS(2)

$8.40 - $8.55

$8.47 - $8.59

(1)

Excludes the impact of the Paragon 28 acquisition through the one-year anniversary of the acquisition date, which is estimated to be approximately 110bps.

(2)

This measure is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts.  See "Forward-Looking Non-GAAP Financial Measures" below, which identifies the information that is unavailable without unreasonable efforts and provides additional information.  It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.

Conference Call

The Company will conduct its second quarter 2026 investor conference call today, August 5, 2026, at 8:30 a.m. ET.  The audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com.  It will be archived for replay following the conference call. 

About the Company

Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health.  We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. 

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers.  Our legacy continues to come to life today through our progressive culture of evolution and innovation.

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X / Twitter at www.x.com/zimmerbiomet.  

Website Information

We routinely post important information for investors on our website, www.zimmerbiomet.com, in the "Investor Relations" section.  We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.  Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. 

The information contained on, or that may be accessed through, our website or any other website referenced herein is not incorporated by reference into, and is not a part of, this document.

Note on Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today include non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.

Net sales change information for the three and six-month periods ended June 30, 2026 is presented on a GAAP (reported) basis and on a constant currency basis. Net sales change for these periods is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28.  Constant currency percentage changes exclude the effects of foreign currency exchange rates.  They are calculated by translating current and prior-period sales at the same predetermined exchange rate.  The translated results are then used to determine year-over-year percentage increases or decreases.  Projected revenue change information for the year ending December 31, 2026, is also presented on an organic constant currency basis.  In addition to excluding the projected effects of foreign currency exchange rates, projected 2026 organic constant currency revenue change also excludes the impact on net sales from the April 2025 acquisition of Paragon 28 through the one-year anniversary of the acquisition date in April 2026.

Net earnings and diluted earnings per share for the three and six-month periods ended June 30, 2026 and 2025 are presented on a GAAP (reported) basis and on an adjusted basis.  These adjusted financial measures exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in the press release. 

Free cash flow is an additional non-GAAP measure that is presented in this press release.  Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.  This press release also contains supplemental reconciliations of additional non-GAAP financial measures that the Company presents in other contexts.  These additional non-GAAP financial measures are computed from the most directly comparable GAAP financial measure as indicated in the applicable reconciliation.

Management uses non-GAAP financial measures internally to evaluate the performance of the business.  Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company.  Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations.  The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures.  In addition, constant currency revenue change, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs.

Forward-Looking Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today also include certain forward-looking non-GAAP financial measures for the year ending December 31, 2026.  We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures.  For instance, we exclude the impact of restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; and certain legal and tax matters.  We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures (other than projected 2026 organic constant currency revenue change) to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts.  For example, the timing of certain transactions is difficult to predict because management's plans may change.  In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors.  It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding financial guidance, statements regarding macro pressures, including the impact of such pressures on our business, and any statements about our forecasts, expectations, plans, intentions, commitments, strategies or prospects.  All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements.  Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements.  These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; our ability to attract, retain, develop and maintain adequate succession plans for the highly skilled employees, senior management, independent agents and distributors we need to support our business; the transformation of our sales and distribution network in the U.S. and other markets; shifts in the product category or regional sales mix of our products and services; the risks and uncertainties related to our ability to successfully execute our restructuring plans; the risks and uncertainties relating to our ability to successfully execute on our product portfolio rationalization plans; control of costs and expenses; risks related to the ability to realize the anticipated benefits of our acquisitions, including the possibility that the expected benefits from such transactions will not be realized or will not be realized within the expected time period; the risk that acquired businesses will not be integrated successfully; the effects of business disruptions affecting us, our suppliers, customers or payors, either alone or in combination with other risks on our business and operations; the risks and uncertainties related to our ability to successfully integrate the operations, products, service providers, agents, employees, sales representatives and distributors of acquired companies; the effect of the potential disruption of management's attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; unplanned delays, disruptions and expenses attributable to our enterprise resource planning and other system updates; the ability to form and implement alliances; dependence on a limited number of suppliers for key raw materials and other inputs and for outsourced activities; the risk of disruptions in the supply of materials and components used in manufacturing or sterilizing our products; breaches or failures of our (or of our business partners' or other third parties') information technology systems or products, including by cyberattack, unauthorized access or theft; the outcome of government investigations; the impact of healthcare reform and cost containment measures, including efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, through reductions in reimbursement levels, repayment demands and otherwise; the effects of natural disasters, or of legal, regulatory or market measures to address natural disasters; the effects of our commitments, goals and disclosures relating to corporate responsibility matters; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; changes in tax obligations arising from examinations by tax authorities and from changes in tax laws in jurisdictions where we do business, including as a result of the "base erosion and profit shifting" project undertaken by the Organisation for Economic Co-operation and Development and otherwise; challenges to the tax-free nature of the ZimVie Inc. spinoff transaction and the subsequent liquidation of our retained interest in ZimVie Inc.; the risk of additional tax liability due to the recategorization of our independent agents and distributors to employees; changes in tariffs relating to imports to the U.S. and other countries; the risk that material impairment of the carrying value of our intangible assets, including goodwill, could negatively affect our operating results; changes in general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; changes in general industry and market conditions, including domestic and international growth, inflation and currency exchange rates; the domestic and international business impact of political, social and economic instability, tariffs, trade restrictions and embargoes, sanctions, wars, disputes and other conflicts, including on our ability to operate in, export from or collect accounts receivable in affected countries; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the U.S. Food and Drug Administration ("FDA") and other government regulators relating to medical products, healthcare fraud and abuse laws and data privacy and cybersecurity laws; the success of our quality and operational excellence initiatives; the ability to remediate matters identified in inspectional observations issued by the FDA and other regulators, while continuing to satisfy the demand for our products; product liability, intellectual property and commercial litigation losses; and the ability to obtain and maintain adequate intellectual property protection.  A further list and description of these risks and uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and our subsequent filings with the Securities and Exchange Commission (SEC).  Copies of these filings are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC.  Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate.  This cautionary note is applicable to all forward-looking statements contained in this press release.

Note: Amounts reported in millions within this press release are computed based on the actual amounts.  As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding.  Certain columns and rows within tables may not add due to the use of rounded numbers.  Percentages presented are calculated from the underlying unrounded amounts.

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, except per share amounts, unaudited)

2026

2025

Net Sales

$

2,177.0

$

2,077.3

Cost of products sold, excluding intangible asset amortization

635.5

592.2

Intangible asset amortization

163.4

160.6

Research and development

104.8

113.3

Selling, general and administrative

899.3

814.8

Restructuring and other cost reduction initiatives

29.8

17.5

Acquisition, integration, divestiture and related

18.1

78.9

Operating expenses

1,850.9

1,777.3

Operating Profit

326.1

300.0

Other income, net

1.9

3.9

Interest expense, net

(72.9)

(79.3)

Earnings before income taxes

255.1

224.6

Provision for income taxes

55.5

71.2

Net Earnings

199.6

153.4

Less: Net earnings attributable to noncontrolling interest

1.3

0.6

Net Earnings of Zimmer Biomet Holdings, Inc.

$

198.3

$

152.8

Earnings Per Common Share

Basic

$

1.03

$

0.77

Diluted

$

1.03

$

0.77

Weighted Average Common Shares Outstanding

Basic

192.2

197.9

Diluted

192.8

198.3

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, except per share amounts, unaudited)

2026

2025

Net Sales

$

4,263.7

$

3,986.4

Cost of products sold, excluding intangible asset amortization

1,211.6

1,142.0

Intangible asset amortization

325.5

311.6

Research and development

208.2

223.9

Selling, general and administrative

1,749.3

1,573.5

Restructuring and other cost reduction initiatives

36.1

53.5

Acquisition, integration, divestiture and related

33.7

89.5

Operating expenses

3,564.4

3,394.0

Operating Profit

699.2

592.3

Other (expense) income, net

(1.1)

6.9

Interest expense, net

(141.7)

(145.5)

Earnings before income taxes

556.4

453.6

Provision for income taxes

118.5

117.6

Net Earnings

437.9

336.0

Less: Net earnings attributable to noncontrolling interest

1.5

1.1

Net Earnings of Zimmer Biomet Holdings, Inc.

$

436.5

$

334.9

Earnings Per Common Share

Basic

$

2.25

$

1.69

Diluted

$

2.25

$

1.68

Weighted Average Common Shares Outstanding

Basic

193.6

198.4

Diluted

194.3

199.0

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, unaudited)

June 30,

December 31,

2026

2025

Assets

Cash and cash equivalents

$

410.0

$

591.9

Receivables, net

1,769.5

1,704.4

Inventories

2,270.3

2,286.4

Other current assets

646.9

537.3

Total current assets

5,096.7

5,119.9

Property, plant and equipment, net

2,236.8

2,207.1

Goodwill

9,919.5

9,947.1

Intangible assets, net

4,461.6

4,717.3

Other assets

1,083.3

1,100.3

Total Assets

$

22,797.8

$

23,091.7

Liabilities and Stockholders' Equity

Current liabilities

$

1,812.0

$

1,996.6

Current portion of long-term debt

1,201.5

587.1

Other long-term liabilities

874.3

870.2

Long-term debt

6,277.5

6,932.0

Stockholders' equity

12,632.5

12,705.8

Total Liabilities and Stockholders' Equity

$

22,797.8

$

23,091.7

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, unaudited)

2026

2025

Cash flows provided by (used in) operating activities

Net earnings

$

437.9

$

336.0

Depreciation and amortization

540.8

526.2

Share-based compensation

48.8

40.8

Changes in operating assets and liabilities, net of acquired assets and liabilities

Income taxes

(80.1)

(132.0)

Receivables

(24.0)

(18.6)

Inventories

(51.4)

(40.2)

Accounts payable and accrued liabilities

(91.0)

40.4

Other assets and liabilities

26.1

8.3

Net cash provided by operating activities

807.2

761.0

Cash flows provided by (used in) investing activities

Additions to instruments

(162.6)

(140.2)

Additions to other property, plant and equipment

(90.5)

(94.7)

Net investment hedge settlements

10.8

3.5

Business combination investments, net of acquired cash

-

(1,226.3)

Acquisition of intangible assets

(101.2)

(32.4)

Other investing activities

(6.3)

(0.3)

Net cash used in investing activities

(349.8)

(1,490.4)

Cash flows provided by (used in) financing activities

Net proceeds on revolving facilities

30.0

220.0

Proceeds from senior notes

-

1,748.1

Redemption of senior notes

-

(863.0)

Dividends paid to stockholders

(93.4)

(95.3)

Proceeds from employee stock compensation plans

12.4

17.1

Business combination contingent consideration payments

(69.2)

(17.4)

Debt issuance costs

(1.3)

(17.3)

Repurchase of common stock

(500.8)

(237.0)

Other financing activities

(17.9)

(16.1)

Net cash (used in) provided by financing activities

(640.3)

739.2

Effect of exchange rates on cash and cash equivalents

1.1

21.6

Change in cash and cash equivalents

(181.9)

31.4

Cash and cash equivalents, beginning of year

591.9

525.5

Cash and cash equivalents, end of period

$

410.0

$

556.9

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED NET SALES % CHANGE TO

CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE

(unaudited)

For the Three Months Ended

June 30, 2026 vs. 2025

Organic

Foreign

Constant

Paragon

Constant

Exchange

Currency

28

Currency

% Change

Impact

% Change

Impact

% Change

Geographic Results

United States

5.6

%

-

%

5.6

%

1.0

%

4.6

%

International

3.7

0.2

3.5

0.4

3.1

Total

4.8

%

0.1

%

4.7

%

0.7

%

4.0

%

Product Categories

Knees

United States

1.4

%

-

%

1.4

%

-

%

1.4

%

International

(0.9)

0.6

(1.5)

-

(1.5)

Total

0.4

0.3

0.1

-

0.1

Hips

United States

5.9

-

5.9

-

5.9

International

4.0

(0.2)

4.2

-

4.2

Total

5.0

(0.1)

5.1

-

5.1

S.E.T.

