It has been about a month since the last earnings report for Zimmer Biomet (ZBH Quick QuoteZBH - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.

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 the latest earnings report in order to get a better handle on the important catalysts.

Zimmer Biomet Q3 Earnings Beat, Revenues Miss Estimates

Zimmer Biomet posted third-quarter 2025 adjusted earnings per share of $1.90, which beat the Zacks Consensus Estimate by 1.06%. The adjusted figure rose 9.2% year over year.

The quarter’s adjustments included certain amortization, restructuring and other cost reduction initiatives, inventory and manufacturing-related charges and European Union Medical Device Regulation-related charges, among others.

On a reported basis, the company registered earnings of $1.16 per share compared with $1.23 in the year-ago period.

Q3 Revenues

Third-quarter net sales of $2.00 billion increased 9.7% (up 8.6% at constant exchange rate or CER) year over year. The figure missed the Zacks Consensus Estimate by 0.4%.

Revenues by Geography

During the third quarter, sales generated in the United States totaled $1.16 billion (up 10.6% year over year), while International sales grossed $837.3 million (up 8.5% year over year on a reported basis and 5.9% at CER).

Our model projected revenues of $1.16 billion from the United States and $834 million from International.

Segmental Analysis of Revenues

The company currently reports under four product categories — Knees, Hips, S.E.T. (Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic) and Technology & Data, Bone Cement and Surgical.

Sales in the Knees unit improved 5.3% year over year at CER to $792.4 million. Our model estimate was pegged at $820.5 million.

Hips sales grew 3.8% year over year at CER to $506.2 million. Our model estimate was $512.2 million for the same.

Revenues in the S.E.T. unit rose 18.2% year over year at CER to $541.5 million. Our model estimate was $498.3 million.

Technology & Data, Bone Cement and Surgical (historically referred to as "Other") revenues rose 11.3% to $161.3 million at CER in the third quarter. Our model estimate was $166.5 million.

Margin Performance

Adjusted gross margin, after excluding the impact of intangible asset amortization, was 72.1%, an expansion of 158 basis points (bps) year over year. Selling, general and administrative expenses rose 14.3% to $811.4 million. Research and development expenses rose 3.9% to $115.9 million. Adjusted operating margin expanded 27 bps to 25.7%.

Cash Position

Zimmer Biomet exited the third quarter with cash and cash equivalents of $1.29 billion compared with $525.5 million at the end of the second quarter of 2025.

Cumulative net cash provided by operating activities at the end of the third quarter was $1.18 billion compared with $993.1 million in the year-ago period.

Updated 2025 Outlook

Zimmer Biomet updated its financial guidance for 2025.

Reported revenue growth guidance was reiterated in the band of 6.7-7.7%. The upper limit of 2025 constant currency revenue growth was reduced. The new range is 6.2% - 6.7% (earlier range was 6.2% - 7.2%). The Zacks Consensus Estimate for revenues is pegged at $8.22 billion.

Adjusted earnings per share guidance for the full year was reiterated in the range of $8.10-$8.30.

The Zacks Consensus Estimate for 2025 adjusted earnings per share is pegged at $7.95.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Zimmer has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

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

Performance of an Industry Player

Zimmer belongs to the Zacks Medical - Products industry. Another stock from the same industry, Envista (NVST Quick QuoteNVST - Free Report) , has gained 3.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Envista reported revenues of $669.9 million in the last reported quarter, representing a year-over-year change of +11.5%. EPS of $0.32 for the same period compares with $0.12 a year ago.

Envista is expected to post earnings of $0.32 per share for the current quarter, representing a year-over-year change of +33.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Envista. Also, the stock has a VGM Score of B.