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Zimmer Biomet Holdings
(NYSE:ZBH)
Select Model
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Rating:73Outperform
Price Target:
$104.00
▲(9.73% Upside)
Action:Upgraded
Date:06/30/26
Overall score reflects a solid underlying financial profile with strong margins and supportive cash generation, but weakened recent net profitability/ROE and negative TTM free cash flow growth. Technicals are a major positive with the stock trading above all key moving averages and positive MACD, though momentum is nearing overbought. Valuation (P/E ~24 with ~1% yield) is a modest headwind, while the latest earnings call was constructive with raised EPS and free cash flow guidance despite acknowledged commercial transition and pricing/margin pressures.
Positive Factors
High Gross and EBITDA Margins
Sustained high gross and EBITDA margins reflect durable cost structure and pricing power in orthopedic implants and consumables. These margins provide a persistent earnings buffer to fund R&D, robotics investment and share repurchases while absorbing modest pricing erosion over the next several quarters.
Negative Factors
Compressed Net Margin and Declining ROE
Eroding net margins and a falling ROE signal declining bottom-line efficiency despite healthy operating margins. Lower returns on equity constrain reinvestment capacity and may limit long-term EPS leverage, making earnings more sensitive to pricing and interest cost pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross and EBITDA Margins
Sustained high gross and EBITDA margins reflect durable cost structure and pricing power in orthopedic implants and consumables. These margins provide a persistent earnings buffer to fund R&D, robotics investment and share repurchases while absorbing modest pricing erosion over the next several quarters.
Read all positive factors
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 (ZBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.67B
Dividend Yield1.05%
Average Volume (3M)2.08M
Price to Earnings (P/E)24.3
Beta (1Y)0.47
Revenue Growth9.23%
EPS Growth-14.66%
CountryUS
Employees17,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.87
Shares Outstanding193,462,480
10 Day Avg. Volume2,079,829
30 Day Avg. Volume2,077,796
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 Cap1.35
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit4.06
Enterprise Value/Ebitda10.84
Forecast
1Y Price Target
$97.43Price Target Upside2.79% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)8.49
Revenue Forecast (FY)$8.55B
Zimmer Biomet Holdings Business Overview & Revenue Model
Company Description
Zimmer Biomet Holdings, Inc. engages in the design, manufacture, and marketing of orthopedic reconstructive products. The firm also offers sports medicine, biologics, extremities, and trauma products, spine, craniomaxillofacial, and thoracic produ...
How the Company Makes Money
Zimmer Biomet primarily makes money by selling orthopedic medical devices and related surgical products to healthcare providers (e.g., hospitals and ambulatory surgery centers) and distributors worldwide. Its core revenue stream comes from reconst...
Zimmer Biomet Holdings Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented more positive developments than negative ones: solid top‑line growth (reported and organic), an EPS beat and raised EPS and free cash flow guidance, strong cash generation, accelerating performance from strategic acquisitions (Paragon 28) and clear momentum in technology and robotics (Monogram enrollment complete, ROSA/TMINI adoption). Offsetting items include short‑term disruption from the U.S. salesforce transformation and legacy knee transitions, some international go‑to‑market disruption, a one‑time tariff benefit that partially pulled forward upside, and higher interest expense tied to acquisition debt. On balance the company appears to be executing on its strategic priorities while managing expected transitional headwinds.Positive Updates
Revenue and Organic Growth
Net sales of $2.087 billion, up 9.3% on a reported basis and up 2.9% on an organic constant currency basis (ex-Paragon 28). U.S. sales grew 3.2% and International sales grew 2.5% in Q1 2026.
Negative Updates
U.S. Knees Underperformance and Legacy Product Pressure
U.S. knee growth only 2.2% in Q1; pressure from phasing out legacy knee implants (NextGen, Vanguard) and disruptions tied to go‑to‑market changes. Company lost two large accounts in the quarter and cited West Coast Kaiser strike impact.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Organic Growth
Net sales of $2.087 billion, up 9.3% on a reported basis and up 2.9% on an organic constant currency basis (ex-Paragon 28). U.S. sales grew 3.2% and International sales grew 2.5% in Q1 2026.
