Zimmer Biomet (NYSE:ZBH – Get Free Report) announced its quarterly earnings results on Wednesday. The medical equipment provider reported $2.07 EPS for the quarter, beating analysts’ consensus estimates of $2.01 by $0.06, FiscalAI reports. The firm 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 9.48% and a return on equity of 13.12%. The firm’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter last 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 Price Performance
ZBH stock traded down $1.06 during trading on Friday, hitting $96.13. The stock had a trading volume of 651,270 shares, compared to its average volume of 2,327,167. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.69 and a quick ratio of 0.95. The company’s 50-day moving average price is $89.89 and its two-hundred day moving average price is $90.09. The stock has a market capitalization of $18.60 billion, a P/E ratio of 23.32, a PEG ratio of 2.88 and a beta of 0.45. Zimmer Biomet has a twelve month low of $79.12 and a twelve month high of $108.29.
Zimmer Biomet Dividend Announcement
Analysts Set New Price Targets
A number of research firms have weighed in on ZBH. Robert W. Baird set a $104.00 target price on Zimmer Biomet in a research note on Thursday. Needham & Company LLC reissued a “hold” rating on shares of Zimmer Biomet in a research report on Wednesday. Truist Financial upped their price target on shares of Zimmer Biomet from $92.00 to $106.00 and gave the company a “hold” rating in a report on Thursday. Royal Bank Of Canada lifted their price objective on Zimmer Biomet from $101.00 to $110.00 and gave the company an “outperform” rating in a research note on Thursday. Finally, Weiss Ratings raised Zimmer Biomet from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, thirteen have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Zimmer Biomet has an average rating of “Hold” and an average price target of $104.00.
Check Out Our Latest Analysis on Zimmer Biomet
Insider Activity at Zimmer Biomet
In related news, insider Sang Yi sold 5,000 shares of the company’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $82.64, for a total value of $413,200.00. Following the completion of the sale, the insider owned 27,251 shares of the company’s stock, valued at approximately $2,252,022.64. This represents a 15.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 1.28% of the stock is currently owned by corporate insiders.
Institutional Trading of Zimmer Biomet
Institutional investors have recently made changes to their positions in the company. Sivia Capital Partners LLC acquired a new stake in Zimmer Biomet in the 2nd quarter valued at about $232,000. Brighton Jones LLC acquired a new position in shares of Zimmer Biomet during the 4th quarter worth about $204,000. Transamerica Financial Advisors LLC increased its holdings in shares of Zimmer Biomet by 45.4% in the 4th quarter. Transamerica Financial Advisors LLC now owns 1,261 shares of the medical equipment provider’s stock valued at $114,000 after acquiring an additional 394 shares during the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of Zimmer Biomet during the 4th quarter worth about $87,000. Finally, Caitong International Asset Management Co. Ltd lifted its stake in Zimmer Biomet by 449.7% during the third quarter. Caitong International Asset Management Co. Ltd now owns 786 shares of the medical equipment provider’s stock worth $77,000 after purchasing an additional 643 shares during the last quarter. Hedge funds and other institutional investors own 88.89% of the company’s stock.
About Zimmer Biomet
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.
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