Zimmer Biomet Holdings (ZBH)
NYSE:ZBH
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Zimmer Biomet Holdings
(NYSE:ZBH)
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Rating:64Neutral
Price Target:
$89.00
▼(-6.10% Downside)
Action:ReiteratedDate:04/29/26
The score is supported most by a solid underlying financial base (strong gross/EBITDA margins and moderate leverage) and a constructive earnings update with raised EPS and free-cash-flow guidance. The main offset is weak technical positioning (price below key moving averages with bearish momentum signals), while valuation support is limited by the lack of a usable P/E and only a modest dividend yield.
Positive Factors
High gross and EBITDA margins
Sustained high gross and EBITDA margins reflect scale in implant and instrument manufacturing and pricing power in musculoskeletal devices. Durable operating profitability supports reinvestment in R&D, robotics, and M&A, and provides cushion versus modest net margin pressures over the medium term.
Negative Factors
Net margin compression and lower ROE
Declining net margin and ROE indicate that operating profitability gains are not translating fully to bottom‑line returns. This reduces capital efficiency, limits retained earnings for reinvestment, and makes the firm more sensitive to interest costs or pricing pressure over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and EBITDA margins
Sustained high gross and EBITDA margins reflect scale in implant and instrument manufacturing and pricing power in musculoskeletal devices. Durable operating profitability supports reinvestment in R&D, robotics, and M&A, and provides cushion versus modest net margin pressures over the medium term.
Read all positive factors
Zimmer Biomet Holdings (ZBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.93B
Dividend Yield1.05%
Average Volume (3M)1.95M
Price to Earnings (P/E)18.5
Beta (1Y)0.55
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. Volume1,816,662
30 Day Avg. Volume1,952,687
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 Cap1.44
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit3.90
Enterprise Value/Ebitda10.41
Forecast
1Y Price Target
$95.93Price Target Upside1.22% Upside
Rating ConsensusHold
Number of Analyst Covering18
EPS Forecast (FY)8.48
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 primarily makes money by selling orthopedic medical devices and associated surgical solutions to hospitals, health systems, and other healthcare providers. Its revenue is largely generated from the sale of implantable products used i...
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:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 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 | 7.98B | 10.39B | 8.89B | 9.01B | 9.04B | 10.79B |
| Stockholders Equity | 14.74B | 12.71B | 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
93.30
Positive
91.84
Positive
94.69
Positive
Market Momentum
0.86
Negative
58.76
Neutral
57.62
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 91.19, above the 50-day MA of 93.30, and above the 200-day MA of 94.69, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 57.62 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $46.04B | 30.46 | 10.55% | ― | 13.81% | 22.90% | |
72 Outperform | $12.68B | 10.75 | 11.79% | 2.28% | 6.30% | 52.96% | |
67 Neutral | $80.16B | 17.42 | 15.40% | ― | 17.44% | 74.36% | |
67 Neutral | $97.77B | 28.29 | 9.54% | 2.76% | 6.88% | 9.06% | |
64 Neutral | $15.93B | 18.51 | 5.78% | 1.05% | 9.23% | -14.66% | |
63 Neutral | $109.33B | 42.22 | 15.22% | 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
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Zimmer Biomet Holdings Corporate Events
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.