ZIMMER BIOMET HOLDINGS, INC. (ZBH): Results of Operations and Financial Condition
ZIMMER BIOMET HOLDINGS, INC. (ZBH) filed an SEC Form 8-K — Results of Operations and Financial Condition. 345 E. Main St. Warsaw, IN 46580 www.zimmerbiomet.com Exhibit 99.1 Media Investors Troy Kirkpatrick David DeMartino 614-284-1926 646-531-6115 troy.kirkpatrick@zimmerbiomet.com david.demartino@zimmerbiomet.com Kirsten Fallon Zach Weiner 781-779-5561 908-591-6955 kirsten.fallon@zim
How this was made
The 30-second read
Why it matters
Traders can update models immediately using the disclosed Q2 datapoints and the revised full-year guidance ranges for reported revenue change and adjusted diluted EPS.
Market read
The combination of Q2 results, free cash flow, and explicit guidance increases is a direct catalyst for earnings-estimate revisions and near-term trading positioning in ZBH.
What to watch
The filing highlights robotics and go-to-market transformation, but it does not provide segment-level margins or demand indicators beyond sales growth, which may limit how far the market extrapolates.
Zimmer Biomet Announces Second Quarter 2026 Financial Results
Second quarter net sales increased 4.8% on a reported basis and 4.0% on an organic constant currency basis, while the company raised its full-year 2026 revenue and adjusted diluted EPS guidance. Adjusted diluted EPS was consistent with the prior year period, and International Knees sales declined.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $2.177 billion | – | 4.8% |
| Net sales constant currency changenon-GAAP | 4.7% | – | 4.7% |
| Net sales organic constant currency changenon-GAAP | 4.0% | – | 4.0% |
| Net earningsGAAP | $198.3 million | – | – |
| Adjusted net earningsnon-GAAP | $399.6 million | – | – |
| Diluted earnings per shareGAAP | $1.03 | – | 33.8% |
| Adjusted diluted earnings per sharenon-GAAP | $2.07 | – | consistent with the prior year period |
| Operating cash flowGAAP | $447.9 million | – | – |
| Free cash flownon-GAAP | $308.3 million | – | – |
| Net sales, six months ended June 30, 2026GAAP | $4,263.7 million | – | 7.0% |
| Net sales constant currency change, six months ended June 30, 2026non-GAAP | 5.7% | – | 5.7% |
| Net sales organic constant currency change, six months ended June 30, 2026non-GAAP | 3.4% | – | 3.4% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| United States, three months ended June 30, 2026Constant currency change was 5.6% and organic constant currency change was 4.6%. | $1,239.9 million | – | 5.6% |
| International, three months ended June 30, 2026Constant currency change was 3.5% and organic constant currency change was 3.1%. | $937.0 million | – | 3.7% |
| Knees, three months ended June 30, 2026Constant currency change was 0.1% and organic constant currency change was 0.1%. | 828.9 million | – | 0.4% |
| Knees United States, three months ended June 30, 2026Constant currency change was 1.4% and organic constant currency change was 1.4%. | $455.0 million | – | 1.4% |
| Knees International, three months ended June 30, 2026Constant currency change was (1.5) and organic constant currency change was (1.5). | 374.0 million | – | (0.9) |
| Hips, three months ended June 30, 2026Constant currency change was 5.1% and organic constant currency change was 5.1%. | 562.7 million | – | 5.0% |
| Hips United States, three months ended June 30, 2026Constant currency change was 5.9% and organic constant currency change was 5.9%. | 288.5 million | – | 5.9% |
| Hips International, three months ended June 30, 2026Constant currency change was 4.2% and organic constant currency change was 4.2%. | 274.1 million | – | 4.0% |
| S.E.T., three months ended June 30, 2026Constant currency change was 6.2% and organic constant currency change was 3.4%. | 586.0 million | – | 6.4% |
| Technology & Data, Bone Cement and Surgical, three months ended June 30, 2026Constant currency change was 21.5% and organic constant currency change was 21.5%. | 199.4 million | – | 21.1% |
| United States, six months ended June 30, 2026Constant currency change was 7.1% and organic constant currency change was 3.9%. | $2,449.3 million | – | 7.1% |
