Revenue Growth Remains Strong Across Key Segments
Zimmer Biomet closed 2025 with marked progress on both its top line and operational targets. The company reported fourth quarter net sales of $2.24 billion, a rise of 10.9% year-over-year on a reported basis. Full-year net sales reached $8.23 billion, up 7.2% from 2024. Growth was broad-based, with the United States leading at 11.1% growth in the fourth quarter and 7.3% for the year, while international regions also posted healthy gains.
| Region | Q4 Net Sales ($M) | Q4 % Change | Full-Year Net Sales ($M) | Full-Year % Change |
|---|---|---|---|---|
| United States | 1,312.6 | 11.1% | 4,764.0 | 7.3% |
| International | 931.2 | 10.6% | 3,467.5 | 7.0% |
| Total | 2,243.8 | 10.9% | 8,231.5 | 7.2% |
From a product perspective, the S.E.T. segment (Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic) stood out with 20.1% growth in Q4 and 15.2% full-year. Knees and hips also contributed meaningfully to the quarter’s performance.
Adjusted EPS and Margins Show Resilience
Despite facing headwinds including restructuring charges and integration costs from recent acquisitions, Zimmer Biomet improved its adjusted profitability. Diluted earnings per share on an adjusted basis reached $2.42 in Q4 (up 4.8%) and $8.20 for the year (up 2.5%). Full-year operating cash flow was $1.70 billion, supporting free cash flow of $1.17 billion.
| Metric | 2025 Result | 2024 Result | % Change |
|---|---|---|---|
| Adjusted Diluted EPS | $8.20 | $8.00 | 2.5% |
| Operating Cash Flow ($B) | 1.70 | 1.50 | 13.2% |
| Free Cash Flow ($B) | 1.17 | 1.06 | 10.7% |
Gross margins held strong at 61.6% (GAAP) and 72.2% (adjusted), pointing to operational discipline despite cost pressures. Adjusted operating profit margin landed at 27.5% for the full year, only modestly below last year's 28.6%.
Strategic Moves Target Long-Term Growth
Zimmer Biomet's board greenlit a new $1.5 billion buyback program, underscoring confidence in the company's prospects. This initiative, coupled with a previously completed $250 million in repurchases during Q4, positions the company to return significant capital to shareholders in the coming year.
Innovation remains a cornerstone: The company notched FDA clearance for its ROSA® Knee with OptimiZe™, delivered the first iodine-treated hip procedure in Japan, and launched the Brachiator™ Mini-Rail External Fixation System via subsidiary Paragon 28. Two new collaborations for its mymobility® analytics platform were also established, boosting digital integration and patient data capture capabilities.
2026 Guidance Suggests Stability with Room for Upside
Looking ahead, Zimmer Biomet projects 2026 reported revenue growth of 2.5% to 4.5%, with adjusted EPS expected in the range of $8.30 to $8.45. The company also signaled a continued shift in its U.S. sales strategy toward a direct and specialized salesforce, a move it believes will set the foundation for sustainable growth despite tempering near-term sales guidance.
| 2026 Guidance | Range |
|---|---|
| Reported Revenue Change | 2.5% - 4.5% |
| Adjusted Diluted EPS | $8.30 - $8.45 |
| Organic Constant Currency Revenue Change | 1.0% - 3.0% |
Key Takeaways: Transformation and Execution Remain in Focus
Zimmer Biomet’s 2025 results highlight robust execution against strategic goals, with organic product growth, digital health investments, and balance sheet strength at the forefront. The new buyback authorization and measured 2026 guidance reflect confidence despite market and cost challenges. For investors, the story remains one of disciplined management, innovation momentum, and an ongoing evolution in healthcare delivery and data integration.
As always, the company faces competitive, regulatory, and macroeconomic risks—but its recent moves put it in a solid position to navigate industry change. With the Q4 earnings call now available for replay, stakeholders have an opportunity to dig deeper into management’s outlook and growth strategies for the year ahead.
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