Zimmer Biomet’s first quarter of 2026 results exceeded Wall Street’s expectations for both revenue and non-GAAP earnings, but the market responded negatively. Management pointed to ongoing changes in its U.S. sales force, robust technology sales, and new product launches as key factors in the quarter. CEO Ivan Tornos cited a “greater than 20% increase in partial knee sales” driven by the Oxford Partial Cementless Knee, while highlighting sales disruptions from brand rationalization and account losses. The company acknowledged some cautiousness around continued transformation and recent account transitions, which contributed to operational disruptions and tempered the positive momentum.
Is now the time to buy ZBH? Find out in our full research report (it’s free for active Edge members).
Zimmer Biomet (ZBH) Q1 CY2026 Highlights:
- Revenue: $2.09 billion vs analyst estimates of $2.07 billion (9.3% year-on-year growth, 0.9% beat)
- Adjusted EPS: $2.09 vs analyst estimates of $1.86 (12.2% beat)
- Adjusted EBITDA: $840.5 million vs analyst estimates of $633 million (40.3% margin, 32.8% beat)
- Management raised its full-year Adjusted EPS guidance to $8.48 at the midpoint, a 1.2% increase
- Operating Margin: 17.9%, up from 15.3% in the same quarter last year
- Constant Currency Revenue rose 6.8% year on year (2.3% in the same quarter last year)
- Market Capitalization: $15.99 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zimmer Biomet’s Q1 Earnings Call
- Frederick Wise (Stifel) asked why guidance was not raised more substantially after a strong quarter. CEO Ivan Tornos explained, "It's early in the year. This is a year of transition," citing ongoing sales force and market changes as reasons for prudence.
- Vijay Kumar (Evercore ISI) inquired about U.S. sales force transition metrics and potential macro impacts from the Middle East. Tornos detailed reductions in non-dedicated reps and a low turnover rate, while noting minor freight cost increases but no material supply or demand disruption.
- Matthew Blackman (TD Cowen) requested specifics on productivity improvements from the sales force transition. Tornos pointed to rising case counts per representative and sales gains in territories with dedicated teams, emphasizing better engagement and retention.
- Robert Marcus (JPMorgan) asked about one-time items and gross margin sustainability. Tornos and CFO Suky Upadhyay cited a tariff-related benefit in Q1 and clarified that underlying performance was otherwise stable, with expectations for modestly lower gross margin for the year.
- David Roman (Goldman Sachs) questioned slower international growth. Tornos attributed it to tougher comparisons, distributor consolidation, and order timing, but expects mid-single-digit international growth in the second half of the year.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will closely watch (1) the pace and impact of the U.S. sales force transformation on productivity and account retention, (2) adoption and clinical rollout of the Monogram robotic system and other new technology platforms, and (3) stabilization of international operations as distributor changes and product rationalization play out. Progress in these areas will be critical for assessing Zimmer Biomet’s ability to meet its long-term growth and margin goals.
Zimmer Biomet currently trades at $82.40, down from $92.59 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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