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Zimmer Biomet posts organic growth and EPS gains, driven by new products and efficiency programs.
ZBH raised 2026 EPS outlook to $8.40-$8.55 and trades at a lower forward valuation vs. history.
Abbott (ABT - Free Report) and Zimmer Biomet (ZBH - Free Report) are two well-established names in the surgical equipment market, which is projected to expand at a CAGR of 8.72% between 2026 and 2032. Abbott, a diversified healthcare giant, has a dedicated Structural Heart portfolio that offers transcatheter and surgical devices for the repair and replacement of heart valves. On the other hand, Zimmer Biomet is a renowned name in the musculoskeletal space, focused on orthopedic reconstructive, sports medicine, trauma and surgical products, alongside integrated digital and robotic technologies.
As of today, Abbott holds a market capitalization of $147.13 billion, significantly larger than Zimmer Biomet’s $16.19 billion valuation. Let’s take a look at both companies to determine which one presents the stronger investment case.
The Case for Abbott
The company recently completed the acquisition of Exact Sciences, a strategic move that adds a new high-growth business to its portfolio and expands its presence into one of the fastest-growing areas of diagnostics. The deal is expected to contribute roughly $3 billion of 2026 incremental sales and support Abbott's long-term sales growth rate. First-quarter 2026 adjusted earnings per share (EPS) of $1.15 came in line with its expectations despite earlier-than-planned financing costs tied to the acquisition.
Core Lab Diagnostic test sales continued to show solid demand trends across the United States, Europe and Latin America, but remained flat in China, where government procurement policies have affected pricing and volumes. A weaker-than-expected respiratory season also weighed on Rapid and Molecular Diagnostics results.
In Nutrition, lower sales volumes persisted across both pediatric and adult product portfolios in the U.S. and international markets. Abbott introduced strategic pricing actions in late 2025 to help accelerate volume growth, which are beginning to show encouraging early signs. The company is also prioritizing innovation, with several nutrition product launches planned over the coming months.
Meanwhile, Abbott’s Established Pharmaceuticals (EPD) performance benefits from favorable long-term healthcare economic and demographic trends, supported by a broad product offering across five therapeutic areas. The biosimilars portfolio, which includes several market-leading oncology therapies, is a key growth pillar.
Within Medical Devices, the cardiovascular businesses delivered a strong performance in the quarter, supported by the Aveir leadless pacemakers, the Heart Assist Devices portfolio and the launch of two new pulsed field ablation (PFA) catheters. In Diabetes Care, continuous glucose monitoring sales reached $2 billion, although growth was affected by delayed international tender renewal and a difficult prior-year comparison related to shelf restocking dynamics.
Abbott projects full-year 2026 adjusted diluted EPS of $5.38-$5.58, which includes $0.20 of dilution from the Exact Sciences acquisition, and maintains its organic growth outlook of 6.5% to 7.5%.
Here's how estimates for Abbott’s 2026 and 2027 bottom line are trending over the past 60 days.
Image Source: Zacks Investment Research
The Case for Zimmer Biomet
The company delivered a solid first-quarter 2026, with sales growing 2.9% on an organic constant currency basis and adjusted EPS rising 15.5% year over year. Healthy end markets and continued momentum from newly-launched products supported the performance. Over the past two years, Zimmer Biomet has addressed key gaps in its core portfolio through the rollout of its “Magnificent 7” platform, which includes products like the Persona OsseoTi Keel Tibia, Oxford Cementless Partial Knee, and the ROSA Robotic Solutions and navigation technologies.
Within the U.S. hip franchise, the company continues to gain traction with its “triple-play”, comprising Z1 (now representing nearly 40% of U.S. hip stents), the OrthoGrid AI-based hip navigation platform and the HAMMR surgical impactor. Internationally, Zimmer Biomet is seeing rapid adoption of its iodine-coated hip implant in Japan, its second-largest market. Its strategy of offering a comprehensive suite of technology solutions is paying dividends.
Meanwhile, the ongoing transition to a dedicated and specialized U.S. sales channel from independent distributors and sales representatives is already generating improved productivity in transitioned territories. The evolution of go-to-market models, particularly in emerging markets, is also performing in accordance with the company’s plan.
