Zimmer Biomet shares jump 13.4% after raising 2026 profit forecast

Zimmer Biomet (ZBH) said on Nov. 4 that third-quarter adjusted diluted earnings per share were $1.90, in line with the $1.90 consensus estimate, and raised its full-year 2026 adjusted EPS forecast.

Shares rose 13.4% in regular trading as of 3:59 p.m. ET, from a regular-session close of $97.06.

The company said net sales for the quarter ended Sept. 30 were $2.06 billion, up 3.1% from a year earlier on a reported basis and up 3.7% on a constant currency basis.

Revenue of $2.06 billion was in line with the $2.06 billion consensus estimate.

Here's how the company did:

• Net sales: $2.063 billion vs. $2.001 billion a year earlier, in line with the $2.06 billion consensus estimate
• Adjusted diluted EPS: $1.90 vs. $1.90 a year earlier and $1.90 expected
• Diluted EPS: $1.00, down 13.8% from a year earlier
• Free cash flow: $372.4 million vs. $277.6 million a year earlier

GAAP net earnings attributable to the company were $191.6 million for the quarter. Adjusted net earnings were $362.8 million.

2026 guidance

The company raised its full-year 2026 adjusted diluted EPS forecast to $8.50 to $8.60, from $8.47 to $8.59 previously.

It also raised its reported revenue change forecast to 4.4% to 4.9%, from 3.9% to 4.9%. Its organic constant currency revenue change forecast rose to 3.0% to 3.5%, from 2.25% to 3.25%.

The company now expects a foreign currency exchange impact of +0.25%, down from +0.5% previously.

Segment and product sales

U.S. net sales rose 3.6% in the quarter, and international net sales rose 2.4% on a reported basis.

Technology & Data, Bone Cement and Surgical sales rose 11.9%. S.E.T. sales rose 6.8%, and hip sales rose 6.0%. Knee sales fell 3.1%.

For the first nine months, net sales rose 5.7% on a reported basis and 5.0% on a constant currency basis.

Costs and cash flow

Operating profit for the quarter was $307.6 million, compared with $351.3 million a year earlier. Restructuring and other cost reduction initiatives cost $14.4 million, and acquisition, integration, divestiture and related costs were $19.6 million.

The company generated $560.0 million in operating cash flow in the quarter. Nine-month repurchases of common stock totaled $579.3 million.

Management comment

Chairman, President and CEO Ivan Tornos said the quarter was solid. “We are very pleased with our solid third quarter results, growing net sales 3.7% on a constant-currency basis and generating strong operating and free cash flow,” Tornos said.

Tornos also said: “This broad-based performance gives us confidence to raise our full-year organic constant-currency sales growth and adjusted EPS guidance.”

The company also said it extended a multi-year limited exclusive distribution and supply agreement with THINK Surgical, and it opened a new Zimmer Biomet Institute facility in Charlotte, N.C.