ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings is well positioned by its leadership in reconstructive orthopedics, with two-thirds of revenue tied to large joints and another fourth from extremities, trauma, sports medicine, and related surgical products, giving it deep exposure to durable elective-procedure demand. 1Q26 net sales rose 9.3% reported to $2,086.7 million and EPS of $2.09 beat expectations, helped by stronger margins and the April 2025 Paragon 28 acquisition, whose growth is accelerating toward double-digit levels. Despite near-term knee softness and go-direct transition hurdles, the company’s transformation, product innovation, and reaffirmed 2026 growth guide support confidence that fundamentals can improve further.

Zimmer Biomet Holdings is facing a negative fundamental setup because its core U.S. knee business is still disrupted by the salesforce transition, with management saying the go-direct overhaul will not be completed until the end of 2027 and that related headwinds should persist until then. In the quarter, knees rose only 2% year over year on a constant-currency basis to $828.6 million from $816.2 million, as lost U.S. accounts, the Kaiser strike, and the phase-out of legacy NexGen offset otherwise modest growth. More broadly, the company’s heavy reliance on large joints, combined with underperformance versus the broader U.S. business and ongoing risks from competition, VBP pressure, inflation, and tariffs, supports a cautious outlook.