Zimmer Biomet’s second quarter results were driven by strong execution in its hip franchise, robust technology sales, and progress in the U.S. sales force transformation. CEO Ivan Tornos highlighted that new product adoption, such as the Z1 hip stem and OrthoGrid navigation, contributed to above-average growth in the U.S. In addition, increased demand for the company’s technology and data solutions, including capital equipment sales, played a key role. Management attributed the quarter’s performance to successful integration of Paragon 28 and continued momentum in key business segments like S.E.T. (Sports Medicine, Extremities, and Trauma), despite some international headwinds.
Is now the time to buy ZBH? Find out in our full research report (it’s free for active Edge members).
Zimmer Biomet (ZBH) Q2 CY2026 Highlights:
- Revenue: $2.18 billion vs analyst estimates of $2.13 billion (4.8% year-on-year growth, 2% beat)
- Adjusted EPS: $2.07 vs analyst estimates of $2.01 (3% beat)
- Management slightly raised its full-year Adjusted EPS guidance to $8.53 at the midpoint
- Operating Margin: 15%, in line with the same quarter last year
- Constant Currency Revenue rose 4.7% year on year (2.8% in the same quarter last year)
- Market Capitalization: $18.55 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zimmer Biomet’s Q2 Earnings Call
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Frederick Wise (Stifel): asked about the pace and implications of the U.S. sales force transition. CEO Ivan Tornos described the transformation as ahead of plan, explaining that investments in retention and recruiting are deliberate and are expected to yield improved growth and productivity by 2027.
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Larry Biegelsen (Wells Fargo): inquired about the health of the reconstruction market and exposure to public payer shifts. Tornos stated that market fundamentals remain sound, with minimal exposure to ACA and Medicaid changes, and reaffirmed the company’s confidence in overall orthopedic procedure demand.
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Mathew Blackman (TD Cowen): questioned the sustainability of hip market outperformance in the U.S. and internationally. Tornos attributed gains to execution and innovation, highlighting strong demand for iodine-coated hips in Japan and momentum in the U.S. from the “triple play” platform.
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Vijay Kumar (Evercore ISI): asked about the drivers of growth in the Technology & Data segment. Tornos clarified that growth was fueled primarily by technology adoption and a healthy capital equipment cycle rather than one-time events, and expects technology to continue as a key contributor.
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Ryan Zimmerman (U.S. Bancorp BTIG): raised concerns about pricing headwinds and potential reimbursement changes. Tornos responded that pricing erosion remains within historical ranges, and that the company’s focus on bundled care and clinical outcomes should help mitigate future pricing pressure.
Catalysts in Upcoming Quarters
Moving forward, our analysts will be monitoring (1) the progress of Zimmer Biomet’s U.S. sales force transformation and associated productivity gains, (2) the pace of global adoption for new platforms such as the iodine-coated hip and ROSA Shoulder robotics, and (3) the impact of operational and manufacturing investments on both supply chain resilience and margins. Execution on new product launches and maintaining momentum in key high-growth segments will be crucial signposts for future quarters.
Zimmer Biomet currently trades at $97.24, up from $95.81 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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