Zimmer Biomet Boosts 2025 Outlook on Strong Portfolio Growth and Reduced Tariff Impacts

Zimmer Biomet raised its 2025 profit outlook to 6.7%-7.7%, driven by strong growth in its sports medicine, extremities, and trauma business, and reduced China-related tariff impacts. Profits exceeded $2bn in Q2 2025, a 7% rise from Q2 2024. Shares rose 8.2% in pre-trading following the announcement. Sales in hips and knees product categories climbed by 5.8% and 3.1%, respectively.

Title: Zimmer Biomet Raises 2025 Profit Outlook Amid Strong Sales Growth

Zimmer Biomet Holdings, Inc. has revised its 2025 profit outlook to a range of 6.7% to 7.7%, reflecting robust growth in its sports medicine, extremities, trauma, craniomaxillofacial, and thoracic (S.E.T) business, as well as reduced impacts from China-related tariffs. The company's second-quarter 2025 net sales reached $2.077 billion, a 7% increase from the prior year, driven by a 5.8% rise in hips product sales to $536.1 million and a 3.1% increase in knees sales to $826 million. The S.E.T product category saw the most significant growth, rising by 17.3% to $550.3 million, making it the second-largest business segment after the April acquisition of Paragon 28. Zimmer Biomet's shares surged 8.2% in pre-trading on August 8, following the announcement, closing at $84.26 per share from a previous close of $77.86.

Zimmer Biomet's CFO, Suketu Upadhyay, attributed the improved outlook to successful mitigation strategies that reduced the expected impact of tariffs from $60 million to $40 million. The company's acquisitions, including Paragon 28 and Monogram Technologies, align with its strategy to expand into higher-growth segments through disciplined M&A. CEO Ivan Tornos highlighted the strong adoption of new surgical robotics and product launches in the U.S. and abroad as key drivers of growth.

The company's performance underscores the broader trend of increased demand for orthopedic products, particularly as the aging population in the U.S. supports long-term demand. Zimmer Biomet's innovation-led approach and successful mitigation of tariff impacts position it well to continue driving growth in the medical devices sector.

References
[1] https://finance.yahoo.com/news/zimmer-biomet-raises-2025-outlook-120134189.html
[2] https://medicalbuyer.co.in/zimmer-biomet-q2-2025-net-sales-up-7-to-usd-2-077b/
[3] https://finimize.com/content/zimmer-biomet-lifts-forecast-as-joint-implant-sales-climb