Robotics Lift Zimmer Biomet as Knees Lag
Orthopedic suppliers and distributors should watch the shift toward robotic and data-driven surgical products as knee demand softens.
Updated on Nov. 4, 2026 in Corporate Finance
Zimmer Biomet reported third-quarter adjusted earnings of $1.90 per share, above the $1.88 analyst estimate, on sales of $2.063 billion versus expectations of $2.040 billion. The orthopedic device maker also raised its fiscal 2026 adjusted earnings guidance to $8.50-$8.60 per share, a change operators in medical device distribution and surgical supply should track.
Why it matters
The beat came despite ongoing pressure in the knee business and a deliberate consolidation of the company's China distributor network, which weighed on reported growth. Growth was instead carried by hips, the SET businesses, and technology and data, showing where hospital and surgeon demand is currently concentrated.
Reported quarterly sales growth was 3.1% and 3.7% in constant currency, rising to 4.7% excluding the China distributor consolidation, with technology and data sales up over 30% in the U.S. Fiscal 2026 adjusted earnings guidance moved up to $8.50-$8.60 per share from $8.47-$8.59, and sales guidance narrowed to $8.594 billion-$8.635 billion.
The players
Zimmer Biomet
A large orthopedic medical device manufacturer that sells hip, knee, and surgical products along with robotic and data-driven surgical technology to hospitals and surgeons.
Paragon 28
An orthopedic foot and ankle device company that Zimmer Biomet acquired, contributing growth of more than 18% in the quarter.
The details
Growth came from the hip segment, which rose 7% globally, the SET businesses, up 7.1%, and technology and data, bone cement and surgical, up 13%. Robotic offerings including ROSA with Optymyze and TMINI drove demand in technology and data, while the Paragon 28 acquisition grew more than 18%. Knee sales, by contrast, remain under near-term pressure that partially offset gains elsewhere.
Timeline
Third quarter of fiscal 2026: Zimmer Biomet reported earnings and sales that beat analyst estimates.
November 4, 2026: Shares reached a 52-week high following the earnings beat.
Fiscal 2026: The company raised its full-year adjusted earnings and sales guidance.
Market Landscape
The quarter underscores a shift in orthopedic demand toward robotic-assisted surgery and data-linked systems, with technology and data sales rising over 30% in the U.S. Zimmer Biomet's knee weakness, set against strength in hips and robotics, shows how unevenly growth is spreading across the company's product lines.
Operators in medical device distribution and hospital procurement should watch how the knee slowdown affects supplier pricing and product availability over the coming quarters. Businesses that sell alongside orthopedic robotics may see continued demand from surgeons and hospitals adopting data-driven systems.
The takeaway
The earnings beat and raised guidance show that growth in robotics and technology is offsetting pressure in knees, so operators should monitor whether knee performance recovers in future quarters. Businesses in the orthopedic supply chain should review how their hospital and surgeon customers are shifting spending toward robotic and data-enabled products.
Further reading
For broader context on how public companies report and guide results, explore Corporate Finance coverage.
