Zimmer Biomet reported second-quarter 2026 net sales of $2.177 billion, up 4.8% year-over-year (4.7% constant currency; 4.0% organic constant currency). GAAP diluted EPS was $1.03 and adjusted diluted EPS was $2.07, while net earnings were $198.3 million (adjusted net earnings $399.6 million). The company generated $447.9 million of operating cash flow and $308.3 million of free cash flow in the quarter and updated full-year 2026 revenue and adjusted EPS guidance higher.

Financial Highlights

  • Revenue: Net sales of $2,177.0 million for the three months ended June 30, 2026 (increase of 4.8% reported; 4.7% constant currency; 4.0% organic constant currency).
  • Gross profit and margin: Reported gross profit $1,378.1 million; reported gross margin 63.3%; adjusted gross profit $1,547.5 million and adjusted gross margin 71.1% for the quarter.
  • Operating income: Reported operating profit $326.1 million; adjusted operating profit $559.7 million; reported operating profit margin 15.0%, adjusted operating profit margin 25.7% for the quarter.
  • Net income and EPS: Net earnings attributable to Zimmer Biomet $198.3 million; diluted GAAP EPS $1.03. Adjusted net earnings $399.6 million; adjusted diluted EPS $2.07 (consistent with prior-year period on adjusted basis).
  • Cash flow and balance sheet highlights: Operating cash flow $447.9 million and free cash flow $308.3 million in Q2 2026; cash and cash equivalents $410.0 million and total debt $7,479.0 million as of June 30, 2026 (net debt $7,069.0 million).

Business Highlights

  • Share repurchase: Announced an increase to share repurchase expectations of up to $1 billion of common stock during fiscal 2026.
  • Product and regulatory milestones: Received FDA 510(k) clearance and completed first cases for the next-generation ROSA Shoulder System, which supports both glenoid and humeral bone preparation for anatomic and reverse techniques.
  • Robotics recognition and training: ROSA Knee with OptimiZe won “Best Healthcare Robotics Solution” in the 2026 MedTech Breakthrough Awards; Zimmer Biomet Institute launched its inaugural Sharpening Your Edge immersive bioskills training for early career surgeons.
  • Leadership and regional changes: Appointed Chintan Desai as president of the Asia Pacific region; Sang Yi to depart the company effective Aug. 28.
  • Sustainability and reputation: Named to TIME’s 2026 list of America’s Best Companies and issued the 2025 Sustainability Report highlighting environmental footprint reduction, community efforts and access-to-care initiatives.

Original SEC Filing:

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