| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 67 | 23.7x | 17.3x | Top tier | |
Growth | 44 | 8.6% | 7.1% | Around median | |
Quality | 74 | 5.3% | 4.5% | Top tier | |
Safety | 62 | 3.2x | 2.6x | Around median | |
Capital Return | 74 | 0.99% | 0.06% | Top tier | |
Momentum | 68 | -8.8% | -1.6% | Top tier | |
Sentiment | 68 | 17 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
73% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Zimmer Biomet operates in musculoskeletal health, generating revenue from hip and knee replacement solutions and from the S.E.T. category, which includes upper extremities, foot and ankle, craniomaxillofacial and thoracic products, as well as robotics, surgical navigation, data, bone cement, and surgical instruments. Its growth model is based on selling implants and technologies associated with surgical procedures, expanding the use of platforms such as Z1, HAMMR, OrthoGrid, ROSA, and TMINI, and diversifying the portfolio through Paragon 28 and other high-growth products.
In Q2 fiscal 2026, net sales reached $2.177 billion, representing reported growth of 4.8% and constant-currency organic growth of 4%; the United States recorded organic growth of 4.6%, compared with 3.1% internationally. The financial statements showed revenue of approximately $2.2 billion, gross profit of $1.5 billion, net income of $198.3 million, and earnings per share of $1.03, compared with net income of $238.1 million and earnings per share of $1.22 in Q1 fiscal 2026. The adjusted gross margin was 71.1%, and the adjusted operating margin was 25.7%, down 120 and 210 basis points year over year, respectively.
The growth mix was uneven in Q2 fiscal 2026: hip sales rose 5.1% at constant currency, S.E.T. grew organically by 3.4%, and the Technology & Data, Bone Cement, and Surgical category jumped 21.5%, while knee sales increased only 0.1% as 1.4% U.S. growth was offset by a 1.5% international decline. GAAP diluted earnings per share rose to $1.03 from $0.77 in Q2 fiscal 2025, while adjusted earnings per share remained flat at $2.07 because of dilution from the Paragon 28 acquisition and investment in the U.S. commercial organization.
The analyst consensus on ZBH is “Neutral,” with an average price target of $103.11 and a wide target range of $93 to $120; the average is close to the 52-week high of $106.88, while the highest target exceeds that level and the lowest target remains within it. No reported price-to-earnings ratio is available in the data, although trailing-twelve-month earnings per share were approximately $3.89, so the valuation assessment is based on the dispersion of targets and the 52-week range of $79.12–$106.88, balancing the higher fiscal 2026 guidance against margin contraction and weakness in knees and international markets.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Net sales reached $2.177 billion, representing reported growth of 4.8% and constant-currency organic growth of 4%, while the United States recorded growth of 4.6%. Hips drove an important part of the performance with 5.1% constant-currency growth, and the Technology & Data, Bone Cement, and Surgical category rose 21.5%. Net income was $198.3 million, and earnings per share were $1.03, while adjusted earnings per share remained flat at $2.07 because of commercial channel investments and Paragon 28 dilution.
The three products comprise what the company calls its triple hip platform in the United States, where the U.S. hip business grew 5.9% in Q2 fiscal 2026. Z1 now accounts for more than 40% of U.S. hip stems and was approaching the milestone of more than 100 thousand implants globally, according to the August 5, 2026 call. HAMMR is used in more than 25% of U.S. primary hip cases, while OrthoGrid recorded its strongest quarter and its case count in the first half of fiscal 2026 equaled the total for fiscal 2025.
Automated analysis for informational purposes only — not investment advice.
U.S. technology sales grew 53% in Q2 fiscal 2026, and the company recorded record capital sales driven by ROSA with OptimiZe and TMINI. The next-generation ROSA Shoulder began contributing, and it performs anatomic and reverse procedures and operates on both the humeral and glenoid sides of the joint. Management sees room for expansion because only 20% of orthopedic surgeons in the United States and 10% outside it use robotics, but it is also evaluating the possibility of simplifying the portfolio after the Monogram launch.
On August 5, 2026, the company raised its constant-currency organic growth outlook to 2.25%–3.25% and raised the reported sales growth range to 3.9%–4.9%. It also increased its adjusted earnings per share outlook to $8.47–$8.59 and expects Paragon 28 to contribute 110 basis points to reported sales growth. Conversely, the guidance assumes pricing pressure of up to 100 basis points, a gross margin near 71%, and an operating margin decline of slightly more than 50 basis points.
The knee business grew only 0.1% in Q2 fiscal 2026, as U.S. growth of 1.4% was offset by an international decline of 1.5%. China, which represents 2% of revenue, was also declining 20% during fiscal 2026, while pressures persisted in trauma and restorative therapies. The commercial transformation extending through the end of 2027 and pricing pressure of 80 basis points in the quarter add execution and margin risks, despite the higher annual guidance.
The company generated operating cash flow of $448 million and free cash flow of $308 million in Q2 fiscal 2026, up 18% and 24%, respectively. Cash and equivalents were approximately $410 million at the end of the quarter, and management expects free cash flow growth of 9%–11% during fiscal 2026. After repurchasing $500 million of shares in the first half, the company raised its annual plan to as much as $1 billion, which helped reduce the diluted share count compared with the previous year.