Zimmer Biomet earnings lift outlook, but weaker knee sales remain a hurdle
Earnings results
- EPS beat +1.1%
Actual: $1.9 · Cons.: $1.88 (Adjusted diluted EPS; MarketBeat dated Q3 consensus)
- Revenue beat +1.1%
Actual: $2.0629B · Cons.: $2.04B (Reported net sales; rounded MarketBeat dated consensus)
- Guidance
Raised 2026 adjusted EPS to $8.50–8.60 from $8.47–8.59; organic constant-currency sales growth to 3.0–3.5% from 2.25–3.25%.
Earnings and the stock move
Zimmer Biomet released third-quarter earnings before open on November 4 and raised its annual adjusted EPS and underlying sales-growth forecasts. Hip implants and other orthopedic products supported growth while knee sales declined. The stock rose during trading following the release. The investor question is whether broader product momentum and better cash generation can offset weakness in the largest product category and pressure on operating profit.
Q3 2026 ended September 30 earnings recap
Zimmer Biomet raised its annual earnings and sales-growth outlook as hip implants and other products offset weaker knees. The price used for this comparison rose about 13% versus the previous close during trading on November 4.
- Adjusted EPS, or profit per share excluding selected costs, was $1.9 versus $1.88 expected. Profit under standard accounting rules fell to $1 per share from $1.16 a year earlier.
- Revenue reached $2.06 billion, ahead of roughly $2.04 billion expected. Sales grew 3.7% after removing currency effects.
- The annual adjusted profit forecast rose to $8.5–8.60 per share from $8.47–8.59. That is a modest increase, so continued sales improvement matters more than the headline alone.
- The company now expects 3.0–3.5% sales growth excluding currency and acquisition effects, up from 2.25–3.25%. This points to stronger demand within the existing business.
- Hip sales grew 6%, while knee sales fell 3.1%. Knees remain the largest product category, making their recovery an important test of the outlook.
- Free cash flow rose to $372 million from $278 million a year earlier. More cash left after investment improves flexibility, even as reported operating profit declined.
Watch whether knee demand recovers and broader product growth reaches profit margins. Competition, pricing pressure and acquisition integration remain risks; the charts show November 3, before earnings and the trading-day rise.
Financials and technicals
Charts through Nov 3, 2026. The session move above may reflect later news.
Technical setup and risks
At the November 3 close of $97.06, shares were above their 20-day and 50-day averages near $94.57 and $94.69. RSI near 56 showed moderate momentum. Prior support at $94–95.10 reflects repeated late-October and early-November lows; resistance at $98.5–99.40 reflects October 22–26 highs. Holding above that resistance after earnings would strengthen the breakout; a loss of support would weaken the recovery. The November 4 rise is separate from these completed daily charts. Levels are approximate reference zones.
AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.