Zimmer Biomet Holdings Stock Earnings Reports

Zimmer Biomet reported Q3 2025 organic constant-currency sales growth of 5.0% (reported net sales $2.0B) with U.S. performance accelerating to 5.6%. Key product momentum: Persona OsseoTi (cementless knee) penetration gaining rapidly (≈30% of U.S. knee implants), strong adoption of Oxford partial cementless knee, traction in robotics/navigation (ROSA placements and utilization), Z1/HAMMR/OrthoGrid in hips, and high growth in CMFT and upper extremities. The company closed the Monogram acquisition (mBôs semi/fully autonomous robotic platform) and received PMDA approval in Japan for iodine-treated hip implants and FDA Breakthrough Device designation in the U.S. Management updated 2025 organic constant-currency revenue guidance to 3.5%–4.0% (previously 3.5%–4.5%) to reflect late-Q3 weakness in Eastern Europe, Latin America and restorative therapies, but left reported revenue guidance (6.7%–7.7%), adjusted EPS ($8.10–$8.30) and free cash flow ($1.0B–$1.2B) unchanged. Adjusted EPS in Q3 was $1.90 (+9.2% YoY). Operational highlights include improved adjusted gross margin (72.6%), strong cash generation (Q3 operating cash flow $419M; YTD free cash flow ≈$800M), inventory reduction (days on hand down 10 days YoY) and a disciplined capital allocation stance with firepower for M&A and opportunistic buybacks. Management announced leadership/governance changes in some international businesses and commercial/sales incentive adjustments to focus on growth, margin and cash flow. Risks called out: continued weakness in restorative therapies, measured outlook for certain emerging markets, and a modest slowdown in U.S. revision volumes—all factored into updated guidance.