Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a leading orthopedic implant maker, specializing in products like knee and hip replacements. The company operates in a competitive market, with rivals such as Stryker and Johnson & Johnson. On August 7, 2025, Roth Capital upgraded Zimmer Biomet's stock to "Buy," setting a new price target of $138, up from $135. At the time, the stock was priced at $98.43.
Zimmer Biomet's recent Q2 2025 earnings call, covered by Seeking Alpha, highlighted the company's strong financial performance. The company reported adjusted earnings of $2.07 per share, a 3% increase from the previous year, surpassing analysts' expectations of $1.99. Sales reached $2.08 billion, a 7% increase, exceeding the consensus estimate of $2.05 billion.
The company's knee and hip product sales showed notable growth, with knee sales rising 3.1% to $826 million and hip sales increasing 5.8% to $536.1 million. Sports Medicine products experienced a significant surge, with sales climbing 17.3% to $550.6 million. However, Technology & Data, Bone Cement, and Surgical products saw a slight decline of 0.2% to $164.6 million.
Despite a slight decrease in the adjusted operating margin from 28.5% to 27.8%, the adjusted gross margin improved from 71.6% to 72.3%. CEO Ivan Tornos emphasized the company's robust new product cycle, which drove growth in the U.S. Hips and Knees portfolios and sustained strong performance in the global S.E.T. business.
Zimmer Biomet has increased its full-year adjusted profit forecast, driven by strong demand for its medical devices, particularly hip and knee implants. The stock, currently priced at $98.43, reflects a 7.99% increase from the previous session. With a market cap of approximately $19.47 billion, the company continues to show strong market performance.