| International, six months ended June 30, 2026Constant currency change was 3.8% and organic constant currency change was 2.8%. | 1,814.4 million | – | 6.8% |
| Knees, six months ended June 30, 2026Constant currency change was 0.9% and organic constant currency change was 0.9%. | 1,657.5 million | – | 2.4% |
| Hips, six months ended June 30, 2026Constant currency change was 4.2% and organic constant currency change was 4.2%. | 1,086.8 million | – | 5.3% |
| S.E.T., six months ended June 30, 2026Constant currency change was 11.3% and organic constant currency change was 2.6%. | 1,148.2 million | – | 12.5% |
| Technology & Data, Bone Cement and Surgical, six months ended June 30, 2026Constant currency change was 16.8% and organic constant currency change was 16.8%. | 371.2 million | – | 18.0% |
Projected Year Ending December 31, 2026 outlook
- Revenue2026 Reported Revenue Change: 3.9% - 4.9%
- NoteForeign Currency Exchange Impact: +0.5%
- Note2026 Constant Currency Revenue Change: 3.4% - 4.4%
- Note2026 Organic Constant Currency Revenue Change: 2.25% - 3.25%
- NoteAdjusted Diluted EPS: $8.47 - $8.59
Capital returns
- Increased share repurchase expectations of up to $1 billion of its common stock during fiscal year 2026.
What drove it
- Technology & Data, Bone Cement and Surgical sales increased 21.1% on a reported basis and 21.5% on an organic constant currency basis in the second quarter.
- S.E.T. sales increased 6.4% on a reported basis and 3.4% on an organic constant currency basis in the second quarter.
- Hips sales increased 5.0% on a reported basis and 5.1% on an organic constant currency basis in the second quarter.
- The company cited healthy underlying markets, go-to-market changes progressing as planned and continued momentum from its innovation cycle.
- The company received U.S. FDA 510(k) clearance and completed first cases of the next generation ROSA® Shoulder System.
Concerns
- Knees sales increased 0.4% on a reported basis and 0.1% on an organic constant currency basis in the second quarter.
- International Knees sales declined (0.9) on a reported basis and declined (1.5) on both a constant currency and organic constant currency basis in the second quarter.
- Adjusted diluted EPS of $2.07 was consistent with the prior year period.
- Gross margin, operating expenses, operating income, tax rate, cash and debt were not included in the supplied filing text.
What to watch
- Execution against updated 2026 reported revenue change guidance of 3.9% - 4.9%.
- Execution against updated 2026 organic constant currency revenue change guidance of 2.25% - 3.25%.
- Delivery against updated adjusted diluted EPS guidance of $8.47 - $8.59.
- Performance of Knees, including International Knees sales.
- Execution of up to $1 billion of common-stock repurchases during fiscal year 2026.
- Commercial progress from go-to-market changes and the innovation cycle, including the next generation ROSA® Shoulder System.
Balance sheet and cash flow
- Generated $447.9 million in operating cash flow in the second quarter.
- Generated $308.3 million of free cash flow in the second quarter.
Analysis
Zimmer Biomet reported second-quarter net sales of $2.177 billion, up 4.8% on a reported basis, 4.7% on a constant currency basis and 4.0% on an organic constant currency basis. For the six months ended June 30, 2026, net sales were $4,263.7 million, up 7.0% reported, 5.7% constant currency and 3.4% organic constant currency. The quarter therefore reflects continued underlying growth, with reported growth modestly ahead of organic constant currency growth.
Product-category performance was led by Technology & Data, Bone Cement and Surgical, where second-quarter sales were 199.4 million and increased 21.1% reported and 21.5% organic constant currency. S.E.T. sales were 586.0 million, increasing 6.4% reported and 3.4% organic constant currency, while Hips sales were 562.7 million, increasing 5.0% reported and 5.1% organic constant currency. Knees remained the slowest category at 828.9 million, up 0.4% reported and 0.1% organic constant currency; International Knees sales declined (0.9) reported and (1.5) on both constant currency measures.
