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Zimmer Biomet (ZBH) investor relations material
Zimmer Biomet Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales increased 9.7% year-over-year in Q3 2025 to $2.001 billion, with 5% organic constant currency growth and U.S. organic revenue up 5.6%, driven by new product launches and the Paragon 28 acquisition.
Growth was impacted by late-quarter weakness in Eastern Europe, Latin America, and restorative therapies, reducing overall growth by 120 basis points.
Adjusted diluted EPS was $1.90, up 9.2% year-over-year, while reported diluted EPS was $1.16; net earnings for the quarter were $230.9 million.
Leadership and commercial execution changes are underway to address international and non-core segment headwinds.
Recent highlights include the acquisition of Monogram Technologies and regulatory approval for innovative orthopedic implants in Japan.
Financial highlights
Net sales for Q3 were $2,001.4 million, up from $1,824.2 million; for the nine months, $5,987.7 million, up 5.9% year-over-year.
Adjusted EPS was $1.90, and adjusted net earnings were $377.0 million for Q3.
Adjusted gross margin improved to 72.6%, and adjusted operating margin was 26.5%.
Operating cash flow for the nine months was $1.18 billion, with free cash flow of $803.8 million.
Operating profit for Q3 was $351.3 million (17.6% margin); adjusted operating profit was $531.0 million (26.5% margin).
Outlook and guidance
Full-year 2025 reported revenue growth guidance is 6.7%–7.7%, with organic constant currency revenue growth guidance narrowed to 3.5%–4.0%.
Adjusted diluted EPS guidance for 2025 remains $8.10–$8.30, and free cash flow guidance is $1B–$1.2B.
Paragon 28 expected to contribute 2.7%–2.8% to reported sales growth; FX expected to add 0.5%–1.0%.
Operating margins expected to be down 100 basis points year-over-year due to tariffs and integration costs.
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