Zimmer Biomet Holdings, Inc. (NYSE:ZBH) reported first-quarter adjusted earnings of $2.09 per share, up 15.5% year over year, beating the Street estimates of $1.86.
Zimmer Biomet Q1 Earnings Beat Driven By Tariff Benefit And Solid Demand
The company said the first quarter saw a 20-cent benefit from tariff-related items relative to its expectations.
The orthopedic implant maker reported sales of $2.087 billion, up 9.3% on a reported basis, up 6.8% on a constant currency basis, and 2.9% on an organic constant currency basis, beating the consensus of $2.07 billion.
Knee product sales increased 4.5% to $828.6 million (+1.8% organically), and hip product sales increased 5.7% (+3.2%) to $524.1 million.
Sports Medicine products generated sales of $562.2 million, up 19.5% (+1.6%).
Technology & Data, Bone Cement, and Surgical sales jumped 14.6% (+11.7%) to $171.8 million.
“We are off to a solid start to the year — strategically, operationally, and financially,” said Ivan Tornos, Chairman, President, and CEO of Zimmer Biomet.
“Our first quarter results reflect healthy end markets, continued momentum from our recently launched products, and disciplined execution across the business,” Tornos said.
CFO Exit Triggers Interim Leadership Appointment
On Tuesday, Zimmer Biomet said Suketu Upadhyay, Chief Financial Officer and Executive Vice President, Finance, Operations, and Supply Chain, will depart the company effective immediately.
The company has named Paul Stellato, currently Controller and Chief Accounting Officer, as interim Chief Financial Officer, while the company conducts an internal and external search to identify a permanent successor.
Raised Earnings Guidance
“Given our progress and with our go-to-market transformation proceeding as planned, we are raising our adjusted EPS guidance and free cash flow expectations for the year. We remain confident that our strategy will position Zimmer Biomet for consistent, durable growth over the longer term,” Tornos further added.
Zimmer Biomet raised fiscal adjusted earnings guidance from $8.30-$8.45 per share to $8.40-$8.55 per share, compared to the consensus of $8.40.
The company reaffirms 2026 sales guidance of $8.44 billion-$8.60 billion versus the consensus of $8.56 billion.
In an investor call on Tuesday, the company said it completed enrollment in a 102-patient clinical study for a fully autonomous AI-driven orthopedic robotic system.
The company expects U.S. approval and the launch of the semiautonomous version in early 2027, followed by the fully autonomous version in late 2027 or early 2028.
In anticipation of the mBos launch, the company is increasing the number of robotic clinical sales representatives, targeting to hire over 200 by the end of 2027.
ZBH Price Action: Zimmer Biomet Holdings shares were down 10.81% at $82.58 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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