Zimmer Biomet Holdings, Inc. (ZBH) AI Stock Analysis

Zimmer Biomet Holdings, Inc. operates globally within the musculoskeletal healthcare sector. The company specializes in orthopaedic reconstructive products, offering advanced knee and hip implants, sports medicine, biologics, foot and ankle, extremities, and trauma care solutions. It also manufactures spine products such as surgical instruments and medical devices, alongside products for face and skull reconstruction and chest fixation. Additionally, Zimmer Biomet provides dental reconstructive implants, prosthetic solutions, bone cement, and robotic and surgical systems designed to improve surgical precision. Its products serve orthopedic surgeons, neurosurgeons, oral surgeons, dentists, and hospitals worldwide.

Zimmer Biomet generated $8.23B in revenue in FY2025, reflecting 7.2% annual growth and completing a 5-year revenue CAGR of 6.1% from FY2020. Annual revenue expanded steadily from $6.83B in FY2021, though gross margin decreased from 71.3% in FY2021 to 61.6% in FY2025. Operating margin was 16.5% in FY2025, down slightly from 16.7% in FY2024. Annual net income reached $705.2M in FY2025, compared to $903.8M in FY2024 and $1.02B in FY2023. For the latest quarter ending June 30, 2026, quarterly revenue growth was 4.8% year-over-year, while quarterly earnings grew 33.8%. Over the trailing twelve months, revenue totaled $8.51B with a profit margin of 9.5%.

As of June 30, 2026, Zimmer Biomet held $410.0M in cash and short-term investments against total debt of $7.48B, resulting in net debt of $7.07B. Total assets stood at $22.80B and shareholders' equity was $12.62B, yielding a debt-to-equity ratio of 0.59 and a current ratio of 1.69. In FY2025, operating cash flow reached $1.70B and free cash flow was $1.47B. Capital expenditures totaled $224.5M, while the company directed $487.0M toward share buybacks and $190.3M toward dividends paid.

At a last close of $94.98 on October 16, 2026, Zimmer Biomet trades at a trailing P/E of 23.1x and a forward P/E of 10.1x, both below the median of its S&P 500 Healthcare peers at 28.9x and 16.6x, respectively. The stock's EV/EBITDA of 10.5x and price-to-sales of 2.1x also compare favorably to peer medians of 15.7x and 3.4x. Over the past year, the shares fell 3.9%, trailing the S&P 500 return of 16.8%. Over five years, the stock dropped 30.1%, compared to an 83.0% gain for the broader index.

Zimmer Biomet pays an annual forward dividend of $0.96 per share, representing a dividend yield of 1.01%. The company distributes dividends quarterly and has paid dividends for 15 consecutive years. Its payout ratio stands at 11.3%, supported by a 5-year annualized dividend growth rate of 0.6%. The most recent ex-dividend date was September 30, 2026.

Wall Street coverage includes 6 Strong Buy, 3 Buy, and 19 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target of $106.90 indicates a 12.6% upside from the last close of $94.98. For the fiscal year ending December 31, 2026, analysts estimate EPS of $8.53 and revenue of $8.60B. Next fiscal year estimates project EPS of $9.05 on revenue of $8.90B. Zimmer Biomet has beaten EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of Zimmer Biomet Holdings, Inc. (ZBH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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