Zimmer Biomet Posts Adjusted Earnings of $1.90, Raises 2026 Forecast
Key Facts
Zimmer Biomet reported third-quarter results on November 4, posting adjusted earnings per share of $1.90, above analysts’ estimate of $1.88. Revenue was $2.06 billion, versus an estimate of $2.04 billion, according to Reuters coverage via Investing.com. Revenue increased 3.1% year over year, or 3.7% excluding the impact of currency changes. The company raised its full-year forecast after the results, pointing to adjusted earnings per share slightly above the average analyst estimate. Shares also rose 1.5% after the announcement, according to the same coverage.
The company set its 2026 adjusted earnings-per-share range at $8.50 to $8.60, putting the midpoint at $8.55, compared with the average analyst estimate of $8.54. That puts the midpoint of the company’s guidance slightly above the consensus cited by Reuters, while the full-year range allows for final results to differ from that level. Zimmer Biomet also raised its estimate for full-year organic constant-currency revenue growth to a range of 3.0% to 3.5%. Its previous range was 2.25% to 3.25%. The new guidance raises both the low and high ends of the forecast, according to the coverage.
Chief Executive Ivan Tornos said net sales grew 3.7% on a constant-currency basis in the third quarter. He added that businesses spanning hip, S.E.T., technology and data, bone cement and surgical generated growth in the high single digits or double digits, and represented two-thirds of the business. Sales details show uneven performance across these businesses: hip sales rose 7.0% on a constant-currency basis, and the technology, data, bone cement and surgical category increased 13.0%. By contrast, knee sales fell 2.6%. This reflects differing performance across business categories during the quarter, with the two cited categories growing while knee sales declined.
The business generated $560 million in operating cash flow and $372.4 million in free cash flow in the third quarter, according to Reuters coverage via Investing.com. These figures add cash-flow indicators to a period in which revenue exceeded analysts’ estimates and adjusted earnings per share topped the estimate. For comparison, the company reported net sales of $2.001 billion and adjusted earnings per share of $1.90 in the third quarter of 2025, according to Zimmer Biomet data. Revenue therefore rose in the third quarter of 2026 from the level recorded a year earlier, while adjusted earnings per share remained at $1.90. In the second quarter of 2026, the company reported net sales of $2.177 billion and adjusted earnings per share of $2.07.
Zimmer Biomet announced in October that third-quarter results would be released on November 4 at 6:30 a.m. Eastern time, with an earnings conference scheduled for 8:30 a.m. the same day. The company confirmed in its announcement that the conference would be webcast. In trading on November 3, ZBH shares closed at $97.06, according to EL7 data. After the results were released on November 4, coverage reported that the shares rose 1.5%. The increase in annual guidance follows the August update, which showed second-quarter sales of $2.177 billion, up 4.8% on a reported basis and 4.0% on an organic constant-currency basis.