6.4

0.2

6.2

2.8

3.4

Technology & Data, Bone Cement and Surgical

21.1

(0.4)

21.5

-

21.5

Total

4.8

%

0.1

%

4.7

%

0.7

%

4.0

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED NET SALES % CHANGE TO

CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE

(unaudited)

For the Six Months Ended

June 30, 2026 vs. 2025

Organic

Foreign

Constant

Paragon

Constant

Exchange

Currency

28

Currency

% Change

Impact

% Change

Impact

% Change

Geographic Results

United States

7.1

%

-

%

7.1

%

3.2

%

3.9

%

International

6.8

3.0

3.8

1.0

2.8

Total

7.0

%

1.3

%

5.7

%

2.3

%

3.4

%

Product Categories

Knees

United States

1.8

%

-

%

1.8

%

-

%

1.8

%

International

3.1

3.3

(0.2)

-

(0.2)

Total

2.4

1.5

0.9

-

0.9

Hips

United States

5.5

-

5.5

-

5.5

International

5.2

2.5

2.7

-

2.7

Total

5.3

1.1

4.2

-

4.2

S.E.T.

12.5

1.2

11.3

8.7

2.6

Technology & Data, Bone Cement and Surgical

18.0

1.2

16.8

-

16.8

Total

7.0

%

1.3

%

5.7

%

2.3

%

3.4

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED TO ADJUSTED RESULTS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, except per share amounts, unaudited)

FOR THE THREE MONTHS ENDED JUNE 30, 2026

Cost of products
sold, excluding
intangible asset
amortization

Intangible asset
amortization

Selling, general
and administrative

Restructuring
and other
cost
reduction
initiatives

Acquisition,
integration,
divestiture
and related

Other
income,
net

Provision
for income
taxes

Net
Earnings of
Zimmer
Biomet
Holdings,
Inc.

Diluted
earnings
per
common
share

As Reported

$

635.5

$

163.4

$

899.3

$

29.8

$

18.1

$

1.9

$

55.5

$

198.3

$

1.03

Inventory and manufacturing-related
charges(1)

(6.0)

-

-

-

-

-

0.3

5.7

0.03

Intangible asset amortization(2)

-

(163.4)

-

-

-

-

33.9

129.5

0.67

Restructuring and other cost
reduction initiatives(3)

-

-

-

(29.8)

-

-

6.4

23.4

0.12

Acquisition, integration, divestiture
and related(4)

-

-

-

-

(18.1)

-

1.7

16.4

0.09

Litigation(5)

-

-

(12.3)

-

-

-

3.1

9.2

0.05

Other charges(6)

-

-

(4.0)

-

-

0.1

1.0

3.1

0.02

Other certain tax adjustments(7)

-

-

-

-

-

-

(14.0)

14.0

0.07

As Adjusted

$

629.5

$

-

$

883.0

$

-

$

-

$

2.0

$

87.9

$

399.6

$

2.07

FOR THE THREE MONTHS ENDED JUNE 30, 2025

Cost of
products
sold,
excluding
intangible
asset
amortization

Intangible
asset
amortization

Research
and
development

Selling,
general and
administrative

Restructuring
and other
cost
reduction
initiatives

Acquisition,
integration,

divestiture
and related

Other
income,
net

Interest
expense,
net

Provision
for
income
taxes

Net
Earnings
of

 Zimmer
Biomet

 Holdings,
Inc.

Diluted
earnings
per
common
share

As Reported

$

592.2

$

160.6

$

113.3

$

814.8

$

17.5

$

78.9

$

3.9

$

(79.3)

$

71.2

$

152.8

$

0.77

Inventory and manufacturing-
related charges(1)

(17.0)

-

-

-

-

-

-

-

4.7

12.3

0.06

Intangible asset amortization(2)

-

(160.6)

-

-

-

-

-

-

32.6

128.0

0.65

Restructuring and other cost
reduction initiatives(3)

-

-

-

-

(17.5)

-

-

-

3.9

13.6

0.07

Acquisition, integration,
divestiture and related(4)

-

-

-

-

-

(78.9)

-

-

13.4

65.5

0.33

European Union Medical
Device Regulation(8)

-

-

(4.3)

-

-

-

-

-

1.0

3.3

0.02

Other charges(6)

-

-

-

(0.3)

-

-

(0.5)

0.8

0.1

0.5

-

Other certain tax
adjustments(7)

-

-

-

-

-

-

-

-

(35.2)

35.2

0.18

As Adjusted

$

575.2

$

-

$

109.0

$

814.5

$

-

$

-

$

3.4

$

(78.5)

$

91.7

$

411.2

$

2.07

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED TO ADJUSTED RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, except per share amounts, unaudited)

FOR THE SIX MONTHS ENDED JUNE 30, 2026

Cost of products
sold, excluding
intangible asset
amortization

Intangible
asset
amortization

Selling, general
and
administrative

Restructuring
and other
cost
reduction
initiatives

Acquisition,
integration,
divestiture
and related

Other
(expense)
income,

net

Provision
for

income
taxes

Net Earnings
of
Zimmer
Biomet
Holdings,
Inc.

Diluted
earnings per
common
share

As Reported

$

1,211.6

$

325.5

$

1,749.3

$

36.1

$

33.7

$

(1.1)

$

118.5

$

436.5

$

2.25

Inventory and manufacturing-related
charges(1)

(19.3)

-

-

-

-

-

3.9

15.4

0.08

Intangible asset amortization(2)

-

(325.5)

-

-

-

-

68.1

257.4

1.32

Restructuring and other cost reduction
initiatives(3)

-

-

-

(36.1)

-

-

7.4

28.7

0.15

Acquisition, integration, divestiture and
related(4)

-

-

-

-

(33.7)

-

3.1

30.6

0.16

Litigation(5)

-

-

(12.3)

-

-

-

3.1

9.2

0.05

Other charges(6)

-

-

(4.1)

-

-

0.9

-

1.2

3.8

0.02

Other certain tax adjustments(7)

-

-

-

-

-

-

(27.5)

27.5

0.14

As Adjusted

$

1,192.4

$

-

$

1,732.9

$

-

$

-

$

(0.2)

$

177.8

$

809.0

$

4.16

FOR THE SIX MONTHS ENDED JUNE 30, 2025

Cost of
products
sold,
excluding
intangible
asset
amortization

Intangible
asset
amortization

Research

and
development

Selling,
general and
administrative

Restructuring
and other

 cost
reduction
initiatives

Acquisition,
integration,
divestiture
and related

Other
(expense)

 income,
net

Interest
expense,
net

Provision
for

income
taxes

Net
Earnings
of
Zimmer

 Biomet

 Holdings,
Inc.

Diluted
earnings
per
common
share

As Reported

$

1,142.0

$

311.6

$

223.9

$

1,573.5

$

53.5

$

89.5

$

6.9

$

(145.5)

$

117.6

$

334.9

$

1.68

Inventory and manufacturing-related charges(1)

(23.2)

-

-

-

-

-

-

-

6.8

16.4

0.08

Intangible asset amortization(2)

-

(311.6)

-

-

-

-

-

-

60.8

250.8

1.26

Restructuring and other cost reduction
initiatives(3)

-

-

-

-

(53.5)

-

-

-

11.1

42.4

0.21

Acquisition, integration, divestiture and
related(4)

-

-

-

-

-

(89.5)

-

-

15.3

74.2

0.37

European Union Medical Device Regulation(8)

-

-

(8.7)

-

-

-

-

-

1.9

6.8

0.04

Other charges(6)

-

-

-

(0.2)

-

-

(0.5)

5.6

2.8

2.5

0.01

Other certain tax adjustments(7)

-

-

-

-

-

-

-

-

(44.3)

44.3

0.22

As Adjusted

$

1,118.8

$

-

$

215.3

$

1,573.4

$

-

$

-

$

6.4

$

(139.9)

$

172.0

$

772.3

$

3.88

(1)

Inventory and manufacturing-related charges include excess and obsolete inventory charges on certain product lines we intend to discontinue by 2032, inventory step-up expense, and other inventory and manufacturing-related charges or gains.  Inventory step-up expense represents the incremental expense of inventory sold recognized at its fair value after business combination accounting is applied versus the expense that would have been recognized if sold at its cost to manufacture.  Since only the inventory that existed at the business combination date was stepped-up to fair value, we believe excluding the incremental expense provides investors useful information as to what our costs may have been if we had not been required to increase the inventory's book value to fair value.  The excess and obsolete inventory impacts to product lines we intend to discontinue were income of $3.9 million and expense of $3.0 million in the three-month periods ended June 30, 2026 and 2025, respectively, and were income of $2.6 million and expense of $5.6 million in the six-month periods ended June 30, 2026 and 2025, respectively.  Inventory step-up expense was $12.0 million and $7.9 million in the three-month periods ended June 30, 2026 and 2025, respectively, and were $24.0 million and $7.9 million in the six-month periods ended June 30, 2026 and 2025, respectively.   

