Zimmer Biomet Holdings (ZBH)
NYSE:ZBH
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Zimmer Biomet Holdings
(NYSE:ZBH)
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Select Model
Rating:65Neutral
Price Target:
$96.00
▲(7.68% Upside)
Action:DowngradedDate:02/11/26
The score is driven primarily by solid multi-year financial performance and strong cash generation, supported by earnings-call commitments to free cash flow growth and material buybacks. It is held back by margin and leverage watch items, tempered 2026 growth guidance with execution risk (salesforce transition and pricing pressure), and a mixed technical trend (below key longer-term moving averages with negative MACD).
Positive Factors
Technological Advancements
The FDA clearance of ROSA Knee with OptimiZe enhances Zimmer Biomet's product offerings, supporting long-term growth by improving surgical outcomes and maintaining competitive advantage in robotic-assisted surgery.
Negative Factors
Emerging Markets Challenges
Challenges in emerging markets could hinder Zimmer Biomet's growth potential, impacting its ability to capitalize on new opportunities and diversify revenue streams.
Read all positive and negative factors
Positive Factors
Negative Factors
Technological Advancements
The FDA clearance of ROSA Knee with OptimiZe enhances Zimmer Biomet's product offerings, supporting long-term growth by improving surgical outcomes and maintaining competitive advantage in robotic-assisted surgery.
Read all positive factors
Zimmer Biomet Holdings (ZBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.44B
Dividend Yield1.05%
Average Volume (3M)2.03M
Price to Earnings (P/E)25.2
Beta (1Y)0.59
Revenue Growth5.47%
EPS Growth-23.03%
CountryUS
Employees17,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)2.42
Shares Outstanding195,652,010
10 Day Avg. Volume2,083,152
30 Day Avg. Volume2,028,853
Financial Highlights & Ratios
PEG Ratio-1.26
Price to Book (P/B)1.40
Price to Sales (P/S)2.16
P/FCF Ratio12.09
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue2.97
Enterprise Value/Gross Profit4.27
Enterprise Value/Ebitda11.04
Forecast
1Y Price Target
$100.38Price Target Upside12.60% Upside
Rating ConsensusHold
Number of Analyst Covering18
EPS Forecast (FY)8.4
Revenue Forecast (FY)$8.55B
Zimmer Biomet Holdings Business Overview & Revenue Model
Company Description
Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates in the musculoskeletal healthcare business in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company designs, manufactures, and markets orthopaedic re...
How the Company Makes Money
Zimmer Biomet generates revenue through the sale of its medical devices and products primarily in the orthopedic and spine markets. The company’s key revenue streams include sales from joint reconstruction products, which encompass knee and hip re...
Zimmer Biomet Holdings Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyZimmer Biomet Holdings Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call balanced encouraging operational and product momentum (notably product adoption in hips/knees, robotics strength, robust free cash flow generation, and a sizable buyback program) with significant near-term execution risks (a large U.S. salesforce transformation, pricing/gross margin pressure, higher interest expense and fragile international pockets). Management provided concrete guidance (1%–3% revenue growth and $8.30–$8.45 adjusted EPS for 2026) and emphasized long-term upside from innovation and channel changes while acknowledging short-term disruption.Positive Updates
Solid Q4 and FY25 Organic Revenue Growth
Q4 organic constant-currency sales grew 5.4% (consolidated); U.S. organic growth 5.7% and International organic growth 5.0%. Full-year 2025 organic constant-currency sales grew 3.9%.
Negative Updates
Tempered 2026 Revenue Guidance
Management guided full-year 2026 organic constant-currency revenue growth to a low single-digit range of 1%–3%, down from recent mid-single digit exits, primarily to account for U.S. salesforce transition risk and other uncertainties.
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Q4 and FY25 Organic Revenue Growth
Q4 organic constant-currency sales grew 5.4% (consolidated); U.S. organic growth 5.7% and International organic growth 5.0%. Full-year 2025 organic constant-currency sales grew 3.9%.
