Key Takeaways Zimmer Biomet's Q3 adjusted EPS rose 9.2% year over year, topping the consensus estimate.Revenues grew 9.7% to $2.00B but missed expectations due to weakness in Knees and Hips.The company reaffirmed EPS guidance but narrowed its revenue growth outlook for 2025.Zimmer Biomet Holdings, Inc. (ZBH) posted third-quarter 2025 adjusted earnings per share (EPS) of $1.90, which beat the Zacks Consensus Estimate by 1.06%. The adjusted figure rose 9.2% year over year.The quarter’s adjustments included ce ...

Core Insights - Stryker Corporation reported strong financial performance for Q3 2025, with net sales of $6.1 billion, reflecting a 10.3% increase compared to the previous year [2][13]. - The company achieved double-digit adjusted earnings per share growth, with adjusted net earnings of $1.2 billion, up 11.4% year-over-year [4][13]. - Stryker raised its full-year 2025 guidance, expecting organic net sales growth of 9.8% to 10.2% and adjusted net earnings per diluted share in the range of $13.50 to $13.60 [5][6]. Sales Performance - Consolidated net sales increased by 10.3% in Q3 2025, with organic net sales growing by 9.5%, driven by a 9.1% increase in unit volume and a 0.4% rise in prices [2][13]. - MedSurg and Neurotechnology segment reported net sales of $3.8 billion, a 14.4% increase, while Orthopaedics segment net sales reached $2.3 billion, up 3.9% [2][3]. Earnings Analysis - Reported net earnings for the quarter were $859 million, a 3.0% increase, with diluted earnings per share rising to $2.22, up 2.8% [4][13]. - Adjusted gross profit margin was 65.0%, and adjusted operating income margin increased to 25.6% [4][13]. Outlook - The company anticipates continued sales momentum and sustained demand for its products, leading to an optimistic outlook for the remainder of 2025 [5][6]. - A modestly favorable pricing impact and slight positive effects from foreign exchange rates are expected to contribute to sales and earnings growth [6]. Segment Performance - The MedSurg and Neurotechnology segment saw organic net sales growth of 8.4%, while Orthopaedics experienced a significant organic growth of 11.4% when excluding the divested spinal implant business [3][4]. - The U.S. market contributed significantly to sales, with a reported growth of 11.4% in Q3 2025 [24]. Financial Position - Total assets as of September 30, 2025, were $47.1 billion, an increase from $43.0 billion at the end of 2024 [19][20]. - The company reported a net cash provided by operating activities of $2.9 billion for the nine months ended September 30, 2025 [22].

Core Insights - Zimmer Biomet Holdings, Inc. (ZBH) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.07, exceeding the Zacks Consensus Estimate by 4.5% and reflecting a 3% year-over-year increase [1][9] - The company's second-quarter net sales reached $2.08 billion, marking a 7% increase year over year, and surpassing the Zacks Consensus Estimate by 1.6% [3][9] - ZBH raised its 2025 EPS guidance to a range of $8.10-$8.30, indicating strength in high-growth, non-core segments [9][12] Revenue Performance - Second-quarter net sales of $2.08 billion increased by 7% year over year, with a 5.4% increase at constant exchange rates (CER) [3][9] - U.S. sales totaled $1.17 billion, up 6.1% year over year, while international sales reached $903.5 million, reflecting an 8.1% year-over-year increase and 4.6% at CER [4][9] Segment Analysis - Sales in the Knees unit improved by 1.8% year over year at CER to $826 million, while Hips sales grew by 4% year over year at CER to $536.1 million [5][6] - The S.E.T. unit saw a significant revenue increase of 16% year over year at CER to $550.6 million, outperforming estimates [6] - Revenues from Technology & Data, Bone Cement and Surgical decreased by 2.2% to $164.6 million at CER [6] Margin and Expense Overview - Adjusted gross margin remained flat year over year at 71.5%, while selling, general and administrative expenses rose by 10.5% to $814.8 million [7] - Research and development expenses increased by 3.6% to $113.3 million, and adjusted operating margin contracted by 109 basis points to 26.8% [7] Cash Position - At the end of the second quarter, ZBH had cash and cash equivalents of $556.9 million, down from $1.38 billion at the end of the first quarter of 2025 [10] - Cumulative net cash provided by operating activities was $761 billion, compared to $597.4 billion in the year-ago period [10] Updated Financial Outlook - ZBH updated its revenue growth expectation for 2025 to a range of 6.7-7.7%, with foreign exchange anticipated to negatively impact revenues by 0.5% [11] - The adjusted EPS for the full year is now expected to be in the range of $8.10-$8.30, up from the previous estimate of $7.90-$8.10 [12] Strategic Developments - The company completed the acquisition of Paragon 28 in the second quarter, which is expected to enhance innovation and diversification in the S.E.T. business [14]