(2)

We exclude intangible asset amortization as well as deferred tax rate changes on our intangible assets from our non-GAAP financial measures because we internally assess our performance against our peers without this amortization.  Due to various levels of acquisitions among our peers, intangible asset amortization can vary significantly from company to company.

(3)

In December 2019, 2021 and 2023, and in February and December 2025, we initiated global restructuring programs that included a reorganization of key businesses and an overall effort to reduce costs in order to accelerate decision-making, focus the organization on priorities to drive growth and, in the case of the December 2021 program, to prepare for the spinoff of ZimVie Inc. ("ZimVie").  Restructuring and other cost reduction initiatives also include other cost reduction and optimization initiatives that have the goal of reducing costs across the organization.  The costs include employee termination benefits; contract terminations for facilities and sales agents; and other charges, such as consulting fees, project management expenses, retention period salaries and benefits and relocation costs. 

(4)

The acquisition, integration, divestiture and related gains and expenses we have excluded from our non-GAAP financial measures resulted from various acquisitions, post-separation costs we have incurred related to ZimVie and gains related to a transition services agreement for services we provided to ZimVie and a transition manufacturing and supply agreement for products we supplied to ZimVie for a limited period.  The expenses in each of the three and six-month periods ended June 30, 2025, include $43.4 million of compensation expense related to the discretionary accelerated vesting of Paragon 28 unvested restricted stock units as agreed upon as part of the merger agreement.  In the three-month periods ended June 30, 2026 and 2025, this line item includes expense of $11.1 million and income of $9.4 million, respectively, related to changes in the estimated fair values of contingent consideration due to updated forecasts of net sales from certain acquisitions.  In the six-month periods ended June 30, 2026 and 2025, this line item includes expense of $19.2 million and income of $7.7 million, respectively, related to changes in estimated fair values of contingent consideration.   

(5)

We are involved in patent litigation, product liability litigation, commercial litigation and other various litigation matters.  We review litigation matters from both a qualitative and quantitative perspective to determine if excluding the losses or gains will provide our investors with useful incremental information.  Litigation matters can vary in their characteristics, frequency and significance to our operating results.  The litigation charges and gains excluded from our non-GAAP financial measures in the periods presented relate to certain product liability litigation and claims across multiple districts and countries.  Once a litigation matter has been excluded from our non-GAAP financial measures in a particular period, any additional expenses or gains from changes in estimates are also excluded, even if they are not significant, to ensure consistency in our non-GAAP financial measures from period-to-period.

(6)

We have incurred other various expenses from specific events or projects that we consider highly variable or that have a significant impact to our operating results that we have excluded from our non-GAAP measures.  These include gains and losses from changes in fair value on our equity investments and impairment of instruments related to certain product lines we intend to discontinue, among other various costs.  In addition, in February 2025 we issued senior notes in order to have the necessary cash-on-hand to acquire Paragon 28 once regulatory approval was received.  We have excluded from our non-GAAP financial measures the interest on this debt related to the principal amount of the estimated purchase price and acquisition-related costs up through the acquisition date.  Interest expense subsequent to the acquisition date has not been excluded. 

(7)

Other certain tax adjustments are primarily related to significant and discrete tax adjustments. The primary adjustments include benefits of $13.1 million and $8.2 million in the three-month periods ended June 30, 2026, and 2025, respectively, and benefits of $25.2 million and $16.7 million in the six-month periods ended June 30, 2026, and 2025, respectively, related to Swiss tax reform; and benefits of $26.8 million in each of the three and six-month periods ended June 30, 2025, related to certain unremitted foreign earnings (no impact on 2026 periods).

(8)

The European Union Medical Device Regulation imposes significant additional premarket and postmarket requirements.  The new regulations provided a transition period until May 2021 for previously-approved medical devices to meet the additional requirements.  For certain devices, this transition period was extended until May 2024.  A conditional extension of the transition period has been implemented until December 2027 and 2028 depending on the legacy medical device's risk class.  We are excluding from our non-GAAP financial measures the incremental costs incurred to establish initial compliance with the regulations related to our previously-approved medical devices.  The incremental costs primarily relate to temporary personnel and third-party professionals necessary to supplement our internal resources.  Starting January 1, 2026, we do not expect to incur any significant incremental costs related to these new regulations.

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING

ACTIVITIES TO FREE CASH FLOW

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net cash provided by operating activities

$

447.9

$

378.2

$

807.2

$

761.0

Additions to instruments

(85.4)

(80.5)

(162.6)

(140.2)

Additions to other property, plant and equipment

(54.2)

(50.0)

(90.5)

(94.7)

Free cash flow

$

308.3

$

247.7

$

554.1

$

526.1

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF GROSS PROFIT & MARGIN

TO ADJUSTED GROSS PROFIT & MARGIN

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net Sales

$

2,177.0

$

2,077.3

$

4,263.7

$

3,986.4

Cost of products sold, excluding intangible asset amortization

635.5

592.2

1,211.6

1,142.0

Intangible asset amortization

163.4

160.6

325.5

311.6

Gross Profit

$

1,378.1

$

1,324.5

$

2,726.6

$

2,532.8

Inventory and manufacturing-related charges

6.0

17.0

19.3

23.2

Intangible asset amortization

163.4

160.6

325.5

311.6

Adjusted gross profit

$

1,547.5

$

1,502.1

$

3,071.4

$

2,867.6

Gross margin

63.3

%

63.8

%

63.9

%

63.5

%

Inventory and manufacturing-related charges

0.3

0.8

0.5

0.6

Intangible asset amortization

7.5

7.7

7.6

7.8

Adjusted gross margin

71.1

%

72.3

%

72.0

%

71.9

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF OPERATING PROFIT & MARGIN TO ADJUSTED OPERATING PROFIT & MARGIN

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Operating profit

$

326.1

$

300.0

$

699.2

$

592.3

Inventory and manufacturing-related charges

6.0

17.0

19.3

23.2

Intangible asset amortization

163.4

160.6

325.5

311.6

Restructuring and other cost reduction initiatives

29.8

17.5

36.1

53.5

Acquisition, integration, divestiture and related

18.1

78.9

33.7

89.5

Litigation

12.3

-

12.3

-

European Union Medical Device Regulation

-

4.3

-

8.7

Other charges

4.0

0.3

4.1

0.2

Adjusted operating profit

$

559.7

$

578.5

$

1,130.2

$

1,079.0

Operating profit margin

15.0

%

14.4

%

16.4

%

14.9

%

Inventory and manufacturing-related charges

0.3

0.8

0.5

0.6

Intangible asset amortization

7.5

7.7

7.6

7.8

Restructuring and other cost reduction initiatives

1.4

0.8

0.8

1.3

Acquisition, integration, divestiture and related

0.8

3.8

0.8

2.2

Litigation

0.6

-

0.3

-

European Union Medical Device Regulation

-

0.2

-

0.2

Other charges

0.2

-

0.1

-

Adjusted operating profit margin

25.7

%

27.8

%

26.5

%

27.1

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Effective tax rate

21.8

%

31.7

%

21.3

%

25.9

%

Tax effect of adjustments made to earnings before taxes(1)

1.6

2.2

1.6

2.1

Other certain tax adjustments(2)

(5.4)

(15.7)

(4.9)

(9.8)

Adjusted effective tax rate

18.0

%

18.2

%

18.0

%

18.2

%

(1) Includes inventory and manufacturing-related charges; intangible asset amortization; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; litigation; European Union Medical Device Regulation; and other charges

(2) Other certain tax adjustments are primarily related to significant and discrete tax adjustments. The primary adjustments include benefits of $13.1 million and $8.2 million in the three-month periods ended June 30, 2026, and 2025, respectively, and benefits of $25.2 million and $16.7 million in the six-month periods ended June 30, 2026, and 2025, respectively, related to Swiss tax reform; and benefits of $26.8 million in each of the three and six-month periods ended June 30, 2025, related to certain unremitted foreign earnings (no impact on 2026 periods).

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF DEBT TO NET DEBT

AS OF JUNE 30, 2026 and DECEMBER 31, 2025

(in millions, unaudited)

June 30, 2026

December 31, 2025

Debt, both current and long-term

$

7,479.0

$

7,519.1

Cash and cash equivalents

(410.0)

(591.9)

Net debt

$

7,069.0

$

6,927.2

Media

Investors

Troy Kirkpatrick

David DeMartino

614-284-1926

646-531-6115

[email protected]

[email protected]

Kirsten Fallon

Zach Weiner

781-779-5561

908-591-6955

[email protected]

[email protected]

SOURCE Zimmer Biomet Holdings, Inc.

Key Takeaways Zimmer Biomet is expected to report Q2 revenues of $2.13 billion, up 2.5% year over year.ZBH may see growth from knees, hips, S.E.T. and robotics despite some portfolio and trauma headwinds.Zimmer Biomet has topped EPS estimates in the past four quarters, but its Earnings ESP is 0.00%. Zimmer Biomet (ZBH - Free Report) is set to release second-quarter 2026 results on Aug. 5, before the market opens.

In the last reported quarter, the renowned musculoskeletal healthcare company posted adjusted earnings per share (EPS) of $2.09, beating the Zacks Consensus Estimate by 12.37%. Zimmer Biomet topped earnings estimates in each of the past four quarters, delivering an average surprise of 4.92%.

Q2 Estimates for ZBHThe Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $2.13 billion, indicating a 2.5% increase from the year-ago reported figure.

The consensus estimate for second-quarter earnings stands at $2.01 per share, suggesting a 2.9% decline year over year. The estimate has remained unchanged over the past 60 days.

Here’s a quick look at the company’s performance leading up to the announcement.

What to Expect From Zimmer Biomet's Q2 Results?Within the Knees segment, the U.S. knee franchise is likely to have continued to benefit from strong demand for the Oxford Partial Cementless Knee, which remains the only partial cementless knee on the market. As part of its brand rationalization strategy, Zimmer Biomet had been phasing out its legacy total knee implants such as NexGen and Vanguard, which may have limited the overall growth.

The Zacks Consensus Estimate anticipates total Knees revenues will improve 1.9% year over year.

Within the Hips segment, the U.S. hip franchise is likely to have continued to benefit from the growing traction of Zimmer Biomet’s triple-play of the Z1 Femoral Hip Stem, the OrthoGrid AI-based hip navigation platform and the HAMMR surgical impactor. International results are expected to have benefited from the continued early adoption of the company’s pioneering iodine-coated hip implant in Japan, its second-largest market. The implant is designed to help reduce the risk of periprosthetic joint infection following total joint replacement.

