April 28 (Reuters) – Zimmer Biomet on Tuesday raised its 2026 adjusted profit forecast after reporting better-than-expected quarterly results, helped by strong demand for its medical devices and new product launches.
The company also announced Chief Financial Officer Suketu Upadhyay’s departure. It has appointed insider Paul Stellato as interim CFO while searching for a permanent successor.
The medical device maker is accelerating a transition to a more dedicated and specialized U.S. sales channel, aiming to complete the majority of this transition by the end of 2027.
Revenue from the U.S., which represented about 58% of Zimmer’s total net sales in 2025, increased by 8.6% to $1.21 billion.
“Given the nervousness around potential impact from US sales force reorg, a clean organic print was welcome,” an Evercore ISI analyst said in a note.
The segment that offers products for sports injuries and fractures increased 19.5% to $562.2 million in the quarter.
Revenue from the hips business rose 5.7% to $524.1 million, while the knee business generated $828.6 million, up 4.5%.
“We are off to a solid start to the year – strategically, operationally and financially,” said CEO Ivan Tornos.
The medical device maker anticipates full-year adjusted earnings of $8.40 to $8.55 per share, up from the previous forecast of $8.30 to $8.45. Analysts had expected a forecast of around $8.40 per share, according to IBES data.
Shares, however, were down roughly 2% premarket.
First-quarter adjusted earnings were $2.09 per share, exceeding estimates of $1.86, with revenue reaching $2.087 billion, surpassing the expected $2.07 billion.
(Reporting by Sahil Pandey in Bengaluru; Editing by Vijay Kishore)
