EX-99.1 2 zbh-ex99_1.htm EX-99.1 EX-99.1               345 E. Main St.   Warsaw, IN 46580   www.zimmerbiomet.com Exhibit 99.1     Media Investors Troy Kirkpatrick David DeMartino 614-284-1926 646-531-6115 troy.kirkpatrick@zimmerbiomet.com david.demartino@zimmerbiomet.com     Kirsten Fallon Zach Weiner 781-779-5561 908-591-6955 kirsten.fallon@zimmerbiomet.com zach.weiner@zimmerbiomet.com   Zimmer Biomet Announces Second Quarter 2026 Financial Results • Second quarter net sales of $2.177 billion increased 4.8% on a reported basis, 4.7% on a constant currency 1 basis and 4.0% on an organic constant currency 1 basis • Second quarter diluted earnings per share were $1.03, an increase of 33.8%; adjusted 1 diluted earnings per share were $2.07, consistent with the prior year period • Company updates full-year 2026 financial guidance (WARSAW, IN) August 5, 2026 — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter ended June 30, 2026. The Company reported second quarter net sales of $2.177 billion, an increase of 4.8% over the prior year period, an increase of 4.7% on a constant currency 1 basis and an increase of 4.0% on an organic constant currency 1 basis. Net earnings for the second quarter were $198.3 million, or $399.6 million on an adjusted 1 basis. Diluted earnings per share were $1.03 for the second quarter, an increase of 33.8%, and adjusted 1 diluted earnings per share were $2.07, consistent with the prior year period. Zimmer Biomet generated $447.9 million in operating cash flow and $308.3 million of free cash flow 1 in the second quarter.     Page 1 of 23   1 Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.   "We delivered strong second quarter results with solid top- and bottom-line performance and continued progress on our key growth drivers and commercial transformation,” said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet. “With a strong first half, healthy underlying markets, go-to-market changes progressing as planned and continued momentum from our innovation cycle, we are raising our revenue and adjusted EPS guidance for the year. Importantly, we continue to advance our strategic priorities and remain confident our efforts will strengthen our business, build the boldest leader in MedTech, and better position Zimmer Biomet to deliver consistent, durable growth over the long term."   Recent Highlights • Announced increase to share repurchase expectations of up to $1 billion of its common stock during fiscal year 2026 . • Received U.S. FDA 510(k) clearance and completed first cases of the next generation ROSA ® Shoulder System , the first in the industry to support both glenoid and humeral bone preparation for anatomic and reverse techniques. • Recognized as “Best Healthcare Robotics Solution” in 2026 MedTech Breakthrough Awards ROSA ® Knee with OptimiZe ™ . • Named Chintan Desai president of the company's Asia Pacific Region to replace Sang Yi, who will depart the company on Aug. 28. • Named to TIME’s 2026 list of America’s Best Companies , demonstrating excellence across employee satisfaction, financial results and sustainability transparency. • Issued 2025 Sustainability Report , highlighting meaningful progress reducing the company’s environmental footprint, strengthening communities and expanding access to care. • Zimmer Biomet Institute held its inaugural Sharpening Your Edge immersive, hands-on bioskills training experience , designed to deliver immediate, practice-ready impact to early career surgeons.     Page 2 of 23   Geographic and Product Category Sales The following sales tables provide results by geography and product category for the three and six-month periods ended June 30, 2026, as well as the percentage change compared to the prior year periods, on both a reported basis and a constant currency basis. Percentage change is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28, Inc. ("Paragon 28").   NET SALES - THREE MONTHS ENDED JUNE 30, 2026     (in millions, unaudited)                                                                                         Organic                     Constant       Constant       Net             Currency       Currency       Sales     % Change       % Change       % Change     Geographic Results                             United States $ 1,239.9       5.6   %     5.6   %     4.6   % International   937.0       3.7         3.5         3.1     Total $ 2,177.0       4.8   %     4.7   %     4.0   % Product Categories                             Knees                             United States $ 455.0       1.4   %     1.4   %     1.4   % International   374.0       (0.9 )       (1.5 )       (1.5 )   Total   828.9       0.4         0.1         0.1     Hips                             United States   288.5       5.9         5.9         5.9     International   274.1       4.0         4.2         4.2     Total   562.7       5.0         5.1         5.1     S.E.T. *   586.0       6.4         6.2         3.4     Technology & Data, Bone Cement and Surgical   199.4       21.1         21.5         21.5     Total $ 2,177.0       4.8   %     4.7   %     4.0   %                               * Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic                       Page 3 of 23   NET SALES - SIX MONTHS ENDED JUNE 30, 2026     (in millions, unaudited)                                                                                   Organic                   Constant       Constant       Net           Currency       Currency       Sales     % Change     % Change       % Change     Geographic Results                           United States $ 2,449.3       7.1   %   7.1   %     3.9   % International   1,814.4       6.8       3.8         2.8     Total $ 4,263.7       7.0   %   5.7   %     3.4   % Product Categories                           Knees                           United States $ 924.1       1.8   %   1.8   %     1.8   % International   733.4       3.1       (0.2 )       (0.2 )   Total   1,657.5       2.4       0.9         0.9     Hips                           United States   566.1       5.5       5.5         5.5     International   520.7       5.2       2.7         2.7     Total   1,086.8       5.3       4.2         4.2     S.E.T. *   1,148.2       12.5       11.3         2.6     Technology & Data, Bone Cement and Surgical   371.2       18.0       16.8         16.8     Total $ 4,263.7       7.0   %   5.7   %     3.4   %                             * Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic               Amounts reported in millions are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Percentages presented are calculated from the underlying unrounded amounts.   