Zimmer Biomet’s second quarter results were met with a positive market response, reflecting successful execution on new product launches and meaningful contributions from recent M&A activity. Management attributed the quarter’s outperformance to strong U.S. growth in hip and knee implants, as well as sustained momentum in the S.E.T. (Sports Medicine, Extremities, and Trauma) segment. CEO Ivan Tornos emphasized, “Our U.S. Hips business drove strong results... and S.E.T. reported another solid mid-single-digit organic growth quarter.” The leadership also highlighted disciplined commercial execution and early adoption of new technologies as central to the company’s performance.
Is now the time to buy ZBH? Find out in our full research report (it’s free).
Zimmer Biomet (ZBH) Q2 CY2025 Highlights:
- Revenue: $2.08 billion vs analyst estimates of $2.05 billion (7% year-on-year growth, 1.5% beat)
- Adjusted EPS: $2.07 vs analyst estimates of $1.98 (4.8% beat)
- Adjusted EBITDA: $850.4 million vs analyst estimates of $673.8 million (40.9% margin, 26.2% beat)
- Management raised its full-year Adjusted EPS guidance to $8.20 at the midpoint, a 2.5% increase
- Operating Margin: 14.4%, down from 18.1% in the same quarter last year
- Constant Currency Revenue rose 5.5% year on year, in line with the same quarter last year
- Market Capitalization: $20.45 billion
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 Zimmer Biomet’s Q2 Earnings Call
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Robert Justin Marcus (JPMorgan) asked about the confidence behind the accelerated second-half growth outlook. CEO Ivan Tornos explained that strong July trends, easier year-over-year comparisons, and new product momentum underpin their expectations.
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David Harrison Roman (Goldman Sachs) inquired about broader orthopedic market trends. Tornos responded that the market remains healthy, with strong patient volumes and waiting lists, and no signs of slowdown relative to pre-pandemic levels.
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Jason Hart Wittes (Roth Capital) questioned the competitive positioning of Monogram’s AI robotics. Tornos highlighted the platform’s fully autonomous capabilities, surgeon workflow integration, and ability to perform remote surgeries as unique advantages.
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Vijay Muniyappa Kumar (Evercore ISI) asked for clarity on margin headwinds from recent acquisitions and tariffs. CFO Suketu Upadhyay detailed that improved tariff mitigation, lower borrowing costs, and operational efficiencies are offsetting the impact of integration expenses.
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Caitlin Cronin (Canaccord) sought an update on robotic system placements and the THINK Surgical partnership. Tornos noted that robotic installations are tracking as planned, with the next-generation ROSA system expected to drive further adoption into 2026.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will monitor (1) the pace of adoption for recently launched hip and knee products, (2) the successful integration and commercial impact of Paragon 28 and Monogram Technologies, and (3) the ability to maintain margin improvements amid ongoing operational investments and tariff uncertainties. Progress in robotics innovation and market acceptance of autonomous surgery will also be key indicators for future performance.
Zimmer Biomet currently trades at $103.25, up from $91.15 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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