Globus Medical, Inc. GMED is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures. A solid financial health also adds to the stock’s appeal. Meanwhile, unfavorable foreign exchange and dull macro scenario remain concerns for GMED’s operations.
In the past year, this Zacks Rank #3 (Hold) stock has increased 43.5% against the industry's 10.2% decline. The S&P 500 composite has risen 21% in the same time frame.
The renowned medical device company has a market capitalization of $12.55 billion. Globus Medical has an earnings yield of 6.2% against the industry’s negative 3% yield. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 26.3%.
Let’s delve deeper.
Upsides for GMED Stock
Musculoskeletal Share Gains Continue: In the first quarter of 2026, the segment’s worldwide net sales rose 27% year over year, while base business sales, excluding Nevro, increased 13.2%. U.S. Spine marked its third straight quarter of 10% growth, with double-digit growth cited across standard fixation, minimally invasive surgery pedicle screws, expandable transforaminal lumbar interbody fusion, anterior lumbar interbody fusion, posterior cervical and cervical plating.
Trauma revenues increased 30.4% in the quarter, helped by continued adoption of the core trauma line and the Precice limb lengthening portfolio, with ANTHEM Elbow continuing to exceed expectations, leading the company to ship additional sets to the field in the second quarter.
Financial Flexibility: Globus Medical ended the first quarter of 2026 with $560.9 million of cash and cash equivalents and $68.9 million of short-term marketable securities. The company remains debt-free, which preserves the capacity to fund R&D, sales-force investments and manufacturing expansion without relying on external financing. Liquidity is also being replenished internally, with $202.4 million of operating cash flow generated in the quarter. This supports continued capital spending and buybacks alongside ongoing integration work.
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What Ails GMED?
Cost Inflation and Operating Spend Risk: The company operates in an environment of interest-rate uncertainty, inflation and geopolitical complexity that can disrupt supply chains and raise input costs. SG&A was $297.8 million in first-quarter 2026, or 39.2% of sales, up from $242.8 million a year earlier, reflecting higher compensation and benefit costs on higher volume. The company also recorded restructuring costs in the quarter as it continues synergy and integration plans, which could add variability to near-term expense trends.
Currency Exposure Persists: Globus Medical’s International net sales were $155 million in the first quarter of 2026, up 35.6% year over year as reported and 27.8% on a constant currency basis. This gap shows that foreign exchange can swing reported growth, even when underlying demand trends are steadier. The company recorded a $2.1 million foreign currency transaction loss in the quarter, which directly affected other income and expenses. With foreign revenues and expenses concentrated across regions such as Japan, the Eurozone, the United Kingdom and Australia, currency volatility can also affect gross margin and operating expense leverage over time.
Estimate Trend
The Zacks Consensus Estimate for GMED’s 2026 earnings per share (EPS) has remained unchanged at $4.74 in the past 30 days.
The consensus estimate for the company’s 2026 revenues is pegged at $3.20 billion, indicating an 8.7% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Alcon ALC, Integra LifeSciences IART and Phibro Animal Health PAHC.
Alcon has an earnings yield of 5.1% against the industry’s negative 2.8% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. ALC’s earnings topped estimates in three of the trailing four quarters and missed in one, the average surprise being 3.7%.
ALC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Integra LifeSciences, carrying a Zacks Rank #2 at present, has an earnings yield of 16% against the industry’s negative 3% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. IART’s earnings topped estimates in each of the trailing four quarters, the average surprise being 16.8%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, has an earnings yield of 9.2% compared with the industry’s 2.8% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.3%.
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Globus Medical, Inc. (GMED): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).