The Zacks Consensus Estimate expects total Hips revenues to grow 1.7% year over year.

In the second quarter, the S.E.T (Sports Medicine, Upper Extremities, Foot and Ankle; Trauma, Craniomaxillofacial and Thoracic)segment’s performance is expected to have been led by the U.S. Craniomaxillofacial and Thoracic (“CMFT”) and Upper Extremities businesses. U.S. CMFT growth likely continued to be driven by the external closure franchise, which has been performing above the market over the past few quarters. Meanwhile, continued upside momentum in the OsseoFit Stemless Shoulder and the Identity Total Shoulder platform may have favored U.S. Upper Extremities results.

The Paragon 28 acquisition also may have supported S.E.T. results. The deal, completed in 2025, strengthened Zimmer Biomet’s foothold in the foot and ankle segment, one of the highest growth specialties in musculoskeletal care. Paragon 28’s first-quarter growth accelerated around 200 basis points sequentially, trending back toward double-digit growth performance. We expect the positive momentum to have continued in the second quarter,

However, continued challenges in restorative therapies and in the trauma business may have limited the overall growth.

The Zacks Consensus Estimate indicates total S.E.T revenues will grow 4.5% year over year.

In the Technology & Data, Bone Cement and Surgical segment, Zimmer Biomet is delivering strong returns from its strategy of offering a comprehensive suite of technology solutions. Performance in the second quarter is expected to have been driven by strength in the flagship ROSA Robotics portfolio and the TMINI Miniature Robotic System.

The Zacks Consensus Estimate expects revenues to improve 5.7% year over year.

What Our Model Unveils for ZBHPer our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see below.

Earnings ESP: Zimmer Biomet 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 #5 (Strong Sell).

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

Key MedTech PicksHere 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 expects the company’s second-quarter EPS to increase 3.3% from the year-ago quarter’s figure.

Labcorp (LH - Free Report) has an Earnings ESP of +0.71% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on July 30.

LH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for a rise of 10.1% 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 anticipates the company’s third-quarter EPS will increase 9.3% from the year-ago quarter’s figure.

Posted by Defense World Staff on Jul 26th, 2026

ABN Amro Investment Solutions lessened its position in shares of Zimmer Biomet Holdings, Inc. (NYSE:ZBH – Free Report) by 66.7% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,748 shares of the medical equipment provider’s stock after selling 15,516 shares during the quarter. ABN Amro Investment Solutions’ holdings in Zimmer Biomet were worth $701,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Oslo Pensjonsforsikring AS purchased a new stake in Zimmer Biomet during the first quarter valued at approximately $184,000. Glenview Trust Co boosted its holdings in shares of Zimmer Biomet by 23.8% in the 1st quarter. Glenview Trust Co now owns 4,894 shares of the medical equipment provider’s stock worth $443,000 after purchasing an additional 941 shares during the period. Cassaday & Co Wealth Management LLC purchased a new position in shares of Zimmer Biomet in the 1st quarter worth approximately $44,000. Dimensional Fund Advisors LP increased its position in shares of Zimmer Biomet by 1.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,224,163 shares of the medical equipment provider’s stock valued at $201,082,000 after purchasing an additional 24,208 shares during the last quarter. Finally, Sound Shore Management Inc. CT increased its position in shares of Zimmer Biomet by 23.7% during the 1st quarter. Sound Shore Management Inc. CT now owns 1,052,202 shares of the medical equipment provider’s stock valued at $95,140,000 after purchasing an additional 201,445 shares during the last quarter. 88.89% of the stock is owned by hedge funds and other institutional investors.

Zimmer Biomet Stock Performance ZBH stock opened at $91.35 on Friday. Zimmer Biomet Holdings, Inc. has a twelve month low of $79.12 and a twelve month high of $108.29. The firm has a market cap of $17.67 billion, a price-to-earnings ratio of 23.73, a PEG ratio of 2.69 and a beta of 0.46. The business’s fifty day simple moving average is $87.90 and its two-hundred day simple moving average is $89.81. The company has a quick ratio of 0.95, a current ratio of 1.73 and a debt-to-equity ratio of 0.50.

Zimmer Biomet (NYSE:ZBH – Get Free Report) last issued its earnings results on Tuesday, April 28th. The medical equipment provider reported $2.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.86 by $0.23. Zimmer Biomet had a net margin of 9.05% and a return on equity of 13.24%. The firm had revenue of $2.09 billion during the quarter, compared to analyst estimates of $2.07 billion. During the same period in the previous year, the firm earned $1.81 earnings per share. The business’s revenue was up 9.3% on a year-over-year basis. Zimmer Biomet has set its FY 2026 guidance at 8.400-8.550 EPS. Analysts predict that Zimmer Biomet Holdings, Inc. will post 8.48 earnings per share for the current year.

Zimmer Biomet Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, June 25th will be given a dividend of $0.24 per share. The ex-dividend date of this dividend is Thursday, June 25th. This represents a $0.96 dividend on an annualized basis and a yield of 1.1%. Zimmer Biomet’s payout ratio is 24.94%.

Analyst Upgrades and Downgrades ZBH has been the subject of a number of analyst reports. Citigroup lowered their price target on Zimmer Biomet from $95.00 to $93.00 and set a “neutral” rating for the company in a research report on Thursday, May 28th. Robert W. Baird set a $92.00 price objective on shares of Zimmer Biomet in a research report on Wednesday, April 29th. Truist Financial reissued a “hold” rating and issued a $92.00 target price (down from $98.00) on shares of Zimmer Biomet in a research note on Wednesday, April 29th. Wells Fargo & Company lowered their target price on shares of Zimmer Biomet from $98.00 to $90.00 and set an “equal weight” rating for the company in a report on Wednesday, April 29th. Finally, Citizens Jmp dropped their price target on shares of Zimmer Biomet from $120.00 to $105.00 and set a “market outperform” rating for the company in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, Zimmer Biomet currently has an average rating of “Hold” and an average target price of $100.70.

Read Our Latest Research Report on Zimmer Biomet

Insiders Place Their Bets In other Zimmer Biomet news, insider Sang Yi sold 5,000 shares of the company’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $82.64, for a total value of $413,200.00. Following the completion of the sale, the insider directly owned 27,251 shares in the company, valued at approximately $2,252,022.64. This represents a 15.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.28% of the stock is currently owned by company insiders.

Zimmer Biomet Profile (Free Report)

Zimmer Biomet (NYSE: ZBH) is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company’s product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.

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Posted by Defense World Staff on Jul 21st, 2026

D.A. Davidson & CO. boosted its stake in Zimmer Biomet Holdings, Inc. (NYSE:ZBH – Free Report) by 170.3% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 29,520 shares of the medical equipment provider’s stock after acquiring an additional 18,597 shares during the quarter. D.A. Davidson & CO.’s holdings in Zimmer Biomet were worth $2,669,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. DV Equities LLC acquired a new position in shares of Zimmer Biomet during the fourth quarter worth about $25,000. Monetary Solutions Ltd acquired a new position in Zimmer Biomet during the 4th quarter worth approximately $30,000. Gen Wealth Partners Inc acquired a new position in Zimmer Biomet during the 4th quarter worth approximately $31,000. Flagship Harbor Advisors LLC bought a new position in shares of Zimmer Biomet during the 4th quarter worth approximately $32,000. Finally, Grove Bank & Trust raised its holdings in shares of Zimmer Biomet by 431.6% in the fourth quarter. Grove Bank & Trust now owns 404 shares of the medical equipment provider’s stock valued at $36,000 after purchasing an additional 328 shares during the last quarter. Institutional investors and hedge funds own 88.89% of the company’s stock.

Zimmer Biomet Stock Down 1.6% Shares of ZBH stock opened at $89.69 on Tuesday. Zimmer Biomet Holdings, Inc. has a 52-week low of $79.12 and a 52-week high of $108.29. The stock has a market cap of $17.35 billion, a price-to-earnings ratio of 23.30, a PEG ratio of 2.68 and a beta of 0.46. The firm’s 50-day moving average is $87.37 and its 200-day moving average is $89.82. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.95 and a current ratio of 1.73.

Zimmer Biomet (NYSE:ZBH – Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The medical equipment provider reported $2.09 EPS for the quarter, topping analysts’ consensus estimates of $1.86 by $0.23. The business had revenue of $2.09 billion during the quarter, compared to analysts’ expectations of $2.07 billion. Zimmer Biomet had a return on equity of 13.24% and a net margin of 9.05%.Zimmer Biomet’s quarterly revenue was up 9.3% on a year-over-year basis. During the same quarter last year, the company posted $1.81 earnings per share. Zimmer Biomet has set its FY 2026 guidance at 8.400-8.550 EPS. Sell-side analysts predict that Zimmer Biomet Holdings, Inc. will post 8.48 EPS for the current year.

Zimmer Biomet Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, June 25th will be paid a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, June 25th. Zimmer Biomet’s payout ratio is currently 24.94%.

Insider Buying and Selling at Zimmer Biomet In related news, insider Sang Yi sold 5,000 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $82.64, for a total transaction of $413,200.00. Following the transaction, the insider directly owned 27,251 shares of the company’s stock, valued at approximately $2,252,022.64. The trade was a 15.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.28% of the company’s stock.

Wall Street Analyst Weigh In A number of analysts have recently commented on the stock. Wells Fargo & Company cut their price objective on shares of Zimmer Biomet from $98.00 to $90.00 and set an “equal weight” rating on the stock in a research report on Wednesday, April 29th. Citigroup decreased their target price on shares of Zimmer Biomet from $95.00 to $93.00 and set a “neutral” rating for the company in a research report on Thursday, May 28th. Canaccord Genuity Group set a $83.00 price target on shares of Zimmer Biomet in a research report on Wednesday, April 29th. Stifel Nicolaus reduced their price objective on shares of Zimmer Biomet from $110.00 to $105.00 and set a “buy” rating for the company in a research note on Wednesday, April 29th. Finally, Barclays decreased their price objective on Zimmer Biomet from $100.00 to $94.00 and set an “underweight” rating for the company in a report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $100.70.

View Our Latest Report on ZBH

Zimmer Biomet Profile (Free Report)

Zimmer Biomet (NYSE: ZBH) is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company’s product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.

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, /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced its second quarter earnings conference call will be webcast on Wednesday, August 5, 2026 at 8:30 a.m. ET. A news release detailing the quarterly results will be made available that day at 6:30 a.m. ET.

A live audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the conference call.

Individuals in the U.S. and Canada who wish to dial into the conference call may do so by dialing (800) 330-6710 and using conference ID 7090861. International callers should dial +1 (213) 279-1505 and use conference ID 7090861.

