Revenue growth has accelerated to 9.3% in 2026Q1, though operating margins remain constrained at 17.9% due to high SG&A expenses.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Sales/Revenue | 8.41B | 8.23B | 7.68B | 7.39B | 6.94B | 6.83B | 6.13B | 7.98B | 7.93B | 7.8B | 7.67B | 6B | 4.67B | 4.62B | 4.47B | 4.45B | 4.22B | 4.1B | 4.12B | 3.9B | 3.5B | 3.29B | 2.98B | 1.9B | 1.37B | 1.18B | 1.04B | 939M |
| Revenue Growth % | 9.23% | 7.2% | 3.85% | 6.55% | 1.65% | 11.42% | -23.24% | 0.62% | 1.66% | 1.76% | 27.85% | 28.34% | 1.08% | 3.39% | 0.45% | 5.49% | 3.05% | -0.62% | 5.74% | 11.5% | 6.37% | 10.24% | 56.81% | 38.52% | 16.44% | 13.26% | 10.82% | - |
| Cost of Goods Sold | 2.52B | 3.16B | 2.19B | 2.08B | 2.02B | 1.96B | 1.82B | 2.25B | 2.27B | 2.13B | 2.38B | 1.8B | 1.24B | 1.29B | 1.13B | 1.12B | 1.01B | 990.7M | 997.3M | 875.9M | 780.1M | 739.4M | 779.9M | 516.2M | 344.8M | 325.9M | 290.9M | 269M |
| COGS % of Revenue | - | 38.38% | 28.54% | 28.18% | 29.1% | 28.71% | 29.77% | 28.22% | 28.64% | 27.33% | 31.06% | 30.02% | 26.59% | 27.82% | 25.16% | 25.2% | 23.98% | 24.19% | 24.2% | 22.47% | 22.32% | 22.5% | 26.16% | 27.15% | 25.12% | 27.65% | 27.96% | 28.65% |
| Gross Profit | 5.89B | 5.07B | 5.49B | 5.31B | 4.92B | 4.87B | 4.3B | 5.73B | 5.66B | 5.67B | 5.29B | 4.2B | 3.43B | 3.34B | 3.35B | 3.33B | 3.21B | 3.1B | 3.12B | 3.02B | 2.72B | 2.55B | 2.2B | 1.38B | 1.03B | 852.7M | 749.7M | 670M |
| Gross Margin % | 70.03% | 61.62% | 71.46% | 71.82% | 70.9% | 71.29% | 70.23% | 71.78% | 71.36% | 72.67% | 68.94% | 69.98% | 73.41% | 72.18% | 74.84% | 74.8% | 76.02% | 75.81% | 75.8% | 77.53% | 77.68% | 77.5% | 73.84% | 72.85% | 74.88% | 72.35% | 72.05% | 71.35% |
| Gross Profit Growth % | - | -7.57% | 3.33% | 7.93% | 1.1% | 13.1% | -24.9% | 1.21% | -0.17% | 7.26% | 25.96% | 22.35% | 2.79% | -0.27% | 0.5% | 3.8% | 3.33% | -0.61% | 3.38% | 11.28% | 6.62% | 15.71% | 58.94% | 34.76% | 20.51% | 13.74% | 11.9% | - |
| Operating Expenses | 4.58B | 3.71B | 4.2B | 4.03B | 4.22B | 4.01B | 4.22B | 4.59B | 5.63B | 4.87B | 4.47B | 3.73B | 2.39B | 2.04B | 2.3B | 2.31B | 2.29B | 2.09B | 2.03B | 1.89B | 1.55B | 1.49B | 1.44B | 934.1M | 626.7M | 604.4M | 481.7M | 439M |
| OpEx % of Revenue | - | 45.07% | 54.72% | 54.54% | 60.87% | 58.68% | 68.87% | 57.53% | 70.94% | 62.42% | 58.23% | 62.19% | 51.21% | 44.08% | 51.41% | 51.79% | 54.29% | 50.93% | 49.35% | 48.6% | 44.35% | 45.39% | 48.23% | 49.14% | 45.66% | 51.28% | 46.29% | 46.75% |
| Selling, General & Admin | 3.34B | 3.25B | 2.93B | 2.84B | 2.76B | 2.84B | 2.71B | 3.34B | 3.38B | 3.1B | 2.94B | 2.66B | 1.98B | 1.83B | 1.91B | 1.86B | 1.77B | 1.76B | 1.77B | 1.49B | 1.36B | 1.26B | 1.19B | 737.5M | 546M | 532.8M | 429.7M | 394M |
