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Zimmer Biomet Financials

ZBH
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Zimmer Biomet (ZBH) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 53 / 100
Financial Profile 53/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
52

Zimmer Biomet has an operating margin of 13.3%, meaning the company retains $13 of operating profit per $100 of revenue. This results in a moderate score of 52/100, indicating healthy but not exceptional operating efficiency. This is down from 16.7% the prior year.

Growth
45

Zimmer Biomet's revenue grew 7.2% year-over-year to $8.2B, a solid pace of expansion. This earns a growth score of 45/100.

Leverage
91

Zimmer Biomet carries a low D/E ratio of 0.55, meaning only $0.55 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 91/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
36

Zimmer Biomet's current ratio of 1.98 indicates adequate short-term liquidity, earning a score of 36/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
70

Zimmer Biomet converts 17.9% of revenue into free cash flow ($1.5B). This strong cash generation earns a score of 70/100.

Returns
23

Zimmer Biomet generates a 5.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 23/100. This is down from 7.2% the prior year.

Altman Z-Score Grey Zone
2.38

Zimmer Biomet scores 2.38, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.

Piotroski F-Score Neutral
5/9

Zimmer Biomet passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed
2.41x

For every $1 of reported earnings, Zimmer Biomet generates $2.41 in operating cash flow ($1.7B OCF vs $705.1M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Adequate
3.8x

Zimmer Biomet earns $3.8 in operating income for every $1 of interest expense ($1.1B vs $292.8M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.

Key Financial Metrics

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Earnings & Revenue

Revenue
$8.2B
YoY+7.2%
5Y CAGR+6.1%
10Y CAGR+3.2%

Zimmer Biomet generated $8.2B in revenue in fiscal year 2025. This represents an increase of 7.2% from the prior year.

EBITDA
$2.2B
YoY-3.9%
5Y CAGR+17.4%
10Y CAGR+6.4%

Zimmer Biomet's EBITDA was $2.2B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 3.9% from the prior year.

Net Income
$705.1M
YoY-22.0%
10Y CAGR+17.0%

Zimmer Biomet reported $705.1M in net income in fiscal year 2025. This represents a decrease of 22.0% from the prior year.

EPS (Diluted)
$3.55
YoY-19.9%
10Y CAGR+16.5%

Zimmer Biomet earned $3.55 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 19.9% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$1.5B
YoY+13.7%
5Y CAGR+6.2%
10Y CAGR+8.0%

Zimmer Biomet generated $1.5B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 13.7% from the prior year.

Cash & Debt
$591.9M
YoY+12.6%
5Y CAGR-5.2%
10Y CAGR-8.6%

Zimmer Biomet held $591.9M in cash against $6.9B in long-term debt as of fiscal year 2025.

Dividends Per Share
$0.96
YoY+0.0%
5Y CAGR+0.0%
10Y CAGR+0.9%

Zimmer Biomet paid $0.96 per share in dividends in fiscal year 2025. This represents an increase of 0.0% from the prior year.

Shares Outstanding
196M
YoY-1.7%
5Y CAGR-1.2%

Zimmer Biomet had 196M shares outstanding in fiscal year 2025. This represents a decrease of 1.7% from the prior year.

Margins & Returns

Gross Margin
69.7%
YoY-1.7pp
5Y CAGR-0.5pp
10Y CAGR-0.3pp

Zimmer Biomet's gross margin was 69.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.7 percentage points from the prior year.

Operating Margin
13.3%
YoY-3.4pp
5Y CAGR+12.0pp
10Y CAGR+5.5pp

Zimmer Biomet's operating margin was 13.3% in fiscal year 2025, reflecting core business profitability. This is down 3.4 percentage points from the prior year.

Net Margin
8.6%
YoY-3.2pp
5Y CAGR+10.8pp
10Y CAGR+6.1pp

Zimmer Biomet's net profit margin was 8.6% in fiscal year 2025, showing the share of revenue converted to profit. This is down 3.2 percentage points from the prior year.

Return on Equity
5.5%
YoY-1.7pp
5Y CAGR+6.7pp
10Y CAGR+4.1pp

Zimmer Biomet's ROE was 5.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.7 percentage points from the prior year.

Capital Allocation

R&D Spending
$458.5M
YoY+4.8%
5Y CAGR+7.3%
10Y CAGR+5.5%

Zimmer Biomet invested $458.5M in research and development in fiscal year 2025. This represents an increase of 4.8% from the prior year.

Share Buybacks
$487.0M
YoY-43.9%
10Y CAGR+12.5%

Zimmer Biomet spent $487.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 43.9% from the prior year.

Capital Expenditures
$224.5M
YoY+10.2%
5Y CAGR+14.9%
10Y CAGR+3.0%

Zimmer Biomet invested $224.5M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 10.2% from the prior year.

