Strong Revenue Growth Across the Business
ZBH generated $2,086.7M in revenue in Q1 FY2026, up 9.3% from $1,909.1M in the prior-year period, reflecting solid demand for its orthopedic and medical device products.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
ZBH delivered strong Q1 FY2026 results with revenue rising 9.3% YoY to $2.09B and net income surging 30.8% to $238.1M, driven by operating leverage and margin expansion, though cash balances declined sharply by 69.4%.
Revenue
$2.09B
+9.30% YoY
EPS (Diluted)
$1.22
+34.07% YoY
Operating Income
$373.2M
+27.68% YoY
Source: SEC XBRL
Zimmer Biomet Holdings (ZBH) reported Q1 FY2026 revenue of $2.09B, up 9.3% year over year. Operating margin was 17.9%, up 2.6 points from 15.3% a year earlier. Operating cash flow was $359.4M, down 6.1% year over year. ZBH's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.07 | 2.03 | Beat +2.0% |
| Mar 2026This filing | 2.09 | 1.88 | Beat +11.0% |
| Dec 2025 | 2.42 | 2.42 | Beat +0.0% |
| Sep 2025 | 1.90 | 1.89 | Beat +0.7% |
Adjusted (non-GAAP) EPS of $2.09 versus the $1.88 analyst consensus — a +11.0% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.22.
Compiled by AI from this SEC filing
ZBH generated $2,086.7M in revenue in Q1 FY2026, up 9.3% from $1,909.1M in the prior-year period, reflecting solid demand for its orthopedic and medical device products.
Source: 10-Q Income Statement
Operating income grew 27.7% YoY to $373.2M, with operating margin expanding approximately 257 basis points to 17.9% from 15.3%, demonstrating meaningful operating leverage on higher revenues despite SG&A rising 12.0% to $849.9M.
Source: 10-Q Income Statement
Net income increased 30.8% YoY to $238.1M, with diluted EPS rising 34.1% to $1.22 from $0.91, reflecting both improved profitability and the benefit of share buybacks reducing the share count.
Source: 10-Q Income Statement
ZBH repurchased $250.1M in shares during Q1 FY2026, up 8.8% from $229.8M in the prior-year quarter, signaling management's confidence in the business and returning capital to shareholders.
Source: 10-Q Cash Flow Statement
Cash and equivalents fell 69.4% YoY to $424.2M from $1,384.5M, driven by significant financing outflows of -$369.2M compared to inflows of $575.4M in the prior year, reflecting a shift in capital allocation strategy.
Source: 10-Q Balance Sheet & Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Cash and equivalents declined sharply by 69.4% YoY to $424.2M, while current liabilities surged 24.8% to $2,864.3M. This compression in liquidity could limit ZBH's financial flexibility for acquisitions, R&D investment, or debt servicing if operating conditions deteriorate.
Source: 10-Q Balance Sheet
SG&A expenses grew 12.0% YoY to $849.9M, outpacing revenue growth of 9.3%. Sustained cost inflation in selling and administrative functions could pressure margins if revenue growth moderates.
Source: 10-Q Income Statement
Long-term debt stands at $6,295.1M with a debt-to-equity ratio of 0.79, representing a substantial leverage position. While long-term debt declined 4.3% YoY, the absolute level remains high and exposes ZBH to refinancing and interest rate risks.
Source: 10-Q Balance Sheet
Operating cash flow fell 6.1% YoY to $359.4M despite strong net income growth of 30.8%, suggesting working capital headwinds or non-cash adjustments are absorbing earnings. This divergence between earnings and cash generation warrants monitoring.
Source: 10-Q Cash Flow Statement
The current ratio declined to 1.73 as current liabilities rose 24.8% while current assets fell 11.2%, narrowing the short-term liquidity cushion. A continued deterioration in this ratio could signal near-term liquidity stress.
Source: 10-Q Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.09 $B | 1.91 $B | +9.30% |
Cost of Revenue $M | 576.20 $M | 549.80 $M | +4.80% |
Operating Income $M | 373.20 $M | 292.30 $M | +27.68% |
Net Income $M | 238.10 $M | 182.00 $M | +30.82% |
EPS (Basic) $ | 1.22 $ | 0.92 $ | +32.61% |
EPS (Diluted) $ | 1.22 $ | 0.91 $ | +34.07% |
SG&A Expense $M | 849.90 $M | 758.80 $M | +12.01% |
Answers draw on this SEC filing and the data on this page
Zimmer Biomet’s Q2 FY2026 earnings surged 29.8% as the Paragon 28 acquisition and strong robotic and bone cement sales drove revenue growth of 4.8%.
ZBH (Zimmer Biomet) delivered 7.2% revenue growth to $8.23B in FY2025, but profitability declined sharply as rising costs and SG&A expansion drove operating income down 14.6% and net income down 22.0% year-over-year.
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