Q2 Earnings Review: Surgical Equipment & Consumables - Diversified Stocks Led by Zimmer Biomet (NYSE:ZBH)

September 16, 2025 at 23:37 PM EDT

ZBH Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how surgical equipment & consumables - diversified stocks fared in Q2, starting with Zimmer Biomet (NYSE: ZBH).

The surgical equipment and consumables industry provides tools, devices, and disposable products essential for surgeries and medical procedures. These companies therefore benefit from relatively consistent demand, driven by the ongoing need for medical interventions, recurring revenue from consumables, and long-term contracts with hospitals and healthcare providers. However, the high costs of R&D and regulatory compliance, coupled with intense competition and pricing pressures from cost-conscious customers, can constrain profitability. Over the next few years, tailwinds include aging populations, which tend to need surgical interventions at higher rates. The increasing integration of AI and robotics into surgical procedures could also create opportunities for differentiation and innovation. However, the industry faces headwinds including potential supply chain vulnerabilities, evolving regulatory requirements, and more widespread efforts to make healthcare less costly.

The 5 surgical equipment & consumables - diversified stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.5%.

Thankfully, share prices of the companies have been resilient as they are up 7.7% on average since the latest earnings results.

Best Q2: Zimmer Biomet (NYSE: ZBH)

With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE: ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries.

Zimmer Biomet reported revenues of $2.08 billion, up 7% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ full-year EPS guidance estimates and a narrow beat of analysts’ constant currency revenue estimates.

Interestingly, the stock is up 9.7% since reporting and currently trades at $100.

Is now the time to buy Zimmer Biomet? Access our full analysis of the earnings results here, it’s free.

STERIS (NYSE: STE)

With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.

STERIS reported revenues of $1.39 billion, up 8.7% year on year, outperforming analysts’ expectations by 2.3%. The business had a strong quarter with a solid beat of analysts’ constant currency revenue and EPS estimates.

STERIS pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 12% since reporting. It currently trades at $248.

Is now the time to buy STERIS? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: CONMED (NYSE: CNMD)

With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.

CONMED reported revenues of $342.3 million, up 3.1% year on year, exceeding analysts’ expectations by 1.2%. It was a satisfactory quarter as it also posted a narrow beat of analysts’ full-year EPS guidance estimates.

CONMED delivered the highest full-year guidance raise but had the slowest revenue growth in the group. Interestingly, the stock is up 5% since the results and currently trades at $52.74.

Read our full analysis of CONMED’s results here.

BD (NYSE: BDX)

With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE: BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide.

BD reported revenues of $5.51 billion, up 8.9% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ constant currency revenue and EPS estimates.

BD pulled off the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is up 9% since reporting and currently trades at $187.87.

Read our full, actionable report on BD here, it’s free.

Solventum (NYSE: SOLV)

Founded in 1985, Solventum (NYSE: SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.

Solventum reported revenues of $2.16 billion, up 3.8% year on year. This print beat analysts’ expectations by 1.9%. Zooming out, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.

The stock is up 2.9% since reporting and currently trades at $74.13.

Read our full, actionable report on Solventum here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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