About Zimmer Biomet
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation. 

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.

SOURCE Zimmer Biomet Holdings, Inc.

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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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

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Stock to Watch: Zimmer Biomet (ZBH - Free Report) Headquartered in Warsaw, IN, Zimmer Biomet Holdings, Inc. is a leading musculoskeletal healthcare company that designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products. With operations in over 25 countries, Zimmer markets products in more than 100 countries.

ZBH is a #3 (Hold) 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 9.93; 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 $0.01 to $8.48 per share. ZBH also boasts an average earnings surprise of +4.9%.

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

Key Takeaways Pacira will divest iovera to Zimmer Biomet for up to $140M, with closing expected in Q3 2026.PCRX to receive $70M upfront plus up to $70M in potential milestones and plans to reduce debt with the cash. Zimmer Biomet gains iovera rights and will collaborate with PCRX on the registrational spasticity program. Pacira BioSciences (PCRX - Free Report) is reshaping its business through an agreement to divest its iovera medical device franchise to Zimmer Biomet (ZBH - Free Report) for up to $140 million. The deal marks another step in Pacira's strategy to transition toward an innovative biopharmaceutical company while allowing Zimmer Biomet to expand its portfolio of pain management technologies. The closing of the transaction is expected in the third quarter of 2026, subject to customary closing conditions.

The iovera system is an FDA-cleared, drug-free cryoneurolysis device that uses controlled cold therapy to temporarily interrupt peripheral nerve signaling and relieve pain. It is approved for destroying tissue during surgical procedures and creating lesions in peripheral nervous tissue to block pain. It is also indicated for relieving pain and symptoms associated with knee osteoarthritis (OA) for up to 90 days, with some patients experiencing longer-lasting benefits.

The system can also assist with nerve targeting when used with compatible stimulation components. Clinical studies have shown that patients treated with iovera after total knee replacement surgery experienced improved knee symptoms and function, lower pain intensity and a 45% reduction in opioid use during the 12 weeks following surgery.

More on PCRX's iovera Divestiture Deal With ZBHUnder the agreement, Pacira will receive up to $140 million from Zimmer Biomet, consisting of $70 million in upfront cash and potential milestone payments tied to future revenues totaling up to an additional $70 million through Dec. 31, 2031. ZBH will acquire all rights related to the development, manufacturing and commercialization of the iovera platform. Pacira expects to use the upfront proceeds to strengthen its balance sheet, including reducing borrowings under its senior secured revolving credit facility.

The companies will also collaborate on advancing the iovera spasticity program. Pacira could earn incremental compensation if the program successfully completes its registrational study and secures regulatory approval. To facilitate the transfer of the business, the companies plan to establish a customary transition services agreement upon the potential closing of the deal.

Year to date, PCRX shares have lost 2% compared to the industry’s 6.3% growth.

Image Source: Zacks Investment Research

The divestiture aligns with Pacira's broader strategy of sharpening its focus on innovative biopharmaceutical products while monetizing a non-core medical device asset. The cash infusion is expected to enhance financial flexibility, support debt reduction and allow greater emphasis on its long-term growth priorities.

For Zimmer Biomet, the acquisition expands its portfolio with an established, FDA-cleared pain management technology that complements its orthopedic franchise. The company is also expected to leverage its global commercial infrastructure and medical device expertise to broaden adoption of iovera, while the continued collaboration on the spasticity program provides both companies with an opportunity to create additional long-term value.

PCRX’s Other Marketed ProductsApart from the iovera system, Pacira’s marketed product portfolio comprises two drugs — Exparel and Zilretta.

Exparel is PCRX’s flagship pain-management product, initially launched in 2012. It is a long-acting local analgesic currently approved for infiltration, fascial plane block, and as an interscalene brachial plexus nerve block, an adductor canal nerve block and a sciatic nerve block in the popliteal fossa for postsurgical pain management.

Zilretta, on the other hand, is approved as an extended-release intra-articular injection for providing relief to OA patients with knee pain.

Pacira is also currently looking to expand Zilretta’s indication to include treatment for OA pain in the shoulder. Enrollment in the phase III registrational study of Zilretta for this indication has been completed, with top-line results expected later this year. Based on the success of the study, the company plans to seek label expansion of the drug for OA pain in the shoulder.

Beyond its marketed products, PCRX is developing a pipeline of clinical-stage therapies for musculoskeletal pain and related indications. Its most advanced candidate, PCRX-201 (enekinragene inzadenovec), is a novel locally administered gene therapy being evaluated in a phase II study for knee OA.

PCRX’s Zacks Rank & Other Stocks to ConsiderPacira currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the biotech sector are Liquidia Corporation (LQDA - Free Report) and Immunocore (IMCR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Liquidia’s 2026 EPS have increased from $1.75 to $3.02. Over the same period, EPS estimates for 2027 have also risen from $2.91 to $4.92. LQDA shares have surged 131.1% year to date.

Liquidia’searnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.

The estimate for Immunocore’s 2026 EPS is currently pegged at 6 cents, while the same for its 2027 EPS is currently pegged at 87 cents. IMCR shares have lost 8.5% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, with the average surprise being 46.66%.

Zimmer Biomet Holdings trades at a steep valuation discount despite strong free cash flow and high margins. ZBH's entrenched position in orthopedic implants, robust cash generation, and loyal installed base underpin reliable earnings. Recent results show net sales up 9.3%, adjusted EPS up 15.5%, and adjusted gross margin rising to 73.0%.

First quarter net sales of $2.087 billion increased 9.3% on a reported basis, 6.8% on a constant currency1 basis and 2.9% on an organic constant currency1 basis First quarter diluted earnings per share were $1.22, an increase of 34.1%; adjusted1 diluted earnings per share were $2.09, an increase of 15.5% Company updates full-year 2026 financial guidance , /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter ended March 31, 2026.  The Company reported first quarter net sales of $2.087 billion, an increase of 9.3% over the prior year period, an increase of 6.8% on a constant currency1 basis and an increase of 2.9% on an organic constant currency1 basis.  Net earnings for the first quarter were $238.1 million, or $409.4 million on an adjusted1 basis.

Diluted earnings per share were $1.22 for the first quarter, an increase of 34.1%, and adjusted1 diluted earnings per share were $2.09, an increase of 15.5%.  Zimmer Biomet generated $359.4 million in operating cash flow and $245.9 million of free cash flow in the first quarter.

"We are off to a solid start to the year — strategically, operationally and financially," said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet. "Our first quarter results reflect healthy end markets, continued momentum from our recently launched products and disciplined execution across the business. Given our progress and with our go-to-market transformation proceeding as planned, we are raising our adjusted EPS guidance and free cash flow expectations for the year. We remain confident that our strategy will position Zimmer Biomet for consistent, durable growth over the longer term."

1 Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.

Recent Highlights

Completed $250 million of share repurchases during the first quarter of fiscal 2026. Named Dr. Jonathan M. Vigdorchik as Chief Science, Technology and Medical Affairs Officer to oversee the strategy, delivery and management of the company's global end-to-end technology portfolio, including AI, robotics, smart implants and data. Completed enrollment in the multi-center clinical study in India of mBôs, a first-of-its-kind, surgeon-guided, autonomous robotic total knee arthroplasty system acquired from Monogram Technologies. This marks a key development milestone and helps ensure future regulatory and commercialization pathways remain on track. First case completed using the G7®TM Acetabular System, a next-generation implant engineered to address challenging primary and revision hip replacement surgeries, following U.S. Food and Drug Administration (FDA) 510(k) clearance in February 2026. Released new data and showcased a broad portfolio of innovations at the 2026 American Academy of Orthopaedic Surgeons (AAOS) annual meeting, including the full commercial launch of ROSA® Knee with OptimiZe. Named to FORTUNE's 2026 list of America's Most Innovative Companies and to Ethisphere's list of the World's Most Ethical Companies for the second straight year. Launched Phantom® Curved TTC Nail System, a next-generation solution from Paragon 28 subsidiary to support hindfoot fusion procedures. Geographic and Product Category Sales
The following sales table provides results by geography and product category for the three-month period ended March 31, 2026, as well as the percentage change compared to the prior year period, on both a reported basis and a constant currency basis.  Percentage change is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28, Inc. ("Paragon 28").

NET SALES - THREE MONTHS ENDED MARCH 31, 2026

(in millions, unaudited)

Organic

Constant

Constant

Net

Currency

Currency

Sales

% Change

% Change

% Change

Geographic Results

United States

$

1,209.4

8.6

%

8.6

%

3.2

%

International

877.4

10.3

4.2

2.5

Total

$

2,086.7

9.3

%

6.8

%

2.9

%

Product Categories

Knees

United States

$

469.2

2.2

%

2.2

%

2.2

%

International

359.4

7.6

1.3

1.3

Total

828.6

4.5

1.8

1.8

Hips

United States

277.5

5.0

5.0

5.0

International

246.6

6.5

1.0

1.0

Total

524.1

5.7

3.2

3.2

S.E.T. *

562.2

19.5

17.4

1.6

Technology & Data, Bone Cement and Surgical

171.8

14.6

11.7

11.7

Total

$

2,086.7

9.3

%

6.8

%

2.9

%

* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

Amounts reported in millions are computed based on the actual amounts.  As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding.  Percentages presented are calculated from the underlying unrounded amounts.

Financial Guidance

The Company is updating its full-year 2026 financial guidance as follows:

Projected Year Ending December 31, 2026

Previous Guidance

Updated Guidance

2026 Reported Revenue Change

2.5% - 4.5%

2.5% - 4.5%

Foreign Currency Exchange Impact

+0.5 %

+0.5 %

2026 Constant Currency Revenue Change

2.0% - 4.0%

2.0% - 4.0%

2026 Organic Constant Currency Revenue Change(1)

1.0% - 3.0%

1.0% - 3.0%

Adjusted Diluted EPS(2)

$8.30 - $8.45

$8.40 - $8.55

(1)

Excludes the projected impact of the Paragon 28 acquisition through the one-year anniversary of the acquisition date, which is estimated to be approximately 100bps.

(2)

This measure is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts.  See "Forward-Looking Non-GAAP Financial Measures" below, which identifies the information that is unavailable without unreasonable efforts and provides additional information.  It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.

Conference Call

The Company will conduct its first quarter 2026 investor conference call today, April 28, 2026, at 8:30 a.m. ET.  The audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com.  It will be archived for replay following the conference call. 

About the Company

Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health.  We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. 

