Zimmer Biomet beats estimates but cautious 2026 guidance weighs on shares

Zimmer Biomet Holdings (NYSE:ZBH) reported fourth-quarter results on Tuesday, February 10, 2026, that exceeded Wall Street expectations, though the medical device giant’s shares remained under pressure following a "cautious" outlook for the coming fiscal year.

The Warsaw, Indiana-based company posted adjusted earnings of $2.42 per share, narrowly beating the Zacks Consensus Estimate of $2.38.

Revenue for the quarter rose 10.9% to $2.24 billion, surpassing the $2.22 billion forecast.

The quarter was defined by strong organic growth in the company's core businesses, with the S.E.T. (Sports Medicine, Extremities, Trauma) segment leading the charge with an 18.7% constant-currency jump, bolstered by the integration of three key 2025 acquisitions: Paragon 28, Monogram Technologies, and a specialized surgical robotics firm.

The "Knees" business grew 6.9% as the company accelerated the rollout of its ROSA® Robotics platform and the Persona OsseoTi cementless knee.

For the full year 2025, Zimmer Biomet achieved net sales of $8.23 billion and record free cash flow of $1.17 billion.

In a strong signal of confidence in its valuation, Zimmer Biomet announced a new $1.5 billion share repurchase authorization effective February 9, 2026.

However, this shareholder-friendly move was offset by 2026 guidance that fell slightly short of analyst targets.

CEO Ivan Tornos revealed a "bold" strategic shift to move the U.S. sales force to a predominantly direct and specialized organization.

While Tornos believes this will drive "durable long-term growth," the transition is expected to temper near-term sales, with 2026 revenue growth projected at a modest 2.5% to 4.5%.