Zimmer Biomet (NYSE:ZBH) today announced the departure of its CFO after posting first-quarter results that topped Wall Street forecasts.
Shares of ZBH fell more than 12% to $81.39 apiece near the close of trading today. The S&P 500 was down slightly.
The Warsaw, Indiana–based orthopedic giant said that its CFO and EVP, Finance, Operations and Supply Chain, Suketu Upadhyay, departs the company, effective today, to pursue a new professional opportunity. Following Upadhyay’s departure, the company named Paul Stellato, its current controller and chief accounting officer, as interim CFO. It intends to conduct an internal and external search to identify a permanent successor.
Upadhyay joined Zimmer Biomet as EVP and CFO in 2019. In 2023, when CEO Bryan Hanson departed and Zimmer Biomet reshuffled its leadership team, he added operations and supply chain to his responsibilities.
Stellato brings more than 20 years of broad financial and investor relations experience to the role. He joined the company in May 2022 and has since advanced its strategy through disciplined capital allocation, including recent acquisitions and its share repurchase program, according to a news release.
Previously, Stellato served as part of Xylem’s finance leadership team, holding multiple roles during his tenure. He also spent eight years at ITT Corporation, following his early experience in public accounting with Andersen and Ernst & Young.
“We are deeply grateful for Suky’s leadership and contributions to Zimmer Biomet over the past seven years,” said Ivan Tornos, chair, president and CEO of Zimmer Biomet. “We are confident Paul is the right leader to provide continuity and steady direction during this transition, as we continue to execute our strategy and deliver on our commitments.”
A look at the Zimmer Biomet first-quarter results
Zimmer Biomet reported profits of $238.1 million. That equals $1.22 per share on sales of $2.09 billion for the three months ended March 31, 2026.
The company recorded a 30.8% bottom-line gain on a sales increase of 9.4%.
Adjusted to exclude one-time items, earnings per share came in at $2.09. That landed 23¢ ahead of expectations on Wall Street. Sales also topped estimates as experts forecast $2.07 billion in revenue.
Highlights in the quarter included the completion of $250 million in share repurchases during the first quarter of fiscal 2026. The company also added a new implant to its G7 hip line, launched a new curved nail system and rolled out a new foot and ankle platform.
Zimmer Biomet maintained its prior sales guidance for 2026 for revenue growth between 2.5% and 4.5%. However, the company increased its adjusted EPS guidance to $8.40–8.55 from the previous $8.30–8.45.
“We are off to a solid start to the year — strategically, operationally and financially,” said Tornos. “Our first quarter results reflect healthy end markets, continued momentum from our recently launched products and disciplined execution across the business. Given our progress and with our go-to-market transformation proceeding as planned, we are raising our adjusted EPS guidance and free cash flow expectations for the year. We remain confident that our strategy will position Zimmer Biomet for consistent, durable growth over the longer term.”
However, Needham & Co. analystis led by Mike Matson kept their Hold rating on ZBH shares: “Given ZBH’s low-single digit revenue growth and our expectation that it will struggle to drive meaningful EPS growth, we maintain our Hold rating.”
