Globus Medical (NYSE:GMED) Releases Earnings Results, Beats Expectations By $0.24 EPS

Key Points

• Globus Medical beat quarterly expectations: EPS came in at $1.34 versus the $1.10 consensus, while revenue reached $789.6 million, up 5.9% year over year.
• Profit outlook improved: Adjusted gross margin expanded to 69.4%, EBITDA margin reached 35.4%, and fiscal 2026 non-GAAP EPS guidance was raised to $4.95–$5.05 while revenue guidance remained $3.18–$3.22 billion.
• Execution risks remain: Nevro sales fell 14.3% and enabling-technology revenue declined 25.8%, creating potential headwinds for second-half revenue despite strong growth in spine and trauma products.

Globus Medical (NYSE:GMED - Get Free Report) released its quarterly earnings data on Thursday. The medical device company reported $1.34 earnings per share for the quarter, beating analysts' consensus estimates of $1.10 by $0.24, FiscalAI reports. The company had revenue of $789.61 million during the quarter, compared to analysts' expectations of $782.88 million. Globus Medical had a net margin of 17.02% and a return on equity of 14.73%. The firm's revenue for the quarter was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.86 earnings per share. Globus Medical updated its FY 2026 guidance to 4.950-5.050 EPS.

Here are the key takeaways from Globus Medical's conference call:

• Positive Sentiment: Q2 revenue rose 5.9% to $789.6 million, while base-business revenue excluding Nevro increased 9%; adjusted EPS jumped 56% to a record $1.34.
• Positive Sentiment: U.S. spine grew 7%, international spine rose 14% as reported, and trauma increased 31%, supported by new products, competitive sales-force recruiting, improved inventory availability, and continued market-share gains.
• Positive Sentiment: Adjusted gross margin expanded 200 basis points to 69.4% and adjusted EBITDA margin reached 35.4%; management raised 2026 non-GAAP EPS guidance to $4.95-$5.05 while maintaining revenue guidance of $3.18-$3.22 billion.
• Negative Sentiment: Nevro sales declined 14.3% year over year and fell sequentially, while enabling-technology revenue dropped 25.8% as the company shifts toward leasing and other flexible capital-acquisition models. Management expects Nevro trial volumes to recover by late Q4, but identified both businesses as risks to second-half revenue.
• Positive Sentiment: Globus repurchased $136.1 million of shares in Q2 and has $253.9 million remaining under its authorization; it also expects to launch patient-specific SCRIPT lumbar spacers and rods in Q3, adding to a pipeline of more than 60 development projects.

Globus Medical Trading Up 1.4%

NYSE:GMED traded up $1.12 during midday trading on Friday, reaching $82.20. The company had a trading volume of 3,299,652 shares, compared to its average volume of 1,551,427. The firm has a market capitalization of $11.16 billion, a price-to-earnings ratio of 21.02, a PEG ratio of 1.67 and a beta of 0.95. The stock's fifty day simple moving average is $79.33 and its 200-day simple moving average is $85.23. Globus Medical has a 12-month low of $54.15 and a 12-month high of $101.40.

More Globus Medical News

Here are the key news stories impacting Globus Medical this week:

• Positive Sentiment: Q2 results exceeded expectations: Globus Medical reported adjusted earnings of $1.34 per share, ahead of the approximately $1.10–$1.12 consensus, while revenue reached $789.6 million versus estimates of $782.9 million. Revenue increased 5.9% year over year, and EPS rose substantially from $0.86 in the prior-year quarter. Globus Medical Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Profit outlook improved: Management raised its fiscal 2026 EPS guidance to $4.95–$5.05, above the prior analyst consensus of $4.74. The earnings call highlighted margin gains, spine-market growth and continued benefits from operating leverage. GMED Q2 Earnings Call Highlights
• Positive Sentiment: Analyst support remains favorable: TD Cowen maintained a Buy rating and a $115 price target, citing reaccelerating spine growth, strong earnings power and robust research-and-development investment. Globus Medical Earns Buy Rating
• Neutral Sentiment: Sales outlook was unchanged: Globus Medical kept fiscal 2026 revenue guidance near $3.2 billion, roughly in line with consensus. This limits the upside from the earnings report but indicates management is maintaining its growth expectations.
• Negative Sentiment: Some execution risks remain: Management cited risks involving Nevro and Enabling Technologies, contributing to caution around revenue growth. Wells Fargo also lowered its price target from $103 to $99, although it retained an Overweight rating. Wells Fargo Analyst Action

Wall Street Analysts Forecast Growth

GMED has been the topic of a number of analyst reports. Weiss Ratings reiterated a "hold (c+)" rating on shares of Globus Medical in a research report on Monday, July 13th. UBS Group assumed coverage on shares of Globus Medical in a report on Tuesday, July 28th. They set a "neutral" rating and a $82.00 price target for the company. Wall Street Zen lowered shares of Globus Medical from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 9th. Piper Sandler lowered their price objective on Globus Medical from $115.00 to $100.00 and set an "overweight" rating for the company in a research report on Monday, June 15th. Finally, Zacks Research cut Globus Medical from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $101.77.

Insider Activity

In other news, Director David D. Davidar sold 25,000 shares of the business's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $80.76, for a total transaction of $2,019,000.00. Following the completion of the transaction, the director directly owned 510,175 shares of the company's stock, valued at approximately $41,201,733. The trade was a 4.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 18.38% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in GMED. AQR Capital Management LLC increased its position in shares of Globus Medical by 45.9% in the 1st quarter. AQR Capital Management LLC now owns 22,510 shares of the medical device company's stock valued at $1,622,000 after purchasing an additional 7,086 shares during the last quarter. Integrated Wealth Concepts LLC increased its holdings in Globus Medical by 33.0% in the first quarter. Integrated Wealth Concepts LLC now owns 4,375 shares of the medical device company's stock valued at $320,000 after buying an additional 1,085 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Globus Medical by 38.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,649 shares of the medical device company's stock valued at $2,228,000 after buying an additional 8,540 shares during the last quarter. Jones Financial Companies Lllp raised its stake in Globus Medical by 237.3% in the first quarter. Jones Financial Companies Lllp now owns 850 shares of the medical device company's stock valued at $62,000 after buying an additional 598 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Globus Medical by 8.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 347,527 shares of the medical device company's stock valued at $25,439,000 after buying an additional 28,027 shares in the last quarter. Hedge funds and other institutional investors own 95.16% of the company's stock.

About Globus Medical

Globus Medical, Inc NYSE: GMED is a leading medical device company specializing in musculoskeletal solutions for spine and orthopaedic applications. Founded in 2003 by David C. Paul and headquartered in Audubon, Pennsylvania, the company develops, manufactures and markets implantable devices and surgical instruments designed to treat spinal disorders and promote bone healing. Its product portfolio encompasses solutions for minimally invasive and open surgical procedures, including interbody fusion devices, pedicle screw systems, and biologics used to enhance fusion outcomes.

In addition to its core spine business, Globus Medical has expanded into robotics and navigation systems to support precision and efficiency in the operating room.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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