ZBH Income Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Revenue $2.2B+12.1% $2.0B-3.7% $2.1B+8.8% $1.9B-5.6% $2.0B+10.9% $1.8B-6.1% $1.9B+2.8% $1.9B
Cost of Revenue $792.4M+41.7% $559.3M-5.6% $592.2M+7.7% $549.8M-6.3% $586.7M+8.9% $538.6M-2.7% $553.6M+8.1% $512.3M
Gross Profit $1.5B+0.6% $1.4B-2.9% $1.5B+9.3% $1.4B-5.4% $1.4B+11.7% $1.3B-7.4% $1.4B+0.8% $1.4B
R&D Expenses $118.7M+2.4% $115.9M+2.3% $113.3M+2.4% $110.6M+1.9% $108.5M-2.8% $111.6M+2.0% $109.4M+1.4% $107.9M
SG&A Expenses $872.2M+7.5% $811.4M-0.4% $814.8M+7.4% $758.8M+1.6% $746.8M+5.2% $709.7M-3.7% $737.1M+0.1% $736.2M
Operating Income $154.5M-56.0% $351.3M+17.1% $300.0M+2.6% $292.3M-24.9% $389.0M+39.2% $279.5M-20.4% $351.3M+32.1% $265.9M
Interest Expense -$71.9M+4.6% -$75.4M+4.9% -$79.3M-19.8% -$66.2M-6.9% -$61.9M-14.0% -$54.3M-6.3% -$51.1M-0.8% -$50.7M
Income Tax -$40.0M-183.3% $48.0M-32.6% $71.2M+53.1% $46.5M-4.9% $48.9M+358.7% -$18.9M-132.0% $59.1M+39.7% $42.3M
Net Income $139.4M-39.6% $230.9M+51.1% $152.8M-16.0% $182.0M-24.0% $239.5M-3.9% $249.1M+2.6% $242.8M+40.8% $172.4M
EPS (Diluted) N/A $1.16+50.6% $0.77-15.4% $0.91 N/A $1.23+4.2% $1.18+40.5% $0.84

ZBH Balance Sheet

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Total Assets $23.1B-1.7% $23.5B+2.7% $22.9B+3.1% $22.2B+3.8% $21.4B-1.6% $21.7B+0.9% $21.5B+0.3% $21.5B
Current Assets $5.1B-12.3% $5.8B+15.5% $5.1B-9.6% $5.6B+19.7% $4.7B-4.0% $4.9B+4.8% $4.6B+0.2% $4.6B
Cash & Equivalents $591.9M-54.2% $1.3B+132.1% $556.9M-59.8% $1.4B+163.5% $525.5M-7.6% $569.0M+35.4% $420.1M+6.9% $393.0M
Inventory $2.3B-7.9% $2.5B+1.2% $2.5B+9.4% $2.2B+0.4% $2.2B-5.6% $2.4B-0.1% $2.4B-0.8% $2.4B
Accounts Receivable $1.7B+6.6% $1.6B-0.8% $1.6B+5.1% $1.5B+3.6% $1.5B-0.1% $1.5B+4.5% $1.4B-2.0% $1.4B
Goodwill $9.9B+2.5% $9.7B-0.1% $9.7B+8.0% $9.0B+0.4% $9.0B+0.4% $8.9B+1.0% $8.8B+0.4% $8.8B
Total Liabilities $10.4B-3.1% $10.7B+3.8% $10.3B+5.6% $9.8B+10.0% $8.9B-4.8% $9.3B+6.5% $8.8B-0.9% $8.8B
Current Liabilities $2.6B+7.5% $2.4B-11.0% $2.7B+17.6% $2.3B-6.4% $2.5B-31.4% $3.6B-1.0% $3.6B+29.0% $2.8B
Long-Term Debt $6.9B-7.7% $7.5B+11.3% $6.8B+2.7% $6.6B+23.1% $5.3B+12.7% $4.7B+19.7% $4.0B-18.0% $4.8B
Total Equity $12.7B-0.5% $12.8B+1.8% $12.5B+1.0% $12.4B-0.6% $12.5B+0.8% $12.4B-2.9% $12.7B+1.1% $12.6B
Retained Earnings $11.6B+0.8% $11.5B+1.6% $11.3B+0.9% $11.2B+1.2% $11.1B+1.8% $10.9B+1.9% $10.7B+1.8% $10.5B

