Upside case
Bull case
$214+143.0%
ZBH would need investors to value it at roughly 25x earnings — about 15x more generous than today's 10x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 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
$96
+9.5% vs today
Scenario Range
$102 – $214
Model bear to bull value window
Coverage
42
Published analyst ratings
Valuation Context
10.4x
Forward P/E · Market cap $17.2B
ZBH price targets
Three scenarios for where ZBH stock could go
Current
~$88
Confidence
49 / 100
Updated
Jun 18, 2026
Where we are now
Current · $88
Bear
$102
Base
$162
Bull
$214
Market caseClosest to today
Base case
$162+84.4%
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
$102+16.2%
The bear case assumes sentiment or fundamentals disappoint enough to push ZBH down roughly 16% from the current price.
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
$17.2B
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
$8.8B
+4.2% YoY
FY2
$9.1B
+3.5% YoY
EPS Outlook
FY1
$6.15
+58.1% YoY
FY2
$6.50
+5.8% YoY
Trailing FCF (TTM)$1.8B
FCF Margin: 21.8%
Next Earnings
August 6, 2026
Expected EPS
$1.99
Expected Revenue
$2.1B
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
Cheap versus peers
Fair value est. $122 — implies +38.7% from today's price.
Upside to Fair Value
38.7%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ZBH
24.8x
vs
S&P 500
24.4x
In line with benchmark
vs Healthcare Trailing P/E
ZBH
24.8x
vs
Healthcare
22.1x
+12% premium
vs ZBH 5Y Avg P/E
Today
24.8x
vs
5Y Average
50.9x
51% discount
Forward PE
10.4x
S&P 500
18.8x
-45%
Healthcare
18.3x
-43%
5Y Avg
—
—
Trailing PE
24.8x
S&P 500
24.4x
+1%
Healthcare
22.1x
+12%
5Y Avg
50.9x
-51%
PEG Ratio
—
S&P 500
1.66x
—
Healthcare
1.59x
—
5Y Avg
—
—
EV/EBITDA
9.8x
S&P 500
15.2x
-35%
Healthcare
14.2x
-31%
5Y Avg
14.8x
-33%
Price/FCF
11.7x
S&P 500
20.7x
-43%
Healthcare
18.5x
-37%
5Y Avg
19.4x
-40%
Price/Sales
2.1x
S&P 500
3.1x
-32%
Healthcare
2.6x
-21%
5Y Avg
3.2x
-35%
Dividend Yield
1.09%
S&P 500
1.91%
-43%
Healthcare
1.50%
-27%
5Y Avg
0.86%
+27%
| Metric | ZBH | S&P 500 | Healthcare | 5Y Avg ZBH |
|---|---|---|---|---|
| Forward PE | 10.4x | 18.8x-45% | 18.3x-43% | — |
| Trailing PE | 24.8x | 24.4x | 22.1x+12% | 50.9x-51% |
| PEG Ratio | — | 1.66x | 1.59x | — |
| EV/EBITDA | 9.8x | 15.2x-35% | 14.2x-31% | 14.8x-33% |
| Price/FCF | 11.7x | 20.7x-43% | 18.5x-37% | 19.4x-40% |
| Price/Sales | 2.1x | 3.1x-32% | 2.6x-21% | 3.2x-35% |
| Dividend Yield | 1.09% | 1.91% | 1.50% | 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 3.9% 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
3.9%
Dividend
1.1%
Buyback
2.8%
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 June 18, 2026
High Risk
Revenue guidance reduction
Management issued more cautious 2026 expectations and trimmed its 2025 organic revenue growth outlook, indicating potential business challenges.
High Risk
International market weakness
Order cancellations in several international markets suggest deteriorating demand or competitive pressures.
High Risk
Legal and regulatory scrutiny
Shareholder rights law firm investigation raises concerns over the company's disclosures and assurances, following a 15% stock collapse.
Medium
Investor confidence erosion
Reduced revenue guidance and stock price decline may lead to prolonged loss of investor trust.
Lower
Model-based valuation risk
Scenario-based models show a wide range of price targets, including a bear case of $12, reflecting uncertainty.