| SG&A % of Revenue | - | 39.5% | 38.16% | 38.39% | 39.79% | 41.65% | 44.27% | 41.89% | 42.6% | 39.79% | 38.4% | 44.36% | 42.33% | 39.66% | 42.76% | 41.86% | 41.85% | 43.07% | 43.02% | 38.22% | 38.79% | 38.33% | 39.92% | 38.8% | 39.78% | 45.21% | 41.29% | 41.96% |
| Research & Development | 451.4M | 458.5M | 437.4M | 458.7M | 406M | 435.8M | 322.8M | 449.3M | 391.7M | 369.9M | 365.6M | 268.8M | 191.9M | 204.2M | 225.6M | 238.4M | 218.5M | 205.7M | 192.3M | 209.6M | 188.3M | 175.5M | 166.7M | 105.8M | 80.7M | 71.6M | 52M | 45M |
| R&D % of Revenue | - | 5.57% | 5.7% | 6.2% | 5.85% | 6.38% | 5.27% | 5.63% | 4.94% | 4.74% | 4.77% | 4.48% | 4.11% | 4.42% | 5.05% | 5.36% | 5.18% | 5.02% | 4.67% | 5.38% | 5.39% | 5.34% | 5.59% | 5.57% | 5.88% | 6.08% | 5% | 4.79% |
| Other Operating Expenses | 4M | 0 | 834.5M | 735.1M | 1.06B | 727.4M | 1.18B | 799M | 1.86B | 1.4B | 1.16B | 800.6M | 223.1M | 6M | 161.2M | 203.8M | 306.8M | 116.2M | 68.5M | 194.7M | 6.1M | 56.6M | 81.1M | 90.8M | 0 | 0 | 0 | 0 |
| Operating Income | 1.31B | 1.36B | 1.29B | 1.28B | 696.3M | 860.3M | 83.1M | 1.14B | 33.8M | 799.3M | 821.1M | 467.3M | 1.04B | 1.04B | 1.05B | 1.02B | 916.7M | 1.02B | 1.09B | 1.13B | 1.17B | 1.05B | 763.2M | 450.7M | 400.9M | 248.3M | 268M | 231M |
| Operating Margin % | 15.61% | 16.55% | 16.74% | 17.28% | 10.03% | 12.6% | 1.36% | 14.25% | 0.43% | 10.24% | 10.71% | 7.79% | 22.2% | 22.4% | 23.42% | 23% | 21.72% | 24.88% | 26.45% | 28.93% | 33.34% | 32.1% | 25.6% | 23.71% | 29.21% | 21.07% | 25.75% | 24.6% |
| Operating Income Growth % | - | 5.95% | 0.63% | 83.5% | -19.06% | 935.26% | -92.69% | 3265.38% | -95.77% | -2.66% | 75.71% | -54.95% | 0.16% | -1.13% | 2.28% | 11.72% | -10.02% | -6.53% | -3.33% | -3.23% | 10.45% | 38.23% | 69.34% | 12.42% | 61.46% | -7.35% | 16.02% | - |
| EBITDA | 2.31B | 2.46B | 2.28B | 2.23B | 1.62B | 1.8B | 981.5M | 2.14B | 1.07B | 1.86B | 1.86B | 1.18B | 1.41B | 1.39B | 1.41B | 1.38B | 1.26B | 1.36B | 1.37B | 1.36B | 1.36B | 1.24B | 944.5M | 554M | 426.2M | 271.7M | 291.1M | 253M |
| EBITDA Margin % | 27.52% | 29.84% | 29.72% | 30.15% | 23.38% | 26.34% | 16.02% | 26.85% | 13.54% | 23.86% | 24.26% | 19.67% | 30.24% | 30.15% | 31.54% | 31.09% | 29.78% | 33.12% | 33.12% | 34.83% | 38.98% | 37.76% | 31.69% | 29.14% | 31.06% | 23.05% | 27.97% | 26.94% |
| EBITDA Growth % | -0.45% | 7.62% | 2.36% | 37.39% | -9.75% | 83.19% | -54.21% | 99.53% | -42.3% | 0.09% | 57.7% | -16.52% | 1.36% | -1.16% | 1.91% | 10.11% | -7.32% | -0.65% | 0.55% | -0.37% | 9.83% | 31.36% | 70.49% | 29.99% | 56.86% | -6.66% | 15.06% | - |
