Core Insights - Zimmer Biomet Holdings, Inc. (ZBH) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $2.42, exceeding the Zacks Consensus Estimate by 1.7% and reflecting a year-over-year increase of 4.8% [1] - The company achieved net sales of $2.24 billion for the quarter, a 10.9% increase year over year, surpassing the Zacks Consensus Estimate by 1.9% [3] - Full-year adjusted EPS was $8.20, marking a 2.5% increase year over year and slightly beating the Zacks Consensus Estimate by 0.5% [2] Revenue Performance - ZBH's net sales for the full year reached $8.23 billion, a 7.2% increase year over year, also marginally exceeding the Zacks Consensus Estimate by 0.5% [3] - U.S. sales totaled $1.31 billion for the quarter, up 11.11% year over year, while international sales were $931.2 million, reflecting a 10.6% increase year over year [4] - Revenue growth was observed across all four product categories, with the S.E.T. unit experiencing a notable 20.1% increase year over year at constant currency [5] Margin Analysis - Adjusted gross margin was reported at 64.7%, a contraction of 632 basis points year over year, primarily due to a 35.1% rise in the cost of products sold [7] - Selling, general and administrative expenses rose 16.8% to $872.3 million, while research and development expenses increased by 9.6% to $118.8 million [7] - Adjusted operating margin contracted 821 basis points to 20.5% [7] Cash Position - At the end of the fourth quarter, ZBH had cash and cash equivalents of $591.9 million, an increase from $525.5 million at the end of the fourth quarter of 2024 [9] - Cumulative net cash provided by operating activities was $1.70 billion, up from $1.50 billion in the previous year [9] Future Outlook - For 2026, ZBH expects revenue growth in the range of 2.5-4.5%, with the Zacks Consensus Estimate for revenues at $8.41 billion, indicating a 3.1% year-over-year growth [10] - Adjusted EPS guidance for the full year is projected to be between $8.30 and $8.45, with the Zacks Consensus Estimate for 2025 adjusted EPS at $8.54 [10] Overall Assessment - ZBH's fourth-quarter results exceeded expectations, with growth reported across all business segments [11] - Notable developments contributing to growth include FDA clearance for ROSA Knee and the launch of the Brachiator Mini-Rail External Fixation System [11] - Despite the positive revenue and earnings performance, the contraction in margins presents a concern [11]

Core Viewpoint - Zimmer Biomet Holdings, Inc. (ZBH) is set to report its fourth-quarter 2025 results on February 10, with expectations of revenue growth and earnings per share (EPS) increase compared to the previous year [1][9]. Group 1: Financial Estimates - The Zacks Consensus Estimate for ZBH's revenues is $2.20 billion, reflecting an 8.9% increase from the same quarter last year [2]. - The consensus estimate for earnings is $2.38 per share, indicating a 3% rise from the year-ago figure [2]. - The bottom-line estimate has remained unchanged over the past 30 days [2]. Group 2: Business Segment Performance - The Hips business is expected to grow due to the company's comprehensive solutions, including the new Z1 triple-taper hip system and the automated HAMMR surgical impactor [3][4]. - The total Hips business is projected to report a 10.5% year-over-year growth [5]. - The Knees business is likely to benefit from the increasing adoption of the Persona OsseoTi cementless total knee system, with an expected 7.5% year-over-year growth [6]. - The S.E.T business is anticipated to continue its growth trend, with expectations of mid-single-digit growth for the seventh consecutive quarter [7]. - New product launches in the foot and ankle trauma portfolio, such as the Gorilla Pilon Fusion Plating system, may positively impact fourth-quarter performance [8]. Group 3: Recent Developments - Zimmer Biomet received PMDA approval in Japan for its iTaperloc Complete and iG7 Hip System, which may enhance top-line performance [5]. - The acquisition of Paragon 28, Inc. and the CE Mark certification for the RibFix Advantage Fixation System are expected to contribute positively to the company's performance [10]. - The company completed the acquisition of Monogram Technologies Inc., an AI-driven orthopedic robotics firm, which may also have a favorable impact on fourth-quarter results [12]. Group 4: Growth Projections - The Technology & Data, Bone Cement, and Surgical business is estimated to report a 6.5% year-over-year growth for the quarter [13]. - The total S.E.T. business is projected to achieve a 13% year-over-year growth [10].

