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Zimmer Biomet Holdings (ZBH) FY2025 results: revenue $8.2 billion, up 7.2% on the year

Zimmer Biomet Holdings, Inc. (ZBH) reported revenue of $8.2 billion for fiscal 2025, the year ended 31 December 2025, up 7.2% on the year before. Net income was $705 million, down 22.0%, and diluted earnings per share $3.55. The figures are the company's own, from the 10-K it filed with the SEC on 20 February 2026.

Revenue
$8.2 billion
+7.2% on the year
FY2018FY2025
Operating margin
13.3%
16.7% a year earlier
FY2018FY2025
Net income
$705 million
-22.0% on the year
FY2018FY2025
Diluted EPS
$3.55
-19.9% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 6 new.

  • Fourth-quarter sales rose 10.9%: Fourth-quarter net sales were $2.244 billion, up 10.9% reported, 9.2% constant currency and 5.4% organic constant currency, against $2.023 billion a year earlier.
  • Full-year adjusted EPS reached $8.20: Full-year diluted EPS was $3.55, down 19.9%. Adjusted diluted EPS was $8.20, up 2.5%. Adjusted net earnings were $1.629 billion against reported net earnings of $705.1 million.
  • GAAP gross margin fell on inventory charges: GAAP gross margin was 56.8% in Q4 against 63.2% a year earlier. Adjusted gross margin was 72.4% against 71.3%, after $172.2 million of inventory and manufacturing-related charges.
  • Operating cash flow reached $1.697 billion: Full-year operating cash flow was $1.697 billion and free cash flow $1.172 billion. Fourth-quarter free cash flow was $368.3 million against $402.8 million a year earlier.
  • U.S. moves to direct sales model: Management is moving the U.S. to a predominantly direct and specialized sales organization. It expects this to tempers 2026 sales guidance and to drive durable long-term growth.
Read the Q4 FY2025 earnings call summary

From this 10-K

Zimmer Biomet designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; craniomaxillofacial and thoracic products; bone cement; surgical products; and integrated digital and robotic technologies, all for patients with disorders of, or injuries to, bones, joints or supporting soft tissues. Zimmer Biomet Holdings was incorporated in Delaware in 2001, though the history runs back to 1927 and predecessor Zimmer Manufacturing Company in Warsaw, Indiana. It was spun off from its former parent on 6 August 2001, and in 2015 acquired the parent of Biomet and changed its name from Zimmer Holdings. There were approximately 17,000 employees worldwide at the end of 2025, about 7,000 of them in the United States, roughly 6,000 of them working in manufacturing and 2,000 in research and development.

Zimmer Biomet Holdings, Inc., the 10-K for 2025

Zimmer Biomet designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; craniomaxillofacial and thoracic products; bone cement; surgical products; and integrated digital and robotic technologies, all for patients with disorders of, or injuries to, bones, joints or supporting soft tissues. Zimmer Biomet Holdings was incorporated in Delaware in 2001, though the history runs back to 1927 and predecessor Zimmer Manufacturing Company in Warsaw, Indiana. It was spun off from its former parent on 6 August 2001, and in 2015 acquired the parent of Biomet and changed its name from Zimmer Holdings. There were approximately 17,000 employees worldwide at the end of 2025, about 7,000 of them in the United States, roughly 6,000 of them working in manufacturing and 2,000 in research and development.

Knees

A total knee replacement typically uses a femoral component, a patella, a tibial tray and an articular surface on the tray, split between first-time replacements and revisions of an implant from an earlier operation. Partial reconstructions treat limited degeneration by replacing only one compartment with a unicompartmental prosthesis. The main brands are the Persona Knee, NexGen Knee Implants, Vanguard Knee and Oxford Partial Knee. The ROSA Robot assists a surgeon with implant positioning in both total and partial knee arthroplasty.

Hips

A total hip replacement replaces both the head of the femur and the socket of the pelvis, again split between first-time and revision procedures. Components are either attached with bone cement or press-fit into bone, their surface letting bone affix through ongrowth or ingrowth technologies. The main brands are the Taperloc Hip System, Avenir Complete Hip System, Z1 Hip Implant, Arcos Modular Hip System and G7 Acetabular System, and the ROSA Robot is used in hip procedures too.

S.E.T.

