ZBH earnings analysis
What we found in ZBH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Zimmer Biomet Holdings, Inc. reported a strong performance for Q1 2026 with net sales of $2.09 billion, reflecting a 9.3% year-over-year increase. The company's net earnings reached $238.1 million, up from $182.0 million in Q1 2025, bolstered by the Paragon 28 acquisition and favorable foreign currency effects. Despite some challenges, management projects continued sales growth in 2026, driven by market expansion and new product launches.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Q1 2026 revenue was $2.09 billion, up 9.3% from $1.91 billion in Q1 2025.
- Earnings Beat Expectations
- Reported EPS of $2.09 exceeded estimates of $1.86, a surprise of 12.4%.
- Positive Segment Trends
- Knees up 4.5%, Hips up 5.7%, S.E.T. up 19.5%, and Technology & Data, Bone Cement, and Surgical up 14.6%.
- Operating Cash Flow
- Operating cash flow for Q1 2026 was $359.4 million, although it decreased from $382.8 million in Q1 2025.
- Improved Operating Profit
- Operating profit margin improved to 17.9% from 15.3% in the prior-year quarter.
- Strong Cash Position
- As of Q1 2026, $424.2 million in cash and cash equivalents was reported.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Debt Levels
- Total debt rose to $7.47 billion from $6.67 billion year-over-year, raising financial leverage concerns.
- Declining Free Cash Flow
- Free cash flow declined from $278 million in Q1 2025 to $164 million in Q1 2026.
- Management Transition Risks
- Recent CFO transition may affect operational consistency during this key growth period.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.09
- Operating margin
- 17.9%
- Segment
- Knees: $828.6M, Hips: $524.1M, S.E.T.: $562.2M, Technology & Data, Bone Cement and Surgical: $171.8M
What they said about what is next.
Management expects 2.5% to 4.5% net sales growth for 2026.
The filing reads better than the one before it.
What came before.
- 10-K · February 20, 2026
- Zimmer Biomet positions itself as a diversified orthopedics and musculoskeletal care leader with a product portfolio spanning knees, hips, S.E.T. products and an integrated digital/robotic ZBEdge platform. The company…
- 10-K · February 25, 2025
- Zimmer Biomet presents itself as a global orthopedics and musculoskeletal leader focused on robotics (ROSA®) and an integrated digital platform (ZBEdge®) while pursuing R&D and targeted M&A. The company reports a…
- 10-Q · October 30, 2024
- Zimmer Biomet Holdings, Inc. reported a strong performance for Q3 2024, with revenue of $1.824 billion, representing a 4.0% increase from $1.754 billion in Q3 2023. The gross margin decreased slightly to 70.5%, while…
- 10-Q · November 7, 2023
- Zimmer Biomet reported Q3 net sales of $1,753.6 million, up $83.8 million (≈5.0%) versus Q3 2022, with operating profit rising to $266.6 million from $245.3 million. Diluted EPS from continuing operations declined to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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