Globus Medical falls 12.8% after lowering 2026 revenue outlook

What happened

Globus Medical (GMED) fell 12.8% on November 6, 2026, after the company reported third-quarter results that beat EPS estimates but lowered its 2026 revenue outlook because of a delayed spine product launch and softer Nevro sales. The company reported earnings per share of $1.23 versus $1.20 expected on November 5, 2026, and discussed comparable metrics versus the prior year on the earnings call, according to GlobeNewsWire and Seeking Alpha.

How big was the move

The stock closed at $71.05 after opening 9.0% below the previous close, and trading volume was 6.5 times its 20-day average, signaling heavy investor activity. The session move was 4.3 times a typical daily move for this stock, while the S&P 500 rose 0.3% on the day, leaving the stock 14.7 percentage points worse than the Healthcare sector median, which rose 1.9%. That scale of reaction reflects the market weighing near-term revenue risk against the quarter's earnings beat.

The company has a market value of $10.48 billion and a beta of 0.72, meaning the stock tends to move less than the market over time; this outsized session move underscores how company-specific news drove the price change.

The technical picture

The stock traded 10.3% below its 20-day moving average and 8.0% below its 50-day moving average, with the 50-day average below the 200-day average, a sign of a weak longer-term trend. It was 14.5% below its 200-day moving average and 29.9% below the 52-week high. The Relative Strength Index (14 days) read 39, in a neutral range, and volatility was 47% annualized over 60 days, higher than 82% of its own readings over five years.

Those technicals show recent downward momentum: the stock fell 3.1% over one month and 17.5% over three months, though it still rose 15.5% over one year, 7.0 percentage points ahead of the S&P 500. Traders may view the gap below the moving averages and the 52-week high as resistance to near-term rallies until revenue visibility improves.

Fundamentals and valuation

For the four quarters through September 30, 2026, Globus Medical reported revenue of $3.14 billion, which grew 13.4% from a year earlier, and diluted earnings per share of $4.05, which rose 30.6% from a year earlier. Gross margin expanded to 70.1% from 64.3% a year earlier, and operating margin widened to 22.1% from 13.3% a year earlier. The company had net cash of $333.7 million and a free-cash-flow margin of 24.1%.

The stock traded at 17.5 times trailing earnings and 14.2 times expected forward earnings, with a free-cash-flow yield of 7.2%. Its price to trailing earnings is the lowest reading of the past five years, compared with a five-year median of 39.5 times earnings. Those valuation measures suggest investors are assigning a lower multiple to the company than in prior years, even as profitability and cash generation improved.

PromtFinance scores rank the company highly on Value and Quality, with Value 96 (Exceptional) and Quality 91 (Exceptional). Momentum scored 41 (Weak), reflecting the recent pullback and higher short-term volatility. The balance sheet shows modest dilution, with share count increasing by 0.5% over one year.

Earnings and analyst expectations

Globus Medical has beaten earnings estimates in six consecutive quarters. The November 5, 2026, report showed EPS of $1.23, 2.5% above the Zacks Consensus Estimate of $1.20, and the average surprise over the last four reports was 16.7% above estimates. Typical two-day reactions after recent reports have seen the stock fell 1.0%, making this session's 12.8% drop unusually large.

Analysts maintain a consensus rating of Buy from 36 analysts, with a consensus price target of $95.13, 33.9% above the closing price on November 6, 2026. Seventy-two percent of covering analysts rate the stock Buy or Strong Buy. The gap between analyst targets and the market price partly reflects uncertainty about the timing of the delayed product launch and the scope of softer Nevro sales.

Concurrently with the third-quarter results, Globus Medical increased its share repurchase authorization by $500 million, a move that could support the stock over time if buybacks are executed. Management also flagged a strategic shift toward new product introductions and growth initiatives in 2027.

What to watch

• Next earnings report: February 23, 2027
• Last report: November 5, 2026: earnings per share of $1.23 against $1.20 expected
• Share repurchase authorization increased by $500 million (announced with third-quarter results)
• Revenue for the four quarters through September 30, 2026: $3.14 billion
• Price to trailing earnings: 17.5 times trailing earnings