Globus Medical, Inc. GMED delivered first-quarter 2026 adjusted earnings of $1.12 per share, up 64.7% year over year. The figure beat the Zacks Consensus Estimate by 22.1%.
Revenues climbed 27.0% year over year to $759.9 million and topped the Zacks Consensus Estimate by 4.0%.
Following the earnings announcement, GMED stock rose 5.8% in the after-market trading yesterday.
Globus Medical Rides On Geographic Tailwinds
The company’s geographic performance showed solid demand across markets. Sales in the United States rose 25% year over year to $604.9 million, supported by continued strength in core spine and contributions from other domestic businesses.
International net sales increased 35.6% year over year to $155.0 million. On a constant-currency basis, international sales grew 27.8%, with currency contributing $9.0 million to the reported international revenue line, underscoring a favorable FX backdrop during the quarter.
GMED’s Product-Wise Q1 Sales
Musculoskeletal Solutions revenues of $733.0 million, up 27.3% year over year. Enabling Technologies generated $26.9 million in sales, up 21.1% from the prior-year quarter’s level, reflecting strong performance against a softer prior year.
GMED’s Margin Analysis
The gross profit in the reported quarter increased 32.7% year over year to $504.7 million. Gross margin expanded 280 basis points (bps) to 66.4%, aided by higher sales and improved cost efficiency. Cost of sales (exclusive of amortization of intangibles) rose 19.8% to $234.1 million.
In terms of operating expense, SG&A expenses rose 22.7% year over year to $297.8 million, while research and development spending increased 10.4% to $36.5 million. Operating income climbed 55.0% to $150.4 million and operating margin improved 358 bps to 19.8%, reflecting solid operating leverage despite higher spending levels.
GMED’s Cash Position
GMED ended the first quarter with total cash, cash equivalents and marketable securities of $799.3 million, up from $629.1 million at the end of 2025, reflecting strong cash generation and balance-sheet flexibility.
Globus Medical, Inc. Price, Consensus and EPS Surprise
Globus Medical, Inc. price-consensus-eps-surprise-chart | Globus Medical, Inc. Quote
Net cash provided by operating activities was $202.4 million compared with the year-ago figure of $177.3 million.
Globus Medical’s 2026 Guidance
For full-year 2026, the company reaffirmed revenue guidance of $3.18-$3.22 billion, signaling confidence in its top-line plan despite timing and mix variability across certain businesses. The Zacks Consensus Estimate is currently pegged at $3.19 billion.
Globus Medical raised its non-GAAP diluted earnings outlook to $4.70-$4.80 per share (up from the prior range of $4.40-$4.50). The Zacks Consensus Estimate is pegged at $4.46 per share.
Our Take on GMED
Globus Medical exited the first quarter of 2026 with better-than-expected results, with both earnings and revenues beating their respective estimates. The performance reflected strong execution on profitability and operating leverage, supported by continued momentum in core spine. The robust expansion of margins in the quarter is highly encouraging.
Supported by the multiple catalysts, management raised its 2026 earnings outlook.
GMED’s Zacks Rank & Other Key Picks
GMED currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Alcon ALC, Intuitive Surgical ISRG and Phibro Animal Health PAHC.
Alcon, currently carrying a Zacks Rank #2, reported a fourth-quarter 2025 EPS of 78 cents, which missed the Zacks Consensus Estimate by 0.8%. Revenues of $2.70 billion missed the Zacks Consensus Estimate by 0.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ALC has an earnings yield of 2.5% compared to the industry’s negative 1.6% yield. The company’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.11%.
Intuitive Surgical, carrying a Zacks Rank #2 at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
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Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).