Zimmer Biomet Holdings, Inc. (NYSE:ZBH) posted better-than-expected fourth-quarter results on Tuesday, although its outlook for 2026 came in slightly below market forecasts, weighing modestly on sentiment. The company’s shares were down 0.81% in pre-market trading following the announcement.
The medical technology group reported adjusted earnings of $2.42 per share for the quarter, edging past the consensus estimate of $2.40. Revenue totaled $2.24 billion, up 10.9% year on year and ahead of analysts’ expectations of $2.22 billion. On an organic constant-currency basis, sales increased 5.4%.
“We made significant strategic and financial progress in 2025, delivering on our initial revenue growth, EPS and free cash flow commitments and integrating three acquisitions, all while navigating tariff headwinds,” said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet.
Performance across business lines was mixed but generally positive. The knee segment delivered 6.9% growth on a constant-currency basis, while hips expanded 4.9%. The S.E.T. (Sports Medicine, Extremities, Trauma) division recorded the fastest growth at 18.7% in constant currency terms, though acquisitions accounted for a large share of that increase.
For the full year 2025, Zimmer Biomet generated net sales of $8.23 billion, representing growth of 7.2% on a reported basis and 3.9% organically in constant currency. Adjusted earnings per share for the year came in at $8.20, up 2.5% compared with 2024.
Looking ahead, the company’s 2026 guidance was slightly cautious. Zimmer Biomet expects adjusted earnings of $8.30 to $8.45 per share, versus a consensus estimate of $8.47, with reported revenue growth projected at 2.5% to 4.5%.
The group also announced a new $1.5 billion share buyback program and said it repurchased $250 million of stock during the fourth quarter.
“As we enter 2026, we are excited about our transition to a predominantly direct and specialized sales organization in the U.S.,” Tornos added. “While this bold action tempers our 2026 sales guidance, we are confident that it will drive durable long-term growth.”