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 Insights - Zimmer Biomet (ZBH) is considered a strong investment option due to its high cash yield, solid fundamentals, and discounted valuation, which allows for revenue growth or shareholder rewards through dividends or buybacks [2][10] Financial Performance - ZBH's stock has declined by 14% this year, yet it is trading at a significant discount with a P/S ratio lower than its 3-month and 2-year peaks, as well as below its 3-year average [3] - The company experienced a slight revenue shortfall in Q3, and its full-year organic constant currency growth guidance was revised down due to international challenges; however, U.S. organic revenue grew by 5.6% driven by new product adoption and robotic placements [4] Product and Market Developments - Recent acquisitions, such as Monogram Technologies and Paragon 28, have strengthened ZBH's portfolio in robotics and foot & ankle sectors [5] - New product approvals, including the iodine-treated hip and ROSA Knee with OptimiZe, along with favorable pricing trends, indicate ongoing innovation and market engagement [5] Fundamental Strength - ZBH boasts a free cash flow yield of 7.9% and an operating margin of 18.7% over the last 12 months, with a revenue growth of 5.5% [10] - The stock is currently trading 31% below its 2-year high and 14% below its 1-month high, indicating a potential buying opportunity [10] Investment Criteria - ZBH meets several investment criteria, including a market cap greater than $2 billion, a recent dip in stock price significantly below its 2-year high, and a strong operating margin with high free cash flow yield [11]

Core Insights - Zimmer Biomet Holdings, Inc. has received FDA 510(k) clearance for ROSA Knee with OptimiZe, an advanced version of its ROSA Knee System aimed at enhancing personalized surgical planning and improving outcomes in robotic-assisted total knee replacement surgery [1][2]. Product Features - ROSA Knee with OptimiZe offers customized intelligent surgical planning, new positioning, tracking, and alignment features to enhance accuracy and reduce variability among users [3]. - The system includes five key enhancements: - OptimiZe Planning for customized surgical plans based on individual preferences - OptimiZe Landmarking to minimize user variability in landmarking - OptimiZe Tracking for motion-sensitive resections without the need for pinning - OptimiZe Kinematic Alignment for automated resurfacing to restore pre-arthritic positions - OptimiZe Experience with a simplified user interface for tailored workflows [5]. Surgeon Feedback - Surgeons are increasingly adopting robotic technologies for better patient outcomes, and ROSA Knee with OptimiZe provides tools to reduce variability and optimize implant placement [4]. - The system is designed to work with the Persona Knee System, allowing for customizable profiles that align with both patient anatomy and surgeon preferences [4]. Integration and Future Plans - ROSA Knee with OptimiZe integrates with ZBEdge® Analytics, enabling data-driven intra-operative decisions and performance assessments [6]. - A targeted release of the product is planned for later this year, with commercial availability expected in the U.S. in the first quarter of 2026 [6].

Core Insights - Zimmer Biomet Holdings Inc. (NYSE:ZBH) has successfully acquired Monogram Technologies Inc., an AI-driven orthopedic robotics firm, for approximately $177 million, enhancing its orthopedic solution offerings [1] - The company’s technology portfolio includes the ROSA Robotics platform, which has nearly 2,000 installations worldwide, and it continues to develop this platform post-acquisition [2] - Zimmer Biomet is focused on launching new products, including the ROSA Knee with OptimiZe, which is currently pending FDA approval, with expectations for releases between this year and 2027 [2][3] Company Overview - Zimmer Biomet Holdings Inc. is a global medical technology company that specializes in designing, developing, manufacturing, and marketing orthopedic products, including implants and robotic solutions [3]