ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings (ZBH) demonstrated a positive growth trajectory in the global reconstructive market, achieving an estimated growth of 6% in constant currency during 4Q25 while gaining market share year-over-year. The company's knee and hip sales notably surpassed consensus expectations, with knee sales reaching $911 million and growing 6.9% compared to 3Q25, while hip sales of $555 million grew 4.9%. Additionally, the firm reported a small increase in its global reconstructive market share, bringing it to 32.9%, with improvements noted in both knee and hip segments, highlighting ZBH's competitive positioning within the orthopedic sector.

Zimmer Biomet Holdings faces a negative outlook primarily due to lowered growth estimates, with projected fiscal year 2026 revenue growth at a mere 5.4% year-over-year, and organic growth expected to be only 3.1%. There are significant concerns regarding the company's future revenue, particularly from disappointing sales of its ROSA surgical robot and slower than anticipated product launches, which could lead to revenue growth slowing to 2% or less. Additionally, operating margins have contracted, with a decline of 170 basis points year-over-year, negatively impacted by increasing selling, general, and administrative expenses despite some gross margin improvements, highlighting execution challenges that could further hinder financial performance.