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Globus Medical
(NYSE:GMED)
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Rating:75Outperform
Price Target:
$88.00
▼(-7.61% Downside)
Action:Reiterated
Date:06/05/26
GMED scores well on fundamentals (strong growth, profitability, cash flow, and a very conservative balance sheet) and the latest earnings update was favorable with raised EPS guidance driven by margin expansion. The main drag is technical weakness (price below key moving averages with negative MACD), with secondary risks from Nevro integration and near-term revenue recognition headwinds in enabling technologies; valuation appears reasonable at ~18x earnings.
Positive Factors
Strong cash generation & conservative balance sheet
Robust operating and free cash flow combined with minimal leverage provide durable financial flexibility. This supports ongoing R&D, capex, share repurchases, and selective M&A while insulating the business from cyclical volume dips and enabling multi‑year investment in product platforms and go‑to‑market expansion.
Negative Factors
Nevro integration driving revenue lumpiness
The acquired Nevro business is causing uneven top‑line patterns and complicating forecasting. Structural sales reorganization and right‑sizing can depress near‑term revenue and obscure underlying organic trends, making quarter‑to‑quarter performance and resource allocation less predictable over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & conservative balance sheet
Robust operating and free cash flow combined with minimal leverage provide durable financial flexibility. This supports ongoing R&D, capex, share repurchases, and selective M&A while insulating the business from cyclical volume dips and enabling multi‑year investment in product platforms and go‑to‑market expansion.
Read all positive factors
Globus Medical Key Performance Indicators (KPIs)
Any
Revenue By Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments to improve performance.
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments to improve performance.
Data provided by:
The Fly
The FlyGlobus Medical (GMED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.29B
Dividend YieldN/A
Average Volume (3M)1.80M
Price to Earnings (P/E)18.1
Beta (1Y)0.64
Revenue Growth23.49%
EPS Growth219.12%
CountryUS
Employees6,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)4.35
Shares Outstanding113,236,100
10 Day Avg. Volume1,810,198
30 Day Avg. Volume1,798,401
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)2.58
Price to Sales (P/S)4.02
P/FCF Ratio20.04
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$106.20Price Target Upside11.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)4.74
Revenue Forecast (FY)$3.20B
Globus Medical Business Overview & Revenue Model
Company Description
Globus Medical, Inc. is a global medical technology company dedicated to inventing, developing, and marketing a diverse range of healthcare solutions. Their primary focus is on addressing musculoskeletal disorders for patients worldwide. Their ext...
How the Company Makes Money
Globus Medical makes money primarily by selling musculoskeletal medical devices and related surgical solutions to hospitals, healthcare providers, and distributors. Its core revenue stream is product sales in spine-focused categories (e.g., spinal...
Globus Medical Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line growth, meaningful margin expansion, record non-GAAP EPS, robust cash generation, international and trauma momentum, regulatory wins for patient-specific implants, and upgraded full-year EPS guidance — all indicating solid operational execution and profitable scaling. Primary negatives centered on the Nevro integration (revenue lumpiness and elevated SG&A), a shift in enabling tech deal structures toward leases/rentals that can depress near-term revenue recognition, and some competitive/longer sales cycles in robotics. Overall, the positive performance and durable margin improvements materially outweigh the integration and mix headwinds, while management provided clear plans and targets (mid-70s gross margin long term) that support an optimistic outlook.Positive Updates
Strong Top-line Growth
Q1 revenue of $759.9M, up 27.0% as reported and up 25.5% on a constant currency basis, driven by broad-based strength across businesses.
Negative Updates
Nevro Integration and Revenue Lumpiness
Nevro revenue declined to $82.7M in Q1 with a sequential decline of $17.1M (17.1% vs Q4 2025) driven by structural changes and right-sizing of sales/marketing. Management expects lumpiness and indicated Nevro may get worse before improving, targeting a return to historical run-rate late in the back half of the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-line Growth
Q1 revenue of $759.9M, up 27.0% as reported and up 25.5% on a constant currency basis, driven by broad-based strength across businesses.