Outside its core, Zimmer Biomet has diversified its portfolio with M&A. Paragon 28’s first-quarter growth accelerated roughly 200 basis points sequentially and is trending back toward double-digit growth. Zimmer Biomet is also advancing toward the anticipated 2027 launch of the mBos, a fully autonomous AI-driven orthopedic robotic system acquired through Monogram Technologies.
Actions such as manufacturing footprint expansion into lower-cost geographies, lowering inventory on hand and an ongoing SKU rationalization program are expected to strengthen Zimmer Biomet’s margins and improve free cash flow conversion rates.
The company reiterated its 2026 organic constant currency revenue growth outlook of 1% to 3% and raised adjusted EPS expectations to the $8.40-$8.55 range.
Take a look at how estimates for the company’s 2026 and 2027 earnings are shaping up.
Image Source: Zacks Investment Research
ABT & ZBH: Price Performance and Valuation
So far this year, ABT shares have dropped 32.6%, lagging both ZBH’s 6.9% decline and the Medical sector’s 7.7% fall.
Image Source: Zacks Investment Research
Abbott is trading at a forward earnings multiple of 14.83, below its median of 22.94 over the last three years. ZBH’s forward earnings multiple sits at 9.67, also lower than its three-year median of 12.73.
Image Source: Zacks Investment Research
Conclusion
Zimmer Biomet’s latest quarterly performance was shaped by shifting U.S. and certain international go-to-market strategies, while its recent acquisitions are showing positive momentum. The company is also making strides in improving operating efficiency. Meanwhile, Abbott’s first-quarter performance displayed respiratory-testing volatility in Diagnostics, early effects of pricing actions in Nutrition, and strength in EPD and Medical Devices.The Exact Sciences acquisition expands its addressable diagnostics market but presents near-term dilution risk. Estimates for Abbott’s 2025 and 2026 earnings are also trending downward.
On a year-to-date basis, ZBH has shown a stronger performance than Abbott while also appearing relatively more attractive on valuation. Rising earnings projections for the company are highly promising. Existing ZBH holders may find it prudent to retain their position to enjoy long-term momentum.
ZBH carries a Zacks Rank #3 (Hold), while ABT has a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
ABT vs. ZBH: Which Surgical Equipment Stock Is the Better Bet Now?
Key Takeaways
Abbott (ABT - Free Report) and Zimmer Biomet (ZBH - Free Report) are two well-established names in the surgical equipment market, which is projected to expand at a CAGR of 8.72% between 2026 and 2032. Abbott, a diversified healthcare giant, has a dedicated Structural Heart portfolio that offers transcatheter and surgical devices for the repair and replacement of heart valves. On the other hand, Zimmer Biomet is a renowned name in the musculoskeletal space, focused on orthopedic reconstructive, sports medicine, trauma and surgical products, alongside integrated digital and robotic technologies.
As of today, Abbott holds a market capitalization of $147.13 billion, significantly larger than Zimmer Biomet’s $16.19 billion valuation. Let’s take a look at both companies to determine which one presents the stronger investment case.
The Case for Abbott
The company recently completed the acquisition of Exact Sciences, a strategic move that adds a new high-growth business to its portfolio and expands its presence into one of the fastest-growing areas of diagnostics. The deal is expected to contribute roughly $3 billion of 2026 incremental sales and support Abbott's long-term sales growth rate. First-quarter 2026 adjusted earnings per share (EPS) of $1.15 came in line with its expectations despite earlier-than-planned financing costs tied to the acquisition.
Core Lab Diagnostic test sales continued to show solid demand trends across the United States, Europe and Latin America, but remained flat in China, where government procurement policies have affected pricing and volumes. A weaker-than-expected respiratory season also weighed on Rapid and Molecular Diagnostics results.
In Nutrition, lower sales volumes persisted across both pediatric and adult product portfolios in the U.S. and international markets. Abbott introduced strategic pricing actions in late 2025 to help accelerate volume growth, which are beginning to show encouraging early signs. The company is also prioritizing innovation, with several nutrition product launches planned over the coming months.
Meanwhile, Abbott’s Established Pharmaceuticals (EPD) performance benefits from favorable long-term healthcare economic and demographic trends, supported by a broad product offering across five therapeutic areas. The biosimilars portfolio, which includes several market-leading oncology therapies, is a key growth pillar.