Core Insights - Stryker reported a consolidated net sales of $6.0 billion for Q2 2025, reflecting an 11.1% increase compared to the previous year, with organic net sales growing by 10.2% [2][14][24] - The company experienced strong growth in its MedSurg and Neurotechnology segments, with net sales increasing by 17.3% to $3.8 billion, while Orthopaedics saw a modest growth of 2.0% to $2.2 billion [2][3][24] - Adjusted net earnings for the quarter reached $1.2 billion, marking an 11.6% increase, with adjusted earnings per diluted share rising to $3.13, up 11.4% [4][14][24] Sales Performance - Total net sales growth was driven by a combination of increased unit volume and higher prices, with organic net sales growth of 10.2% attributed to 9.7% from unit volume and 0.5% from price increases [2][24] - MedSurg and Neurotechnology segment's organic net sales increased by 11.0%, while Orthopaedics' organic net sales grew by 9.0% [2][3][24] - The U.S. market contributed significantly, with reported sales of $4.6 billion, reflecting a 12.5% increase, while international sales grew by 6.8% [24][28] Earnings Analysis - Reported net earnings for the quarter were $884 million, a 7.2% increase, with a diluted earnings per share of $2.29, up 7.0% [4][14][24] - Adjusted gross profit margin was reported at 65.4%, while adjusted operating income margin increased to 25.7%, up 110 basis points [4][14][24] - The company raised its full-year 2025 guidance, expecting organic net sales growth of 9.5% to 10.0% and adjusted net earnings per diluted share in the range of $13.40 to $13.60 [5][6] Market Outlook - Stryker anticipates a modestly favorable pricing impact and a slight positive effect from foreign exchange rates on sales and adjusted net earnings per diluted share [6][7] - The estimated net impact from tariffs in 2025 is approximately $175 million, reflecting recent updates in trade policies [7]

Core Viewpoint - Zimmer Biomet Holdings, Inc. reported mixed results for Q1 2025, with adjusted EPS beating estimates but showing a year-over-year decline, while revenues exceeded expectations and showed slight growth [1][11]. Financial Performance - Adjusted EPS for Q1 2025 was $1.81, beating the Zacks Consensus Estimate by 2.3%, but down 6.7% year over year [1]. - Reported EPS was 91 cents, reflecting an 8.3% increase year over year [2]. - Q1 net sales reached $1.91 billion, a 1.1% increase year over year, and up 2.3% at constant exchange rates (CER), exceeding the Zacks Consensus Estimate by 1% [3]. Revenue Breakdown - U.S. sales totaled $1.11 billion, up 1.3% year over year, while international sales were $795.5 million, up 0.7% year over year and 3.7% at CER [4]. - Revenue by segment showed: - Knees: $792.9 million, up 1.9% at CER [5]. - Hips: $495.8 million, up 2.4% at CER [5]. - S.E.T.: $470.5 million, up 4.9% at CER [6]. - Technology & Data, Bone Cement and Surgical: $149.9 million, down 3.5% at CER [6]. Margin Analysis - Adjusted gross margin was 71.2%, a contraction of 168 basis points [7]. - Selling, general and administrative expenses rose 3.1% to $758.8 million, while R&D expenses increased 2.5% to $110.6 million [7]. - Adjusted operating margin contracted 254 basis points to 25.7% [7]. Cash Position - Cash and cash equivalents at the end of Q1 were $1.38 billion, up from $525.5 million at the end of Q4 2024 [8]. - Cumulative net cash from operating activities was $382.8 million, compared to $228 million in the previous year [8]. 2025 Outlook - The company expects reported revenue growth for 2025 to be between 5.7% and 8.2% year over year, an increase from earlier guidance of 1% to 3.5% [9]. - Adjusted EPS for the full year is projected to be in the range of $7.90 to $8.10 [9]. - The Zacks Consensus Estimate for 2025 adjusted EPS is $8.22 on revenues of $7.88 billion [10]. Strategic Insights - The company is gaining momentum in the U.S. Hips market, supported by new product offerings [13]. - The acquisition of Paragon 28 is expected to enhance innovation and expand the S.E.T. business into high-growth segments [13].

Core Insights - Zimmer Biomet reported $1.91 billion in revenue for the quarter ended March 2025, reflecting a year-over-year increase of 1.1% and an EPS of $1.81 compared to $1.94 a year ago, with revenue exceeding the Zacks Consensus Estimate of $1.89 billion by +0.88% and an EPS surprise of +2.84% [1] Revenue Performance - Net Sales for Knees in the United States were $459 million, slightly below the average estimate of $464.68 million, representing a year-over-year change of +0.2% [4] - Net Sales for Hips in the United States reached $264.30 million, surpassing the average estimate of $258.29 million, with a year-over-year increase of +3.7% [4] - International Net Sales for Hips were $231.50 million, slightly above the average estimate of $229.39 million, showing a year-over-year decline of -2% [4] - International Net Sales for Knees were $333.90 million, exceeding the average estimate of $328.76 million, with a year-over-year increase of +1.2% [4] - Total International Net Sales amounted to $795.50 million, surpassing the estimated $783.50 million, reflecting a +0.7% change year-over-year [4] - Total Net Sales in the United States were $1.11 billion, slightly above the estimated $1.10 billion, indicating a +1.3% year-over-year change [4] - Overall Net Sales for Knees were $792.90 million, exceeding the average estimate of $787.14 million, with a year-over-year increase of +0.6% [4] - Net Sales for Other products were $149.90 million, below the average estimate of $152.71 million, representing a year-over-year decline of -4.7% [4] - Net Sales for S.E.T. reached $470.50 million, surpassing the average estimate of $460.26 million, with a year-over-year increase of +4% [4] - Net Sales for Hips totaled $495.80 million, exceeding the average estimate of $488.84 million, reflecting a +0.9% year-over-year change [4] Stock Performance - Zimmer's shares have returned -4.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.4% change, and the stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]