This category bundles sports medicine, biologics, foot and ankle, upper extremities, trauma and craniomaxillofacial and thoracic products. The 2025 mix within it was upper extremities 30 percent of the category's net sales, craniomaxillofacial and thoracic 21 percent, trauma 20 percent, sports medicine 12 percent, foot and ankle 12 percent and biologics 5 percent. Sports medicine repairs soft tissue injuries, mostly knee and shoulder; biologics are early intervention for joint preservation or support during surgery; foot and ankle and upper extremities treat arthritic conditions and fractures; trauma products stabilise broken bones so the body can heal; and craniomaxillofacial and thoracic covers face and skull reconstruction plus products that stabilise the bones of the chest. The main brands include the JuggerKnot Soft Anchor System, Gel-One Cross-linked Hyaluronate, Gorilla Ankle Fracture Plating System, Comprehensive Shoulder, Natural Nail System and SternaLock System, and the ROSA Robot is used in shoulder procedures.

Technology, data, bone cement and surgical

These are marketed collectively as the ZBEdge Platform, which connects the robotic and digital technologies so data is collected before, during and after surgery and fed back to surgeons as insight for decisions on patient care. Bone cement assists implant fixation, and the company sells a range of cements plus the products for mixing and delivering them, alongside a portfolio of surgical solutions for healthcare institutions.

How it reaches the surgeon

Customers are orthopedic surgeons, neurosurgeons and other specialists, healthcare institutions, stocking distributors, healthcare dealers, and purchasing organisations acting as agents, ranging from large multinationals to independent clinicians. There are two selling channels: direct to healthcare institutions such as hospitals and ambulatory surgery centres, and through stocking distributors and dealers. With direct accounts and some dealers the inventory is consigned to sales agents or customers, and consignment sales were approximately 85 percent of net sales in 2025, with no individual customer more than 2 percent. Inventory sits in the company's own warehouses with title to consigned stock retained, so quantities are there when a procedure needs them. Because most sales happen at the time of an elective procedure there are generally no firm orders, and orders usually ship by expedited courier. The field organisation is a network of sales associates, managers and support staff, some employed or contracted by independent distributors and sales agencies.

Manufacturing

Products are made at various sites, with some manufacturing outsourced to qualified suppliers. The plants use a cellular production concept and a continuous improvement philosophy driven by Lean and Six Sigma, aimed at product quality, shorter lead times and capacity optimisation, and at several sites employees are cross-trained across a broad array of operations. Process changes named in the filing include computer-assisted robots and multi-axis grinders for precision polishing, automated manufacturing and inspection, in-sourcing of core products, and negotiated supplier cost reductions. All raw materials and selected components are bought from external suppliers, some from single sources for quality assurance, sole source availability, cost effectiveness or regulatory reasons.

From Zimmer Biomet's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 20 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue8,2327,6797,394+7.2%
Cost of revenue2,4942,1912,084+13.8%
Gross profit5,7385,4875,310+4.6%
Gross margin69.7%71.5%71.8%
Research and development458437459+4.8%
Selling, general and administrative3,2572,9302,839+11.2%
Operating income1,0981,2861,278-14.6%
Operating margin13.3%16.7%17.3%
Pre-tax income8311,0371,067-19.9%
Income tax12613142.2-4.3%
Effective tax rate15.1%12.7%4.0%
Net income7059041,024-22.0%
Net margin8.6%11.8%13.8%
Diluted EPS$3.55$4.43$4.88-19.9%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow1,6971,4991,582+13.2%
Capital expenditure224204291+10.2%
Free cash flow1,4731,2961,290+13.7%
Free cash flow margin17.9%16.9%17.5%
Cash from investing-1,976-888-779
Cash from financing326-484-764
Depreciation and amortisation1,094996952+9.8%
Share-based compensation90.210199.8-10.7%
Buybacks487868692-43.9%
Dividends paid190196201-2.9%
Dividend per share$0.96$0.96$0.960.0%
Diluted shares, weighted199m204m210m-2.6%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity12,69812,46812,480+1.8%
Non-controlling interest8.18.17.70.0%
Debt7,5196,2055,800+21.2%
Operating lease liabilities176190174-7.7%
Other liabilities2,6912,4943,034+7.9%
Total liabilities and equity23,09221,36521,497+8.1%
Fixed assets2,2072,0492,060+7.7%
Goodwill9,9478,9518,818+11.1%
Intangible assets4,7174,5984,856+2.6%
Cash and equivalents592526416+12.6%
Receivables1,7041,4811,442+15.1%
Inventory2,2862,2352,385+2.3%
Other assets1,6381,5261,518+7.3%
Total assets23,09221,36521,497+8.1%

10-K for the year ended 31 December 2025, filed 20 February 2026: the filing.