Zimmer Biomet (NYSE: ZBH) shares were on the rise today on fourth-quarter results that topped the consensus forecast.
Shares of ZBH fell nearly 1% to $89 apiece in pre-market trading today. However, they rose at midday, ticking up nearly 5% to $94.11 apiece.
The Warsaw, Indiana-based orthopedic giant reported profits of $139.3 million. That equals 70¢ per share on sales of $2.24 billion for the three months ended Dec. 31, 2025.
Zimmer Biomet recorded a 41.8% bottom-line slide on a sales increase of 10.9%.
Adjusted to exclude one-time items, earnings per share came in at $2.42. That landed 2¢ ahead of expectations on Wall Street. Sales just topped the forecast as experts estimated $2.22 billion in revenue.
Highlights in the quarter included FDA clearance for an enhanced version of the Rosa Knee surgical robotic system. The company also completed $250 million in share repurchases. It also received board authorization to repurchase up to $1.5 billion in shares.
Zimmer Biomet expects sales growth between 2.5% and 4.5% in 2026. It projects adjusted EPS to land between $8.30 and $8.45.
CEO Ivan Tornos said the guidance reflects slightly tempered expectations due to an organizational shift in the U.S. to a mostly direct and specialized sales organization.
“We made significant strategic and financial progress in 2025, delivering on our initial revenue growth, EPS and free cash flow commitments and integrating three acquisitions, all while navigating tariff headwinds,” said Ivan Tornos, chair, president and CEO of Zimmer Biomet. “We closed the year strong with meaningful revenue acceleration and two consecutive quarters of mid-single digit organic growth fueled by our new product innovation cycle. As we enter 2026, we are excited about our transition to a predominantly direct and specialized sales organization in the U.S.
“While this bold action tempers our 2026 sales guidance, we are confident that it will drive durable long-term growth and solidify our position as the undisputed market leader. Against this backdrop, we are committed to delivering EPS and free cash flow growth while continuing to return capital to shareholders in a meaningful way.”
The analysts’ take on the Zimmer Biomet results
BTIG analysts Ryan Zimmerman and Iseult McMahon maintained their “Buy” rating for Zimmer Biomet.
The analysts wrote that shares already reflected the lowered guidance for 2026 as the company transitions its U.S. sales force in an effort to achieve longer-term growth targets.
“While near-term disruption is anticipated, we think investors were prepared for this,” the analysts wrote. “[Zimmer Biomet] is taking a methodical and measured pace to these changes, setting achievable guidance, which has been messaged for some time. [Zimmer Biomet] will use its improving free cash flow primarily for share buybacks to help buoy shares. On balance, we view risk/reward as favorable in the face of these dynamics.”