| D&A (Non-Cash Add-back) | 1B | 1.09B | 996.3M | 951.7M | 926.4M | 937.7M | 898.4M | 1.01B | 1.04B | 1.06B | 1.04B | 712.4M | 375.8M | 358.5M | 363.1M | 359.9M | 340.2M | 337.4M | 275.1M | 230M | 197.4M | 185.7M | 181.3M | 103.3M | 25.3M | 23.4M | 23.1M | 22M |
| EBIT | 1.2B | 1.12B | 1.25B | 1.27B | 568.3M | 707.4M | 106.9M | 1.13B | 18.2M | 789.9M | 754.6M | 439.8M | 1B | 1.05B | 1.06B | 1.03B | 920.4M | 1.14B | 1.16B | 1.15B | 1.17B | 1.11B | 844.3M | 541.5M | 400.9M | 248.3M | 268M | 231M |
| Net Interest Income | -295.4M | -292.8M | -218M | -201.2M | -164.8M | -208.4M | -212.1M | -226.9M | -289.3M | -325.3M | -355M | -277.2M | -51.2M | -54.5M | -57.3M | -45.2M | -56.5M | -20.6M | 31.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.4M | 11.9M | 15.6M | 15.6M | 10.1M | 3.7M | 0 | 31.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 295.4M | 292.8M | 218M | 201.2M | 164.8M | 208.4M | 212.1M | 226.9M | 289.3M | 325.3M | 355M | 286.6M | 63.1M | 70.1M | 72.9M | 55.3M | 60.2M | 20.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -409.2M | -531.4M | -249.1M | -210.4M | -292.8M | -361.3M | -188.3M | -231.7M | -304.9M | -334.7M | -421.5M | -314.1M | -97.9M | -87.5M | -57.3M | -45.2M | -56.5M | -20.6M | 31.8M | 4M | 3.8M | -14.3M | -31.7M | -13.2M | -12M | -7.4M | 0 | 0 |
| Pretax Income | 903.1M | 830.8M | 1.04B | 1.07B | 403.5M | 499M | -105.2M | 905.8M | -271.1M | 464.6M | 399.6M | 153.2M | 939.4M | 981.1M | 990.1M | 978.9M | 860.2M | 998.2M | 1.12B | 1.13B | 1.17B | 1.04B | 731.5M | 437.5M | 388.9M | 240.9M | 268M | 231M |
| Pretax Margin % | 10.74% | 10.09% | 13.5% | 14.43% | 5.81% | 7.31% | -1.72% | 11.35% | -3.42% | 5.95% | 5.21% | 2.55% | 20.1% | 21.22% | 22.14% | 21.99% | 20.38% | 24.37% | 27.22% | 29.03% | 33.44% | 31.67% | 24.54% | 23.01% | 28.34% | 20.44% | 25.75% | 24.6% |
| Income Tax | 142.3M | 125.7M | 131.4M | 42.2M | 112.3M | 53.5M | -96M | -225.7M | 108.2M | -1.35B | 95M | 7M | 220.2M | 221.9M | 237.2M | 218.9M | 263.3M | 280.8M | 272.3M | 357.9M | 334M | 307.3M | 189.6M | 146.8M | 131.1M | 91.1M | 92M | 81M |
| Effective Tax Rate % | 15.76% | 15.13% | 12.68% | 3.95% | 27.83% | 10.72% | 91.25% | -24.92% | -39.91% | -290.31% | 23.77% | 4.57% | 23.44% | 22.62% | 23.96% | 22.36% | 30.61% | 28.13% | 24.27% | 31.63% | 28.57% | 29.53% | 25.92% | 33.55% | 33.71% | 37.82% | 34.33% | 35.06% |
| Net Income | 761.3M | 705.2M | 903.8M | 1.02B | 231.4M | 401.6M | -138.9M | 1.13B | -379.2M | 1.81B | 305.9M | 147M | 720.3M | 761M | 755M | 760.8M | 596.9M | 717.4M | 848.6M | 773.2M | 834.5M | 732.5M | 541.8M | 346.3M | 257.8M | 149.8M | 176M | 150M |
| Net Margin % | 9.05% | 8.57% | 11.77% | 13.85% | 3.33% | 5.88% | -2.27% | 14.18% | -4.78% | 23.24% | 3.99% | 2.45% | 15.41% | 16.46% | 16.88% | 17.09% | 14.14% | 17.52% | 20.59% | 19.84% | 23.87% | 22.29% | 18.18% | 18.22% | 18.78% | 12.71% | 16.91% | 15.97% |
