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

Zimmer Biomet (NYSE:ZBH) issued its quarterly earnings results on Wednesday. The medical equipment provider reported $1.90 earnings per share for the quarter, topping analysts’ consensus estimates of $1.88 by $0.02, FiscalAI reports. Zimmer Biomet had a return on equity of 13.02% and a net margin of 8.95%. The business had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.04 billion. During the same quarter in the previous year, the firm earned $1.90 earnings per share. The company’s revenue was up 3.1% on a year-over-year basis.

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 Performance

NYSE ZBH traded down $1.02 during trading hours on Friday, reaching $105.83. The stock had a trading volume of 708,688 shares, compared to its average volume of 2,258,999. Zimmer Biomet has a 52-week low of $79.12 and a 52-week high of $112.54. The stock has a fifty day moving average of $95.01 and a 200 day moving average of $91.99. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.94 and a current ratio of 1.46. The stock has a market cap of $20.19 billion, a P/E ratio of 26.79, a price-to-earnings-growth ratio of 2.65 and a beta of 0.50.

Zimmer Biomet Announces Dividend

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

Key Stories Impacting Zimmer Biomet

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

• Positive Sentiment: Q3 results beat expectations and the company raised its outlook. Zimmer Biomet reported adjusted earnings of $1.90 per share versus estimates of $1.88 and revenue of $2.06 billion versus $2.04 billion expected. Revenue grew 3.1% year over year, and the company lifted its FY2026 growth outlook. Shares recently reached a one-year high after the results. Zimmer Biomet Lifts Annual Growth Despite Challenging Knee Market
• Positive Sentiment: Analysts raised price targets, with several maintaining favorable views. RBC lifted its target to $125 and kept an outperform rating; UBS raised its target to $130 and rated the stock buy. JPMorgan, Wells Fargo, Citi and Bernstein also increased targets, though their ratings were neutral or market perform. RBC Raises Zimmer Biomet Price Target UBS Raises Zimmer Biomet Price Target
• Positive Sentiment: New surgical technology could support longer-term growth. The company introduced “surgeon-guided autonomy,” a framework for intelligent surgery designed around predicting, performing and supporting recovery. The announcement may strengthen its innovation story, though no financial impact was provided. Zimmer Biomet Introduces Surgeon-Guided Autonomy
• Negative Sentiment: Profit fell, and the knee business remains a headwind. Despite beating estimates, reports noted lower Q3 profit and a challenging knee market; diversification across the business helped offset that weakness. These pressures may limit the upside from the stronger outlook. Zimmer Biomet Q3 Profit Falls, Lifts FY26 Outlook

Analyst Ratings Changes

A number of analysts recently commented on the stock. Robert W. Baird set a $104.00 target price on shares of Zimmer Biomet in a research note on Thursday, August 6th. Royal Bank Of Canada upped their price target on shares of Zimmer Biomet from $110.00 to $125.00 and gave the company an “outperform” rating in a research note on Thursday. JPMorgan Chase & Co. raised their price target on shares of Zimmer Biomet from $117.00 to $120.00 and gave the stock a “neutral” rating in a report on Thursday. Needham & Company LLC reiterated a “hold” rating on shares of Zimmer Biomet in a research note on Wednesday, August 5th. Finally, Jefferies Financial Group reiterated a “hold” rating and set a $120.00 price objective on shares of Zimmer Biomet in a research note on Wednesday. Seven equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Zimmer Biomet currently has a consensus rating of “Hold” and a consensus price target of $111.95.

Insider Buying and Selling

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

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.