Will Lowered Sales Guidance and New Tech Rollouts Change Zimmer Biomet's (ZBH) Growth Narrative?

• Zimmer Biomet Holdings recently reported its third quarter 2025 earnings, showing increased sales to US$2,001.4 million but a decrease in net income and earnings per share compared to the previous year.
• The company also lowered its organic sales growth forecast amid order cancellations and weakness in international markets, while preparing to introduce new technologies such as a fully autonomous orthopedic robot and an iodine-treated hip implant approved in Japan.
• We'll explore how the lowered sales growth outlook and focus on upcoming technologies could influence Zimmer Biomet's investment narrative ahead.

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Zimmer Biomet Holdings Investment Narrative Recap

To believe in Zimmer Biomet Holdings as a shareholder, you need to see long-term value in demographic-driven demand for orthopedic procedures, innovative product launches, and expanding recurring revenues from digital solutions, balanced against the company’s ability to execute amid margin and regulatory risks. The latest quarterly results, which showed resilient US sales but softer international demand and a reduced organic growth outlook, don’t materially change the near-term focus on successful commercialization of breakthrough robotics and implants, but heighten attention on sustaining profit margins as the key risk right now.

Among the recent company announcements, the FDA Breakthrough Device Designation for Zimmer Biomet’s iodine-treated hip implant stands out. This aligns with the company’s emphasis on next-generation products, especially as the autonomous robotics platform and infection-reducing technologies are poised to act as growth catalysts just as order instability adds pressure in non-core and international markets.

However, despite excitement about upcoming technologies, investors should be aware that competitive threats from established rivals like Stryker could quickly disrupt Zimmer Biomet’s momentum if...

Read the full narrative on Zimmer Biomet Holdings (it's free!)

Zimmer Biomet Holdings is expected to reach $9.2 billion in revenue and $1.3 billion in earnings by 2028. Achieving this would require a 5.5% annual revenue growth rate and a $476.5 million increase in earnings from the current $823.5 million.

Uncover how Zimmer Biomet Holdings' forecasts yield a $104.84 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range widely from US$95 to US$164 per share. With the company's latest sales growth forecast revision, you can see how market participants weigh shifting risks and catalysts in their projections, explore how your view aligns or differs from theirs.

Explore 3 other fair value estimates on Zimmer Biomet Holdings - why the stock might be worth just $95.00!

Build Your Own Zimmer Biomet Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zimmer Biomet Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Zimmer Biomet Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zimmer Biomet Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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