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 June 18, 2026
Market leadership in orthopedics
Zimmer Biomet is a global leader in orthopedic reconstructive implants, with strong positions in knee, hip, and shoulder replacements.
Innovation pipeline and robotics
The company is advancing into higher-tech tools like robotics, data, and smart implants, as seen with the ROSA-assisted outpatient shoulder milestone.
Strong free cash flow
Zimmer Biomet has demonstrated robust free cash flow generation, supporting its financial flexibility and shareholder returns.
Structural demand for joint replacements
Global demand for joint replacement procedures continues to grow, underpinning the company's long-term growth prospects.
Share repurchase program
The company has been actively repurchasing shares, with $1.48 billion in buybacks since 2024, signaling confidence in its valuation.
Revenue growth reaffirmation
Zimmer Biomet reaffirmed its full-year revenue growth guidance in its Q1 2026 results, indicating stability in its business outlook.
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
$87.97
52W Range Position
30%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$79.12
+11.2% from the low
52-Week High
$108.29
-18.8% from the high
1 Month
+3.32%
3 Month
-1.25%
YTD
-2.3%
1 Year
-2.8%
3Y CAGR
-15.1%
5Y CAGR
-10.6%
10Y CAGR
-2.6%
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
10.4x
vs 13.6x median
-24% below peer median
Revenue Growth
+4.2%
vs +9.5% median
-55% 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. | $17.2B | 10.4x | +4.2% | 9.1% | Hold | +9.5% |
SYK SYK Stryker Corporation | $117.9B | 20.5x | +10.1% | 12.9% | Buy | +25.9% |
BSX BSX Boston Scientific Corporation | $67.3B | 13.5x | +9.7% | 14.4% | Buy | +83.0% |
MDT MDT Medtronic plc | $101.9B | 13.3x | +7.9% | 13.0% | Buy | +20.7% |
SNN SNN Smith & Nephew plc | $12.8B | 13.6x | +4.3% | 6.9% | Hold | +2.8% |
GME GMED Globus Medical, Inc. | $10.7B | 16.7x | +9.5% | 18.9% | Buy | +38.2% |
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 (2.8% buyback yield), with a modest 1.09% dividend — combining for 3.9% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
3.9%
Dividend + buyback return per year
Buyback Yield
2.8%
Dividend Yield
1.09%
Payout Ratio
27.0%
How ZBH Splits Its Return
Div 1.09%
Buyback 2.8%
Dividend 1.09%Buybacks 2.8%
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
Semi-Annual
5 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
2.8%
Shares Outstanding
Current diluted share count from the screening snapshot
196M
At 2.8%/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 | $0.48 | — | — | — |
| 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 $96, implying +9.5% from the current price of $88. The bear case scenario is $102 and the bull case is $214.
02What is the ZBH stock price target for 2026?
The Wall Street consensus price target for ZBH is $96 based on 42 analyst estimates. The high-end target is $120 (+36.4% from today), and the low-end target is $83 (-5.6%). The base case model target is $162.
03Is Zimmer Biomet Holdings, Inc. (ZBH) stock overvalued in 2026?
ZBH trades at 10.4x 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 cheap versus peers. 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) Revenue guidance reduction — Management issued more cautious 2026 expectations and trimmed its 2025 organic revenue growth outlook, indicating potential business challenges. (2) International market weakness — Order cancellations in several international markets suggest deteriorating demand or competitive pressures. (3) Legal and regulatory scrutiny — Shareholder rights law firm investigation raises concerns over the company's disclosures and assurances, following a 15% stock collapse. 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 $8.8B (+4.2% year-over-year) and EPS of $6.15 (+58.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $9.1B in revenue.
06When does Zimmer Biomet Holdings, Inc. (ZBH) report its next earnings?
Zimmer Biomet Holdings, Inc. is expected to report its next earnings on approximately 2026-08-06. Consensus expects EPS of $1.99 and revenue of $2.1B. Over recent quarters, ZBH has beaten EPS estimates 83% of the time.
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 (1.1% yield) and share repurchases ($487M TTM).