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Zimmer (ZBH) Up 3.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Zimmer Biomet (ZBH - Free Report) . Shares have added about 3.1% in that time frame, underperforming 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? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Zimmer Biomet Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
ZBH Q1 Earnings & Revenues Top Estimates
Zimmer Biomet posted first-quarter 2026 adjusted earnings per share of $2.09, which beat the Zacks Consensus Estimate by 12.6%. The adjusted figure rose 15.5% 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.
GAAP earnings per share were $1.22 compared with 91 cents in the year-ago period.
Revenues
Net sales of $2.09 billion increased 9.3% (up 6.8% on a constant currency basis) year over year. The figure also surpassed the Zacks Consensus Estimate by 1.8%.
Revenues by Geography
Sales generated in the United States totaled $1.21 billion (up 8.6% year over year) for the quarter, while International sales grossed $877.4 million (up 10.3% year over year on a reported basis and 4.2% at CER).
Segmental Analysis
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 1.8% year over year at CER to $828.6 million.
Hips’ sales grew 3.2% year over year at CER to $524.1 million.
Revenues in the S.E.T. unit rose 17.4% year over year at CER to $562.2 million.
Technology & Data, Bone Cement and Surgicalrevenues rose 11.7% to $171.8 million at CER in the first quarter.
Margin Performance
Adjusted gross margin, after excluding the impact of intangible asset amortization, was 72.4%, reflecting an expansion of 119 basis points (bps) year over year. Gross margin expanded despite a 4.8% rise in the cost of products sold.
Selling, general and administrative expenses rose 12% to $849.9 million. Research and development expenses declined 6.5% to $103.4 million. Adjusted operating margin expanded 104 bps to 26.7%.
Cash Position
Zimmer Biomet exited the first quarter of 2026 with cash and cash equivalents of $424.2 million compared with $591.9 million at the end of the fourth quarter of 2025.
Cumulative net cash provided by operating activities at the end of the first quarter was $359.4 million compared with $382.8 million in the year-ago period.
2026 Outlook
Zimmer Biomet has updated its EPS guidance for 2026.
Revenue growth is expected to be in the band of 2.5-4.5%. The Zacks Consensus Estimate for revenues is pegged at $8.52 billion, implying 3.6% year-over-year growth.
Adjusted earnings per share guidance for the full year is now expected to be in the range of $8.40-$8.55 (previously $8.30-$8.45). The Zacks Consensus Estimate for 2026 adjusted earnings per share is pegged at $8.37.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Zimmer has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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. Interestingly, 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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Zimmer (ZBH) Up 3.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Zimmer Biomet (ZBH - Free Report) . Shares have added about 3.1% in that time frame, underperforming 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? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Zimmer Biomet Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
ZBH Q1 Earnings & Revenues Top Estimates
Zimmer Biomet posted first-quarter 2026 adjusted earnings per share of $2.09, which beat the Zacks Consensus Estimate by 12.6%. The adjusted figure rose 15.5% 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.
GAAP earnings per share were $1.22 compared with 91 cents in the year-ago period.
Revenues
Net sales of $2.09 billion increased 9.3% (up 6.8% on a constant currency basis) year over year. The figure also surpassed the Zacks Consensus Estimate by 1.8%.
Revenues by Geography
Sales generated in the United States totaled $1.21 billion (up 8.6% year over year) for the quarter, while International sales grossed $877.4 million (up 10.3% year over year on a reported basis and 4.2% at CER).
Segmental Analysis
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 1.8% year over year at CER to $828.6 million.
Hips’ sales grew 3.2% year over year at CER to $524.1 million.
Revenues in the S.E.T. unit rose 17.4% year over year at CER to $562.2 million.
Technology & Data, Bone Cement and Surgicalrevenues rose 11.7% to $171.8 million at CER in the first quarter.
Margin Performance
Adjusted gross margin, after excluding the impact of intangible asset amortization, was 72.4%, reflecting an expansion of 119 basis points (bps) year over year. Gross margin expanded despite a 4.8% rise in the cost of products sold.
Selling, general and administrative expenses rose 12% to $849.9 million. Research and development expenses declined 6.5% to $103.4 million. Adjusted operating margin expanded 104 bps to 26.7%.
Cash Position
Zimmer Biomet exited the first quarter of 2026 with cash and cash equivalents of $424.2 million compared with $591.9 million at the end of the fourth quarter of 2025.
Cumulative net cash provided by operating activities at the end of the first quarter was $359.4 million compared with $382.8 million in the year-ago period.
2026 Outlook
Zimmer Biomet has updated its EPS guidance for 2026.
Revenue growth is expected to be in the band of 2.5-4.5%. The Zacks Consensus Estimate for revenues is pegged at $8.52 billion, implying 3.6% year-over-year growth.
Adjusted earnings per share guidance for the full year is now expected to be in the range of $8.40-$8.55 (previously $8.30-$8.45). The Zacks Consensus Estimate for 2026 adjusted earnings per share is pegged at $8.37.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Zimmer has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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. Interestingly, Zimmer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.