Zimmer Biomet Holdings, Inc. (NYSE: ZBH) closed at $93.60, up 4.3% on the day, after reporting fourth-quarter and full-year 2025 financial results. The stock reaction followed the release of results showing higher net sales and improved adjusted earnings performance in the final quarter of the year. Zimmer Biomet had a market capitalization of approximately $17.78 billion at the latest market close.
Latest Quarterly Results (Q4 2025)
Net sales for the quarter ended December 31, 2025, were $2.244 billion, representing a year-over-year increase of 10.9% on a reported basis. Growth in the quarter reflected higher procedure volumes across major product categories and continued uptake of newer offerings. GAAP net earnings for the quarter were $139.3 million, translating to GAAP diluted earnings per share of $0.70.
On an adjusted basis, net earnings for the quarter were $479.7 million, with adjusted diluted earnings per share of $2.42. Adjustments primarily reflected acquisition-related amortization, restructuring charges, and other non-recurring items. The adjusted results highlighted operating leverage and cost discipline during the quarter.
Segment performance during the quarter showed net sales of $0.911 billion in the Knees segment and $0.555 billion in the Hips segment. The Sports, Extremities, Trauma, and Craniomaxillofacial segments reported net sales of $0.588 billion, while Technology, Data, Bone Cement, and Surgical reported net sales of $0.190 billion. Geographic performance reflected higher sales in both the United States and international markets.
Full-Year Results Context
For the full year 2025, net sales totaled $8.232 billion, up 7.2% year over year on a reported basis. GAAP diluted earnings per share for the year were $3.55, while adjusted diluted earnings per share were $8.20. Full-year results reflected continued recovery in elective procedures and a broader contribution from multiple product categories.
Operating cash flow for the full year was $1.697 billion, while free cash flow totaled $1.172 billion. The company continued to prioritize cash generation to support investment, debt management, and shareholder returns.
Business & Operations Update
During the quarter, Zimmer Biomet continued to advance its product pipeline and commercial execution. The company reported regulatory clearances for enhancements to its robotic-assisted surgical systems and continued rollout of data-enabled solutions aimed at improving surgical outcomes and workflow efficiency. Management also highlighted progress in transitioning to a more specialized sales model in the United States, designed to improve customer engagement and execution across product lines.
Operational initiatives during the year included manufacturing optimization, supply-chain efficiency measures, and disciplined cost management. These efforts supported margin performance and helped offset inflationary pressures in certain input costs. The company also continued investments in training, education, and surgeon engagement programs during the year.
M&A or Strategic Moves
Zimmer Biomet continued to integrate recent acquisitions during the year, including the Paragon 28 transaction completed in 2025. Management indicated that integration efforts remained on track and that the acquisition expanded the company’s presence in the foot and ankle segment. No additional material acquisitions or divestitures were announced during the fourth quarter.
Equity Analyst Commentary
Discussion following the earnings release focused on the pace of revenue growth across core segments, progress on commercial execution, and the impact of recent acquisitions on organic growth comparisons. Attention was also directed toward the company’s capital allocation priorities and the sustainability of adjusted earnings performance in a normalizing procedure environment.
Guidance & Outlook — what to watch for
Items to watch include execution against the company’s 2026 revenue growth framework, integration progress related to recent acquisitions, adoption trends for robotic and digital solutions, and free cash flow generation. Management also highlighted the importance of maintaining operating discipline while continuing to invest in innovation and market expansion.
Performance Summary
Zimmer Biomet reported higher fourth-quarter net sales and adjusted earnings, supporting a positive stock move on the day. Q4 net sales reached $2.244 billion, and adjusted diluted earnings per share were $2.42. Full-year net sales were $8.232 billion, with strong cash flow generation and a continued focus on operational execution and strategic priorities.