Globus Medical delivered results that exceeded Wall Street’s expectations in the second quarter, with the market responding favorably to its 18.4% revenue growth and improved profitability. Management credited the strong performance to the resurgence of its U.S. Spine business, new product launches, and the successful resolution of earlier supply chain constraints. CEO Keith Pfeil highlighted the positive momentum in core trauma and enabling technologies, noting, “Our U.S. Spine business led the way commercially, growing 5.7% as reported.” Recent acquisitions and operational improvements also contributed to the company’s performance this quarter.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Globus Medical’s Q2 Earnings Call

• Matthew Miksic (Barclays): Asked about progress with Nevro cost actions and sale force integration. CEO Keith Pfeil described early cost controls and positive sales force engagement, emphasizing stability and long-term growth focus.
• Vik Chopra (Wells Fargo): Queried about the launch plans for the augmented reality headset. Pfeil said product supply is ready, with launch planning underway and integration into the Excelsius ecosystem as a priority.
• Shagun Singh Chadha (RBC): Asked about leadership changes and internal succession planning. Executive Chairman David Paul highlighted deliberate succession planning and consistent board involvement, affirming management stability.
• Matthew Charles Taylor (Jefferies): Questioned the pathway to Nevro’s profitability and earnings accretion. CFO Kyle Kline noted ongoing synergy actions and a cautious approach, expecting more clarity after further integration.
• David Saxon (Needham & Company): Inquired about the timeline for achieving mid-70s gross margins. Pfeil outlined a 12- to 18-month timeline, driven by manufacturing in-sourcing and process improvements.

Catalysts in Upcoming Quarters

Looking ahead, our analysts will monitor (1) the pace of Nevro integration and resulting cost synergies in both SG&A and R&D, (2) adoption rates for new enabling technology products, including the Excelsius XR headset, and (3) sustained momentum in the U.S. Spine and trauma segments as new products and sales initiatives are rolled out. Execution in international market integration and manufacturing upgrades will also be important signposts.

Globus Medical currently trades at $62.79, up from $54.12 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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