Zimmer Biomet (ZBH) Q2 2026 earnings summary

Executive summary

• Q2 net sales reached $2.177 billion, up 4.8% reported and 4% organic constant currency, driven by acquisitions, new product launches, and favorable FX.

• Net earnings for Q2 were $198.3 million, with diluted EPS up 33.8% to $1.03; adjusted EPS was $2.07, flat year-over-year.

• Raised full-year organic revenue growth guidance to 2.25%-3.25% and adjusted EPS to $8.47-$8.59.

• Operating cash flow for Q2 was $448 million, free cash flow $308 million, with strong cash generation in H1.

• Strategic priorities include innovation, operational excellence, commercial transformation, and M&A.

Financial highlights

• Quarterly net sales: $2,177.0M (+4.8% YoY); six months: $4,263.7M (+7.0% YoY).

• Adjusted gross margin was 71.1%, down 120 bps; reported gross margin was 63.3%.

• Adjusted operating margin was 25.7%, down 210 bps year-over-year.

• Operating profit for Q2 was $326.1M (+8.7% YoY); adjusted operating profit was $559.7M.

• Operating cash flow for H1 was $807.2M (+6.1% YoY); free cash flow for H1 was $554.1M.

Outlook and guidance

• Full-year 2026 reported revenue growth guidance raised to 3.9%-4.9%; organic constant currency growth expected at 2.25%-3.25%.

• Adjusted EPS guidance increased to $8.47-$8.59.

• Paragon 28 expected to contribute 1.1% to full-year reported sales growth.

• FX expected to have a 0.5% positive impact on full-year sales.

• Free cash flow growth expected at 9%-11%.