Zimmer Biomet Q2 Earnings Call Highlights

Zimmer Biomet Q2 Earnings Call Highlights

Key Points Zimmer Biomet reported solid Q2 growth: Net sales rose 4.8% to $2.177 billion, driven by hips, specialty businesses and technology. Adjusted EPS was $2.07, while U.S. organic sales increased 4.6%. Technology and hip products led performance: Hip sales grew 5.1%, while technology, data, bone cement and surgical sales surged 21.5%, supported by strong ROSA, TMINI and OrthoGrid adoption. Knee sales were nearly flat, with international weakness—especially in China—offsetting U.S. gains. Zimmer Biomet raised its 2026 outlook: Organic sales growth is now expected at 2.25% to 3.25%, and adjusted EPS guidance increased to $8.47-$8.59. The company also plans up to $1 billion in share repurchases this year, despite margin pressure from costs and investments in its U.S. sales organization.

Zimmer Biomet NYSE: ZBH reported second-quarter 2026 net sales of $2.177 billion, up 4.8% on a reported basis and 4.0% on an organic constant-currency basis, as growth in hips, specialty businesses and technology helped offset weaker performance in certain other product lines. U.S. organic constant-currency sales rose 4.6%, while international sales increased 3.1%.

Chairman, President and Chief Executive Officer Ivan Tornos said the U.S. result reflected progress in the company’s sales-force transformation, product launches and commercial execution. GAAP diluted earnings per share increased to $1.03 from $0.77 a year earlier. Adjusted EPS was $2.07, unchanged from the prior-year quarter. Interim CFO Paul Stellato said higher revenue and a lower share count were offset by expected dilution from the Paragon 28 acquisition and investments in the U.S. commercial organization.

Hips, Technology Drive Growth Hip sales grew 5.1% on a constant-currency basis, including 5.9% growth in the United States and 4.2% internationally. Tornos attributed U.S. hip performance to adoption of the company’s “triple play” offering: the Z1 Triple Taper Hip Stem, the HAMMR surgical impactor and OrthoGrid navigation technology for direct anterior hip procedures. Z1 now accounts for more than 40% of Zimmer Biomet’s U.S. hip systems, according to Tornos, while HAMMR was used in more than 25% of U.S. primary hip cases. OrthoGrid recorded its strongest quarter to date, with first-half case volume matching its full-year 2025 level. In Japan, the company said demand for its iodine-coated hip technology exceeded expectations. Tornos said the product is intended to address the risk of periprosthetic joint infection after joint replacement and is drawing interest from existing customers as well as competitive accounts. He said Zimmer Biomet is pursuing pathways to bring the technology to additional countries, including discussions with the Food and Drug Administration regarding a potential U.S. path.

Knee sales increased 0.1% during the quarter. U.S. knee growth of 1.4% was partly offset by a 1.5% international decline, which management said was heavily affected by China and core emerging markets. The company’s sports, extremities and trauma, or S.E.T., business grew 3.4% organically on a constant-currency basis, accelerating 180 basis points from the first quarter. U.S. S.E.T. sales rose at a mid-single-digit rate, while Paragon 28 sales increased in the mid-teens. Craniomaxillofacial and thoracic sales grew at a double-digit rate, and upper-extremity sales increased at an upper-single-digit rate. Those gains were partly offset by continued pressure in trauma and restorative therapies. Technology and data, bone c...