Zimmer Biomet Holdings, Inc. (ZBH)

Zimmer Biomet reported third-quarter net sales of $2.063 billion on 4 November 2026, up 3.1 percent from the prior year and up 3.7 percent at constant currency (exchange-rate effects removed) 1.

Diluted earnings per share were $1.00, down 13.8 percent, while adjusted earnings per share of $1.90 matched the prior year 1. Operating profit was $307.6 million against $351.3 million a year earlier 1.

Chief executive Ivan Tornos said the Hips, sports and extremities, and technology and bone cement lines, two-thirds of the business, grew at upper single digit or double-digit rates 1. Knees sales fell 3.1 percent to $767.5 million 1.

The company updated its full-year guidance and now expects organic constant currency revenue growth of 3.0 percent to 3.5 percent, against 2.25 percent to 3.25 percent before 1. It expects adjusted earnings per share of $8.50 to $8.60 1.

On 8 September the company said Kevin Thornal, Group President, Global Businesses and the Americas, would leave on 30 September 2. It promoted Gary Campbell, Brian Hatcher and Bradley Kessler to run the Americas and the global business groups 2.

Zimmer Biomet traces its history to 1927, when Zimmer Manufacturing Company was founded in Warsaw, Indiana 3. It was spun off from its former parent and became an independent public company on 6 August 2001 3.

In 2015 it acquired LVB Acquisition, the parent of Biomet, and changed its name from Zimmer Holdings to Zimmer Biomet Holdings 3.

In February 2023 it bought Embody, Inc., with contingent payments to be settled in stock and cash 3. Net sales were $7,394.2 million in 2023 and $7,678.6 million in 2024, up 3.8 percent 3.

On 21 April 2025 it completed the purchase of Paragon 28, a company focused exclusively on foot and ankle products 3. It paid $1,241.5 million in initial consideration, funded with cash on hand and borrowing 3.

On 7 October 2025 it completed the purchase of Monogram Technologies, an orthopedic robotics company 3. Each Monogram share received $4.04 in cash and a right to up to $12.37 more if milestones are met through 2030 3.

Net sales rose 7.2 percent in 2025 to $8,231.5 million, with Paragon 28 adding 2.5 percent 3. The company also said sales in 2024 were lower because a new ERP software system caused trouble filling customer orders 3.

Net earnings fell to $705.1 million from $903.8 million 3. The company named inventory and instrument charges of about $170 million for product lines it intends to discontinue, acquisition costs, interest on acquisition debt and U.S. tariffs 3.

In the second quarter of 2026 net sales rose 4.8 percent, helped by opportunistic end-of-quarter customer purchases and higher ROSA robot and bone cement sales 4. Net earnings were $198.3 million against $152.8 million a year earlier 4.

The company had paid about $77 million of tariffs that the U.S. Supreme Court ruled on 20 February 2026 were not authorized by the emergency powers act 4. It said recovery of the full amount is probable and began receiving refunds in the second quarter 4.

Knees

Knee replacement swaps worn joint surfaces for implants, and Knees was the largest category at $3,322.3 million of 2025 net sales, up 4.7 percent 3. Its brands include Persona, NexGen, Vanguard and Oxford Partial Knee 3.

In the third quarter Knees was the one category that shrank, down 3.1 percent in the United States and abroad together 1.

Hips

Hip replacement swaps the ball and socket of the hip, and Hips brought in $2,093.5 million in 2025, up 4.7 percent 3. Brands include Taperloc, Avenir Complete, Z1, Arcos and G7 3.

Third-quarter Hips sales were $536.5 million, up 6.0 percent 1.

Sports, extremities and trauma

This category covers sports medicine, biologics, foot and ankle, upper extremities, trauma, and face, skull and chest products, and it grew 15.2 percent in 2025 to $2,150.2 million 3. Upper extremities were 30 percent of the category 3.

Third-quarter sales in this category were $578.3 million, up 6.8 percent 1. The company launched the Megalodon Dynamic Compression System and SmartShot Marrow Access Device in foot and ankle 1.

Technology, bone cement and surgical

This category groups the ZBEdge platform, which connects robotic and digital tools to collect data before, during and after surgery, with bone cement and surgical products 3. It had $665.6 million of 2025 sales 3.

Third-quarter sales were $180.6 million, up 11.9 percent, the fastest of the four categories 1.

Robots and partners

The ROSA Robot assists surgeons in knee, hip and shoulder procedures 3. The company said it extended a multi-year limited exclusive distribution and supply agreement with THINK Surgical 1.

The 2024 agreement covered THINK's handheld TMINI system for knee replacement, which the company described as complementing ROSA 7.

Rivals

In knees, hips and sports and trauma products, the major competitors are Johnson & Johnson MedTech, Stryker and Smith & Nephew 3.

Customers, people and plants

Hospitals, surgery centers and distributors buy the products, and consignment sales were about 85 percent of 2025 net sales 3. No customer exceeded 2 percent of sales 3.

The company began a multi-year effort to convert much of its U.S. sales force from independent agents to employees 3. Ivan Tornos is Chairman, President and CEO 1.

At the end of 2025 it employed about 17,000 people, about 7,000 of them in the United States, and had about 25 manufacturing locations 3. Warsaw, Indiana is its headquarters and its most significant manufacturing and research site for knees, hips and sports products 3.

Current problems

The 8 September 8-K shows leadership change in the commercial organization as the company restructures its Americas and global business groups 2. The 10-K names pricing pressure from hospitals and governments in most countries 3.

The umbrella, in words

Exhibit 21 lists the subsidiaries, including Biomet Orthopedics, Embody, Monogram Technologies, OrthoGrid Systems and Paragon 28 6. All are listed as domestic subsidiaries 6.

Paragon 28 became a wholly-owned subsidiary when the purchase closed 3. The company owns Monogram through the acquisition of all its outstanding shares 3.

The company expects full-year organic constant currency revenue growth of 3.0 percent to 3.5 percent and adjusted earnings per share of $8.50 to $8.60, it said on 4 November 1.

The 10-K said the company estimates operating profit will increase in 2026, helped by savings from restructuring plans and no repeat of the inventory and instrument charges 3.

After 30 June 2026 the company acquired a business and signed a merger agreement with a private company, for about $245 million in initial cash and up to $210 million more if milestones are met 4. The merger is expected to close once regulatory approval is received 4.

It said the deals bring new pain management technology and surgical technology 4.

On 26 June 2026 it entered a $1.5 billion five-year unsecured credit facility maturing on 26 June 2031 5. A board authorization of $1.5 billion for share repurchases took effect on 9 February 2026 with no expiration date 3.

The Monogram and Paragon 28 deals carry rights for former holders to up to $12.37 and $1.00 a share if milestones are met 3.