Zimmer Biomet (NYSE:ZBH) Announces Earnings Results, Beats Expectations By $0.02 EPS

Zimmer Biomet (NYSE:ZBH) announced its quarterly earnings results on Wednesday. The medical equipment provider reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.88 by $0.02, FiscalAI reports. Zimmer Biomet had a return on equity of 13.12% and a net margin of 9.48%. The firm had revenue of $2.06 billion during the quarter, compared to the consensus estimate of $2.04 billion. During the same period in the prior year, the firm earned $1.90 EPS. The firm’s quarterly revenue was up 3.1% compared to the same quarter last year.

Here are the key takeaways from Zimmer Biomet’s conference call:

• Zimmer Biomet reported 3.7% constant-currency sales growth, with hips up 7%, S.E.T. up 7.1%, and technology, data, bone cement, and surgical up 13%. The company said two-thirds of its portfolio grew at upper-single-digit or double-digit rates.
• The company raised its 2026 organic constant-currency sales growth outlook to 3%–3.5% and adjusted EPS guidance to $8.50–$8.60. It cited stronger-than-expected performance and expects full-year free cash flow to grow 9%–11%.
• Knee sales declined 2.6% in constant currency, amid U.S. sales-force transition and competitive pressure, with China also weighing on results. Management expects near-term pressure to continue and acknowledged the transition’s final stage carries higher risk.
• Zimmer Biomet plans to submit Monogram’s 510(k) application soon and expects a potential launch in the first half of 2027, ahead of its prior timeline; the timing remains subject to FDA approval. Management views the system as a potential growth catalyst alongside its existing robotics offerings.
• Third-quarter adjusted EPS was flat at $1.90, while adjusted operating margin fell 140 basis points to 25.1%, reflecting investment in the U.S. commercial organization and higher manufacturing costs.

Zimmer Biomet Stock Down 2.5%

Shares of NYSE ZBH traded down $2.73 during mid-day trading on Thursday, reaching $107.42. 646,269 shares of the company traded hands, compared to its average volume of 2,251,948. Zimmer Biomet has a fifty-two week low of $79.12 and a fifty-two week high of $112.54. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.94 and a current ratio of 1.69. The company’s fifty day moving average is $94.90 and its two-hundred day moving average is $91.89. The stock has a market cap of $20.49 billion, a PE ratio of 26.14, a price-to-earnings-growth ratio of 2.33 and a beta of 0.50.

Zimmer Biomet Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th were issued a dividend of $0.24 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 0.9%. Zimmer Biomet’s dividend payout ratio is currently 23.36%.

More Zimmer Biomet News

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

• Positive Sentiment: Third-quarter sales were $2.063 billion, up 3.1% year over year (3.7% at constant currency), topping estimates of $2.04 billion. Adjusted diluted EPS of $1.90 also exceeded consensus, while the company raised its full-year 2026 financial guidance. These results and the improved outlook are key supports for the shares. Zimmer Biomet Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Hip and S.E.T. sales helped counter a challenging knee market. The CEO also said the company is not seeing a slowdown in orthopedic procedures, offering reassurance on underlying demand. Zimmer Biomet Q3 2026: How Diversification Offset a Weak Knee Quarter Zimmer Biomet CEO doesn’t see slowdown in ortho procedures
• Negative Sentiment: Reported diluted EPS fell 13.8% to $1.00, while adjusted EPS of $1.90 was unchanged from a year earlier. Knee weakness and margin pressure temper the positive sales and guidance news. Zimmer Biomet Q3 Profit Falls, Lifts FY26 Outlook

Insider Buying and Selling at Zimmer Biomet

In other Zimmer Biomet news, insider Chad F. Phipps sold 3,000 shares of Zimmer Biomet stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $98.35, for a total value of $295,050.00. Following the transaction, the insider directly owned 65,231 shares of the company’s stock, valued at $6,415,468.85. The trade was a 4.40% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Kevin R. Thornal sold 5,691 shares of the company’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $92.95, for a total transaction of $528,978.45. The disclosure for this sale is available in the SEC filing. Company insiders own 1.28% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Needham & Company LLC reiterated a “hold” rating on shares of Zimmer Biomet in a research note on Wednesday, August 5th. Zacks Research upgraded Zimmer Biomet from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 25th. Weiss Ratings raised shares of Zimmer Biomet from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, September 14th. Truist Financial boosted their price target on Zimmer Biomet from $92.00 to $106.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. Finally, Sanford C. Bernstein increased their price objective on shares of Zimmer Biomet from $91.00 to $93.00 and gave the company a “market perform” rating in a report on Thursday, August 6th. Seven equities research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $106.89.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc is a medical technology company that develops and manufactures products used in orthopedic surgery and musculoskeletal care. Its portfolio includes implants for the hip, knee, shoulder, and other joints, as well as products for sports medicine, extremity reconstruction, trauma, and spine procedures.

The company also offers surgical technologies and solutions designed to support orthopedic procedures, including robotic-assisted surgery systems, digital tools, patient-specific planning, and related instruments.