Zimmer Biomet Q1 Revenue Climbs 9.3% While EPS Jumps 15%
Zimmer Biomet reported Q1 revenue of $2.087 billion, up 9.3% year-over-year, with organic sales growth of 2.9% and adjusted EPS rising 15% to $2.09. Adjusted gross margin expanded to 73%, free cash flow reached $246 million, and the firm repurchased $250 million of shares.
1. Strong Financial Performance
Zimmer Biomet delivered Q1 revenue of $2.087 billion, up 9.3%, and adjusted EPS of $2.09, a 15% increase from last year. Adjusted gross margin rose to 73%, adjusted operating margin reached 27.3%, and free cash flow totaled $246 million.
2. Segment and Regional Growth
US sales grew 3.2%, led by a 5% increase in hip and 2.2% knee sales, while international revenue rose 2.5%. The technology & data, bone cement, and surgical business surged by nearly 12% with strong adoption of ROSA and TMINI systems.
3. Strategic Investments and Share Repurchases
The company invested in AI-driven orthopedic robotics and its musculoskeletal venture capital fund, reflecting a focus on innovation and operational excellence. Zimmer Biomet repurchased $250 million of shares in the quarter and managed tariff-related benefits to bolster margins.
4. Outlook and Conservative Guidance
Despite robust Q1 results, management kept full-year guidance unchanged due to go-to-market transitions and early-year uncertainties. Operating margins are expected to be down slightly over 2025 levels as investments continue and currency headwinds persist.