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers.  Our legacy continues to come to life today through our progressive culture of evolution and innovation.

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X / Twitter at www.x.com/zimmerbiomet.  

Website Information

We routinely post important information for investors on our website, www.zimmerbiomet.com, in the "Investor Relations" section.  We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.  Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. 

The information contained on, or that may be accessed through, our website or any other website referenced herein is not incorporated by reference into, and is not a part of, this document.

Note on Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today include non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.

Net sales change information for the three-month period ended March 31, 2026 is presented on a GAAP (reported) basis and on a constant currency basis. Net sales change for this period is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28.  Constant currency percentage changes exclude the effects of foreign currency exchange rates.  They are calculated by translating current and prior-period sales at the same predetermined exchange rate.  The translated results are then used to determine year-over-year percentage increases or decreases.  Projected revenue change information for the year ending December 31, 2026, is also presented on an organic constant currency basis.  In addition to excluding the projected effects of foreign currency exchange rates, projected 2026 organic constant currency revenue change also excludes the projected impact on net sales from the April 2025 acquisition of Paragon 28 through the one-year anniversary of the acquisition date in April 2026.

Net earnings and diluted earnings per share for the three-month periods ended March 31, 2026 and 2025 are presented on a GAAP (reported) basis and on an adjusted basis.  These adjusted financial measures exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in the press release. 

Free cash flow is an additional non-GAAP measure that is presented in this press release.  Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.  This press release also contains supplemental reconciliations of additional non-GAAP financial measures that the Company presents in other contexts.  These additional non-GAAP financial measures are computed from the most directly comparable GAAP financial measure as indicated in the applicable reconciliation.

Management uses non-GAAP financial measures internally to evaluate the performance of the business.  Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company.  Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations.  The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures.  In addition, constant currency revenue change, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs.

Forward-Looking Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today also include certain forward-looking non-GAAP financial measures for the year ending December 31, 2026.  We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures.  For instance, we exclude the impact of restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; and certain legal and tax matters.  We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures (other than projected 2026 organic constant currency revenue change) to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts.  For example, the timing of certain transactions is difficult to predict because management's plans may change.  In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors.  It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding financial guidance, statements regarding macro pressures, including the impact of such pressures on our business, and any statements about our forecasts, expectations, plans, intentions, commitments, strategies or prospects.  All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements.  Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements.  These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; our ability to attract, retain, develop and maintain adequate succession plans for the highly skilled employees, senior management, independent agents and distributors we need to support our business; the transformation of our sales and distribution network in the U.S. and other markets; challenges relating to the rationalization of our products; shifts in the product category or regional sales mix of our products and services; the risks and uncertainties related to our ability to successfully execute our restructuring plans; the risks and uncertainties relating to our ability to successfully execute on our product portfolio rationalization plans; control of costs and expenses; risks related to the ability to realize the anticipated benefits of our acquisitions, including the possibility that the expected benefits from such transactions will not be realized or will not be realized within the expected time period; the risk that acquired businesses will not be integrated successfully; the effects of business disruptions affecting us, our suppliers, customers or payors, either alone or in combination with other risks on our business and operations; the risks and uncertainties related to our ability to successfully integrate the operations, products, service providers, agents, employees, sales representatives and distributors of acquired companies; the effect of the potential disruption of management's attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; unplanned delays, disruptions and expenses attributable to our enterprise resource planning and other system updates; the ability to form and implement alliances; dependence on a limited number of suppliers for key raw materials and other inputs and for outsourced activities; the risk of disruptions in the supply of materials and components used in manufacturing or sterilizing our products; breaches or failures of our (or of our business partners' or other third parties') information technology systems or products, including by cyberattack, unauthorized access or theft; the outcome of government investigations; the impact of healthcare reform and cost containment measures, including efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, through reductions in reimbursement levels, repayment demands and otherwise; the effects of natural disasters, or of legal, regulatory or market measures to address natural disasters; the effects of our commitments, goals and disclosures relating to corporate responsibility matters; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; changes in tax obligations arising from examinations by tax authorities and from changes in tax laws in jurisdictions where we do business, including as a result of the "base erosion and profit shifting" project undertaken by the Organisation for Economic Co-operation and Development and otherwise; challenges to the tax-free nature of the ZimVie Inc. spinoff transaction and the subsequent liquidation of our retained interest in ZimVie Inc.; the risk of additional tax liability due to the recategorization of our independent agents and distributors to employees; changes in tariffs relating to imports to the U.S. and other countries; the risk that material impairment of the carrying value of our intangible assets, including goodwill, could negatively affect our operating results; changes in general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; changes in general industry and market conditions, including domestic and international growth, inflation and currency exchange rates; the domestic and international business impact of political, social and economic instability, tariffs, trade restrictions and embargoes, sanctions, wars, disputes and other conflicts, including on our ability to operate in, export from or collect accounts receivable in affected countries; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the U.S. Food and Drug Administration ("FDA") and other government regulators relating to medical products, healthcare fraud and abuse laws and data privacy and cybersecurity laws; the success of our quality and operational excellence initiatives; the ability to remediate matters identified in inspectional observations issued by the FDA and other regulators, while continuing to satisfy the demand for our products; product liability, intellectual property and commercial litigation losses; and the ability to obtain and maintain adequate intellectual property protection.  A further list and description of these risks and uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and our subsequent filings with the Securities and Exchange Commission (SEC).  Copies of these filings are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC.  Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate.  This cautionary note is applicable to all forward-looking statements contained in this press release.

Note: Amounts reported in millions within this press release are computed based on the actual amounts.  As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding.  Certain columns and rows within tables may not add due to the use of rounded numbers.  Percentages presented are calculated from the underlying unrounded amounts.

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED MARCH 31, 2026 and 2025

(in millions, except per share amounts, unaudited)

2026

2025

Net Sales

$

2,086.7

$

1,909.1

Cost of products sold, excluding intangible asset amortization

576.2

549.8

Intangible asset amortization

162.1

151.0

Research and development

103.4

110.6

Selling, general and administrative

849.9

758.8

Restructuring and other cost reduction initiatives

6.3

36.0

Acquisition, integration, divestiture and related

15.6

10.6

Operating expenses

1,713.5

1,616.8

Operating Profit

373.2

292.3

Other (expense) income, net

(3.0)

2.9

Interest expense, net

(68.8)

(66.2)

Earnings before income taxes

301.3

229.0

Provision for income taxes

63.0

46.5

Net Earnings

238.3

182.6

Less: Net earnings attributable to noncontrolling interest

0.2

0.6

Net Earnings of Zimmer Biomet Holdings, Inc.

$

238.1

$

182.0

Earnings Per Common Share

Basic

$

1.22

$

0.92

Diluted

$

1.22

$

0.91

Weighted Average Common Shares Outstanding

Basic

195.0

198.9

Diluted

195.8

199.7

The condensed consolidated statement of earnings for the three-months ended March 31, 2026, reported in this press release are based on an initial assessment that the Company will not record a goodwill impairment charge in the first quarter 2026.  The Company is finalizing its estimated fair value assessment of such goodwill, and therefore the determination of whether an impairment charge will be recorded, and the amount of any such charge, is not complete and subject to change.  If an impairment charge is recorded, our GAAP net earnings information related to the first quarter of 2026 in this release will differ from what is reported in this release. The final determination regarding any impairment, and the impact on results if there is an impairment, will be included in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, unaudited)

March 31,

December 31,

2026

2025

Assets

Cash and cash equivalents

$

424.2

$

591.9

Receivables, net

1,728.6

1,704.4

Inventories

2,246.8

2,286.4

Other current assets

562.9

537.3

Total current assets

4,962.5

5,119.9

Property, plant and equipment, net

2,211.7

2,207.1

Goodwill

9,931.8

9,947.1

Intangible assets, net

4,547.6

4,717.3

Other assets

1,067.9

1,100.3

Total Assets

$

22,721.6

$

23,091.7

Liabilities and Stockholders' Equity

Current liabilities

$

1,688.4

$

1,996.6

Current portion of long-term debt

1,175.9

587.1

Other long-term liabilities

880.6

870.2

Long-term debt

6,295.1

6,932.0

Stockholders' equity

12,681.6

12,705.8

Total Liabilities and Stockholders' Equity

$

22,721.6

$

23,091.7

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2026 and 2025

(in millions, unaudited)

2026

2025

Cash flows provided by (used in) operating activities

Net earnings

$

238.3

$

182.6

Depreciation and amortization

270.0

254.4

Share-based compensation

24.2

19.6

Changes in operating assets and liabilities, net of acquired assets and
liabilities

Income taxes

(7.4)

(15.6)

Receivables

14.5

(18.8)

Inventories

(20.9)

(3.0)

Accounts payable and accrued liabilities

(183.0)

(36.4)

Other assets and liabilities

23.5

(0.1)

Net cash provided by operating activities

359.4

382.8

Cash flows provided by (used in) investing activities

Additions to instruments

(77.2)

(59.7)

Additions to other property, plant and equipment

(36.3)

(44.6)

Net investment hedge settlements

(0.3)

1.0

Acquisition of intangible assets

(39.0)

(2.4)

Other investing activities

(6.2)

(0.3)

Net cash used in investing activities

(159.0)

(106.0)

Cash flows provided by (used in) financing activities

Proceeds from senior notes

-

1,748.1

Redemption of senior notes

-

(863.0)

Dividends paid to stockholders

(46.9)

(47.8)

Proceeds from employee stock compensation plans

12.3

16.7

Business combination contingent consideration payments

(69.0)

(17.4)

Debt issuance costs

-

(16.1)

Repurchase of common stock

(250.1)

(229.8)

Other financing activities

(15.6)

(15.2)

Net cash (used in) provided by financing activities

(369.2)

575.4

Effect of exchange rates on cash and cash equivalents

1.1

7.0

Change in cash and cash equivalents

(167.7)

859.1

Cash and cash equivalents, beginning of year

591.9

525.5

Cash and cash equivalents, end of period

$

424.2

$

1,384.5

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED NET SALES % CHANGE TO

CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE

(unaudited)

For the Three Months Ended

March 31, 2026 vs. 2025

Organic

Foreign

Constant

Paragon

Constant

Exchange

Currency

28

Currency

% Change

Impact

% Change

Impact

% Change

Geographic Results

United States

8.6

%

-

%

8.6

%

5.4

%

3.2

%

International

10.3

6.1

4.2

1.7

2.5

Total

9.3

%

2.5

%

6.8

%

3.9

%

2.9

%

Product Categories

Knees

United States

2.2

%

-

%

2.2

%

-

%

2.2

%

International

7.6

6.3

1.3

-

1.3

Total

4.5

2.7

1.8

-

1.8

Hips

United States

5.0

-

5.0

-

5.0

International

6.5

5.5

1.0

-

1.0

Total

5.7

2.5

3.2

-

3.2

S.E.T.

