ZBH Q2 Deep Dive: U.S. Hip Strength, Product Launches, and Channel Transformation Shape Outlook

Medical device company Zimmer Biomet (NYSE:ZBH) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 4.8% year on year to $2.18 billion. Its non-GAAP profit of $2.07 per share was 3% above analysts’ consensus estimates.

Is now the time to buy ZBH? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Zimmer Biomet’s second quarter results were driven by strong execution in its hip franchise, robust technology sales, and progress in the U.S. sales force transformation. CEO Ivan Tornos highlighted that new product adoption, such as the Z1 hip stem and OrthoGrid navigation, contributed to above-average growth in the U.S. In addition, increased demand for the company’s technology and data solutions, including capital equipment sales, played a key role. Management attributed the quarter’s performance to successful integration of Paragon 28 and continued momentum in key business segments like S.E.T. (Sports Medicine, Extremities, and Trauma), despite some international headwinds.

Looking ahead, Zimmer Biomet’s updated guidance is anchored by expectations for ongoing momentum in new product launches, the continued progress of its specialized U.S. commercial channel, and further international expansion of high-growth platforms like the iodine-coated hip. CFO Paul Stellato emphasized that operational investments are expected to weigh slightly on margins but are designed to support future growth. Management believes that a robust product pipeline, including over 50 anticipated launches in the next three years, and strategic M&A activity will be critical to achieving long-term growth targets. Tornos noted, “We are confident that these investments in 2026 are going to yield better results in 2027.”

Key Insights from Management’s Remarks

Management emphasized that strong U.S. growth in hips, technology adoption, and successful integration of recent acquisitions were the key drivers of Q2 performance, while operational investments and market-specific headwinds shaped results across geographies.

• Hip franchise outperformance: The company’s “hip triple play”—Z1 hip stem, HAMMR surgical impactor, and OrthoGrid AI navigation—drove significant share gains in the U.S., with Z1 now accounting for over 40% of domestic hip stems and OrthoGrid seeing its highest usage to date.

• Technology & robotics momentum: Technology and data sales rose sharply, buoyed by capital equipment demand, strong uptake of ROSA robotics (including new ROSA Shoulder), and a healthy capital expenditure environment in both the U.S. and select international markets. U.S. technology sales grew over 50% year-over-year.

• Paragon 28 integration: The acquisition of Paragon 28, focused on foot and ankle solutions, continued to exceed expectations with mid-teens growth and minimal employee turnover, serving as a model for future M&A integration.

• S.E.T. segment acceleration: The S.E.T. business, especially upper extremities, thoracic, and Paragon 28, recorded above-market growth, offsetting pressure in trauma and restorative therapies. Management pointed to ongoing specialization and go-to-market adjustments as drivers.

• Operational investments: Increased spending in the U.S. sales channel and new manufacturing initiatives, such as a facility in Costa Rica and expanded operations in India, were cited as steps to bolster supply chain resilience and efficiency, but contributed to margin pressures in the short term.

Drivers of Future Performance

Zimmer Biomet’s near-term outlook centers on successful product launches, the effectiveness of its commercial transformation, and measured operational investments as the foundation for future margin and revenue growth.

• U.S. commercial channel transformation: Management expects the ongoing shift to a specialized U.S. salesforce—focused on key growth areas—to drive increased productivity and sales execution, with the project scheduled for completion by the end of 2027.

• Product innovation pipeline: Over 50 new products are planned for launch in the next three years, including first-to-market technologies like the iodine-coated hip (expanding from Japan to other geographies) and next-generation robotics and navigation platforms, which are expected to support revenue growth and competitive differentiation.

• Operational and pricing risks: While investments in commercial and manufacturing capabilities are anticipated to support long-term growth, management acknowledged headwinds from pricing pressures, international market volatility (particularly in China and emerging markets), and the need for ongoing cost control to balance margin impacts.

Catalysts in Upcoming Quarters

Moving forward, our analysts will be monitoring (1) the progress of Zimmer Biomet’s U.S. sales force transformation and associated productivity gains, (2) the pace of global adoption for new platforms such as the iodine-coated hip and ROSA Shoulder robotics, and (3) the impact of operational and manufacturing investments on both supply chain resilience and margins. Execution on new product launches and maintaining momentum in key high-growth segments will be crucial signposts for future quarters.

Zimmer Biomet currently trades at $100.14, up from $95.81 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

Stocks That Trumped Tariffs

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.