Globus Medical shares drop 12.9%; revenue forecast cut
Non-GAAP EPS of $1.23 was in line with the $1.22 consensus estimate, while revenue of $763.72 million missed the $808.26 million consensus estimate. The company cut its 2026 revenue forecast to $3.09 billion.
Key takeaways
- Globus Medical (GMED) reported third-quarter 2026 non-GAAP diluted EPS of $1.23, in line with the $1.22 consensus estimate, and revenue of $763.72 million, below the $808.26 million estimate. It lowered its 2026 revenue forecast to $3.09 billion and authorized an additional $500 million for share repurchases.
Globus Medical (GMED) reported third-quarter 2026 results for the period ended Sept. 30. Non-GAAP diluted EPS was in line with the consensus estimate, while revenue missed.
Shares fell 12.9% at 3:59 p.m. ET, from an $81.44 close.
Revenue was $763.72 million, down 0.7% from a year earlier, against the $808.26 million consensus estimate.
Here's how the company did:
- Non-GAAP diluted EPS: $1.23 vs. $1.18 a year earlier, $1.22 expected
- Revenue: $763.72 million vs. $769.05 million a year earlier, $808.26 million expected
- GAAP diluted EPS: $1.04 vs. $0.88 a year earlier
Full-year guidance
The company lowered its 2026 revenue forecast to $3.09 billion from the $3.18 billion to $3.22 billion range it gave on Aug. 6. The new figure represents 5.1% growth over fiscal 2025.
It reaffirmed its non-GAAP diluted EPS range of $4.95 to $5.05, which the company said represents 24.4% to 26.9% growth over fiscal 2025. That range was raised on Aug. 6 from $4.70 to $4.80.
Share repurchases
The board authorized an additional $500 million for share repurchases on Nov. 2. About $611.0 million remained available under the program as of that date.
The program has no time limit and may be suspended or discontinued at any time. Repurchases may be made through privately negotiated transactions or open market transactions, including under a Rule 10b5-1 trading plan.
Chief Financial Officer Kyle Kline said the increase “reflects confidence in our long-term growth profile and underlying earnings and cash generation prowess.”
Segment results
Musculoskeletal Solutions net sales were $728.86 million, down from $741.01 million a year earlier. Enabling Technologies net sales rose to $34.86 million from $28.04 million.
Base business sales, excluding Nevro Corp., which Globus acquired in 2025, were $690.02 million, up from $669.79 million.
GAAP net income was $141.17 million, up from $118.97 million a year earlier. Free cash flow was $224.84 million, up from $213.88 million.