# ZBH earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/ZBH) · [Earnings tab](https://www.lopjlb.com/stock/ZBH?tab=earnings) Updated: 2026-08-05T06:48:38 Quarters analyzed: 8 ## Cross-quarter narrative Across eight quarterly calls from Q2 2024 to Q1 2026 Zimmer Biomet’s messaging shifted from reaffirming a 5‑6% full‑year growth outlook and highlighting strong international and robotics demand to a more cautious tone centered on modest organic growth and pricing pressure. Early calls emphasized margin resilience despite higher manufacturing costs and a slate of product deliveries (ROSA platforms, Z1 stem, HAMMR impactor, navigation suite). By Q3 2024 the company noted ERP‑related earnings headwinds but signaled a path to normalization. Subsequent quarters introduced integration of Paragon 28 and the Monogram acquisition, while the “Magnificent 7” launch pipeline was repeatedly cited as a growth catalyst. In 2025 the guidance range for organic growth narrowed and was later trimmed, reflecting market headwinds in Europe and Latin America. The most recent Q1 2026 call highlighted solid demand tempered by up to 100 bps pricing erosion, a dedicated sales‑force transition, and broader macro‑economic and competitive risks, while confirming progress on new robotics, AI‑based hip solutions and ongoing acquisitions. Overall, the narrative moves from confident growth and margin improvement to a focus on execution risk, pricing dynamics and integration milestones. ## Latest CallCard · Q1 Zimmer Biomet Q1 2026 delivered 2.9% organic sales growth, raised its 2026 EPS outlook to $8.40‑$8.55, highlighted progress on new robotics and a dedicated sales channel, while keeping revenue guidance unchanged. **Guidance:** raised — Raised 2026 adjusted EPS outlook to $8.40‑$8.55 and free cash flow growth to 9‑11%, while maintaining revenue growth guidance at 1‑3%. **Tone:** mgmt 0.6 · Q&A pressure 0.4 · divergence 0.2 Prepared remarks emphasized a "strong start" and momentum from the team, signaling optimism. ### Demand visibility Demand remains solid with modest price erosion. U.S. knee and hip growth driven by new products; pricing expected to erode up to 100 bps for the year; analysts asked about Medicaid/ACA exposure. ### Margins / costs Margins expected to be slightly lower year‑over‑year. Operating margins down ~50 bps versus 2025, with a further ~200 bps sequential decline in Q2 due to commercial transition and Paragon 28 integration. ### Capital allocation Continued share repurchases and investment in commercial transformation. Maintaining up to $750 million of share buybacks, investing in a dedicated sales force (target >200 reps by 2027) and funding the Monogram robotics launch. ### Milestones - **Oxford Partial Cementless Knee** [on_track]: U.S. knee growth of 2.2% driven by >20% increase in partial knee cells. - **Monogram autonomous robotic system** [new]: Clinical study enrollment completed; U.S. approval and semiautonomous launch expected early 2027. - **mBos launch (robotic platform)** [on_track]: Hiring >200 robotic sales reps by end‑2027 to support launch. - **OrthoGrid** [delivered]: Delivered strongest quarter to date, solidifying its role in the digital ecosystem. - **Paragon 28 acquisition** [on_track]: Q1 growth accelerated ~200 bps, trending toward double‑digit growth. - **AI‑based hip triple play** [on_track]: Now represents nearly 40% of U.S. hip volume; rapid adoption in Japan. - **SCP (CMFT) growth** [on_track]: SCP grew 1.6% led by U.S. CMFT and Upper Extremities businesses. ### Fears / risks - **Pricing erosion**: Pricing expected to erode up to 100 basis points for the year, with 40 bps already observed in Q1. - **Sales‑force transition**: Potential disruption from guarantees and rep turnover as the dedicated sales channel is rolled out. - **Medicaid/ACA exposure**: Medicaid accounts for ~1% of revenue and ACA <12%; analysts probing impact on volume. - **Macro environment**: Future macro events could affect