ZBH · Zimmer Biomet Holdings, Inc.

Zimmer Biomet demonstrated solid financial performance in the first quarter of 2026, with net sales reaching $2.087 billion, a 9.3% increase on a reported basis. Growth was broad-based across geographies, with the U.S. up 8.6% and International up 10.3% on a reported basis. On an organic constant currency basis, which excludes the impact of the April 2025 Paragon 28 acquisition, sales grew 2.9%. Product category performance showed strength in S.E.T. (Sports Medicine, Extremities, Trauma), which surged 19.5% on a reported basis, while Knees and Hips grew 4.5% and 5.7% respectively. Profitability expanded significantly, with adjusted diluted earnings per share increasing 15.5% to $2.09. Management attributed the results to healthy end markets, continued momentum from recently launched products, and disciplined execution. Chairman, President and CEO Ivan Tornos highlighted the successful progress of the company's go-to-market transformation as a key driver. The company generated strong cash flow, with operating cash flow of $359.4 million and free cash flow of $245.9 million, supporting $250 million in share repurchases during the quarter. Looking ahead, management raised its full-year 2026 adjusted diluted EPS guidance to a range of $8.40 to $8.55, up from the prior $8.30 to $8.45, while maintaining revenue guidance. Recent strategic highlights include the appointment of a new Chief Science, Technology and Medical Affairs Officer and key clinical and commercial milestones for the mBôs robotic system and G7 Acetabular System.