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Zimmer Biomet's ZBH fourth-quarter 2025 performance was driven by its market expansion efforts. The company’s robust Knee business looks promising for growth. Meanwhile, a dull macroeconomic scenario and unfavorable foreign exchange remain concerning for ZBH’s operations.
In the past year, this Zacks Rank #3 (Hold) company’s shares have lost 12.1% against 10.6% growth of the industry. The S&P 500 composite rose 8.9% during the same time frame.
The leading musculoskeletal healthcare company has a market capitalization of $22.25 billion. Zimmer Biomet beat on earnings in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 1.28%.
Factors Benefiting the ZBH Stock
Strong Prospects in Knee Business: Zimmer Biomet is focusing on the expansion of the ROSA Robotic Platform combined with its Persona cementless Knee. ZBH expects ROSA and Persona cementless together will enhance its robotics and cementless penetration at a rapid pace.
In 2024, the U.S. portfolio of Zimmer Biomet was strengthened with the approvals of the Oxford Partial Cementless Knee. Internationally, Zimmer Biomet secured CE mark approval for Persona Revision in late 2024. Already established as the leading revision knee implant in the United States, this product is projected to drive sales growth across the market of Europe in 2025.
Solid Market Expansion Strategies: The company is witnessing strong market share gains within the reconstructive Knees and Hips company in key geographies in recent times despite macroeconomic challenges. The fourth quarter of 2024 marks the 12th consecutive quarter in which Zimmer Biomet's revenues have grown mid-single digit or above.
Zimmer Biomet recently announced a four-point plan across the three key priority areas. The first priority, People and Culture, focuses on ensuring the right talent is in the right roles. The second priority, Operational Excellence, is aimed at enhancing performance in the critical U.S. market. The company is sharpening its focus on S.E.T., optimizing go-to-market strategy across key franchises, driving productivity and investing in top talent. Additionally, Zimmer Biomet is expanding capabilities and partnerships in the Ambulatory Surgery Center space, reinforcing its commitment to portfolio growth.
The third priority, Innovation and Diversification, focuses on an ambitious pipeline of more than 50 new product launches in the next 36 months.
Factors Weighing on the Zimmer Biomet Stock
Macroeconomic Concerns: The ongoing industry-wide trend of staffing shortages and supply chain-related hazards is denting the growth of Zimmer Biomet. Added to this, the rise in central bank policy rates to fight inflation, along with the gradual withdrawal of fiscal policies amid high debt, continues to dent economic growth, impacting the overall market situation for Zimmer Biomet.