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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.
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Q3 2025 earnings summary5 Nov, 2025

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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Frequently asked questions

Zimmer Biomet Holdings Inc. designs, manufactures and markets musculoskeletal healthcare products and related surgical products. It operates in two segments: Spine and Craniomaxillofacial and Thoracic; and Dental, which provides hardware, software, technology and services that support dental and oral health; sports medicine, knee, hip and extremities reconstructive joint replacement equipment; bracing, trauma and patient care products; power tools and implants for use in orthopedic reconstructive procedures; products used for the treatment of foot or ankle conditions; biologics products that promote bone growth for spinal fusion surgeries; minimally invasive therapies for the treatment of spinal degenerative diseases.

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