Page 4 of 23   Financial Guidance The Company is updating its full-year 2026 financial guidance as follows: Projected Year Ending December 31, 2026     Previous Guidance Updated Guidance 2026 Reported Revenue Change 2.5% - 4.5% 3.9% - 4.9% Foreign Currency Exchange Impact +0.5% +0.5% 2026 Constant Currency Revenue Change 2.0% - 4.0% 3.4% - 4.4% 2026 Organic Constant Currency Revenue Change (1) 1.0% - 3.0% 2.25% - 3.25% Adjusted Diluted EPS (2) $8.40 - $8.55 $8.47 - $8.59   (1) Excludes the impact of the Paragon 28 acquisition through the one-year anniversary of the acquisition date, which is estimated to be approximately 110bps. (2) This measure is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See “Forward-Looking Non-GAAP Financial Measures” below, which identifies the information that is unavailable without unreasonable efforts and provides additional information. It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure. Conference Call The Company will conduct its second quarter 2026 investor conference call today, August 5, 2026, at 8:30 a.m. ET. The audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com . It will be archived for replay following the conference call. About the Company Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation. For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X / Twitter at www.x.com/zimmerbiomet . Page 5 of 23   Website Information We routinely post important information for investors on our website, www.zimmerbiomet.com , in the “Investor Relations” section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website or any other website referenced herein is not incorporated by reference into, and is not a part of, this document. Note on Non-GAAP Financial Measures This press release and our commentary in our investor conference call today include non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP. Net sales change information for the three and six-month periods ended June 30, 2026 is presented on a GAAP (reported) basis and on a constant currency basis. Net sales change for these periods is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28. Constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases. Projected revenue change information for the year ending December 31, 2026, is also presented on an organic constant currency basis. In addition to excluding the projected effects of foreign currency exchange rates, projected 2026 organic constant currency revenue change also excludes the impact on net sales from the April 2025 acquisition of Paragon 28 through the one-year anniversary of the acquisition date in April 2026. Net earnings and diluted earnings per share for the three and six-month periods ended June 30, 2026 and 2025 are presented on a GAAP (reported) basis and on an adjusted basis. These adjusted financial measures exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in the press release. Free cash flow is an additional non-GAAP measure that is presented in this press release. Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities. Page 6 of 23   Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release. This press release also contains supplemental reconciliations of additional non-GAAP financial measures that the Company presents in other contexts. These additional non-GAAP financial measures are computed from the most directly comparable GAAP financial measure as indicated in the applicable reconciliation. Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures. In addition, constant currency revenue change, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs. Forward-Looking Non-GAAP Financial Measures This press release and our commentary in our investor conference call today also include certain forward-looking non-GAAP financial measures for the year ending December 31, 2026. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, we exclude the impact of restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; and certain legal and tax matters. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures (other than projected 2026 organic constant currency revenue change) to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. For example, the timing of certain transactions is difficult to predict because management's plans may change. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding financial guidance, statements regarding macro pressures, including the impact of such pressures on our business, and any statements about our forecasts, expectations, plans, intentions, commitments, strategies or prospects. All Page 7 of 23   statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; our ability to attract, retain, develop and maintain adequate succession plans for the highly skilled employees, senior management, independent agents and distributors we need to support our business; the transformation of our sales and distribution network in the U.S. and other markets; shifts in the product category or regional sales mix of our products and services; the risks and uncertainties related to our ability to successfully execute our restructuring plans; the risks and uncertainties relating to our ability to successfully execute on our product portfolio rationalization plans; control of costs and expenses; risks related to the ability to realize the anticipated benefits of our acquisitions, including the possibility that the expected benefits from such transactions will not be realized or will not be realized within the expected time period; the risk that acquired businesses will not be integrated successfully; the effects of business disruptions affecting us, our suppliers, customers or payors, either alone or in combination with other risks on our business and operations; the risks and uncertainties related to our ability to successfully integrate the operations, products, service providers, agents, employees, sales representatives and distributors of acquired companies; the effect of the potential disruption of management’s attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; unplanned delays, disruptions and expenses attributable to our enterprise resource planning and other system updates; the ability to form and implement alliances; dependence on a limited number of suppliers for key raw materials and other inputs and for outsourced activities; the risk of disruptions in the supply of materials and components used in manufacturing or sterilizing our products; breaches or failures of our (or of our business partners’ or other third parties’) information technology systems or products, including by cyberattack, unauthorized access or theft; the outcome of government investigations; the impact of healthcare reform and cost containment measures, including efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, through reductions in reimbursement levels, repayment demands and otherwise; the effects of natural disasters, or of legal, regulatory or market measures to address natural disasters; the effects of our commitments, goals and disclosures relating to corporate responsibility matters; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; changes in tax obligations arising from examinations by tax authorities and from changes in tax laws in jurisdictions where we do business, including as a result of the Page 8 of 23   “base erosion and profit shifting” project undertaken by the Organisation for Economic Co-operation and Development and otherwise; challenges to the tax-free nature of the ZimVie Inc. spinoff transaction and the subsequent liquidation of our retained interest in ZimVie Inc.; the risk of additional tax liability due to the recategorization of our independent agents and distributors to employees; changes in tariffs relating to imports to the U.S. and other countries; the risk that material impairment of the carrying value of