ZBH Cash Flow Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Operating Cash Flow $517.4M+23.6% $418.7M+10.7% $378.2M-1.2% $382.8M-24.4% $506.3M+28.0% $395.7M+7.1% $369.4M+62.0% $228.0M
Capital Expenditures $74.8M+36.0% $55.0M+9.8% $50.1M+12.3% $44.6M-13.4% $51.5M+15.7% $44.5M-15.6% $52.7M-4.4% $55.1M
Free Cash Flow $442.6M+21.7% $363.7M+10.9% $328.1M-3.0% $338.2M-25.6% $454.8M+29.5% $351.2M+10.9% $316.7M+83.2% $172.9M
Investing Cash Flow -$322.0M-97.2% -$163.3M+88.2% -$1.4B-1206.0% -$106.0M+63.6% -$291.2M-88.0% -$154.9M+37.3% -$247.0M-26.7% -$195.0M
Financing Cash Flow -$897.0M-285.4% $483.8M+195.4% $163.8M-71.5% $575.4M+339.2% -$240.6M-136.1% -$101.9M-10.9% -$91.9M-83.4% -$50.1M
Dividends Paid $47.5M0.0% $47.5M0.0% $47.5M-0.6% $47.8M-0.4% $48.0M-2.4% $49.2M-0.4% $49.4M0.0% $49.4M
Share Buybacks $250.0M $0-100.0% $7.2M-96.9% $229.8M+218.3% $72.2M-87.9% $596.3M+594.2% $85.9M-24.4% $113.6M

ZBH Financial Ratios

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Gross Margin 64.7%-7.4pp 72.0%+0.6pp 71.5%+0.3pp 71.2%+0.2pp 71.0%+0.5pp 70.5%-1.0pp 71.5%-1.4pp 72.9%
Operating Margin 6.9%-10.7pp 17.5%+3.1pp 14.4%-0.9pp 15.3%-3.9pp 19.2%+3.9pp 15.3%-2.8pp 18.1%+4.0pp 14.1%
Net Margin 6.2%-5.3pp 11.5%+4.2pp 7.4%-2.2pp 9.5%-2.3pp 11.8%-1.8pp 13.7%+1.2pp 12.5%+3.4pp 9.1%
Return on Equity 1.1%-0.7pp 1.8%+0.6pp 1.2%-0.2pp 1.5%-0.4pp 1.9%-0.1pp 2.0%+0.1pp 1.9%+0.5pp 1.4%
Return on Assets 0.6%-0.4pp 1.0%+0.3pp 0.7%-0.2pp 0.8%-0.3pp 1.1%-0.0pp 1.1%+0.0pp 1.1%+0.3pp 0.8%
Current Ratio 1.98-0.4 2.43+0.6 1.87-0.6 2.44+0.5 1.91+0.5 1.36+0.1 1.29-0.4 1.66
Debt-to-Equity 0.55-0.0 0.59+0.0 0.540.0 0.53+0.1 0.43+0.0 0.38+0.1 0.31-0.1 0.38
FCF Margin 19.7%+1.6pp 18.2%+2.4pp 15.8%-1.9pp 17.7%-4.8pp 22.5%+3.2pp 19.3%+2.9pp 16.3%+7.2pp 9.2%

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Frequently Asked Questions

Zimmer Biomet (ZBH) reported $8.2B in total revenue for fiscal year 2025. This represents a 7.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Zimmer Biomet (ZBH) revenue grew by 7.2% year-over-year, from $7.7B to $8.2B in fiscal year 2025.

Yes, Zimmer Biomet (ZBH) reported a net income of $705.1M in fiscal year 2025, with a net profit margin of 8.6%.

Zimmer Biomet (ZBH) reported diluted earnings per share of $3.55 for fiscal year 2025. This represents a -19.9% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Zimmer Biomet (ZBH) had EBITDA of $2.2B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Zimmer Biomet (ZBH) had $591.9M in cash and equivalents against $6.9B in long-term debt.

Zimmer Biomet (ZBH) had a gross margin of 69.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Zimmer Biomet (ZBH) had an operating margin of 13.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Zimmer Biomet (ZBH) had a net profit margin of 8.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, Zimmer Biomet (ZBH) paid $0.96 per share in dividends during fiscal year 2025.

Zimmer Biomet (ZBH) has a return on equity of 5.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Zimmer Biomet (ZBH) generated $1.5B in free cash flow during fiscal year 2025. This represents a 13.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Zimmer Biomet (ZBH) generated $1.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Zimmer Biomet (ZBH) had $23.1B in total assets as of fiscal year 2025, including both current and long-term assets.

Zimmer Biomet (ZBH) invested $224.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Zimmer Biomet (ZBH) invested $458.5M in research and development during fiscal year 2025.

Yes, Zimmer Biomet (ZBH) spent $487.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Zimmer Biomet (ZBH) had 196M shares outstanding as of fiscal year 2025.

Zimmer Biomet (ZBH) had a current ratio of 1.98 as of fiscal year 2025, which is generally considered healthy.

Zimmer Biomet (ZBH) had a debt-to-equity ratio of 0.55 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Zimmer Biomet (ZBH) had a return on assets of 3.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Zimmer Biomet (ZBH) has an Altman Z-Score of 2.38, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Zimmer Biomet (ZBH) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Zimmer Biomet (ZBH) has an earnings quality ratio of 2.41x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Zimmer Biomet (ZBH) has an interest coverage ratio of 3.8x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Zimmer Biomet (ZBH) scores 53 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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