We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Globus Medical crushed estimates as margins expanded sharply.
GMED's US Spine unit has logged 58 straight weeks of growth in a market growing only 3%.
The stock is rebounding from key technical support levels.
Globus Medical (GMED - Free Report) is a musculoskeletal technology company that crushed Q1 estimates and is riding one of the strongest earnings revision cycles in the med-device space. GMED earns a Zacks Rank #1 (Strong Buy) and is today's Bull of the Day.
About the Company
Headquartered in Audubon, PA, Globus Medical is a medical device company focused on musculoskeletal disorders, with more than 209 products distributed across 65 countries worldwide.
The portfolio breaks into two categories:
Musculoskeletal Solutions covers implants, biologics, and surgical instruments for spine, trauma, and joint reconstruction, and drove 95% of 2025 revenues with 18% growth from the prior year.
Enabling Technologies encompasses the company's robotic, navigation, and imaging-assisted surgery platform designed to make complex procedures safer and more reproducible.
GMED is valued at $10 billion and has a Forward PE of 17. The stock has Zacks Style Scores of “B” in Value, but “A” in Growth and Momentum.
Q1 Earnings Beat
Globus delivered a strong quarter, with EPS of $1.12, above the $0.92 estimate. This 22% bottom line beat came while revenue of $759.9 million grew 27% year over year and topped the $730 million consensus. Adjusted EBITDA of $245.3 million expanded the margin to 32.3% from 29.7% a year ago. Margins growing faster than sales is a rare combination at this scale.
Management raised full-year non-GAAP EPS guidance to $4.70–$4.80 from $4.40–$4.50 while holding the revenue range steady at $3.18–$3.22 billion. The EPS raise on an unchanged sales guide signals the margin expansion is structural, not a one-quarter event.
Analysts have been raising estimates since the earnings release. Over the last 30 days estimates have moved from $1.02 to $1.09, a jump of 7%
Looking at the larger time frames, current-year EPS consensus sat at $3.89 just 90 days ago. It's now $4.66, which is a 20% move higher in a single quarter.
Next year moved from $4.11 to $5.05 over the same window, a big move of 23%
After earnings Wedbush reiterated its Outperform and $103 target.
The Diver
US Spine is the engine. Three straight quarters of roughly 10% growth, 58 consecutive weeks of gains, in a market the company estimates are only growing 3%. The gross margin story is equally compelling: 69.2% in Q1, flat with Q4 despite the seasonal revenue step-down, and the sixth straight quarter of sequential improvement. Management's long-term target is the mid-70s.
Product catalysts are lined up. SCRIPPT patient-specific spacers and rods cleared the FDA in early Q2. ANTHEM elbow plating demand is running ahead of supply. The robotics installed base is growing through a lease-and-rental model built to generate recurring implant and service revenue for years.
The Drag
The acquired Nevro SCS business remains in restructuring. Management said it likely "gets a little worse before it gets better" with recovery back-half loaded. That's the reason full-year revenue guidance was held flat despite the Q1 beat. But with the base business absorbing the drag and still expanding margins faster than sales, Nevro is a timing issue, not a thesis problem.
That drag is the main reason the stock sold off after the EPS release, but this looks like a huge buying opportunity.
The Technical Take
Late last year the stock gapped higher after a blowout quarter, moving from $60 to $80. Since then, the stock has been trading around the $90 level until it dropped under $75 after earnings.
That $75 area is the 61.8% retracement and has held support. The stock has since bounced back to the 200-day moving average at $79. Let’s look at those moving averages
21-day: $86
50-day: $87.50
200-day: $79
If the recent lows hold up, the bulls will need to push higher and get above the 50-day MA, fill that earnings move gap and then resume the trend.
In Summary
GMED is a Zacks #1 Ranked stock with a 90-day estimate revision cycle that rivals anything in healthcare, a margin structure that keeps expanding, and a domestic spine franchise taking share at triple the market growth rate.
