Q1 2026 Zimmer Biomet Holdings, Inc Earnings Call Transcript
Key Points
- Zimmer Biomet Holdings Inc (ZBH) reported a strong start to 2026 with a 2.9% sales growth on an organic constant currency basis, reaching the upper end of their annual revenue guidance.
- The company delivered an adjusted EPS of $2.09, up 15% year over year, benefiting from tariff-related items.
- US business increased by 3.2%, driven by strong technology sales and new product launches.
- Zimmer Biomet's technology and data, bone cement, and surgical business grew nearly 12% in the quarter, with strong ROSA and TMINI sales.
- The company is making significant progress in its strategic priorities, including operational excellence and innovation, with investments in AI-driven orthopedic robotic systems and a musculoskeletal venture capital fund.
- Zimmer Biomet Holdings Inc (ZBH) experienced some disruption in the US market due to go-to-market strategy changes, resulting in the loss of two large accounts.
- The company's US knee growth was limited to 2.2%, impacted by the phase-out of legacy total knee implants.
- International sales growth trailed the US, with a 2.5% increase, partly due to distributor changes in emerging markets and China.
- Operating margins are expected to be down slightly less than 50 basis points from 2025, with anticipated lower gross margins and increased investments.
- The company is maintaining a conservative full-year guidance despite a strong first quarter, citing early-year uncertainties and ongoing transitions.
Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet first-quarter 2026 earnings conference call. (Operator Instructions). As a reminder, this conference is being recorded today, April 28, 2026.
Following today's presentation, there will be a question-and-answer session. (Operator Instructions) I would now like to turn the conference over to David DeMartino, Senior Vice President, Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone. Welcome to Zimmer Biomet's first-quarter 2026 earnings conference call. Joining me on today's call are Ivan Tornos, our Chairman, President, and CEO; and Suky Upadhyay, our CFO, and EVP, Finance, Operations, and Supply Chain.
Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties.
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