ZBH US S&P 500Russell 1000 Earnings call · transcribed from the recording
Zimmer Biomet (ZBH) · Q3 2026 results and valuation
Share price: $107.47 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 4 Nov 2026 and 5 Aug 2026
Net income down 3.4% on the previous quarter, guidance raised. The language turned more cautious.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−3.4%
Net income vs Q2 2026
Guidance raised
Net income 191.6M vs 198.3M
Revenue −5.2%
2 · How management spoke
More cautious
Language tone vs last period
Language: typical — more cautious than in Q2 2026.
3 · What stood out
Key theme
Notably, in the period, two-thirds of Zimmer Biomet's book of business grew at least upper single-digit or double-digit rates.
Valuation
Is Zimmer Biomet undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 5.9% growth a year (3-year revenue growth), the model's fair value is $97.85 a share — the stock trades 10% above it. Today's price assumes 6.8% growth a year.
Current price
$107.47
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+6.8% for 10 yrs
Fair value / share
$97.85
Buy below
$73.39
Price vs fair value
Overvalued 10%
Price vs buy-below price
Overvalued 46%
Read between the lines
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Guidance ↑
I love the fact that two-thirds of Zimmer Biomed grew at upper single-digit or double-digit growth rates, delivering a bid on revenue gross margin EPS, and giving us the confidence...
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Guidance
Zimmer Biomet expects these strategies will improve flexibility, help us meet growing demand more efficiently, and provide a long-term margin tailwind as the work progresses.
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Figure
Zimmer Biomet is very proud of this quarter's results, as its heaps and SET businesses grew upper single digits, and technology...
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Fading
To begin, Zimmer Biomet delivered second quarter net sales of $2.177 billion, which came in above its expectations.
Source quote
“To begin, we delivered second quarter net sales of $2.177 billion, which came in above our expectations, representing 4.8% growth... First, people and culture; second, operational excellence; and third, innovation and diversification. On an organic constant currency basis, we grew 4.6% in the U.S., while our international business grew 3.1%.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Typical — more cautious than in Q2 2026.
Sentences that drove the tone
“Notably, in the period, two-thirds of our book of business grew at least upper single-digit or double-digit rates, validating the strength of our innovation cycle, the improvement in our commercial...”
“So those are the city key areas, high growth segments in RECON, high growth areas in SET, and then we look at adjacencies.”
“We are very proud of this quarter's results, as our heaps and SET businesses grew upper single digits, and technology and data, bone cement, and surgical grew in the teens,...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.06B | 2.18B | −5.2% | 2.00B | +3.1% |
| Gross profit | 1.47B | 1.54B | −4.7% | 1.44B | +1.8% |
| Operating income | 307.6M | 326.1M | −5.7% | 351.3M | −12.4% |
| Net income | 191.6M | 198.3M | −3.4% | 230.9M | −17.0% |
| EPS | 1.00 | 1.03 | −2.9% | 1.16 | −13.8% |
| P/E today 26.7 | 22.4 | 20.9 | +1.5 | 24.4 | −2.0 |
Topics
Most discussed now
- To begin, Zimmer Biomet delivered total net sales of $2.063 million, resulting in 3.1% reported growth and 3.7% constant currency growth...
- Adjusted operating margin was 25.1%, down 140 basis points year-over-year, reflecting Zimmer Biomet's continued investment in the U.S.
- Higher revenue and a lower share count were offset by an increase in SG &A associated with Zimmer Biomet's sales force...
- Zimmer Biomet sees a dramatic opportunity to focus on the blue ocean opportunity of those surgeons that are not using a...
- New Over the last several years, Zimmer Biomet has improved manufacturing efficiency through SKU rationalization, technology advancements, and…
Faded since Q2 2026
- Fading Pricing was an 80 basis point headwind in the quarter, within Zimmer Biomet's guidance range of up to 100 basis points...
- Fading This decrease was driven by increased manufacturing costs, partially offset by geographic and product mix.
- Fading Zimmer Biomet's shoulders business, its upper extremities business delivered upper single-digit growth.
- Fading Infection is a multibillion-dollar cost to all health care systems.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; Agreement terminated; New financial obligation · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Regulation FD disclosure · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K