| Net Income Growth % | -16.65% | -21.97% | -11.74% | 342.52% | -42.38% | 389.13% | -112.27% | 398.42% | -120.91% | 492.94% | 108.1% | -79.59% | -5.35% | 0.79% | -0.76% | 27.46% | -16.8% | -15.46% | 9.75% | -7.35% | 13.92% | 35.2% | 56.45% | 34.33% | 72.1% | -14.89% | 17.33% | - |
| Net Income (Continuing) | 760.8M | 705.1M | 905.2M | 1.03B | 291.2M | 445.5M | -9.2M | 1.13B | -379.3M | 1.81B | 304.6M | 146.2M | 719M | 759.2M | 752.9M | 760M | 596.9M | 717.4M | 849.5M | 773.2M | 834.5M | 732.5M | 541.8M | 291.2M | 257.8M | 149.8M | 176M | 150M |
| Discontinued Operations | 0 | 0 | 0 | 0 | -58.8M | -43.4M | -128.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 8.1M | 7.7M | 6.7M | 5.7M | 5.2M | 4.7M | 4.8M | -300K | 1M | 1.5M | 1.8M | 2.8M | 5.4M | 7.6M | 0 | 0 | 3.6M | 2.8M | 2.7M | 2.3M | 7.1M | 7M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.89 | 3.55 | 4.43 | 4.88 | 1.10 | 1.91 | -0.67 | 5.47 | -1.86 | 9.03 | 1.50 | 0.26 | 4.19 | 4.43 | 4.29 | 4.03 | 2.97 | 3.32 | 3.72 | 3.26 | 3.40 | 2.93 | 2.19 | 1.64 | 1.31 | 0.77 | 0.91 | 0.77 |
| EPS Growth % | -14.82% | -19.86% | -9.22% | 343.64% | -42.41% | 385.07% | -112.25% | 394.09% | -120.6% | 502% | 476.92% | -93.79% | -5.42% | 3.26% | 6.45% | 35.69% | -10.54% | -10.75% | 14.11% | -4.12% | 16.04% | 33.79% | 33.54% | 25.19% | 70.13% | -15.38% | 18.18% | - |
| EPS (Basic) | - | 3.56 | 4.45 | 4.91 | 1.10 | 1.93 | -0.67 | 5.52 | -1.86 | 9.11 | 1.51 | 0.27 | 4.26 | 4.49 | 4.32 | 4.06 | 2.98 | 3.34 | 3.73 | 3.28 | 3.43 | 2.96 | 2.22 | 1.67 | 1.33 | 0.77 | 0.91 | 0.77 |
| Diluted Shares Outstanding | 195.8M | 198.7M | 203.9M | 209.7M | 210.3M | 210.4M | 207M | 206.7M | 203.5M | 203.7M | 202.4M | 189.8M | 171.7M | 171.8M | 176M | 188.7M | 201.1M | 215.8M | 228.3M | 237.5M | 245.4M | 249.8M | 247.8M | 211.2M | 196.8M | 194.3M | 193.6M | 193.6M |
| Basic Shares Outstanding | 195M | 198M | 203.1M | 208.7M | 209.6M | 208.6M | 207M | 205.1M | 203.5M | 201.9M | 200M | 187.4M | 169M | 169.6M | 174.9M | 187.6M | 200M | 215M | 227.3M | 235.5M | 243M | 247.1M | 244.4M | 207.7M | 194.5M | 193.7M | 193.6M | 193.6M |
| Dividend Payout Ratio | - | 26.99% | 21.69% | 19.62% | 86.95% | 49.83% | - | 17.38% | - | 10.67% | 61.59% | 106.87% | 20.2% | 17.4% | 12.5% | 67.09% | - | - | - | - | - | - | - | - | - | 193.59% | - | - |
Elective procedure volume sensitivity
According to the latest quarterly data, ZBH achieved a 9.3% year-over-year revenue growth in 2026Q1, marking a notable acceleration from the 3.2% growth observed in 2024Q1, suggesting that the company's strategic focus on high-growth orthopedic segments is beginning to yield tangible top-line expansion results.
