Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a leading medical device company specializing in musculoskeletal healthcare. The company designs, manufactures, and markets orthopedic reconstructive products, including knee and hip implants, as well as other surgical and dental products. Zimmer Biomet competes with other major players in the medical device industry, such as Stryker Corporation and Johnson & Johnson.
In the fourth quarter of 2025, Zimmer Biomet reported a notable increase in net sales, reaching $2.244 billion, a 10.9% rise from the previous year. The company's strategic focus on a direct and specialized sales organization in the U.S. is expected to drive long-term growth. Net earnings for the fourth quarter were $139.3 million, while its gross profit stood at $785.4 million. Despite a decrease in diluted earnings per share by 41.7% to $0.70, the adjusted diluted earnings per share increased by 4.8% to $2.42, surpassing the estimated $2.38.
For the full year, Zimmer Biomet achieved net sales of $8.232 billion, reflecting a 7.2% increase from the prior year. The company generated $1.697 billion in operating cash flow and $1.172 billion in free cash flow. The Board of Directors approved a new stock repurchase authorization of up to $1.5 billion, effective from February 9, 2026, with no expiration date, demonstrating the company's commitment to returning capital to shareholders.
Zimmer Biomet's recent acquisition of Paragon 28, Inc. in April 2025, has been excluded from organic constant currency sales calculations. This move aims to provide a clearer picture of the company's performance. The company remains focused on delivering EPS and free cash flow growth, as emphasized by Ivan Tornos, Chairman, President, and CEO, who highlighted the strategic and financial progress made in 2025.
