ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings is attractive fundamentally because it remains the leading pure-play musculoskeletal company with a durable orthopedic franchise, a majority of revenue still tied to reconstructive implants, and strong exposure to large-joint markets in the United States, Europe, and Japan. Its recent 1Q26 results reinforce that strength, with net sales of $2,086.7 million rising 9.3% year over year reported, 6.8% on a constant-currency basis, and 2.9% organically, while EPS of $2.09 beat expectations by roughly 12%, helped by a temporary tariff-related benefit that also supported gross margin. The outlook is further supported by the Biomet acquisition’s expanded market presence, the April 2025 Paragon 28 acquisition, healthy global elective procedure volumes, and a transformation that is improving the sales channel mix and positioning the company for better growth and margin execution as the U.S. direct model progresses toward completion by EOY 2027.

Zimmer Biomet Holdings is viewed negatively because, despite a long-term recovery plan, its 2026 guidance implies only low-single-digit revenue and EPS growth, while the company itself acknowledges that its sales force transformation and go-direct transition will not meaningfully support the business until 2027. The excerpts also point to fundamental execution and margin challenges, including the loss of two large U.S. knee accounts, the Kaiser strike on the West Coast, phase-out of legacy NexGen products, and rising industry cost pressures that could keep earnings power constrained even if procedure trends improve. As a result, the stock deserves a discount to peers because Zimmer Biomet’s growth profile appears slower and less levered than large-cap medtech competitors, with fewer offsets to protect profitability and a more uncertain path to sustained EPS expansion.