The recent revenue acceleration appears to be driven by a combination of successful product rollouts and a recovery in elective procedure volumes. Investors should monitor whether this growth trajectory can be sustained as the company faces tougher year-over-year comparisons in the coming quarters.
As reported in financial statements, ZBH's gross margin experienced a significant contraction to 64.7% in 2025Q4 before rebounding to 72.4% in 2026Q1, indicating that the company's cost structure remains sensitive to periodic manufacturing inefficiencies or inventory-related charges that disrupt standard operating performance.
The sharp fluctuation in gross margins suggests that the company's manufacturing and logistics overhead may be prone to sudden spikes, potentially linked to inventory obsolescence or supply chain disruptions. This volatility complicates the assessment of underlying pricing power in the competitive orthopedic implant market.
Based on the provided income statement data, ZBH's operating margin of 17.9% in 2026Q1 reflects a struggle to scale profitability efficiently, as SG&A expenses continue to consume a substantial portion of gross profit, limiting the company's ability to translate revenue gains into meaningful operating income growth.
The persistent high level of SG&A relative to revenue suggests that the company's sales and clinical support model remains capital-intensive. Without a clear reduction in these overhead costs, operating leverage may remain constrained, even as the company attempts to scale its robotic-assisted surgery platforms.
Analysis of the reported figures reveals that ZBH's EPS has fluctuated significantly, ranging from a low of $0.70 in 2025Q4 to $1.22 in 2026Q1, which appears to be driven by non-operating items and periodic adjustments rather than a consistent trend in underlying operational profitability.
The inconsistency in quarterly EPS suggests that investors should look past headline earnings to evaluate the company's true cash-generating capability. The impact of stock-based compensation and other non-recurring charges warrants further investigation to determine the sustainability of current earnings levels.
While revenue growth is accelerating, the company's reliance on high-touch clinical support and the ongoing threat of price erosion in the orthopedic sector, as evidenced by historical margin compression, suggest that long-term profitability may face significant headwinds that are not fully reflected in current market sentiment.
Short-term gains in revenue may be offset by the high cost of maintaining a specialized sales force and the competitive pressure to lower prices for hospital groups. Investors should remain cautious about the company's ability to maintain premium margins in an increasingly commoditized orthopedic device landscape.
Quick answers to the most common questions about buying ZBH stock.
For fiscal year 2025, Zimmer Biomet Holdings, Inc. (ZBH) reported total revenue of $8.23B. This represents a 776.6% increase compared to $939.0M in 1999.
Zimmer Biomet Holdings, Inc. (ZBH) is profitable, generating $705.2M in net income for the fiscal year ending 2025 with a net profit margin of 8.6%.
Zimmer Biomet Holdings, Inc. (ZBH) reported an operating income of $1.36B, resulting in an operating profit margin of 16.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Zimmer Biomet Holdings, Inc. (ZBH) generated $5.07B in gross profit for the year, representing a gross profit margin of 61.6%. This demonstrates the company's core pricing power and production efficiency.