Zimmer Biomet Holdings (NYSE:ZBH) reported better-than-expected second-quarter results and increased its guidance for the full year, helping lift the medical technology company’s shares more than 4% in pre-market trading.
The company posted adjusted earnings of $2.07 per share, exceeding the Wall Street consensus estimate of $2.01. Revenue rose 4.8% year over year to $2.18 billion, ahead of analyst expectations of $2.14 billion. On an organic constant-currency basis, revenue increased 4.0%.
Company lifts earnings and revenue guidance
Following its stronger first-half performance, Zimmer Biomet raised its adjusted earnings per share guidance for fiscal 2026 to between $8.47 and $8.59.
The midpoint of the revised range, $8.53 per share, is above the Wall Street consensus estimate of $8.47.
The company also increased its revenue outlook, now expecting reported sales growth of between 3.9% and 4.9%, compared with its previous forecast of 2.5% to 4.5%.
Growth strategy continues to deliver
Chairman, President and Chief Executive Officer Ivan Tornos said the company continues to benefit from healthy market conditions and ongoing commercial initiatives.
“We delivered strong second quarter results with solid top- and bottom-line performance and continued progress on our key growth drivers and commercial transformation,” Tornos said.
“With a strong first half, healthy underlying markets, go-to-market changes progressing as planned and continued momentum from our innovation cycle, we are raising our revenue and adjusted EPS guidance for the year.”
Hips and technology businesses lead performance
Among the company’s product categories, the Hips business delivered revenue growth of 5.0% during the quarter.
The Technology & Data, Bone Cement and Surgical segment recorded the strongest performance, with sales increasing 21.1%.
The Knees business posted more modest growth of 0.4%.
Geographically, U.S. revenue increased 5.6% to $1.24 billion, while international sales rose 3.7% to $937.0 million.
Cash generation remains strong
Zimmer Biomet generated operating cash flow of $447.9 million during the quarter, while free cash flow totalled $308.3 million.
The company also announced that it now expects to repurchase up to $1 billion of its own shares during fiscal 2026, reflecting confidence in its financial outlook and capital allocation strategy.
Zimmer Biomet Holdings stock price
