Zimmer Biomet Lifts 2026 Outlook on Strong Hip and Robotics Growth

Zimmer Biomet Holdings, Inc. recently raised its full-year 2026 financial guidance following third-quarter results. The company reported net sales of $2.063 billion, representing 3.1% reported growth and 3.7% constant-currency growth from the prior year. Adjusted diluted earnings per share reached $1.90, flat year over year, while GAAP diluted earnings fell to $1 per share from $1.16.

The medical device manufacturer now projects 2026 organic constant-currency sales growth of 3% to 3.5%, raised from its prior range of 2.25% to 3.25%. Management also increased its full-year adjusted earnings forecast to a range of $8.50 to $8.60 per share, up from the previous $8.47 to $8.59 projection, while keeping plans on track for about $1 billion in share repurchases.

Quarterly expansion was driven by non-knee segments. Global hip sales rose 7% at constant currency, while sports medicine, extremities, and trauma products climbed 7.1%, aided by more than 18% sales growth from acquired foot and ankle business Paragon 28. Demand for surgical robotics and data solutions lifted technology and surgical sales by 13%. However, global knee sales fell 2.6% at constant currency, pressured by commercial execution, U.S. sales reorganization, and headwinds in China.

Chief Executive Ivan Tornos indicated that the company plans to submit an FDA 510(k) application for its Monogram robotic system soon. Zimmer Biomet now aims to release a surgeon-guided autonomous model in the first half of 2027 instead of 2028. Additionally, the company has completed lower-risk phases of its eight-quarter U.S. sales restructuring, with over 75% of the sales force now specialized.

Following the results, analysts adjusted their views. Royal Bank of Canada raised its price target from $110 to $125 and maintained an outperform rating. MarketBeat reported an overall consensus rating of Hold among analysts, with an average target of $108.42. Zimmer Biomet shares closed recently at $108.33.