By Sahil Pandey
April 28 (Reuters) – Medical device maker Zimmer Biomet struck a cautious tone on Tuesday, as disruption from a U.S. sales force overhaul and an unchanged revenue outlook overshadowed a profit forecast raise, sending its shares down about 7% in morning trading.
The company raised its 2026 adjusted profit forecast after beating Wall Street estimates for the first quarter, aided by the invalidation of U.S. tariffs and lower restructuring costs compared with the previous year.
However, it left its full‑year organic, constant‑currency revenue growth forecast unchanged at 1% to 3%, saying it was “early in the year” and that 2026 remains a period of transition.
Zimmer Biomet is in the middle of a multi‑year shift to a more dedicated and specialized U.S. sales model, a transition CEO Ivan Tornos said caused modest disruption in the quarter, including the loss of two large customer accounts.
“As strong as the first quarter was, this is a year of transition,” Tornos said, pointing to continued investment in the U.S. commercial channel, changes to distributor structures in some international markets and execution risk tied to a heavy innovation pipeline.
Tornos noted improved productivity in territories that have already transitioned but acknowledged U.S. knee business growth fell short of expectations and needs to be better.
Zimmer Biomet also announced that Chief Financial Officer Suketu Upadhyay will leave the company, with internal executive Paul Stellato appointed interim CFO while a search is conducted.
The company forecast 2026 adjusted earnings of $8.40 to $8.55 per share, up from its prior range of $8.30 to $8.45.
CFO Upadhyay said they benefited from the removal of U.S. tariffs, which added about 20 cents per share to earnings, with about half assumed for the second half of the year.
First‑quarter adjusted earnings were $2.09 per share, topping analysts’ estimates of $1.86, while revenue rose 2.9% on an organic basis to $2.09 billion, also above expectations.
(Reporting by Sahil Pandey in Bengaluru; Editing by Vijay Kishore)
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