Zimmer Biomet Falls 1.31% as Trading Volume Surges to 495th Rank Analysts Diverge on Earnings and Revenue Outlook

Market Snapshot

Zimmer Biomet (ZBH) fell 1.31% on January 9, 2026, closing at $92.67, despite a 42.91% surge in trading volume to $0.22 billion, which ranked the stock 495th in market activity. The decline came after mixed analyst sentiment and a quarterly earnings report that showed a $1.90 earnings-per-share (EPS) beat of estimates but revenue slightly below expectations. Institutional investors, including Sivik Global Healthcare and Gries Financial LLC, increased stakes in the stock during the third quarter, while Evercore ISI raised its price target to $120, signaling optimism about the firm’s long-term prospects.

Key Drivers

The stock’s performance reflects a tug-of-war between positive earnings surprises and lingering concerns over revenue growth. Zimmer Biomet reported Q3 2025 EPS of $1.90, surpassing analyst forecasts by $0.02, and maintained a 9.6% year-over-year revenue increase to $2.0 billion. However, the revenue figure fell short of the $2.01 billion consensus estimate, raising questions about the company’s ability to sustain momentum in its core orthopedic reconstructive market. The firm also provided FY2025 guidance of $8.10–$8.30 EPS, aligning with analysts’ $8.22 average forecast but failing to excite investors seeking stronger upside.

Analyst activity has been a key factor in shaping market sentiment. Evercore ISI upgraded ZBH to “Outperform” with a $120 price target, the highest among the 26 analysts surveyed, while UBS Group and Barclays cut their targets, reflecting divergent views on the company’s strategic direction. BTIG Research maintained a “Buy” rating with a $112 price target, implying a 20.67% upside from the recent close. Meanwhile, Weiss Ratings and JP Morgan issued “Hold” or “Neutral” assessments, underscoring uncertainty about Zimmer Biomet’s ability to outperform competitors in the robotic surgery sector, where Intuitive Surgical remains dominant.

Institutional buying has added a layer of support to the stock. Sivik Global Healthcare acquired a $3.94 million position, accounting for 1.1% of its portfolio, while Gries Financial LLC increased its holdings by 30.4% in the third quarter. These moves highlight confidence in Zimmer Biomet’s market position despite its recent underperformance. The firm’s debt-to-equity ratio of 0.59 and a 1.0% dividend yield also appeal to income-focused investors, though the stock’s beta of 0.62 suggests lower volatility compared to the broader market.

The broader healthcare sector’s dynamics further complicate the outlook. While Zimmer Biomet’s focus on musculoskeletal solutions positions it to benefit from aging demographics and rising demand for joint replacement surgeries, competition in robotic-assisted procedures remains fierce. Analysts noted that Intuitive Surgical’s dominance in this space could limit Zimmer Biomet’s growth potential unless it accelerates innovation or acquires new technologies. Additionally, the firm’s spinoff of its dental and spine businesses in 2022 has narrowed its revenue streams, making it more reliant on large joint replacements, which account for two-thirds of total sales.

Despite these challenges, the consensus analyst rating of “Hold” and an average price target of $108.30 indicate a guarded optimism. The stock’s current price of $92.67 implies a potential 10.45% upside based on analyst expectations, though GuruFocus’ intrinsic value estimate of $138.46 suggests a more bullish view. The mixed signals from Wall Street underscore the importance of upcoming earnings reports and strategic announcements, as investors weigh Zimmer Biomet’s ability to navigate sector headwinds and capitalize on its market leadership in orthopedic reconstruction.