Q2 2026 Zimmer Biomet Holdings, Inc Earnings Call Transcript

Aug 5, 2026 / 12:30 PM GMT

Transcript 8-K

Key Points

Positve

Zimmer Biomet Holdings Inc (ZBH) delivered strong Q2 2026 results with net sales of $2.177 billion, exceeding expectations and achieving 4% organic constant currency growth, driven by robust US performance of 4.6%.
The company raised its full-year 2026 organic constant currency revenue guidance to 2.25%-3.25% and adjusted EPS guidance to $8.47-$8.59, reflecting confidence in continued momentum.
Hips segment showed strong growth of 5.1% constant currency, with US hip growth of 5.9%, driven by successful adoption of the Z1 triple taper stem, Hammer surgical impactor, and OrthoGrid AI navigation.
The Paragon 28 acquisition is performing exceptionally well, with sales growing mid-teens and contributing 110 basis points to full-year reported sales growth, exceeding initial expectations.
Technology and data, bone cement, and surgical segments grew 21.5%, with US technology sales up over 50%, driven by strong demand for Rosa robotics and the new Rosa Shoulder launch.
The company is making excellent progress on its US commercial transformation, with lower-than-expected sales force turnover and customer disruption, and is on track to complete the transition by end of 2027.
Zimmer Biomet Holdings Inc (ZBH) is advancing its innovation pipeline, including the first-to-world iodine-coated implant launch in Japan exceeding expectations and the upcoming Monogram 510(k) filing, positioning for future growth.

Negative

Knees segment growth was weak at 0.1% in the quarter, with US growth of only 1.4% and international decline of 1.5%, impacted by China and core emerging markets.
Pricing remained a headwind of 80 basis points in the quarter, within the guidance range but reflecting ongoing pressure on implant pricing.
Adjusted gross margin declined 120 basis points to 71.1% due to increased manufacturing costs, partially offset by product mix.
Adjusted operating margin decreased 210 basis points year-over-year to 25.7%, as the company continues to invest heavily in the US commercial organization and sales force expansion.
International business growth was sluggish at 3.1% organic constant currency, with significant headwinds from China (declining 20% annually) and other emerging markets.
The company faces ongoing challenges in trauma and restorative therapies within the SCT segment, which are dragging down overall growth and require strategic changes.
The US commercial transformation is still a work in progress, with the company expecting continued disruption and investment through 2027, which could impact near-term profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ZBH.N - Zimmer Biomet Holdings, Inc.
Q2 2026 Zimmer Biomet Holdings, Inc Earnings Call
Aug 05, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Please stand by.

Good morning ladies and gentlemen, and welcome to the Zimmer Biomet second quarter 2026 earnings conference call.

If anyone needs assistance at any time during the conference, please press the star followed by the 0.

As a reminder, this conference is being recorded today, August 5th, 2026.

Following today's presentation, there will be a question-and-answer session.

At this time, all participants are in needless and only mode.

If you have a question, please press the star followed by the 1 on your push button phone.

I would now like to turn the conference over to David DiMartino, Senior Vice President, Investor Relations.

Please

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