With the stock showing buying at technical support, GMED looks like a long-term buy at current levels.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Bull of the Day: Globus Medical (GMED)
Key Takeaways
Globus Medical (GMED - Free Report) is a musculoskeletal technology company that crushed Q1 estimates and is riding one of the strongest earnings revision cycles in the med-device space. GMED earns a Zacks Rank #1 (Strong Buy) and is today's Bull of the Day.
About the Company
Headquartered in Audubon, PA, Globus Medical is a medical device company focused on musculoskeletal disorders, with more than 209 products distributed across 65 countries worldwide.
The portfolio breaks into two categories:
Musculoskeletal Solutions covers implants, biologics, and surgical instruments for spine, trauma, and joint reconstruction, and drove 95% of 2025 revenues with 18% growth from the prior year.
Enabling Technologies encompasses the company's robotic, navigation, and imaging-assisted surgery platform designed to make complex procedures safer and more reproducible.
GMED is valued at $10 billion and has a Forward PE of 17. The stock has Zacks Style Scores of “B” in Value, but “A” in Growth and Momentum.
Q1 Earnings Beat
Globus delivered a strong quarter, with EPS of $1.12, above the $0.92 estimate. This 22% bottom line beat came while revenue of $759.9 million grew 27% year over year and topped the $730 million consensus. Adjusted EBITDA of $245.3 million expanded the margin to 32.3% from 29.7% a year ago. Margins growing faster than sales is a rare combination at this scale.
Management raised full-year non-GAAP EPS guidance to $4.70–$4.80 from $4.40–$4.50 while holding the revenue range steady at $3.18–$3.22 billion. The EPS raise on an unchanged sales guide signals the margin expansion is structural, not a one-quarter event.
Globus Medical, Inc. Price and EPS Surprise
Globus Medical, Inc. price-eps-surprise | Globus Medical, Inc. Quote
Estimates Head Higher
Analysts have been raising estimates since the earnings release. Over the last 30 days estimates have moved from $1.02 to $1.09, a jump of 7%
Looking at the larger time frames, current-year EPS consensus sat at $3.89 just 90 days ago. It's now $4.66, which is a 20% move higher in a single quarter.
Next year moved from $4.11 to $5.05 over the same window, a big move of 23%
After earnings Wedbush reiterated its Outperform and $103 target.
The Diver
US Spine is the engine. Three straight quarters of roughly 10% growth, 58 consecutive weeks of gains, in a market the company estimates are only growing 3%. The gross margin story is equally compelling: 69.2% in Q1, flat with Q4 despite the seasonal revenue step-down, and the sixth straight quarter of sequential improvement. Management's long-term target is the mid-70s.
Product catalysts are lined up. SCRIPPT patient-specific spacers and rods cleared the FDA in early Q2. ANTHEM elbow plating demand is running ahead of supply. The robotics installed base is growing through a lease-and-rental model built to generate recurring implant and service revenue for years.
The Drag
The acquired Nevro SCS business remains in restructuring. Management said it likely "gets a little worse before it gets better" with recovery back-half loaded. That's the reason full-year revenue guidance was held flat despite the Q1 beat. But with the base business absorbing the drag and still expanding margins faster than sales, Nevro is a timing issue, not a thesis problem.
That drag is the main reason the stock sold off after the EPS release, but this looks like a huge buying opportunity.
The Technical Take
Late last year the stock gapped higher after a blowout quarter, moving from $60 to $80. Since then, the stock has been trading around the $90 level until it dropped under $75 after earnings.
That $75 area is the 61.8% retracement and has held support. The stock has since bounced back to the 200-day moving average at $79. Let’s look at those moving averages
21-day: $86
50-day: $87.50
200-day: $79
If the recent lows hold up, the bulls will need to push higher and get above the 50-day MA, fill that earnings move gap and then resume the trend.
In Summary
GMED is a Zacks #1 Ranked stock with a 90-day estimate revision cycle that rivals anything in healthcare, a margin structure that keeps expanding, and a domestic spine franchise taking share at triple the market growth rate.
With the stock showing buying at technical support, GMED looks like a long-term buy at current levels.