Read all positive updates
Company Guidance
Globus reaffirmed full‑year 2026 revenue guidance of $3.18–$3.22 billion (implying +8.2% to +9.6% vs. 2025) and raised non‑GAAP fully diluted EPS to $4.70–$4.80 (from $4.40–$4.50), implying +18.1% to +20.6% growth, citing Q1 margin expansion as the driver; management expects adjusted gross profit margin of ~69%–70% in 2026 (long‑term target mid‑70s) and R&D of ~5%–6% of sales for the year. Q1 metrics supporting the update included revenue of $759.9M (base business $677.2M), Q1 non‑GAAP EPS $1.12 (+64.7% YoY), adjusted gross margin 69.2% (GAAP 66.4%), adjusted EBITDA margin 32.3% (base Globus 34.8%, Nevro standalone 11.8%), Nevro contribution $82.7M (‑$17.1M sequentially), cash and marketable securities $799.3M, Q1 capex $39.6M (5.2% of sales), and $390M of remaining share‑repurchase authorization.Globus Medical Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.10B | 2.94B | 2.52B | 1.57B | 1.02B | 958.10M |
| Gross Profit | 2.10B | 1.98B | 1.48B | 1.02B | 759.12M | 718.88M |
| EBITDA | 879.88M | 729.90M | 473.73M | 346.58M | 304.50M | 264.73M |
| Net Income | 586.74M | 537.90M | 102.98M | 122.87M | 190.17M | 149.19M |
Balance Sheet | ||||||
| Total Assets | 5.44B | 5.30B | 5.25B | 5.09B | 2.08B | 1.96B |
| Cash, Cash Equivalents and Short-Term Investments | 629.85M | 557.24M | 890.06M | 517.79M | 446.06M | 443.45M |
| Total Debt | 115.22M | 118.66M | 537.19M | 520.40M | 6.01M | 0.00 |
| Total Liabilities | 707.24M | 729.51M | 1.07B | 1.09B | 229.75M | 215.88M |
| Stockholders Equity | 4.73B | 4.57B | 4.18B | 4.00B | 1.85B | 1.74B |
Cash Flow | ||||||
| Free Cash Flow | 600.32M | 588.77M | 405.21M | 165.22M | 104.42M | 219.38M |
| Operating Cash Flow | 778.51M | 753.45M | 520.64M | 243.50M | 178.47M | 276.27M |
| Investing Cash Flow | -669.07M | -355.01M | -176.05M | 302.97M | -110.36M | -375.94M |
| Financing Cash Flow | -25.57M | -679.16M | -27.70M | -231.82M | -109.96M | 54.15M |
Globus Medical Technical Analysis
Neutral
95.25
Price Trends
80.46
Negative
85.32
Negative
82.76
Negative
Market Momentum
-0.98
Positive
47.99
Neutral
44.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMED, the sentiment is Neutral. The current price of 95.25 is above the 20-day moving average (MA) of 79.39, above the 50-day MA of 80.46, and above the 200-day MA of 82.76, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 44.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GMED.
Globus Medical Risk Analysis
Globus Medical disclosed 56 risk factors in its most recent earnings report. Globus Medical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Globus Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $10.29B | 18.06 | 13.04% | ― | 23.49% | 219.12% | |
73 Outperform | $17.61B | 23.28 | 6.01% | 1.05% | 9.23% | -14.66% | |
72 Outperform | $12.69B | 21.05 | 11.79% | 2.28% | 6.30% | 52.96% | |
68 Neutral | $63.36B | 17.93 | 14.82% | ― | 17.44% | 74.36% | |
67 Neutral | $119.25B | 36.25 | 15.10% | 0.95% | 8.84% | 16.34% | |
62 Neutral | $25.64B | 23.28 | 8.96% | 3.30% | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GMED
Globus Medical
78.56
21.95
38.77%
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SNN
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SYK
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316.44
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ZBH
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90.14
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-3.32%
Globus Medical Corporate Events
Executive/Board ChangesShareholder Meetings
Globus Medical Expands Equity Plan, Elects New Directors
Positive
Jun 4, 2026
On June 3, 2026, Globus Medical stockholders approved an amendment to the company’s 2021 Equity Incentive Plan at the 2026 Annual Meeting, increasing the authorized shares under the plan by 1,000,000 to a total of 12,000,000 Class A common s...
Executive/Board ChangesShareholder Meetings
Globus Medical Announces Board Resignation, Affirms Governance Stability
Neutral
Mar 23, 2026
On March 23, 2026, Globus Medical announced that board member John A. DeFord, Ph.D., resigned from its Board of Directors effective immediately and will not stand for re-election at the June 3, 2026, annual shareholders’ meeting. The company...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.