Group 1 - The presentation is led by Ivan Tornos, who is the President, CEO, and Chairman of the Board of Zimmer Biomet [1] - The company aims to summarize its presentation quickly to accommodate the busy schedule of the audience, which includes numerous presentations over the next few days [2] - Zimmer Biomet expresses satisfaction with the progress made over the last five years, indicating a positive outlook for the company in 2026 [3]

Summary of Zimmer Biomet FY Conference Call (January 13, 2026) Company Overview - **Company**: Zimmer Biomet (NYSE: ZBH) - **Industry**: Medical Technology (MedTech), specifically Orthopedics Key Points and Arguments Company Transformation and Growth - Zimmer Biomet has undergone significant transformation over the past five years, shifting from a product-focused to a solutions-oriented approach, with an emphasis on cultural change [4][5] - The company reported a Compound Annual Growth Rate (CAGR) of 6.5% over the last five years, with revenue growth of 10% in 2021, 6.5% in 2022, and 7.5% in 2023 [5][6] - Adjusted earnings per share (EPS) for 2023 was $9.50, with a leverage of 200 basis points [5] U.S. Market Focus - The U.S. market accounts for 63% of Zimmer Biomet's revenue and over 51% of its debt [7] - The company aims to accelerate the transformation of its sales model in the U.S. to improve accountability and ownership [6][7] - A significant change in the U.S. sales model is planned, with a focus on specialization and direct sales [22] Innovation and Product Development - The company has shifted from launching eight products in 2018 to over 50 new products in the last three years, with 22 launched in 2025 alone [10][11] - Key innovations include the introduction of the first iodine-coated device aimed at preventing infections, set to launch in Japan in late 2025 [17][18] - The company is focusing on customer-centric innovation, addressing issues such as infection, efficiency, and patient outcomes [20][31] Market Dynamics - The orthopedic market is projected to grow at a rate of 4% to 4.25%, with Zimmer Biomet's performance tied to maintaining growth above this benchmark [13] - The company has seen consistent price positivity over the last seven quarters, indicating a favorable pricing environment [42] Financial Outlook - The company expects free cash flow to grow by 70% over the next five to six years, with 2026 anticipated to see free cash flow growth outpacing EPS growth [27][56] - Guidance for 2026 is tempered, aligning with the level of transformation expected, with projected organic growth of 3.5% to 4% [35][36] Strategic Investments - Zimmer Biomet has made three acquisitions in the past 14 months, including OrthoGrid and Paragon 28, to enhance its product offerings and market position [27][28] - The company plans to significantly increase its workforce dedicated to robotic solutions and ASCs (Ambulatory Surgery Centers) [24][25] Challenges and Execution - The company acknowledges the need for improved execution to ensure steady growth, addressing past inconsistencies in quarterly performance [20][21] - The transition to a specialized sales force is expected to create short-term disruptions but aims for mid- to long-term growth acceleration [46] Future Vision - By 2030, Zimmer Biomet aims to innovate beyond traditional implants, focusing on cartilage repair and leveraging data for predictive analytics in orthopedic care [32][33][34] Additional Important Insights - The company has improved employee engagement, making it to Forbes' World's Best Employers list for the first time [11] - Zimmer Biomet is committed to building a best-in-class company, focusing on operational excellence, innovation, and a strong company culture [30][34] This summary encapsulates the key points discussed during the conference call, highlighting Zimmer Biomet's strategic direction, market dynamics, and future aspirations in the orthopedic industry.

Core Viewpoint - Zimmer Biomet Holdings, Inc. is facing challenges with sales growth and operational expenses, leading to a cautious outlook despite expected earnings growth in the upcoming quarters [5][6]. Financial Performance - The company is expected to report an adjusted EPS of $2.38 for fiscal Q4 2025, reflecting a 3% increase from $2.31 in the same quarter last year [2]. - For fiscal 2025, analysts predict an adjusted EPS of $8.16, a 2% rise from $8 in fiscal 2024, with further growth projected to $8.41 in fiscal 2026, representing a 3.1% year-over-year improvement [3]. Stock Performance - Zimmer Biomet's shares have declined by 12.5% over the past 52 weeks, underperforming the S&P 500 Index, which increased by 19.7%, and the Health Care Select Sector SPDR Fund, which rose by 12.7% during the same period [4]. - The stock's underperformance is attributed to disappointing sales growth, lowered guidance, competitive pressures, and operational challenges [5]. Analyst Sentiment - The consensus rating for Zimmer Biomet stock is a "Hold," with 26 analysts covering the stock: six recommend a "Strong Buy," one a "Moderate Buy," 16 a "Hold," and three a "Strong Sell" [6]. - The average analyst price target for Zimmer Biomet is $102.73, indicating a potential upside of 12.3% from current levels [6].