pricing and demand; guidance to be updated in August. - **Competitive pressure**: Legacy Toran Knee implants being phased out amid competition. - **Acquisition integration risk**: Paragon 28 adds complexity to organic growth measurement and margin dilution. - **Technology adoption risk**: Launch of autonomous robotics depends on regulatory approval timelines. - **International market volatility**: Emerging‑market go‑to‑market evolution may affect growth rates. ### Key quotes > “We're off to a strong start to the year, strategically, operationally and financially, and that momentum is a direct reflection of the strength of our team the resilience of our business and the impact that we can have where we stay” > “We are raising both our EPS and free cash flow growth expectations for the year 2026. We now expect adjusted EPS to be $8.40 to $8.55 from the previous guide of $8.30 to $8.45.” > “Net sales were $2.087 billion, an increase of 9.3% on a reported basis. and 2.9%, excluding the impact of foreign currency and the Paragon 28 acquisition.” > “We had a quarter of 40 basis points of price erosion overall, in line with our expectations.” > “We have offered 2-year guarantees that are backed up from a revenue standpoint, in some cases, 3-year guarantees.” ## Quarter one-liners - **2026 Q1:** Zimmer Biomet Q1 2026 delivered 2.9% organic sales growth, raised its 2026 EPS outlook to $8.40‑$8.55, highlighted progress on new robotics and a dedicated sales channel, while keeping revenue guidance unchanged. - **2025 Q4:** ZBH Q4'25 organic growth 5.4% - **2025 Q3:** ZBH Q3 organic growth 5% (US +5.6%), but late-quarter headwinds (~120bps) in Eastern Europe, LatAm, restorative therapies prompt lowered 2025 organic guidance to 3.5-4% from 3.5-4.5%; EPS maintained $8.10-8.30; Monogram closed, mBôs robot launch early 2027; iodine hip approved in Japan, FDA Breakthr - **2025 Q2:** ZBH Q2 2025: 2.8% organic growth, raised EPS guidance to $8.10-$8.30, narrowed organic growth to 3.5-4.5%, confident in H2 acceleration from Magnificent 7 launches and strong July; Monogram acquisition announced, Paragon 28 integration on track.','tone': {'mgmt': 0.8, 'mgmt_rationale': 'Prepared rem - **2025 Q1:** ZBH Q1 sales +2.3% CC; maintains 3-5% organic growth guidance, adds 270bps from Paragon 28; EPS guidance lowered to $7.90-8.10 on tariff offset and acquisition dilution; strong hip launch momentum.','tone': {'mgmt': 0.3, 'mgmt_rationale': 'Management highlights strong product launches (Z1, HAMMR, Or - **2024 Q4:** ZBH Q4: ~5 - **2024 Q3:** ZBH Q3 2024: mid-single-digit sales growth despite ERP headwinds (impact cut to 60-80bps), guidance updated to 4.25-4.75% CC revenue growth, strong hip/knee/SET performance, robust pipeline with 50+ launches, $850M+ share buybacks YTD. ERP resolution on track for year-end normalization. Management u - **2024 Q2:** Zimmer Biomet Q2 2024 revenue grew 5.6% constant‑currency, reaffirmed 5‑6% full‑year growth guidance, highlighted strong international and ROSA demand, hip product gaps addressed and new innovations underway. ## Theme arcs - **Revenue guidance trajectory** (deteriorating): Guidance fell from 5‑6% FY growth (2024 Q2) to 3.5‑4% organic range by 2025‑26 - **Organic sales growth** (stable): Quarterly growth remained positive, ranging from ~2% to >5% - **Demand strength** (stable): Consistently described as strong internationally and for robotics/S.E.T. categories - **Margin pressure** (deteriorating): Improved margins in 2024 gave way to slight YoY decline noted in 2026 Q1 - **ERP financial headwinds** (resolved): Impact noted in 2024 Q3 with resolution expected by year‑end - **Product launch momentum** (improving): Early deliveries followed by multiple on‑track robotics and AI initiatives ## Guidance path 2024 Q2:maintained → 2024 Q3:vague → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:vague → 2025 Q3:vague → 2025 Q4:vague → 2026 Q1:raised --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/ZBH`