The United States generated $1,239.9 million of second-quarter sales, up 5.6% reported and 4.6% organic constant currency. International sales were $937.0 million, up 3.7% reported and 3.1% organic constant currency. The geographic and category tables show growth across the principal regions and most product categories, but also show a material divergence between the higher-growth Technology & Data, Bone Cement and Surgical category and the nearly flat Knees category.
Profitability data reported in the supplied text included net earnings of $198.3 million, adjusted net earnings of $399.6 million, GAAP diluted EPS of $1.03 and adjusted diluted EPS of $2.07. GAAP diluted EPS increased 33.8%, while adjusted diluted EPS was consistent with the prior year period. The supplied text did not provide gross margin, operating income, operating expenses or tax rate, limiting assessment of the underlying drivers of the GAAP-to-adjusted earnings difference and margin movement.
Cash generation was $447.9 million of operating cash flow and $308.3 million of free cash flow in the second quarter. The company increased expected common-stock repurchases to up to $1 billion during fiscal year 2026. It also updated full-year guidance upward: reported revenue change is now 3.9% - 4.9%, constant currency revenue change is 3.4% - 4.4%, organic constant currency revenue change is 2.25% - 3.25%, and adjusted diluted EPS is $8.47 - $8.59. Management attributed the update to a strong first half, healthy underlying markets, progress in go-to-market changes and innovation momentum.
Management, verbatim
We delivered strong second quarter results with solid top- and bottom-line performance and continued progress on our key growth drivers and commercial transformation.
Ivan Tornos, Chairman, President and CEO of Zimmer Biomet
With a strong first half, healthy underlying markets, go-to-market changes progressing as planned and continued momentum from our innovation cycle, we are raising our revenue and adjusted EPS guidance for the year.
Ivan Tornos, Chairman, President and CEO of Zimmer Biomet
Not in the filing
stated, not guessed- Prior-quarter net sales, net earnings, adjusted net earnings, diluted EPS, adjusted diluted EPS, operating cash flow and free cash flow.
- Prior-year net sales dollar amount, net earnings, adjusted net earnings, diluted EPS, adjusted diluted EPS, operating cash flow and free cash flow.
- Gross profit and gross margin.
- Operating expenses and operating income.
- GAAP net income margin and adjusted net income margin.
- Tax expense and tax rate.
- Cash, cash equivalents, marketable securities, total debt and net debt.
- Dividends.
- Share repurchase amount executed during the second quarter.
- Capital expenditures or additions to instruments and other property, plant and equipment.
- Reconciliation tables for adjusted net earnings, adjusted diluted EPS and free cash flow are not included in the supplied filing text.
- Prior-release outlook for comparison with actual reported results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Zimmer Biomet’s SEC Form 8-K (Item 2.02) with Q2 2026 results and updated full-year 2026 financial guidance, plus selected product, regulatory, and leadership updates.
Ticker impact
Zimmer Biomet reported Q2 2026 net sales of $2.177B and raised full-year 2026 revenue and adjusted EPS guidance in an 8-K.
Likely positive bias for the next trading session and into analyst revisions, assuming the guidance raise is viewed as credible versus expectations.
The filing includes specific Q2 results (sales, EPS, cash flow) and updated full-year guidance ranges, which are direct inputs to valuation models and consensus forecasts.
Market effects
MedTech and orthopedic peers may see read-across on demand durability and robotics adoption momentum (ROSA systems) if investors treat the guidance raise as sector-positive.
Limited direct regional impact disclosed beyond US versus international sales growth rates.
Global sales growth and constant-currency/organic metrics suggest resilience across geographies, supporting broader risk-on sentiment in large-cap medtech.
Counterpoint
Guidance raises could be partially offset by FX and acquisition-related comparability, so upside may be less durable if organic growth slows later in the year.
Key entities
- issuerZimmer Biomet Holdings, Inc.
Orthopedic and medtech company reporting Q2 2026 results and raising full-year 2026 guidance in an 8-K.
- regulatoryU.S. FDA 510(k) clearance
Cleared the next generation ROSA Shoulder System and enabled first cases, supporting the company’s robotics narrative.
- corporateParagon 28 acquisition
Referenced for organic constant currency adjustments and guidance exclusions through the one-year anniversary.
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