Start here if you're new
what it is
Zimmer sells the knees, hips, trauma gear, and surgery tools hospitals buy when broken bones and worn-out joints need hardware.
how it gets paid
Last year Zimmer Biomet made $8.2B in revenue. U.S. reconstructive implants was the main engine at $3.46B, or 42% of sales.
why it's growing
Revenue grew 7.2% last year. Overall, we look for zimmer to generate adjusted earnings of $8.25 per share, up roughly 3% from a year ago, on sales that increased 7%.
what just happened
The last report was a 2.02% EPS miss, with Zimmer earning $2.42 versus a $2.47 estimate.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
85/100 earnings predictability — you can trust these numbers
10.6x trailing p/e — the market's not buying it — or you found a deal
1.1% dividend yield — cash in your pocket every quarter
11.0% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
Zimmer sells the knees, hips, trauma gear, and surgery tools hospitals buy when broken bones and worn-out joints need hardware.
When a hospital picks an implant platform, it also picks instruments, surgeon training, and follow-up workflows. That is switching costs → changing vendors is painful and slow → so what: Zimmer can keep 68% of sales in reconstructive implants and still post a 13.3% operating margin. You are not buying a fad product. You are buying a company embedded in operating rooms across more than 100 countries.
How they make money
$8.2B
annual revenue · their business grew +7.2% last year
U.S. reconstructive implants
$3.46B
International reconstructive implants
$2.12B
Fracture management devices
$1.97B
Surgical products
$0.66B
The products that matter
hip and knee implants
Reconstructive Implants
68% of 2024 sales
This is the business inside the business. When 68% of sales come from one category, your upside and your risk both start here.
68% of sales
bone repair devices
Fracture Management Devices
24% of 2024 sales
A real second engine at 24% of sales. Big enough to matter. Still far smaller than the reconstructive franchise that sets the tone.
24% of sales
digital surgery platform
ZBEdge Digital Platform
no revenue disclosed here
Management wants ZBEdge tied to AI and 3D printing by 2028. The strategy is clear. The economics on this page are not. That makes it a watch item, not a proven growth driver.
2028 watch
Key numbers
10.6x
trailing p/e
P/E → price compared with annual profit → so what: you are paying 10.6 times earnings for a business expected to earn $9.50 a share by 2027.
13.3%
operating margin
Operating margin → profit after running the business → so what: Zimmer keeps about $13.30 from every $100 of sales before interest and taxes.
11.0%
return on capital
Return on capital → profit generated from the money tied up in the business → so what: Zimmer is decent, not elite, at turning assets into earnings.
1.1%
dividend yield
Dividend yield → cash you get back each year relative to the stock price → so what: this is a modest paycheck, not the reason you own it.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 80 / 100
- net profit margin 21.5% — keeps 22 cents of every dollar in revenue
- return on equity 15% — $0.15 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ZBH 3 years ago → it's now worth $7,140.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
The last report was a 2.02% EPS miss, with Zimmer earning $2.42 versus a $2.47 estimate.
That miss matters because the stock's case leans on steady execution, not hype. Full-year EPS still stepped from $8.00 in 2024 to $8.25 in 2025, and the next yearly run-rate points to $8.75 in 2026.
$8.2B
revenue
$2.42
eps
2.02%
surprise
the number that mattered
The $0.05 EPS miss mattered because a low-multiple turnaround needs clean execution, and this print was not clean.
-
zimmer biomet should report solid top- and bottom-line results for 2025.the company’s 2025 performance has been defined by a strong recovery in its core u.s. market, partly offset by late-year volatility in its international segments.
-
overall, we look for zimmer to generate adjusted earnings of $8.25 per share, up roughly 3% from a year ago, on sales that increased 7%, to $8.2 billion. (fourth-quarter results were set to be released shortly after this issue went to press.) for 2026, our estimates call for adjusted earnings of $8.75 per share on sales of $8.6 billion.
-
management has been cautious and measured as it navigates an operational reset.this reset is centered on transforming zimmer from a reactive implant maker into a predictive, precisionorthopedics technology company. management noted that part of the reset is to establish itself as a category-defining leader and anticipates that its set business (sports medicine, extremities, and trauma) will double in size within a fiveto-seven year window. however, this will depend on reshaping its economics; transitioning from a one-time capital and implant sales model into scaling both hardware and software to form a recurring, value-based model. this should allow for outcomes benchmarking, new implant design, inform rehabilitation, and payeraligned outcome metrics.
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by 2028, zimmer biomet envisions a fully integrated digital ecosystem.using its zbedge platform, the goal is to leverage artificial intelligence and 3d printing to provide patient-specific implants at scale.
-
zimmer has maintained its leadership position due to a broad product portfolio, investment in cutting-edge technologies, and extensive experience in joint replacement and spinal surgery.
source: company earnings report, 2026
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What could go wrong
the #1 risk is trying to upgrade the franchise while the franchise still has to carry 68% of sales.
high
core franchise concentration
Reconstructive implants account for 68% of 2024 sales. If that category slows, most of the business feels it immediately.
68% revenue exposure to one product family is efficient when things work and painful when they do not.
med
digital reset without visible economics
Management wants a fully integrated digital platform by 2028. That is the strategic bet. This snapshot does not show revenue from ZBEdge yet, which means you are being asked to trust the roadmap before seeing the payoff.
If the platform does not improve growth or margins, the stock stays a low-multiple implant maker.
med
margin pressure during the reset
The company-wide net margin is 20.7%, but last quarter came in at 11.5%. Some of that is quarter noise. Some of it may be a warning.
If quarterly profitability does not move back toward the full-year profile, the cheap earnings multiple stops looking protective.
low
international volatility
Management commentary already points to late-year volatility outside the U.S. With only 7.2% annual revenue growth, there is not much room for softness to hide.
The growth story does not need to be perfect. It does need to stay intact.
If reconstructive implants wobble or the ZBEdge effort fails to show real economics, you are left with the same business that produced a 20.7% net margin on $8.2B of revenue — but without the reason to pay more for it.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
eps path toward $8.25–$8.75
The page gives you two anchors: about $8.25 for 2025 adjusted EPS and $8.75 for FY2026. If those numbers slip, the cheap-stock argument weakens fast.
trend
quarterly margin recovery
Last quarter's 11.5% net margin sits well below the 20.7% full-year profile. You want that gap closing, not becoming the new baseline.
risk
reconstructive implant concentration
With 68% of sales tied to one category, any slowdown in the core franchise matters more than side-project progress.
calendar
2028 ZBEdge milestones
Management has drawn the roadmap. The next step is showing milestones that connect the platform story to growth, margins, or both.
Analyst rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts see a stock drifting with the market, not one with obvious near-term fuel.
risk profile
average
Stability score 3 means typical risk for a large-cap stock. Not fragile. Not a bunker.
chart momentum
average
Technical score 3 says the tape is neutral. The market is waiting for proof, not applauding the story yet.
earnings predictability
85 / 100
Management usually delivers numbers close to expectations. That makes misses more meaningful when they show up.
source: institutional data
Institutional activity
424 buyers vs. 392 sellers in 3q2025. total institutional holdings: 0.2B shares.
source: institutional data
Price targets
3-5 year target range
$75
$154
$87
current price
$115
target midpoint · +32% from current · 3-5yr high: $205 (+135% · 25% ann'l return)
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