ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings demonstrated a positive upward trajectory in the orthopedic reconstructive market, with the company's global market share increasing by 20 basis points year-over-year to 32.9% in 4Q25, alongside notable improvements in knee and hip shares. Specifically, knee sales reached $911 million, exceeding consensus estimates of $890 million and reflecting a robust growth rate of 6.9%, while hip sales totaled $555 million, surpassing expectations and growing 4.9%. Additionally, the company's operational margin (OM) expansion to 28.6% for FY24 suggests enhanced profitability amidst a competitive landscape.

Zimmer Biomet Holdings has experienced a consistent decline in organic revenue growth over the past eight quarters, with projections indicating this trend will continue into 2026 and possibly beyond. The company's recent acquisition of Paragon 28 has underperformed expectations, prompting a downward revision of its FY26 contribution outlook and contributing to an overall revenue growth forecast of 2% or less. Additionally, the operating margin fell by 170 basis points year-over-year, driven by increasing selling, general, and administrative expenses, which has raised concerns regarding profitability alongside stagnating sales growth in the orthopedic market.