19.5

2.1

17.4

15.8

1.6

Technology & Data, Bone
Cement and Surgical

14.6

2.9

11.7

-

11.7

Total

9.3

%

2.5

%

6.8

%

3.9

%

2.9

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED TO ADJUSTED RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2026 and 2025

(in millions, except per share amounts, unaudited)

FOR THE THREE MONTHS ENDED MARCH 31, 2026

Cost of products
sold, excluding
intangible asset
amortization

Intangible asset
amortization

Restructuring
and other cost
reduction
initiatives

Acquisition,
integration,
divestiture
and related

Other
(expense)
income, net

Provision for
income taxes

Net Earnings
of Zimmer
Biomet
Holdings, Inc.

Diluted
earnings
per
common
share

As Reported

$

576.2

$

162.1

$

6.3

$

15.6

$

(3.0)

$

63.0

$

238.1

$

1.22

Inventory and manufacturing-related
charges(1)

(13.3)

-

-

-

-

3.6

9.7

0.05

Intangible asset amortization(2)

-

(162.1)

-

-

-

34.2

127.9

0.65

Restructuring and other cost reduction
initiatives(3)

-

-

(6.3)

-

-

1.0

5.3

0.03

Acquisition, integration, divestiture and
related(4)

-

-

-

(15.6)

-

1.4

14.2

0.07

Other charges(5)

-

-

-

-

0.8

0.2

0.6

-

Other certain tax adjustments(6)

-

-

-

-

-

(13.5)

13.5

0.07

As Adjusted

$

562.9

$

-

$

-

$

-

$

(2.2)

$

89.9

$

409.4

$

2.09

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Cost of
products sold,
excluding intangible
asset
amortization

Intangible
asset
amortization

Research and
development

Restructuring
and other
cost
reduction
initiatives

Acquisition,
integration,
divestiture
and related

Interest
expense,
net

Provision
for income
taxes

Net
Earnings of
Zimmer
Biomet
Holdings,
Inc.

Diluted
earnings per
common
share

As Reported

$

549.8

$

151.0

$

110.6

$

36.0

$

10.6

$

(66.2)

$

46.5

$

182.0

$

0.91

Inventory and manufacturing-related
charges(1)

(6.2)

-

-

-

-

-

2.1

4.1

0.02

Intangible asset amortization(2)

-

(151.0)

-

-

-

-

28.2

122.8

0.61

Restructuring and other cost
reduction initiatives(3)

-

-

-

(36.0)

-

-

7.2

28.8

0.14

Acquisition, integration, divestiture
and related(4)

-

-

-

-

(10.6)

-

1.9

8.7

0.04

European Union Medical Device
Regulation(7)

-

-

(4.4)

-

-

-

0.9

3.5

0.02

Other charges(5)

-

-

-

-

-

4.8

2.7

2.1

0.01

Other certain tax adjustments(6)

-

-

-

-

-

-

(9.2)

9.2

0.05

As Adjusted

$

543.6

$

-

$

106.2

$

-

$

-

$

(61.4)

$

80.3

$

361.2

$

1.81

(1)

Inventory and manufacturing-related charges include excess and obsolete inventory charges on certain product lines we intend to discontinue by 2032, inventory step-up expense, and other inventory and manufacturing-related charges or gains.  Inventory step-up expense represents the incremental expense of inventory sold recognized at its fair value after business combination accounting is applied versus the expense that would have been recognized if sold at its cost to manufacture.  Since only the inventory that existed at the business combination date was stepped-up to fair value, we believe excluding the incremental expense provides investors useful information as to what our costs may have been if we had not been required to increase the inventory's book value to fair value.  The excess and obsolete inventory charges on product lines we intend to discontinue were $1.2 million and $2.6 million in the three-month periods ended March 31, 2026 and 2025, respectively.  Inventory step-up expense was $12.0 million in the three-month period ended March 31, 2026, compared to zero in the same prior year period. 

(2)

We exclude intangible asset amortization as well as deferred tax rate changes on our intangible assets from our non-GAAP financial measures because we internally assess our performance against our peers without this amortization.  Due to various levels of acquisitions among our peers, intangible asset amortization can vary significantly from company to company.

(3)

In December 2019, 2021 and 2023, and in February and December 2025, we initiated global restructuring programs that included a reorganization of key businesses and an overall effort to reduce costs in order to accelerate decision-making, focus the organization on priorities to drive growth and, in the case of the December 2021 program, to prepare for the spinoff of ZimVie Inc. ("ZimVie").  Restructuring and other cost reduction initiatives also include other cost reduction and optimization initiatives that have the goal of reducing costs or across the organization.  The costs include employee termination benefits; contract terminations for facilities and sales agents; and other charges, such as consulting fees, project management expenses, retention period salaries and benefits and relocation costs. 

(4)

The acquisition, integration, divestiture and related gains and expenses we have excluded from our non-GAAP financial measures resulted from various acquisitions, post-separation costs we have incurred related to ZimVie and gains related to a transition services agreement for services we provide to ZimVie and a transition manufacturing and supply agreement for products we supply to ZimVie for a limited period.  In the three-month periods ended March 31, 2026 and 2025, this line item includes $8.1 million and $1.7 million of expenses, respectively, related to changes in the estimated fair values of contingent consideration due to updated forecasts of net sales from certain acquisitions. 

(5)

We have incurred other various expenses from specific events or projects that we consider highly variable or that have a significant impact to our operating results that we have excluded from our non-GAAP measures.  These include gains and losses from changes in fair value on our equity investments, impairment of instruments related to certain product lines we intend to discontinue, among other various costs.  In addition, in February 2025 we issued senior notes in order to have the necessary cash-on-hand to acquire Paragon 28 once regulatory approval was received.  We have excluded from our non-GAAP financial measures the interest on this debt related to the principal amount of the estimated purchase price and acquisition-related costs up through the acquisition date.  Interest expense subsequent to the acquisition date has not been excluded. 

(6)

Other certain tax adjustments are primarily related to significant and discrete tax adjustments.  The primary adjustments include benefits of $12.1 million and $8.5 million in three-month periods ended March 31, 2026 and 2025, respectively, related to Swiss tax reform.

(7)

The European Union Medical Device Regulation imposes significant additional premarket and postmarket requirements.  The new regulations provided a transition period until May 2021 for previously-approved medical devices to meet the additional requirements.  For certain devices, this transition period was extended until May 2024.  A conditional extension of the transition period has been implemented until December 2027 and 2028 depending on the legacy medical device's risk class.  We are excluding from our non-GAAP financial measures the incremental costs incurred to establish initial compliance with the regulations related to our previously-approved medical devices.  The incremental costs primarily relate to temporary personnel and third-party professionals necessary to supplement our internal resources.  Starting January 1, 2026, we do not expect to incur any significant incremental costs related to these new regulations.

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING

ACTIVITIES TO FREE CASH FLOW

FOR THE THREE MONTHS ENDED MARCH 31, 2026 and 2025

(in millions, unaudited)

Three Months Ended March 31,

2026

2025

Net cash provided by operating activities

$

359.4

$

382.8

Additions to instruments

(77.2)

(59.7)

Additions to other property, plant and equipment

(36.3)

(44.6)

Free cash flow

$

245.9

$

278.5

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF GROSS PROFIT & MARGIN

TO ADJUSTED GROSS PROFIT & MARGIN

FOR THE THREE MONTHS ENDED MARCH 31, 2026 and 2025

(in millions, unaudited)

Three Months Ended March 31,

2026

2025

Net Sales

$

2,086.7

$

1,909.1

Cost of products sold, excluding intangible asset amortization

576.2

549.8

Intangible asset amortization

162.1

151.0

Gross Profit

$

1,348.4

$

1,208.3

Inventory and manufacturing-related charges

13.3

6.2

Intangible asset amortization

162.1

151.0

Adjusted gross profit

$

1,523.8

$

1,365.5

Gross margin

64.6

%

63.3

%

Inventory and manufacturing-related charges

0.6

0.3

Intangible asset amortization

7.8

7.9

Adjusted gross margin

73.0

%

71.5

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF OPERATING PROFIT & MARGIN TO ADJUSTED OPERATING PROFIT & MARGIN

FOR THE THREE MONTHS ENDED MARCH 31, 2026 and 2025

(in millions, unaudited)

Three Months Ended
March 31,

2026

2025

Operating profit

$

373.2

$

292.3

Inventory and manufacturing-related charges

13.3

6.2

Intangible asset amortization

162.1

151.0

Restructuring and other cost reduction initiatives

6.3

36.0

Acquisition, integration, divestiture and related

15.6

10.6

European Union Medical Device Regulation

-

4.4

Adjusted operating profit

$

570.5

$

500.5

Operating profit margin

17.9

%

15.3

%

Inventory and manufacturing-related charges

0.6

0.3

Intangible asset amortization

7.8

7.9

Restructuring and other cost reduction initiatives

0.3

1.9

Acquisition, integration, divestiture and related

0.7

0.6

European Union Medical Device Regulation

-

0.2

Adjusted operating profit margin

27.3

%

26.2

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE

FOR THE THREE MONTHS ENDED MARCH 31, 2026 and 2025

(unaudited)

Three Months Ended March 31,

2026

2025

Effective tax rate

20.9

%

20.3

%

Tax effect of adjustments made to earnings before taxes(1)

1.6

1.9

Other certain tax adjustments (2)

(4.5)

(4.0)

Adjusted effective tax rate

18.0

%

18.2

%

(1) Includes inventory and manufacturing-related charges; intangible asset amortization; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; litigation; European Union Medical Device Regulation; and other charges

(2) Other certain tax adjustments are primarily related to significant and discrete tax adjustments. The primary adjustments include benefits of $12.1 million and $8.5 million in the three-month periods ended March 31, 2026 and 2025, respectively, related to Swiss tax reform.

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF DEBT TO NET DEBT

AS OF MARCH 31, 2026 and DECEMBER 31, 2025

(in millions, unaudited)

March 31, 2026

December 31, 2025

Debt, both current and long-term

$

7,471.0

$

7,519.1

Cash and cash equivalents

(424.2)

(591.9)

Net debt

$

7,046.8

$

6,927.2

Media

Investors

Troy Kirkpatrick

David DeMartino

614-284-1926

646-531-6115

[email protected] 

[email protected] 

Kirsten Fallon

Zach Weiner

781-779-5561

908-591-6955

[email protected] 

[email protected] 

SOURCE Zimmer Biomet Holdings, Inc.

