Upside case
Bull case
$127+53.6%
ZBH would need investors to value it at roughly 15x earnings — about 5x more generous than today's 10x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Zimmer Biomet Holdings, Inc. (ZBH) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
42
analysts
18 bullish · 3 bearish · 42 covering ZBH
Strong Buy
0
Buy
18
Hold
21
Sell
3
Strong Sell
0
Consensus Target
$98
+18.2% vs today
Scenario Range
$10 – $127
Model bear to bull value window
Coverage
42
Published analyst ratings
Valuation Context
9.8x
Forward P/E · Market cap $16.2B
ZBH price targets
Three scenarios for where ZBH stock could go
Current
~$83
Confidence
57 / 100
Updated
May 1, 2026
Where we are now
Current · $83
Bear
$10
Base
$160
Bull
$127
Market caseClosest to today
Base case
$160+92.9%
At 19x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$10-87.7%
If investor confidence fades or macro conditions deteriorate, a 9x multiple contraction could push ZBH down roughly 88% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Zimmer Biomet Holdings, Inc.
ZBH · NYSEHealthcareMedical - DevicesDecember year-end
Zimmer Biomet is a leading medical device company specializing in musculoskeletal healthcare products — primarily joint replacements for knees and hips, plus sports medicine, spine, and dental solutions. It generates revenue through the sale of orthopedic implants and surgical instruments, with knee and hip reconstruction products forming its largest segment — roughly 60% of total sales. The company's competitive moat lies in its extensive product portfolio, strong surgeon relationships, and established brand recognition in the orthopedic surgery community.
Market Cap
$16.2B
Revenue TTM
$8.4B
Net Income TTM
$761M
Net Margin
9.1%
ZBH Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
83%Exceptional
12 quarters tracked
Revenue Beat Rate
92%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.07/$1.98
Revenue
$2.1B/$2.1B
Q4 2025
EPS
$1.90/$1.87
Revenue
$2.0B/$2.0B
Q1 2026
EPS
$2.42/$2.38
Revenue
$2.2B/$2.2B
Q2 2026
EPS
$2.09/$1.86
Revenue
$2.1B/$2.1B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.07/$1.98 | +4.5% | $2.1B/$2.1B | +1.0% |
| Q4 2025 | $1.90/$1.87 | +1.6% | $2.0B/$2.0B | -0.5% |
| Q1 2026 | $2.42/$2.38 | +1.7% | $2.2B/$2.2B | +0.9% |
| Q2 2026 | $2.09/$1.86 | +12.4% | $2.1B/$2.1B | +0.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$8.7B
+3.8% YoY
FY2
$9.2B
+5.8% YoY
EPS Outlook
FY1
$6.73
+73.1% YoY
FY2
$6.85
+1.8% YoY
Trailing FCF (TTM)$1.8B
FCF Margin: 21.8%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
ZBH beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
ZBH Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $7.6B
Product Mix
Latest annual revenue by segment or product family
Knees
43.9%
+4.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
62.5%
+7.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Knees is the largest disclosed segment at 43.9% of FY 2025 revenue, up 4.7% YoY.
Americas is the largest reported region at 62.5%, up 7.3% YoY.
ZBH Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $162 — implies +94.9% from today's price.
