Zimmer Biomet Q4 revenue slightly beats analyst expectations

Overview

• Medical technology firm's Q4 revenue slightly beat analyst expectations, adjusted EPS beat estimates

• Company announced new $1.5 bln stock repurchase authorization

• Company received FDA clearance for upgraded robotic knee system

Outlook

• Zimmer Biomet projects 2026 reported revenue growth of 2.5% to 4.5%

• Company expects 2026 adjusted diluted EPS between $8.30 and $8.45

• Zimmer Biomet anticipates 2026 organic constant currency revenue growth of 1.0% to 3.0%

Result Drivers

• NEW PRODUCT INNOVATION - Zimmer Biomet's revenue growth was fueled by new product innovation cycle, contributing to mid-single digit organic growth

• ACQUISITIONS - Integration of three acquisitions, including Paragon 28, contributed to revenue growth

• SALES ORGANIZATION TRANSITION - Transition to direct and specialized sales organization in U.S. expected to drive long-term growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 18 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for Zimmer Biomet Holdings Inc is $100.00, about 11.4% above its February 9 closing price of $89.73

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn41R51da

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