Zimmer Biomet (NYSE:ZBH) Releases Earnings Results, Beats Expectations By $0.04 EPS

Zimmer Biomet (NYSE:ZBH) posted its quarterly earnings data on Tuesday. The medical equipment provider reported $2.42 EPS for the quarter, topping the consensus estimate of $2.38 by $0.04, FiscalAI reports. Zimmer Biomet had a return on equity of 12.85% and a net margin of 10.05%.The firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.22 billion. During the same period in the prior year, the business posted $2.31 EPS. Zimmer Biomet’s revenue was up 10.9% on a year-over-year basis. Zimmer Biomet updated its FY 2026 guidance to 8.300-8.450 EPS.

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

• Zimmer Biomet delivered on its 2025 commitments with a fifth consecutive year of mid-single-digit organic growth and Q4 organic growth of 5.4%, driven by U.S. product momentum (Persona OsseoTi cementless knees, Oxford Partial Knee, Z1 hip stem), strong robotic capital sales, and SET/upper‑extremity gains.
• Management will convert the U.S. sales force to a fully dedicated, specialized model (expected substantially complete by end of 2027), warning this pivotal change may cause short‑term disruption and is the primary reason 2026 guidance is tempered.
• 2026 guidance is conservative but healthy: organic constant‑currency revenue growth of 1–3%, adjusted EPS of $8.30–$8.45, free cash flow growth of 8–10%, and a board‑authorized buyback program (up to $1.5B, with up to $750M planned in 2026) to return capital to shareholders.
• Integration of recent acquisitions (Paragon 28, Monogram, OrthoGrid) is progressing; Paragon is expected to add roughly 100 basis points to reported sales in 2026, while management is pausing major M&A to prioritize integrations and the U.S. go‑to‑market transformation.

Zimmer Biomet Stock Up 2.0%

ZBH opened at $91.54 on Wednesday. The company has a market capitalization of $18.14 billion, a PE ratio of 22.66, a price-to-earnings-growth ratio of 2.29 and a beta of 0.62. The firm has a 50-day simple moving average of $89.97 and a two-hundred day simple moving average of $95.64. The company has a quick ratio of 1.39, a current ratio of 2.43 and a debt-to-equity ratio of 0.59. Zimmer Biomet has a 52 week low of $84.59 and a 52 week high of $114.44.

Zimmer Biomet Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Tuesday, December 30th were paid a $0.24 dividend. The ex-dividend date was Tuesday, December 30th. This represents a $0.96 annualized dividend and a yield of 1.0%. Zimmer Biomet’s payout ratio is presently 23.76%.

Zimmer Biomet News Roundup

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

• Positive Sentiment: Q4 beat on both EPS and revenue — upside on core orthopedics (hips/knees) reinforces revenue momentum and supports near‑term demand expectations. Zimmer Biomet beats quarterly estimates on strong hips, knees device demand
• Positive Sentiment: Company reiterated a multi‑point FY‑2026 outlook (EPS range $8.30–$8.45) and guided to an 8–10% improvement in free cash flow — signals management expects cash generation to improve. Zimmer Biomet posts Q4 beats, sets 2026 guidance
• Positive Sentiment: Analyst support: BTIG reaffirmed a Buy with a $112 price target (meaningful upside from current levels), which can provide positive sentiment and buying interest. BTIG buy rating / price target
• Neutral Sentiment: Full earnings call and transcripts are available for details on product segments, margin drivers and geographic trends — useful if you want to dig into management commentary. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Market coverage remains mixed: Needham kept a Hold rating, which may temper upside momentum despite positive results. Needham hold rating
• Negative Sentiment: Margins contracted in the quarter and management struck a measured tone on 2026 guidance; tariffs and cost pressures were cited as headwinds that could limit EPS upside relative to prior expectations. Zimmer Biomet tops Q4 expectations but strikes measured tone on 2026 guidance

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Wall Street Zen upgraded Zimmer Biomet from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. TD Cowen raised shares of Zimmer Biomet from a “hold” rating to a “buy” rating in a report on Monday, January 26th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Zimmer Biomet in a report on Wednesday, January 21st. Canaccord Genuity Group reduced their price objective on shares of Zimmer Biomet from $101.00 to $93.00 and set a “hold” rating for the company in a research note on Monday, November 10th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $100.00 target price (down previously from $115.00) on shares of Zimmer Biomet in a report on Thursday, November 6th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $106.10.

Hedge Funds Weigh In On Zimmer Biomet

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Camelot Portfolios LLC increased its stake in Zimmer Biomet by 1.8% in the 3rd quarter. Camelot Portfolios LLC now owns 11,603 shares of the medical equipment provider’s stock worth $1,143,000 after acquiring an additional 209 shares during the last quarter. Nomura Holdings Inc. grew its holdings in shares of Zimmer Biomet by 4.6% in the third quarter. Nomura Holdings Inc. now owns 4,923 shares of the medical equipment provider’s stock valued at $485,000 after purchasing an additional 215 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Zimmer Biomet by 0.6% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 40,607 shares of the medical equipment provider’s stock valued at $4,000,000 after purchasing an additional 234 shares in the last quarter. Parallel Advisors LLC increased its position in Zimmer Biomet by 43.4% in the third quarter. Parallel Advisors LLC now owns 895 shares of the medical equipment provider’s stock worth $88,000 after purchasing an additional 271 shares during the last quarter. Finally, Public Employees Retirement System of Ohio raised its stake in Zimmer Biomet by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 66,445 shares of the medical equipment provider’s stock valued at $6,545,000 after purchasing an additional 381 shares in the last quarter. 88.89% of the stock is owned by institutional investors.

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.