Upside to Fair Value
94.9%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ZBH
23.3x
vs
S&P 500
25.2x
8% discount
vs Healthcare Trailing P/E
ZBH
23.3x
vs
Healthcare
22.1x
+5% premium
vs ZBH 5Y Avg P/E
Today
23.3x
vs
5Y Average
50.9x
54% discount
Forward PE
9.8x
S&P 500
19.1x
-49%
Healthcare
19.0x
-49%
5Y Avg
—
—
Trailing PE
23.3x
S&P 500
25.2x
-8%
Healthcare
22.1x
+5%
5Y Avg
50.9x
-54%
PEG Ratio
—
S&P 500
1.75x
—
Healthcare
1.52x
—
5Y Avg
—
—
EV/EBITDA
9.4x
S&P 500
15.3x
-38%
Healthcare
14.1x
-33%
5Y Avg
14.8x
-36%
Price/FCF
11.0x
S&P 500
21.3x
-48%
Healthcare
18.7x
-41%
5Y Avg
19.4x
-43%
Price/Sales
2.0x
S&P 500
3.1x
-37%
Healthcare
2.8x
-31%
5Y Avg
3.2x
-39%
Dividend Yield
1.16%
S&P 500
1.88%
-38%
Healthcare
1.40%
-17%
5Y Avg
0.86%
+35%
| Metric | ZBH | S&P 500 | Healthcare | 5Y Avg ZBH |
|---|---|---|---|---|
| Forward PE | 9.8x | 19.1x-49% | 19.0x-49% | — |
| Trailing PE | 23.3x | 25.2x | 22.1x | 50.9x-54% |
| PEG Ratio | — | 1.75x | 1.52x | — |
| EV/EBITDA | 9.4x | 15.3x-38% | 14.1x-33% | 14.8x-36% |
| Price/FCF | 11.0x | 21.3x-48% | 18.7x-41% | 19.4x-43% |
| Price/Sales | 2.0x | 3.1x-37% | 2.8x-31% | 3.2x-39% |
| Dividend Yield | 1.16% | 1.88% | 1.40% | 0.86% |
ZBH trades above S&P 500 benchmarks on 0 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolZBH Financial Health
Verdict
Strong
ZBH generates $1.8B in free cash flow at a 21.8% margin — returns 4.2% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$8.4B
Revenue Growth
TTM vs prior year
+9.2%
Gross Margin
Gross profit as a share of revenue
70.0%
Operating Margin
Operating income divided by revenue
15.6%
Net Margin
Net income divided by revenue
9.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.89
Free Cash Flow (TTM)
Cash generation after capex
$1.8B
FCF Margin
FCF as share of revenue — the primary cash quality signal
21.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
5.4%
ROA
Return on assets, trailing twelve months
3.3%
Cash & Equivalents
Liquid assets on the balance sheet
$592M
Net Debt
Total debt minus cash
$6.9B
Debt Serviceability
Net debt as a multiple of annual free cash flow
3.8× FCF
~3.8 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
5.8%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.2%
Dividend
1.2%
Buyback
3.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$487M
Dividend / Share
Annualized trailing dividend per share
$0.96
Payout Ratio
Share of earnings distributed as dividends
27.0%
Shares Outstanding
Declining as buybacks retire shares
196M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageZBH Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Execution Risks
Zimmer Biomet faces significant execution risks regarding its strategic initiatives, particularly during channel transitions. The company must achieve steady organic revenue growth in the upcoming quarters to mitigate these risks.
High Risk
Market and Industry Challenges
The orthopedic industry is highly competitive, and Zimmer Biomet's reliance on elective procedures exposes it to substantial risks during economic downturns or health crises, such as the COVID-19 pandemic. The stock experienced a significant drawdown during the COVID-19 crash, highlighting this vulnerability.
Medium
Financial Performance
While Zimmer Biomet has occasionally met or exceeded earnings expectations, the quality of these earnings has been questioned. Some positive results have been attributed to one-time events, such as tariff refunds, raising concerns about the sustainability of future revenue guidance.
Medium
Integration Challenges
The company faces potential risks associated with integrating its recent acquisitions. Successful integration is crucial for realizing the expected benefits and synergies from these transactions.
Medium
Macroeconomic Factors
Changes in general economic conditions, including fluctuations in interest rates and currency exchange rates, can significantly impact Zimmer Biomet's financial performance. These macroeconomic factors introduce additional uncertainty for investors.
Lower
Regulatory and Tariff Changes
Changes in tariffs and trade policies pose risks to Zimmer Biomet's operations. The company must navigate these regulatory challenges to maintain its competitive position in the market.
Lower
Pandemic Impact
Zimmer Biomet's high exposure to deferrable procedures makes it vulnerable to the impacts of pandemics, as evidenced by the COVID-19 pandemic's effect on elective surgeries. This risk remains a concern for future performance.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why ZBH Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Market Leadership and Product Portfolio
Zimmer Biomet is a dominant player in large-joint reconstruction, holding a leading share in key markets like the U.S., Europe, and Japan. Its product vitality index has improved due to continued investment in new product development.
Robotics and Innovation
The company is advancing its Rosa robots, which could lead to higher-margin implant sales. The ROSA Robotics Platform has been utilized in innovative procedures, including the first outpatient robotic-assisted shoulder replacement in a freestanding ambulatory surgery center.
Financial Strength and Shareholder Returns
Zimmer Biomet boasts a strong balance sheet and is committed to returning capital to shareholders through share buybacks. Its recent Q1 2026 earnings and revenue exceeded estimates, prompting the company to raise its annual profit forecast.
Strategic Acquisitions
Recent acquisitions, such as the purchase of Paragon 28, are enhancing Zimmer Biomet's presence in specific markets like foot and ankle. These acquisitions are expected to contribute positively to sales growth.
