Earnings Call
Apr 28, 2026
Q1 FY2026
EPS Estimate
1.86
EPS Actual
2.09
Post-Earnings Close
$82.80
Earnings Reaction
-10.6%
Zimmer Biomet opened 2026 with a quarter that beat on both the top and bottom lines, though the headline numbers carry an important asterisk: a $0.20 per share benefit from the invalidation of IEEPA tariffs, roughly half of which had been expected to land in the second half, pulled forward a meaningful portion of the earnings outperformance. Stripping that out, the underlying business performed modestly ahead of expectations, with organic constant currency revenue growth of 2.9% landing at the upper end of the full-year guidance range of 1%-3%. Reported net sales of $2.087 billion grew 9.3%, boosted by the April 2025 Paragon 28 acquisition. Adjusted EPS of $2.09 was up 15% year-over-year, and the company raised its full-year EPS guidance to $8.40-$8.55 from $8.30-$8.45, with free cash flow growth now expected at 9%-11% versus the prior 8%-10% range. Revenue guidance was left unchanged, a deliberate choice management framed as prudence given the scope of ongoing commercial transformation rather than any deterioration in demand signals.
Report generated on Apr 28, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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