Globus Medical Cuts 2026 Revenue Outlook to $3.09 Billion
Key Facts
On November 5, Globus Medical cut its fiscal 2026 revenue outlook to $3.09 billion from a prior range of $3.18 billion to $3.22 billion, forecasting year-over-year growth of 5.1% compared with fiscal 2025, according to its earnings release. Third-quarter global sales were $763.7 million, down 0.7% from the year-earlier period, or 0.5% on a constant-currency basis. The company kept its 2026 adjusted diluted EPS outlook at $4.95 to $5.05, equivalent to expected growth of 24.4% to 26.9% from 2025. The update puts the revenue trajectory below the previous outlook, while the announced adjusted earnings range remained unchanged. Shares closed at $81.44 on November 5, according to EL7 data.
The previous revenue range, which the company maintained in its second-quarter update, was $3.18 billion to $3.22 billion before it was cut in November. Third-quarter results show global sales below their year-earlier level, at $763.7 million versus $769.048 million in the third quarter of 2025. Core business sales, excluding Nevro, however, were $690 million, up 3% as reported. The gap between core business growth and the decline in total sales reflects the exclusion of Nevro from the core business calculation. In the second quarter of 2026, global sales were $789.6 million, up 5.9% year over year.
Performance diverged between the two main markets: U.S. net sales rose 0.5% year over year in the third quarter, while international sales fell 5.7% as reported and 5.0% on a constant-currency basis. CEO Keith Pfeil said U.S. spine business grew 2% during the quarter, compared with double-digit growth in the year-earlier quarter. He added that the business’s average two-year growth rate is in the mid-single digits. His description points to a difficult comparison with the prior-year base, which saw double-digit growth. In Enabling Technologies, revenue rose 24%, with 73% more robotic and navigation units deployed than in the year-earlier quarter.
Quarterly net income under generally accepted accounting principles was $141.2 million, up 18.7% year over year. The company attributed the increase mainly to a $19.6 million reduction in cost of sales and a $25.9 million decline in operating expenses compared with the third quarter of 2025. GAAP diluted EPS was $1.04, versus $0.88 a year earlier, up 18.2%. Adjusted diluted EPS was $1.23, compared with $1.18, an increase of 4.4%. These quarterly results provide context for the company’s decision to maintain its annual adjusted EPS guidance despite revising its revenue outlook.
The board announced a $500 million increase to its existing share repurchase authorization, alongside the revenue outlook update and the decision to maintain the adjusted EPS range. In its third-quarter filing, the company said it completed the acquisition of Synaptive Medical during the quarter, with total consideration paid of $8.7 million. The acquisition adds to the corporate developments accompanying the results announcement, while the release does not identify a single factor as the reason for the revenue outlook cut. The investor relations website had scheduled the third-quarter earnings call for November 5 at 4:30 p.m. Eastern time. The call took place on the same day the company published its results and updated its annual guidance.