Zimmer Biomet has lifted its 2025 profit outlook to between 6.7% and 7.7%, up from 5.7% to 8.2%, driven by strong growth in its sports medicine, extremities, trauma, craniomaxillofacial and thoracic (S.E.T) business and reduced China-related tariff impacts.
The company’s profits exceeded $2bn in Q2 2025, denoting a 7% rise from around $1.9bn in Q2 2024, with adjusted profits for 2025 now expected to fall between $8.10 and $8.30 per share, up from $7.90 to $8.10 previously.
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Zimmer’s shares on the New York Stock Exchange were up 8.2% in pre-trading on 8 August to $84.26 per share – up from a close of $77.86 the previous day – following the results’ announcement on 7 August.
Sales in Zimmer’s hips product category climbed by 5.8% in Q2 2025 to $536.1m, while knees rose by 3.1% to $826m in the quarter.
However, the biggest growth in Q2 2025 was seen in Zimmer’s S.E.T product category, rising by 17.3% to $550.3m. According to Zimmer, with the $1.2bn acquisition of foot and ankle trauma specialist Paragon 28 in April, S.E.T is now its second largest business.
Zimmer also acquired orthopaedic robotics company Monogram Technologies for $177m in July. The company said that each acquisition aligns with its continued ambition to progress into higher-growth segments through “disciplined M&A”.
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By GlobalDataRevised headwind on China-related tariffs
Zimmer previously anticipated a $60m-$80m drag on its 2025 operating profits due to the Trump administration’s imposition of tariffs on goods imported from China. However, following what the orthopaedics giant called “successful mitigation” efforts, including supply chain diversification and a reduction in China-based manufacturing activities, it now expects headwinds of $40m.
During a company post-earnings conference call, Zimmer CFO Suketu Upadhyay told investors: “Our tariff assumption is better than we originally expected as we’ve had more time to work through our mitigation strategies, and we’re also seeing lower overall tariff rates than what were originally announced on our first quarter call.”
Boston Scientific also revised its anticipated impact of tariffs in Q2 2025. Last month, Boston CFO John Monson told investors: “Based on the current schedule of expected tariffs, we now anticipate a full-year headwind of about $100m, down from a $200m estimate.”
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