Read all positive updates
Company Guidance
Zimmer Biomet guided 2026 to organic constant‑currency revenue growth of 1%–3% (growth roughly consistent quarter‑to‑quarter), adjusted EPS of $8.30–$8.45, and free cash flow growth of 8%–10% (with free cash flow conversion approaching ~80%); the outlook includes a ~100‑bp contribution from Paragon 28 to reported sales before it enters organic in April, an expected FX tailwind of ~50 bps to full‑year revenue (about +250 bps in Q1), up to 100 bps of pricing erosion, and assumes end‑market growth in line with 2025 while allowing for disruption from the U.S. salesforce transition and international go‑to‑market evolution. They expect full‑year operating margins to be down roughly 50 bps from 2025 (Q1 down ~100 bps yoy, then improving ~100 bps into Q2), adjusted net interest and other non‑operating expenses of ~ $295 million, an adjusted effective tax rate of ~18%, and diluted shares of about 194–195 million (reflecting a 2026 buyback program of up to $750 million; the board has authorized up to $1.5 billion of repurchases overall).Zimmer Biomet Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.23B | 7.68B | 7.39B | 6.94B | 6.83B |
| Gross Profit | 5.07B | 5.49B | 5.31B | 4.92B | 4.87B |
| EBITDA | 2.22B | 2.25B | 2.22B | 1.49B | 1.65B |
| Net Income | 705.20M | 903.80M | 1.02B | 231.40M | 401.60M |
Balance Sheet | |||||
| Total Assets | 23.09B | 21.37B | 21.50B | 21.07B | 23.46B |
| Cash, Cash Equivalents and Short-Term Investments | 591.90M | 525.50M | 415.80M | 375.70M | 378.10M |
| Total Debt | 7.52B | 6.20B | 5.77B | 5.70B | 7.07B |
| Total Liabilities | 10.39B | 8.89B | 9.01B | 9.04B | 10.79B |
| Stockholders Equity | 12.71B | 12.47B | 12.48B | 12.02B | 12.66B |
Cash Flow | |||||
| Free Cash Flow | 1.47B | 1.14B | 1.19B | 1.07B | 1.35B |
| Operating Cash Flow | 1.70B | 1.50B | 1.58B | 1.28B | 1.50B |
| Investing Cash Flow | -1.98B | -888.10M | -778.90M | -529.20M | -503.60M |
| Financing Cash Flow | 326.00M | -484.50M | -763.50M | -843.80M | -1.31B |
Zimmer Biomet Holdings Technical Analysis
Negative
89.15
Price Trends
91.86
Negative
91.88
Negative
94.86
Negative
Market Momentum
-1.73
Positive
42.00
Neutral
19.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBH, the sentiment is Negative. The current price of 89.15 is below the 20-day moving average (MA) of 92.36, below the 50-day MA of 91.86, and below the 200-day MA of 94.86, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 42.00 is Neutral, neither overbought nor oversold. The STOCH value of 19.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZBH.
Zimmer Biomet Holdings Risk Analysis
Zimmer Biomet Holdings disclosed 32 risk factors in its most recent earnings report. Zimmer Biomet Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zimmer Biomet Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $47.68B | 46.44 | 10.39% | ― | 0.19% | 65.58% | |
72 Outperform | $13.54B | 22.70 | 11.79% | 2.28% | 5.78% | 61.52% | |
68 Neutral | $104.12B | 48.91 | 12.53% | ― | 21.62% | 54.80% | |
67 Neutral | $112.56B | 28.29 | 9.54% | 2.76% | 5.34% | 13.15% | |
66 Neutral | $127.31B | 41.38 | 15.04% | 0.95% | 10.95% | -18.32% | |
65 Neutral | $17.44B | 25.25 | 5.60% | 1.05% | 5.47% | -23.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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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.