ZBH Q4 Earnings & Revenues Top Estimates, Stock Up in Pre-Market

Zimmer Biomet Holdings, Inc. ZBH posted fourth-quarter 2025 adjusted earnings per share (EPS) of $2.42, which beat the Zacks Consensus Estimate by 1.7%. The adjusted figure rose 4.8% year over year.

The quarter’s adjustments included certain amortization, restructuring and other cost reduction initiatives, inventory and manufacturing-related charges and European Union Medical Device Regulation-related charges, among others.

GAAP EPS was 70 cents compared with $1.20 in the year-ago period. 

Full-year adjusted EPS was $8.20, marking an increase of 2.5% year over year. The figure marginally beat the Zacks Consensus Estimate by 0.5%. 

ZBH's Revenues

Net sales of $2.24 billion increased 10.9% (up 9.2% on a constant currency basis) year over year. The figure surpassed the Zacks Consensus Estimate by 1.9%.

However, following the announcement, shares of ZBH rose 1.4% in pre-market trading today.

Full-year net sales of $8.23 billion increased 7.2% (up 6.4% on a constant currency basis). The figure marginally topped the Zacks Consensus Estimate by 0.5%.

ZBH's Revenues by Geography

Sales generated in the United States totaled $1.31 billion (up 11.11% year over year) for the quarter, while International sales grossed $931.2 million (up 10.6% year over year on a reported basis and 6.6% at CER).

Segmental Analysis of ZBH's Revenues

The company currently reports under four product categories — Knees, Hips, S.E.T. (Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic) and Technology & Data, Bone Cement and Surgical.

Sales in the Knees unit improved 8.6% year over year at CER to $911 million. 

Hips sales grew 6.8% year over year at CER to $555.4 million. 

Revenues in the S.E.T. unit rose 20.1% year over year at CER to $587.6 million. 

Technology & Data, Bone Cement and Surgical (historically referred to as "Other") revenues rose 8.7% to $189.8 million at CER in the fourth quarter. 

ZBH's Margin Performance

Adjusted gross margin, after excluding the impact of intangible asset amortization, was 64.7%, reflecting a contraction of 632 basis points (bps) year over year. Gross margin contracted due to a 35.1% rise in the cost of products sold.

Selling, general and administrative expenses rose 16.8% to $872.3 million. Research and development expenses rose 9.6% to $118.8 million. Adjusted operating margin contracted 821 bps to 20.5%.

ZBH's Cash Position

Zimmer Biomet exited the fourth quarter with cash and cash equivalents of $591.9 million compared with $525.5 million at the end of the fourth quarter of 2024.

Cumulative net cash provided by operating activities at the end of the fourth quarter was $1.70 billion compared with $1.50 billion in the year-ago period.

Zimmer Biomet Holdings, Inc. Price, Consensus and EPS Surprise

Zimmer Biomet Holdings, Inc. price-consensus-eps-surprise-chart | Zimmer Biomet Holdings, Inc. Quote

ZBH’s 2026 Outlook

Zimmer Biomet has provided its guidance for 2026.

Revenue growth is expected to be in the band of 2.5-4.5%. The Zacks Consensus Estimate for revenues is pegged at $8.41 billion, implying 3.1% year-over-year growth. 

Adjusted EPS guidance for the full year is expected to be in the range of $8.30-$8.45. The Zacks Consensus Estimate for 2025 adjusted EPS is pegged at $8.54.

Our Take on ZBH

Zimmer Biomet exited the fourth quarter with better-than-expected results, wherein both earnings and revenues beat estimates. All the business segments reported growth in the quarter.

Notable developments that fueled growth includes FDA clearance for ROSA Knee with OptimiZe and the launch of Brachiator Mini-Rail External Fixation System through its Paragon 28 subsidiary.

On the flip side, the contraction of both the margins looks discouraging. 

ZBH's Zacks Rank and Key Picks

Zimmer Biomet currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Envista NVST, National Vision EYE and Resmed RMD.

Envista, carrying a Zacks Rank #1 (Strong Buy) at present, posted fourth-quarter 2025 adjusted EPS of 38 cents, which exceeded the Zacks Consensus Estimate by 18.2%. Revenues of $750.6 million surpassed the Zacks Consensus Estimate by 11.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NVST has an earnings yield of 3.7% compared with the industry’s 2.3% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 16.4%.

National Vision, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2025 adjusted EPS of 13 cents, which topped the Zacks Consensus Estimate by 8.3%. Revenues of $487.3 million beat the Zacks Consensus Estimate by 2.7%. 

EYE’s earnings yield of 5.8% compares favorably with the industry’s 2.8% yield. The company beat on earnings in each of the trailing four quarters, the average surprise being 2.75%.

Resmed, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 EPS of $2.81, which beat the Zacks Consensus Estimate by 46%. Revenues of $1.42 billion topped the Zacks Consensus Estimate by 2.3%.

RMD has an earnings yield of 7.1% compared with the industry’s 2.8% yield. The company’s earnings outperformed estimates in three of the trailing four quarters and missed in the other one, with the average surprise being 2.7%.

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