Zimmer Biomet (NYSE:ZBH) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Zimmer Biomet (NYSE:ZBH) issued its quarterly earnings data on Wednesday. The medical equipment provider reported $2.07 EPS for the quarter, beating the consensus estimate of $2.01 by $0.06, FiscalAI reports. The business had revenue of $2.18 billion during the quarter, compared to the consensus estimate of $2.13 billion. Zimmer Biomet had a net margin of 9.05% and a return on equity of 13.24%. The firm’s revenue was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.07 EPS. Zimmer Biomet updated its FY 2026 guidance to 8.470-8.590 EPS.

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

• Positive Sentiment: Zimmer Biomet reported Q2 net sales of $2.177 billion, up 4.0% organically at constant currency, exceeding expectations; U.S. organic growth was 4.6%, led by hips, technology, and higher-growth S.E.T. businesses.
• Positive Sentiment: The company raised its 2026 organic revenue growth outlook to 2.25%-3.25% from 1%-3% and adjusted EPS guidance to $8.47-$8.59; reported sales growth guidance increased to 3.9%-4.9%.
• Positive Sentiment: New products and technology are gaining traction, including the Z1 hip stem, HAMMR, OrthoGrid, iodine-coated hips in Japan, and ROSA Shoulder; technology sales grew 21.5% overall and more than 50% in the U.S.
• Neutral Sentiment: The U.S. sales-force transformation is progressing ahead of expectations, but Zimmer Biomet plans to continue investing in specialized commercial capabilities through 2027, putting pressure on margins; Q2 adjusted operating margin declined 210 basis points to 25.7%.
• Positive Sentiment: Operating cash flow rose 18% to $448 million and free cash flow increased 24% to $308 million; the company plans to repurchase up to $1 billion of shares in 2026, including $500 million already repurchased in the first half.

Zimmer Biomet Trading Up 2.4%

Shares of NYSE ZBH traded up $2.31 during midday trading on Wednesday, reaching $98.12. The stock had a trading volume of 3,309,801 shares, compared to its average volume of 2,317,277. The company’s 50 day moving average price is $89.30 and its 200 day moving average price is $89.95. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.95 and a current ratio of 1.73. Zimmer Biomet has a twelve month low of $79.12 and a twelve month high of $108.29. The firm has a market cap of $18.98 billion, a price-to-earnings ratio of 25.54, a price-to-earnings-growth ratio of 2.86 and a beta of 0.45.

Zimmer Biomet Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, June 25th were given a $0.24 dividend. The ex-dividend date was Thursday, June 25th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 1.0%. Zimmer Biomet’s payout ratio is 24.94%.

Trending Headlines about Zimmer Biomet

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

• Positive Sentiment: Q2 results exceeded expectations. Zimmer Biomet reported $2.177 billion in second-quarter sales, up 4.8% year over year and above the $2.13 billion analyst estimate. Adjusted diluted EPS was $2.07, beating consensus of $2.01. Zimmer Biomet Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Full-year guidance was raised. The company now expects 2026 adjusted EPS of $8.47 to $8.59, broadly in line with the $8.48 consensus, and revenue of approximately $8.6 billion, above the roughly $8.5 billion analyst estimate. Zimmer Biomet raises guidance on Q2 beats
• Positive Sentiment: Underlying growth remained healthy. Second-quarter sales increased 4.0% on an organic constant-currency basis, while reported diluted EPS rose 33.8% to $1.03, supporting the market’s favorable initial reaction. Zimmer Biomet Announces Second Quarter 2026 Financial Results
• Neutral Sentiment: Adjusted profitability was mixed. Adjusted EPS of $2.07 was unchanged from the prior-year period despite revenue growth, indicating that operating-cost or margin pressures offset some of the sales improvement. Analysts and investors will likely focus on the company’s margin trajectory and execution against the upgraded outlook.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on ZBH shares. Truist Financial reiterated a “hold” rating and issued a $92.00 price target (down from $98.00) on shares of Zimmer Biomet in a research note on Wednesday, April 29th. Barclays dropped their target price on Zimmer Biomet from $100.00 to $94.00 and set an “underweight” rating for the company in a research report on Wednesday, April 29th. Citigroup reduced their price target on Zimmer Biomet from $95.00 to $93.00 and set a “neutral” rating on the stock in a report on Thursday, May 28th. UBS Group began coverage on shares of Zimmer Biomet in a report on Tuesday, July 28th. They issued a “buy” rating and a $115.00 price objective for the company. Finally, Weiss Ratings lowered shares of Zimmer Biomet from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $102.00.

Insiders Place Their Bets

In related news, insider Sang Yi sold 5,000 shares of the business’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $82.64, for a total value of $413,200.00. Following the transaction, the insider owned 27,251 shares in the company, valued at $2,252,022.64. The trade was a 15.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.28% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Dodge & Cox increased its holdings in Zimmer Biomet by 1.3% in the fourth quarter. Dodge & Cox now owns 23,506,849 shares of the medical equipment provider’s stock worth $2,113,736,000 after purchasing an additional 290,676 shares in the last quarter. State Street Corp boosted its stake in Zimmer Biomet by 2.3% during the fourth quarter. State Street Corp now owns 8,826,974 shares of the medical equipment provider’s stock worth $795,814,000 after acquiring an additional 195,214 shares in the last quarter. Invesco Ltd. grew its holdings in Zimmer Biomet by 10.6% in the fourth quarter. Invesco Ltd. now owns 3,361,075 shares of the medical equipment provider’s stock worth $302,228,000 after purchasing an additional 322,689 shares during the period. Victory Capital Management Inc. increased its stake in Zimmer Biomet by 28.6% in the fourth quarter. Victory Capital Management Inc. now owns 2,475,768 shares of the medical equipment provider’s stock valued at $223,529,000 after purchasing an additional 551,005 shares in the last quarter. Finally, Morgan Stanley raised its holdings in shares of Zimmer Biomet by 8.6% during the fourth quarter. Morgan Stanley now owns 1,838,096 shares of the medical equipment provider’s stock valued at $165,282,000 after purchasing an additional 144,789 shares during the period. 88.89% of the stock is owned by institutional investors and hedge funds.

Zimmer Biomet Company Profile

Zimmer Biomet (NYSE: ZBH) is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company’s product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.