Zimmer Biomet rises 13.5% after quarterly results and outlook raise

What happened

Zimmer Biomet (ZBH) rose 13.5% on November 4, 2026, because its third-quarter results beat adjusted EPS expectations and management raised the company’s full-year outlook. The company reported third-quarter net sales of $2.063 billion and GAAP diluted EPS of $1.00, with adjusted diluted EPS of $1.90, the latter 1.1% above the $1.88 consensus, according to Benzinga and Seeking Alpha. Management cited gains in hips and S.E.T. sales that helped offset weaker knee sales, and it noted some margin pressure even as it lifted its full-year guidance.

How big was the move

The stock opened 9.1% above the previous close and finished the day up 13.5% at $110.15. Volume was 3.0 times its 20-day average, and the move measured 5.6 times a typical daily move for this stock. The session outperformed the healthcare sector median, which rose 3.3%, leaving Zimmer Biomet 10.2 percentage points better than that median. Market value stood at $18.03 billion on the session date.

The technical picture

The stock traded 2.1% below its 52-week high and was 15.2% above its 20-day moving average. It was 16.1% above its 50-day moving average, and the 50-day average sits above the 200-day average, a sign of an established uptrend. The stock had been above the 200-day average for 18 consecutive trading days. The Relative Strength Index (14 days) read 75, above 70, a level often called overbought, while volatility was 38% annualized over 60 days, higher than 94% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, Zimmer Biomet reported revenue of $8.57 billion, up 7.0% from a year earlier, and diluted earnings per share of $3.95, which fell 2.2% from a year earlier. Gross margin was 69.7%, down from 71.4% a year earlier, and operating margin was 15.1%, down from 16.6% a year earlier. The company reported a free-cash-flow margin of 23.8% and return on invested capital of 5.5%. Its balance sheet showed net debt of 3.1 times EBITDA and the share count declined by 3.7% over one year.

Valuation metrics offer a mixed signal. The stock traded at 27.9 times trailing earnings and 12.9 times expected forward earnings, while free-cash-flow yield was 11.3%. Its price to trailing earnings is lower than 52% of its own readings over the past five years, with a five-year median of 27.9 times earnings. Those figures suggest investors are paying a premium on near-term earnings expectations while free cash flow helps support the market value.

Earnings and analyst expectations

The November 4, 2026, report delivered adjusted diluted EPS of $1.90, 1.1% above estimates, and marked eight consecutive quarters beating estimates. The average surprise over the last four reports was 4.5% above estimates, though the typical two-day reaction after recent reports was a fall of 2.1%. The next report is scheduled for February 9, 2027.

Analysts’ consensus price target was $104.14, 5.5% below the closing price, based on ratings from 42 analysts. Forty percent of those ratings were Buy or Strong Buy, and the consensus rating was Hold. PromtFinance scores show strong marks for Value at 87 and Quality at 81. Growth scored 36, and Revisions scored 26. Momentum and Stability were positive at 67 and 80 respectively. These scores reflect solid balance-sheet and profitability metrics alongside slower growth and weak analyst revisions.

What to watch

• February 9, 2027: Next scheduled earnings report.
• The company’s full-year 2026 guidance and any subsequent changes to outlook following the raised outlook announced with the November 4 results.
• Trends in hips, S.E.T. and knees sales and any margin commentary in upcoming quarterly updates.
• Net debt of 3.1 times EBITDA and free-cash-flow margin of 23.8% as leverage and cash generation indicators.
• Consensus price target of $104.14 versus the closing price of $110.15.