Zimmer Biomet (ZBH - Free Report) came out with quarterly earnings of $2.09 per share, beating the Zacks Consensus Estimate of $1.86 per share. This compares to earnings of $1.81 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +12.57%. A quarter ago, it was expected that this orthopedic device maker would post earnings of $2.38 per share when it actually produced earnings of $2.42, delivering a surprise of +1.68%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Zimmer, which belongs to the Zacks Medical - Products industry, posted revenues of $2.09 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.84%. This compares to year-ago revenues of $1.91 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Zimmer shares have added about 3% since the beginning of the year versus the S&P 500's gain of 4.8%.

What's Next for Zimmer?While Zimmer has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Zimmer was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.06 on $2.15 billion in revenues for the coming quarter and $8.37 on $8.52 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 27% of the 250 plus 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.

Exagen Inc. (XGN - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 11.

This company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of -20%. The consensus EPS estimate for the quarter has been revised 21.3% lower over the last 30 days to the current level.

Exagen Inc.'s revenues are expected to be $17.13 million, up 10.5% from the year-ago quarter.

Zimmer Biomet (ZBH - Free Report) reported $2.09 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 9.3%. EPS of $2.09 for the same period compares to $1.81 a year ago.

The reported revenue represents a surprise of +1.84% over the Zacks Consensus Estimate of $2.05 billion. With the consensus EPS estimate being $1.86, the EPS surprise was +12.57%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Zimmer performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Knees- International: $359.4 million versus $360.34 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +7.6% change.Net Sales- Hips- International: $246.6 million versus $248.43 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.5% change.Net Sales- International: $877.4 million versus the two-analyst average estimate of $868.9 million. The reported number represents a year-over-year change of +10.3%.Net Sales- Hips- United States: $277.5 million versus $270.26 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5% change.Net Sales- United States: $1.21 billion compared to the $1.2 billion average estimate based on two analysts. The reported number represents a change of +8.6% year over year.Net Sales- Knees- United States: $469.2 million compared to the $470.49 million average estimate based on two analysts. The reported number represents a change of +2.2% year over year.Net Sales- Knees: $828.6 million compared to the $837.59 million average estimate based on five analysts. The reported number represents a change of +4.5% year over year.Net Sales- Technology & Data, Bone Cement and Surgical: $171.8 million compared to the $156.06 million average estimate based on five analysts.Net Sales- S.E.T: $562.2 million compared to the $553.36 million average estimate based on five analysts. The reported number represents a change of +19.5% year over year.Net Sales- Hips: $524.1 million versus $518.97 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.7% change.View all Key Company Metrics for Zimmer here>>>

Shares of Zimmer have returned +4.5% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Zimmer Biomet Q1 Earnings Beat Driven By Tariff Benefit And Solid DemandThe company said the first quarter saw a 20-cent benefit from tariff-related items relative to its expectations.

The orthopedic implant maker reported sales of $2.087 billion, up 9.3% on a reported basis, up 6.8% on a constant currency basis, and 2.9% on an organic constant currency basis, beating the consensus of $2.07 billion.

Knee product sales increased 4.5% to $828.6 million (+1.8% organically), and hip product sales increased 5.7% (+3.2%) to $524.1 million.

Sports Medicine products generated sales of $562.2 million, up 19.5% (+1.6%).

Technology & Data, Bone Cement, and Surgical sales jumped 14.6% (+11.7%) to $171.8 million.

“We are off to a solid start to the year — strategically, operationally, and financially,” said Ivan Tornos, Chairman, President, and CEO of Zimmer Biomet. 

“Our first quarter results reflect healthy end markets, continued momentum from our recently launched products, and disciplined execution across the business,” Tornos said.

CFO Exit Triggers Interim Leadership AppointmentOn Tuesday, Zimmer Biomet said Suketu Upadhyay, Chief Financial Officer and Executive Vice President, Finance, Operations, and Supply Chain, will depart the company effective immediately.

The company has named Paul Stellato, currently Controller and Chief Accounting Officer, as interim Chief Financial Officer, while the company conducts an internal and external search to identify a permanent successor.

Raised Earnings Guidance“Given our progress and with our go-to-market transformation proceeding as planned, we are raising our adjusted EPS guidance and free cash flow expectations for the year. We remain confident that our strategy will position Zimmer Biomet for consistent, durable growth over the longer term,” Tornos further added.

Zimmer Biomet raised fiscal adjusted earnings guidance from $8.30-$8.45 per share to $8.40-$8.55 per share, compared to the consensus of $8.40.

The company reaffirms 2026 sales guidance of $8.44 billion-$8.60 billion versus the consensus of $8.56 billion.

In an investor call on Tuesday, the company said it completed enrollment in a 102-patient clinical study for a fully autonomous AI-driven orthopedic robotic system.

The company expects U.S. approval and the launch of the semiautonomous version in early 2027, followed by the fully autonomous version in late 2027 or early 2028.

In anticipation of the mBos launch, the company is increasing the number of robotic clinical sales representatives, targeting to hire over 200 by the end of 2027.

ZBH Price Action: Zimmer Biomet Holdings shares were down 10.81% at $82.58 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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Posted by Defense World Staff on Apr 29th, 2026

Cwm LLC decreased its position in shares of Zimmer Biomet Holdings, Inc. (NYSE:ZBH – Free Report) by 60.8% during the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 9,377 shares of the medical equipment provider’s stock after selling 14,532 shares during the period. Cwm LLC’s holdings in Zimmer Biomet were worth $843,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Key Financial Inc lifted its stake in shares of Zimmer Biomet by 164.6% during the third quarter. Key Financial Inc now owns 262 shares of the medical equipment provider’s stock valued at $26,000 after buying an additional 163 shares during the period. Cullen Frost Bankers Inc. lifted its stake in shares of Zimmer Biomet by 66.7% during the third quarter. Cullen Frost Bankers Inc. now owns 290 shares of the medical equipment provider’s stock valued at $29,000 after buying an additional 116 shares during the period. Root Financial Partners LLC purchased a new position in shares of Zimmer Biomet during the third quarter valued at approximately $31,000. Flagship Harbor Advisors LLC purchased a new position in shares of Zimmer Biomet during the fourth quarter valued at approximately $32,000. Finally, Mather Group LLC. purchased a new position in shares of Zimmer Biomet during the third quarter valued at approximately $36,000. Hedge funds and other institutional investors own 88.89% of the company’s stock.

Analyst Ratings Changes A number of analysts have issued reports on ZBH shares. Wall Street Zen lowered Zimmer Biomet from a “buy” rating to a “hold” rating in a research note on Sunday, April 19th. UBS Group reissued a “sell” rating and issued a $89.00 price target on shares of Zimmer Biomet in a research note on Wednesday, February 11th. Citigroup reissued a “buy” rating on shares of Zimmer Biomet in a research note on Wednesday, February 11th. BTIG Research reissued a “neutral” rating on shares of Zimmer Biomet in a research note on Monday, March 23rd. Finally, Wells Fargo & Company raised their price target on Zimmer Biomet from $93.00 to $98.00 and gave the stock an “equal weight” rating in a research note on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $105.95.

Check Out Our Latest Research Report on ZBH

Insider Buying and Selling at Zimmer Biomet In other news, SVP Lori Winkler sold 2,650 shares of Zimmer Biomet stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $94.66, for a total value of $250,849.00. Following the transaction, the senior vice president directly owned 10,224 shares of the company’s stock, valued at $967,803.84. The trade was a 20.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 1.28% of the stock is owned by corporate insiders.

Zimmer Biomet Stock Performance NYSE ZBH opened at $82.95 on Wednesday. The firm has a market capitalization of $16.06 billion, a P/E ratio of 23.43, a P/E/G ratio of 1.89 and a beta of 0.61. Zimmer Biomet Holdings, Inc. has a 1-year low of $81.35 and a 1-year high of $108.29. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.98 and a quick ratio of 1.10. The business’s 50-day simple moving average is $93.23 and its 200-day simple moving average is $92.89.

Zimmer Biomet (NYSE:ZBH – Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The medical equipment provider reported $2.09 earnings per share for the quarter, beating the consensus estimate of $1.86 by $0.23. The business had revenue of $2.09 billion for the quarter, compared to analyst estimates of $2.06 billion. Zimmer Biomet had a return on equity of 12.93% and a net margin of 8.56%.The company’s revenue was up 9.3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.81 EPS. Zimmer Biomet has set its FY 2026 guidance at 8.400-8.550 EPS. Equities analysts predict that Zimmer Biomet Holdings, Inc. will post 8.39 EPS for the current year.

Zimmer Biomet Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st will be paid a $0.24 dividend. This represents a $0.96 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Zimmer Biomet’s payout ratio is currently 27.12%.

Trending Headlines about Zimmer Biomet Here are the key news stories impacting Zimmer Biomet this week:

Positive Sentiment: Q1 results beat expectations — adjusted EPS $2.09 vs. $1.86 estimate and revenue $2.09B, with reported sales up ~9.3% year-over-year and margin expansion, showing underlying business strength. Zimmer Biomet Announces First Quarter 2026 Financial Results Positive Sentiment: Company raised FY-2026 adjusted EPS guidance to $8.40–$8.55 (slightly above consensus) and reiterated revenue targets, supporting forward earnings outlook. Medical device maker Zimmer Biomet raises annual profit forecast, announces CFO departure Neutral Sentiment: Analyst write-ups highlight strong segment growth, solid organic sales and improved key metrics, but note mixed pre-market reaction (shares dipped despite the beat), indicating some investor profit-taking or concern about near-term execution. ZBH Q1 Earnings & Revenues Top Estimates, Stock Dips in Pre-Market Negative Sentiment: Chief Financial Officer Suketu Upadhyay departed effective April 28; an interim CFO was named. Management turnover in the finance role is creating uncertainty and likely weighing on the stock. Zimmer Biomet Announces Chief Financial Officer Transition Negative Sentiment: Reports of a CEO exit were published alongside the earnings release; headlines about executive departures and the company’s underperformance versus peers amplified investor concern and contributed to the selloff. Zimmer Biomet falls after CEO exit, unchanged growth outlook About Zimmer Biomet (Free Report)

Zimmer Biomet (NYSE: ZBH) is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company’s product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.

See Also Five stocks we like better than Zimmer Biomet

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