Read all positive updates
Company Guidance
Zimmer Biomet maintained full‑year 2026 guidance calling for organic constant‑currency revenue growth of 1%–3% (reported sales 2.5%–4.5% with Paragon 28 contributing ~100 bps to reported growth and excluded from organic), with growth “roughly consistent” through the year, an assumed up to 100 bps of price erosion, and an approximate 50 bps FX tailwind to revenue (Q2 neutral at current rates). They now expect 2026 adjusted EPS of $8.40–$8.55 (up from $8.30–$8.45) and raised free cash flow growth to 9%–11% (from 8%–10%), while continuing to assume up to $750 million of share repurchases and leaving interest expense, tax rate and year‑end shares guidance unchanged. On margins they forecast full‑year operating margin down slightly less than 50 bps vs. 2025 (Q2 ~‑200 bps YoY, with Q3 about +50 bps sequential from Q2) and expect adjusted gross margin modestly lower around ~71% for the year.Zimmer Biomet Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.41B | 8.23B | 7.68B | 7.39B | 6.94B | 6.83B |
| Gross Profit | 5.89B | 5.07B | 5.49B | 5.31B | 4.92B | 4.87B |
| EBITDA | 2.21B | 2.22B | 2.25B | 2.22B | 1.49B | 1.65B |
| Net Income | 761.30M | 705.20M | 903.80M | 1.02B | 231.40M | 401.60M |
Balance Sheet | ||||||
| Total Assets | 22.72B | 23.09B | 21.37B | 21.50B | 21.07B | 23.46B |
| Cash, Cash Equivalents and Short-Term Investments | 424.20M | 591.90M | 525.50M | 415.80M | 375.70M | 378.10M |
| Total Debt | 7.47B | 7.52B | 6.20B | 5.77B | 5.70B | 7.07B |
| Total Liabilities | 10.04B | 10.39B | 8.89B | 9.01B | 9.04B | 10.79B |
| Stockholders Equity | 12.67B | 12.70B | 12.47B | 12.48B | 12.02B | 12.66B |
Cash Flow | ||||||
| Free Cash Flow | 1.84B | 1.47B | 1.14B | 1.19B | 1.07B | 1.35B |
| Operating Cash Flow | 1.67B | 1.70B | 1.50B | 1.58B | 1.28B | 1.50B |
| Investing Cash Flow | -2.03B | -1.98B | -888.10M | -778.90M | -529.20M | -503.60M |
| Financing Cash Flow | -618.60M | 326.00M | -484.50M | -763.50M | -843.80M | -1.31B |
Zimmer Biomet Holdings Technical Analysis
Positive
94.78
Price Trends
86.03
Positive
89.32
Positive
91.05
Positive
Market Momentum
1.14
Negative
62.17
Neutral
76.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBH, the sentiment is Positive. The current price of 94.78 is above the 20-day moving average (MA) of 88.95, above the 50-day MA of 86.03, and above the 200-day MA of 91.05, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $17.67B | 24.31 | 6.01% | 1.05% | 9.23% | -14.66% | |
72 Outperform | $12.82B | 20.82 | 11.79% | 2.28% | 6.30% | 52.96% | |
71 Outperform | $53.09B | 48.57 | 10.55% | ― | 13.81% | 22.90% | |
68 Neutral | $66.54B | 18.60 | 14.82% | ― | 17.44% | 74.36% | |
68 Neutral | $107.36B | 22.29 | 9.92% | 2.76% | 8.43% | 3.17% | |
67 Neutral | $126.42B | 37.97 | 15.10% | 0.95% | 8.84% | 16.34% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ZBH
Zimmer Biomet Holdings
94.08
1.03
1.11%
BSX
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44.65
-58.83
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EW
Edwards Lifesciences
91.79
14.98
19.50%
MDT
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83.57
-2.84
-3.29%
SNN
Smith & Nephew Snats
31.08
2.40
8.37%
SYK
Stryker
331.45
-55.20
-14.28%
Zimmer Biomet Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Zimmer Biomet Expands Liquidity With New Credit Facilities
Positive
Jun 29, 2026
On June 26, 2026, Zimmer Biomet entered into a new $1.5 billion five-year unsecured revolving credit facility and a new $1.25 billion 364-day unsecured revolving credit facility with JPMorgan Chase as administrative agent, both for general corpora...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Zimmer Biomet Shareholders Reaffirm Board, Leadership and Oversight
Positive
May 27, 2026
At its annual meeting of shareholders held on May 22, 2026, Zimmer Biomet shareholders elected ten directors to one-year terms ending at the 2027 annual meeting, reaffirming the current board slate and leadership structure. Investors also ratified...
Business Operations and StrategyStock Buyback
Zimmer Biomet Expands 2026 Share Repurchase Program
Positive
May 12, 2026
On May 12, 2026, Zimmer Biomet announced it now expects to repurchase up to $1 billion of its common stock during fiscal 2026, raising its planned buybacks by $250 million compared with prior capital allocation assumptions. All purchases will be e...
Business Operations and StrategyExecutive/Board Changes
Zimmer Biomet Announces CFO Departure and Interim Successor
Neutral
Apr 28, 2026
Zimmer Biomet announced a leadership change on April 28, 2026, as Chief Financial Officer and Executive Vice President – Finance, Operations and Supply Chain Suketu Upadhyay departed the company effective the same day to pursue another profe...
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.