Within Medical Devices, the cardiovascular businesses delivered a strong performance in the quarter, supported by the Aveir leadless pacemakers, the Heart Assist Devices portfolio and the launch of two new pulsed field ablation (PFA) catheters. In Diabetes Care, continuous glucose monitoring sales reached $2 billion, although growth was affected by delayed international tender renewal and a difficult prior-year comparison related to shelf restocking dynamics.
Abbott projects full-year 2026 adjusted diluted EPS of $5.38-$5.58, which includes $0.20 of dilution from the Exact Sciences acquisition, and maintains its organic growth outlook of 6.5% to 7.5%.
Here's how estimates for Abbott’s 2026 and 2027 bottom line are trending over the past 60 days.
Image Source: Zacks Investment Research
The Case for Zimmer Biomet
The company delivered a solid first-quarter 2026, with sales growing 2.9% on an organic constant currency basis and adjusted EPS rising 15.5% year over year. Healthy end markets and continued momentum from newly-launched products supported the performance. Over the past two years, Zimmer Biomet has addressed key gaps in its core portfolio through the rollout of its “Magnificent 7” platform, which includes products like the Persona OsseoTi Keel Tibia, Oxford Cementless Partial Knee, and the ROSA Robotic Solutions and navigation technologies.
Within the U.S. hip franchise, the company continues to gain traction with its “triple-play”, comprising Z1 (now representing nearly 40% of U.S. hip stents), the OrthoGrid AI-based hip navigation platform and the HAMMR surgical impactor. Internationally, Zimmer Biomet is seeing rapid adoption of its iodine-coated hip implant in Japan, its second-largest market. Its strategy of offering a comprehensive suite of technology solutions is paying dividends.
Meanwhile, the ongoing transition to a dedicated and specialized U.S. sales channel from independent distributors and sales representatives is already generating improved productivity in transitioned territories. The evolution of go-to-market models, particularly in emerging markets, is also performing in accordance with the company’s plan.
Outside its core, Zimmer Biomet has diversified its portfolio with M&A. Paragon 28’s first-quarter growth accelerated roughly 200 basis points sequentially and is trending back toward double-digit growth. Zimmer Biomet is also advancing toward the anticipated 2027 launch of the mBos, a fully autonomous AI-driven orthopedic robotic system acquired through Monogram Technologies.
Actions such as manufacturing footprint expansion into lower-cost geographies, lowering inventory on hand and an ongoing SKU rationalization program are expected to strengthen Zimmer Biomet’s margins and improve free cash flow conversion rates.
The company reiterated its 2026 organic constant currency revenue growth outlook of 1% to 3% and raised adjusted EPS expectations to the $8.40-$8.55 range.
Take a look at how estimates for the company’s 2026 and 2027 earnings are shaping up.
Image Source: Zacks Investment Research
ABT & ZBH: Price Performance and Valuation
So far this year, ABT shares have dropped 32.6%, lagging both ZBH’s 6.9% decline and the Medical sector’s 7.7% fall.
Image Source: Zacks Investment Research
Abbott is trading at a forward earnings multiple of 14.83, below its median of 22.94 over the last three years. ZBH’s forward earnings multiple sits at 9.67, also lower than its three-year median of 12.73.
Image Source: Zacks Investment Research
Conclusion
Zimmer Biomet’s latest quarterly performance was shaped by shifting U.S. and certain international go-to-market strategies, while its recent acquisitions are showing positive momentum. The company is also making strides in improving operating efficiency. Meanwhile, Abbott’s first-quarter performance displayed respiratory-testing volatility in Diagnostics, early effects of pricing actions in Nutrition, and strength in EPD and Medical Devices.The Exact Sciences acquisition expands its addressable diagnostics market but presents near-term dilution risk. Estimates for Abbott’s 2025 and 2026 earnings are also trending downward.
On a year-to-date basis, ZBH has shown a stronger performance than Abbott while also appearing relatively more attractive on valuation. Rising earnings projections for the company are highly promising. Existing ZBH holders may find it prudent to retain their position to enjoy long-term momentum.
ZBH carries a Zacks Rank #3 (Hold), while ABT has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.