Core Insights - Zimmer Biomet Holdings, Inc. (ZBH) has entered into an exclusive collaboration with OneStep, a digital fall prevention and mobility intelligence platform, to enhance recovery tracking for joint replacement surgery patients [1][4][7] Company Developments - The collaboration will integrate OneStep's gait and mobility analytics into Zimmer Biomet's mymobility Care Management Platform, providing daily insights for patients from surgical preparation through recovery [4][5][6] - Zimmer Biomet's mymobility platform offers a guided orthopedic patient experience, including education, surveys, and video-guided post-operative exercises, supported by automation and data insights [5] - The integration of OneStep's technology supports Zimmer Biomet's connected care strategy, enhancing the ability to monitor recovery trends and tailor rehabilitation programs [6][7] Financial Performance - Zimmer Biomet has a market capitalization of $18.02 billion and an earnings yield of 8.3%, significantly higher than the industry average of 0.2% [3] - The company has delivered an average earnings surprise of 2.2% over the trailing four quarters [3] Industry Outlook - The global joint replacement market was valued at $17.1 billion in 2020 and is projected to reach $25.4 billion by 2028, growing at a compound annual growth rate (CAGR) of 3.4% from 2021 to 2028, driven by the increasing prevalence of orthopedic disorders [8] Recent Developments - Zimmer Biomet received FDA 510(k) clearance for its ROSA Knee with OptimiZe, an enhanced version of its robotic-assisted total knee replacement system, aimed at providing a more customized surgical experience [9] Stock Performance - Following the announcement of the collaboration, Zimmer Biomet's shares fell by 1.6%, but the collaboration is expected to support a rebound in stock performance [2] - Over the past year, ZBH shares have decreased by 15.9%, contrasting with the industry's growth of 0.5% [10]

Core Viewpoint - The article summarizes significant analyst rating changes that are expected to impact the market, highlighting both upgrades and downgrades across various companies and sectors [1][6]. Upgraded Ratings - Roku (ROKU): Morgan Stanley upgraded the rating from "Underweight" to "Overweight," raising the target price from $85 to $135, citing strong performance in the digital advertising market and expected robust growth in U.S. advertising spending by 2026 [5]. - Okta (OKTA): Jefferies upgraded the rating from "Hold" to "Buy," increasing the target price from $90 to $125, noting Okta's efforts to build a comprehensive identity authentication platform that can capitalize on the growing demand for intelligent agents [5]. - ServiceNow (NOW): Guggenheim upgraded the rating from "Sell" to "Neutral," stating that the current stock price is below the previously set target price, making it attractive [5]. - Rockwell Automation (ROK): Goldman Sachs upgraded the rating from "Sell" to "Neutral," raising the target price from $329 to $448, highlighting the potential operational leverage from structural price increases under new management [5]. - L3 Harris Technologies (LHX): Morgan Stanley upgraded the rating from "Hold" to "Overweight," increasing the target price from $350 to $367, based on a positive outlook for the aerospace and defense sector in 2026, with demand growth expected to outpace supply [5]. Downgraded Ratings - Zimmer Biomet (ZBH): Baird downgraded the rating from "Outperform" to "Neutral," lowering the target price from $117 to $100, citing disappointing performance expectations for 2025 and potential market share loss to Stryker's Mako orthopedic surgical robot [5]. - Capri Holdings (CPRI): Wells Fargo downgraded the rating from "Overweight" to "Hold," raising the target price from $25 to $27, indicating that previous positive factors driving the stock price have diminished, leading to increased market divergence on growth expectations [5]. - Lockheed Martin (LMT): Morgan Stanley downgraded the rating from "Overweight" to "Hold," reducing the target price from $630 to $543, while still optimistic about the aerospace and defense sector's outlook [5]. - StubHub (STUB): Citizens Bank downgraded the rating from "Outperform" to "Market Perform," with no target price set, anticipating increased market competition in 2026 that may limit market share growth [5]. - GitLab (GTLB): KeyBanc downgraded the rating from "Overweight" to "Sector Weight," with no target price set, expressing concerns over pricing power potentially hindering growth and increased execution risks due to a shift to a usage-based billing model [5]. Initiated Coverage - MongoDB (MDB): Raymond James initiated coverage with a "Market Perform" rating and no target price, noting the balanced market sentiment around the stock despite its strategic importance in the independent database platform sector [11]. - D-Wave Quantum (QBTS): Jefferies initiated coverage with a "Buy" rating and a target price of $45, highlighting the increasing market attention and application rates for various quantum computing architectures [11]. - Omnicom Group (OMC): Morgan Stanley resumed coverage with a "Hold" rating and a target price of $88, indicating that the company's merger integration efforts present both opportunities and risks [11]. - Freshpet (FRPT): Morgan Stanley initiated coverage with a "Hold" rating and a target price of $71, recognizing the long-term growth potential in the pet food industry but cautioning against short-term economic pressures [11]. - Jumia Technologies (JMIA): Craig-Hallum initiated coverage with a "Buy" rating and a target price of $18, emphasizing the company's optimized product offerings and logistics network as key drivers for achieving sustainable double-digit growth by 2030 [11].

