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Mar 31, 2025
Zimmer Biomet Q1 2025 Earnings Report
Zimmer Biomet reported solid Q1 2025 results with growth in net sales and strong performance in adjusted EPS and net income.
Key Takeaways
Zimmer Biomet delivered strong Q1 results with revenue of $1.91B and adjusted EPS of $1.81, supported by U.S. hip portfolio momentum and the Paragon 28 acquisition.
Revenue reached $1.909B, growing 1.1% year-over-year and 2.3% in constant currency.
Adjusted EPS came in at $1.81, significantly above the reported $0.91 EPS.
Net income was $182M, supported by a favorable product mix and margin expansion.
Completed acquisition of Paragon 28, boosting exposure to the foot and ankle orthopedic segment.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Zimmer Biomet updated FY2025 guidance to reflect the Paragon 28 acquisition, currency impacts, and tariff proposals, with expectations for improved revenue growth but slightly lower adjusted EPS.
Positive Outlook
- Increased FY2025 revenue growth forecast to 5.7%–8.2%
- Paragon 28 acquisition enhances high-growth S.E.T. segment
- Continued U.S. hip system momentum supports top-line growth
- Expanded innovation pipeline showcased at AAOS 2025
- Improved FX outlook from previous guidance
Challenges Ahead
- Lowered FY2025 adjusted EPS guidance to $7.90–$8.10
- Tariff proposals pose potential cost headwinds
- Increased long-term debt burden post-acquisition
- Operating profit margin declined YoY
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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