Zimmer Biomet beats quarterly estimates on strong implant demand amid US sales overhaul

By Padmanabhan Ananthan

Feb 10 (Reuters) - Zimmer Biomet ZBH.N on Tuesday topped Wall Street estimates for fourth-quarter profit supported by robust demand for its devices used in orthopedic procedures, sending shares up over 4% in morning trading.

The medical device maker is accelerating a transition to a more dedicated and specialized U.S. sales channel, with CEO Ivan Tornos telling analysts on a post-earnings call that the company expects "the vast majority of the conversion" to be complete by the end of 2027.

The U.S. is Zimmer's primary market, accounting for roughly 58% of total net sales in 2025.

The orthopedic device maker reported a 10.9% increase in fourth-quarter net sales to $2.24 billion, showcasing robust demand for its hips and knees units and reflecting sustained procedural volumes in joint replacement surgeries.

Medtech firms are riding a surge in demand as insurers report higher medical-loss ratios, a sign that patients are scheduling more procedures and pushing utilization higher.

Analysts had expected quarterly sales of $2.23 billion, according to LSEG compiled data.

However, the company expects 2026 profit in the range of $8.30 to $8.45 per share, which is below analysts' average estimate of $8.48 per share.

Zimmer's 2026 guidance assumes a "stable tariff and policy environment," CFO Suketu Upadhyay said, adding that tariff impacts "will be choppy through the quarters" even though they are not expected to be "a significant increase" year over year.

Zimmer expects revenue growth of 2.5% to 4.5% for this year and a foreign currency impact of 0.5%.

For the quarter ended December 31, the company reported a profit of $2.42 per share on an adjusted basis, beating analysts' estimate of $2.40 per share.