Upgrades - Morgan Stanley upgraded L3Harris Technologies (LHX) to Overweight from Equal Weight with a price target of $367, up from $350, citing attractive aerospace and defense demand outpacing supply growth into 2026 [2] - Morgan Stanley also upgraded General Dynamics (GD) to Overweight [2] - Goldman Sachs upgraded Rockwell Automation (ROK) to Neutral from Sell with a price target of $448, up from $329, highlighting early stages of structural pricing improvements under new management [3] - Jefferies upgraded Okta (OKTA) to Buy from Hold with a price target of $125, up from $90, noting significant opportunities in building a complete identity platform [4] - Morgan Stanley upgraded Roku (ROKU) to Overweight from Underweight with a price target of $135, up from $85, anticipating a strong 2026 for U.S. advertising spend due to digital strength [4] Downgrades - Baird downgraded Zimmer Biomet (ZBH) to Neutral from Outperform with a price target of $100, down from $117, due to disappointing 2025 projections despite good initial product uptake [5] - Wells Fargo downgraded Capri Holdings (CPRI) to Equal Weight from Overweight with a price target of $27, up from $25, arguing that positive catalysts are now behind and risk/reward is more balanced [5] - Morgan Stanley downgraded Lockheed Martin (LMT) to Equal Weight from Overweight with a price target of $543, down from $630, while still viewing aerospace and defense as attractive [5] - Citizens downgraded StubHub (STUB) to Market Perform from Outperform, expecting increased competition in 2026 to limit share gains [5] - KeyBanc downgraded GitLab (GTLB) to Sector Weight from Overweight, indicating pricing power will be a headwind and execution risk is increasing due to business model changes [5]

Core Insights - Zimmer Biomet and OneStep have entered into an exclusive collaboration to enhance recovery monitoring in orthopedic surgery through comprehensive mobility data integration [1][2][4]. Company Overview - Zimmer Biomet is a global leader in medical technology, focusing on maximizing mobility and improving health through innovative products and integrated digital solutions [6][7]. - OneStep is an FDA-listed digital care platform that captures gait, balance, and mobility data using smartphones, aimed at improving patient care and monitoring [9]. Collaboration Details - The partnership will integrate OneStep's gait and mobility analytics into Zimmer Biomet's mymobility Care Management Platform, allowing for remote assessment of patients' recovery progress [3][4]. - The mymobility platform provides a comprehensive patient experience, including education, surveys, check-ins, and telehealth applications, all aimed at enhancing recovery monitoring [4]. Technological Integration - OneStep's mobility intelligence is based on the analysis of over one million gait cycles daily, providing a substantial real-world mobility dataset to support clinicians in tailoring rehabilitation programs [4]. - The integration aims to transform gait and mobility into vital signs, empowering both patients and providers with clinically meaningful data [4].

Core Insights - Zimmer Biomet Holdings, Inc. (ZBH) is a leading global medical technology company with a market cap of $18.4 billion, specializing in orthopedic implants and surgical solutions [1][2] - The company has experienced significant stock price declines, with shares down 19.4% from a 52-week high of $114.44 and 12.7% year-to-date [3][4] Financial Performance - In Q3, Zimmer Biomet reported organic sales growth of 5% on a constant-currency basis, with total revenue increasing by 3.6% due to acquisitions, resulting in net sales of $2 billion, a 9.7% year-over-year increase [5] - The company's adjusted EPS rose by 9.2% to $1.90, slightly exceeding expectations, despite the top line falling short of consensus by 42 basis points [5] Market Position - Zimmer Biomet's stock has underperformed compared to the Health Care Select Sector SPDR Fund (XLV), which gained 8.2% over the same three-month period [3][4] - The stock has a consensus rating of "Hold" from 26 analysts, with a mean price target of $102.69, indicating an 11.3% premium to current levels [6]