Defensive Characteristics in Uncertain Markets
The company's defensive characteristics and low beta make it a stable investment, particularly in uncertain market conditions. This stability is appealing to investors looking for reliable performance.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
ZBH Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$82.83
52W Range Position
11%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$79.83
+3.8% from the low
52-Week High
$108.29
-23.5% from the high
1 Month
-8.98%
3 Month
-7.87%
YTD
-8.0%
1 Year
-10.2%
3Y CAGR
-15.5%
5Y CAGR
-13.2%
10Y CAGR
-3.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
ZBH vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
9.8x
vs 16.6x median
-41% below peer median
Revenue Growth
+3.8%
vs +9.9% median
-61% below peer median
Net Margin
9.1%
vs 13.0% median
-30% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ZBH ZBH Zimmer Biomet Holdings, Inc. | $16.2B | 9.8x | +3.8% | 9.1% | Hold | +18.2% |
SYK SYK Stryker Corporation | $112.0B | 19.5x | +9.9% | 12.9% | Buy | +38.1% |
BSX BSX Boston Scientific Corporation | $83.2B | 16.6x | +12.8% | 14.4% | Buy | +63.1% |
MDT MDT Medtronic plc | $99.5B | 14.1x | +2.5% | 13.0% | Buy | +41.1% |
SNN SNN Smith & Nephew plc | $12.8B | 13.5x | -1.3% | 6.9% | Hold | +5.8% |
GME GMED Globus Medical, Inc. | $12.1B | 20.0x | +22.8% | 18.3% | Buy | +24.0% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
ZBH Dividend and Capital Return
ZBH returns capital mainly through $487M/year in buybacks (3.0% buyback yield), with a modest 1.16% dividend — combining for 4.2% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
4.2%
Dividend + buyback return per year
Buyback Yield
3.0%
Dividend Yield
1.16%
Payout Ratio
27.0%
How ZBH Splits Its Return
Div 1.16%
Buyback 3.0%
Dividend 1.16%Buybacks 3.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.96
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
0.0%
5Y Div CAGR
0.6%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$487M
Estimated Shares Retired
6M
Approx. Share Reduction
3.0%
Shares Outstanding
Current diluted share count from the screening snapshot
196M
At 3.0%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.24 | — | — | — |
| 2025 | $0.96 | 0.0% | 2.7% | 3.8% |
| 2024 | $0.96 | 0.0% | 4.0% | 4.9% |
| 2023 | $0.96 | 0.0% | 2.7% | 3.5% |
| 2022 | $0.96 | +3.0% | 0.5% | 1.2% |
FAQ
7 questionsZBH Investor Questions
Common questions answered from live analyst data and company financials.
01Is Zimmer Biomet Holdings, Inc. (ZBH) stock a buy or sell in 2026?
Zimmer Biomet Holdings, Inc. (ZBH) is rated Hold by Wall Street analysts as of 2026. Of 42 analysts covering the stock, 18 rate it Buy or Strong Buy, 21 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $98, implying +18.2% from the current price of $83. The bear case scenario is $10 and the bull case is $127.
02What is the ZBH stock price target for 2026?
The Wall Street consensus price target for ZBH is $98 based on 42 analyst estimates. The high-end target is $120 (+44.9% from today), and the low-end target is $83 (+0.2%). The base case model target is $160.
03Is Zimmer Biomet Holdings, Inc. (ZBH) stock overvalued in 2026?
ZBH trades at 9.8x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Zimmer Biomet Holdings, Inc. (ZBH) stock in 2026?
The primary risks for ZBH in 2026 are: (1) Execution Risks — Zimmer Biomet faces significant execution risks regarding its strategic initiatives, particularly during channel transitions. (2) Market and Industry Challenges — The orthopedic industry is highly competitive, and Zimmer Biomet's reliance on elective procedures exposes it to substantial risks during economic downturns or health crises, such as the COVID-19 pandemic. (3) Financial Performance — While Zimmer Biomet has occasionally met or exceeded earnings expectations, the quality of these earnings has been questioned. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Zimmer Biomet Holdings, Inc.'s revenue and earnings forecast?
Analyst consensus estimates ZBH will report consensus revenue of $8.7B (+3.8% year-over-year) and EPS of $6.73 (+73.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $9.2B in revenue.
06When does Zimmer Biomet Holdings, Inc. (ZBH) report its next earnings?
A confirmed upcoming earnings date for ZBH is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Zimmer Biomet Holdings, Inc. generate?
Zimmer Biomet Holdings, Inc. (ZBH) generated $1.8B in free cash flow over the trailing twelve months — a free cash flow margin of 21.8%. ZBH returns capital to shareholders through dividends (1.2% yield) and share repurchases ($487M TTM).