Zimmer Biomet posts strong Q1, updates CFO role

Zimmer Biomet Holdings Inc. reported first-quarter 2026 net sales of $2.087 billion, an increase of 9.3% on a reported basis compared with the prior-year period. Revenue growth was 6.8% on a constant currency basis and 2.9% on an organic constant currency basis.

Net earnings for the quarter were $238.1 million. Diluted earnings per share were $1.22, while adjusted diluted earnings per share were $2.09, an increase of 15.5% from the prior year. The adjusted result exceeded the $1.86 per share consensus estimate from analysts surveyed by Zacks Investment Research.

Zimmer Biomet generated operating cash flow of $359.4 million and free cash flow of $245.9 million in the first quarter. The company also completed $250 million of share repurchases during the period.

Following the first-quarter results, Zimmer Biomet raised its full-year 2026 adjusted diluted EPS guidance. The company now expects adjusted diluted earnings per share of $8.40 to $8.55, compared with prior guidance of $8.30 to $8.45. Reported revenue growth guidance for 2026 remains at 2.5% to 4.5%, including a projected 0.5 percentage point positive impact from foreign currency.

On a constant currency basis, the company continues to project 2026 revenue growth of 2.0% to 4.0%, and organic constant currency revenue growth of 1.0% to 3.0%. The company also indicated it is increasing its expectations for free cash flow for the year, without providing a specific figure in the releases provided.

Zimmer Biomet reported that first-quarter operating profit was $373.2 million, with an operating margin of 17.9%. On an adjusted basis, operating profit was $570.5 million and adjusted operating margin was 27.3%.

In the quarter ended March 31, 2026, U.S. net sales were $1.209 billion, up 8.6%. International sales were $877.4 million, up 10.3% on a reported basis and 4.2% on a constant currency basis. Total company organic constant currency growth was 2.9%.

By product category, knee sales totaled $828.6 million, up 4.5% on a reported basis and 1.8% on a constant currency basis. Hip sales were $524.1 million, an increase of 5.7% reported and 3.2% on a constant currency basis.

Sales in the Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic (S.E.T.) category reached $562.2 million, up 19.5% reported and 17.4% on a constant currency basis. Technology & Data, Bone Cement and Surgical products delivered $171.8 million in sales, up 14.6% reported and 11.7% on a constant currency basis.

During the first quarter, Zimmer Biomet completed enrollment in a multi-center clinical study in India of mBôs, a surgeon-guided, autonomous robotic total knee arthroplasty system acquired from Monogram Technologies. The company described this as a key development milestone for future regulatory and commercialization pathways.

The company also reported completion of the first case using its G7 Acetabular System after U.S. Food and Drug Administration 510(k) clearance in February 2026. At the 2026 American Academy of Orthopaedic Surgeons annual meeting, Zimmer Biomet released new data and highlighted a range of innovations, including the full commercial launch of ROSA Knee with OptimiZe.

Other product and recognition updates included the launch of the Phantom Curved TTC Nail System from its Paragon 28 subsidiary, and inclusion on FORTUNE's 2026 list of America’s Most Innovative Companies and Ethisphere’s list of the World’s Most Ethical Companies for the second consecutive year.

On April 28, 2026, Zimmer Biomet announced that Chief Financial Officer and Executive Vice President, Finance, Operations and Supply Chain, Suketu Upadhyay will depart the company effective that day for a new professional opportunity. The company has appointed Paul Stellato, currently Controller and Chief Accounting Officer, as interim Chief Financial Officer.

Stellato also leads Corporate Financial Planning and Analysis at Zimmer Biomet and has more than 20 years of financial and investor relations experience. Since joining the company in May 2022, he has supported its strategy and transformation through capital allocation decisions, including recent acquisitions and the share repurchase program.

Zimmer Biomet stated it will conduct an internal and external search for a permanent CFO. The company emphasized continuity in financial leadership as it continues to execute its strategy and financial guidance, including the updated 2026 outlook following the strong first-quarter results.