Summary of the 2026 Hospital Outlook Survey Industry Overview - The survey focuses on the US healthcare industry, specifically the hospital sector, and provides insights into capital expenditures, utilization trends, and the impact of macroeconomic factors on hospital operations [1][2]. Key Insights Utilization Trends - **Utilization Growth Expectations**: 52% of hospital executives anticipate utilization growth in 2026 to be above 2025 levels, a decrease from 55% in the previous year [7][19]. - **Outpatient vs. Inpatient**: 56% expect outpatient utilization growth to exceed 2025 levels, while 41% expect inpatient utilization growth to increase, up from 34% last year [11][19]. - **Elective Procedures**: 54% expect elective procedures to grow above or in line with 2025 levels, down from 64% last year [16][19]. Capital Expenditures (CapEx) - **CapEx Growth**: Hospital capital spending is projected to increase by 4.1% in 2026, consistent with the 4.0% growth reported in 2025 [7][45]. - **Investment Priorities**: Hospitals are likely to increase spending on bedside patient monitoring, bedside pumps, and operating room (OR) suite equipment [16][45]. - **Impact of OBBBA**: The One Big Beautiful Bill Act (OBBBA) may lead to conservative spending due to anticipated reimbursement pressures [49][46]. Robotics and Technology - **Robotic Systems**: 96% of hospitals currently utilize surgical robotic systems, with Intuitive Surgical maintaining a leading position in soft-tissue robotics [90][91]. - **Orthopedic Robotics Demand**: 49% of respondents expect to purchase orthopedic robotic systems, with Stryker's MAKO being the most favored option [7][8]. - **IT Investments**: Hospitals are prioritizing IT investments, particularly in AI (66% expect to increase spending) and cybersecurity (65%) [80][81]. Value-Based Care (VBC) - **Revenue Tied to VBC**: The average revenue tied to VBC arrangements is approximately 19%, down from 22% last year, although interest in establishing VBC partnerships has increased [34][35]. Challenges and Concerns - **Reimbursement Pressure**: 34% of executives cite reimbursement pressure as the biggest challenge for hospitals in the coming year, an increase from 25% last year [58][59]. - **Labor Costs**: Labor cost inflation remains a significant concern, with 18% of respondents identifying it as a major challenge [58][59]. Future Outlook - **Purchasing Intentions**: Despite economic uncertainties, over 70% of hospitals plan to consider purchasing new equipment across various categories in the next two years [62][64]. - **Investment in ASCs**: 57% of respondents expect to increase investments in Ambulatory Surgery Centers (ASCs) over the next year, reflecting a shift towards outpatient care [18][19]. Additional Insights - **AI Utilization**: Hospitals are increasingly leveraging AI for tasks such as medical record analysis (56%) and clinical imaging analysis (52%), with larger hospitals showing a higher propensity to adopt these technologies [81][88]. - **Market Dynamics**: The survey indicates a stable payor mix for 2026, with commercial insurers and Medicare making up approximately 70% of the mix [12][27]. This comprehensive survey provides a detailed outlook on the hospital sector, highlighting trends in utilization, capital spending, and the evolving landscape of healthcare technology and reimbursement challenges.

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against Gauzy Ltd. and Zimmer Biomet Holdings, concerning possible violations of federal securities laws and unlawful business practices [1] Gauzy Ltd. (NASDAQ:GAUZ) - On November 14, 2025, Gauzy announced a delay in releasing its third-quarter financial results due to the initiation of insolvency proceedings for three subsidiaries in France [6] - Following this announcement, Gauzy's stock price dropped by $1.35 per share, a decline of 33.58%, closing at $2.67 per share [6] Zimmer Biomet Holdings, Inc. (NYSE:ZBH) - On November 5, 2025, Zimmer Biomet reported third-quarter net sales of $2 billion, which fell short of consensus estimates of $2.01 billion [6] - The company revised its full-year organic revenue growth outlook to a range of 3.5% to 4%, down from a previous range of 3.5% to 4.5% [6] - Zimmer Biomet experienced weakness in international markets and non-core businesses, with challenges from distributors and order cancellations in the Middle East and Eastern Europe impacting results [6] - Following the earnings report, Zimmer Biomet's stock price fell by $15.63 per share, a decrease of 15.5%, closing at $87.55 per share [6]