Globus Medical Inc - A (NYSE:GMED), a prominent player in the musculoskeletal technology space, closed its fiscal 2025 with a robust fourth-quarter performance that exceeded analyst expectations on both the top and bottom lines. The company's latest earnings report, released on February 24, 2026, showcased significant sales growth and a sharp rise in profitability, signaling successful execution and integration of recent acquisitions.
Earnings and Revenue Versus Estimates
The company's fourth-quarter results delivered a clear beat against Wall Street forecasts. Globus Medical reported worldwide net sales of $826.4 million, a substantial 25.7% increase compared to the same period last year. This figure came in ahead of the analyst consensus estimate of approximately $815.1 million.
The earnings performance was even more pronounced. On a non-GAAP basis, which excludes items like amortization and acquisition-related costs, diluted earnings per share (EPS) reached $1.28. This represents a 52.1% year-over-year increase and solidly surpassed the analyst estimate of $1.17 per share.
The key quarterly figures compared to expectations are:
- Reported Revenue: $826.4 million
- Vs. Estimate: ~$815.1 million
- Result: Beat
- Reported Non-GAAP EPS: $1.28
- Vs. Estimate: $1.17
- Result: Beat
Market Reaction and Price Action
Following the earnings announcement, the market's immediate reaction appears measured. In after-hours trading, the stock showed no significant movement. Over recent weeks, the stock has experienced modest volatility, with a slight gain over the past two weeks but a marginal dip over the past month. This tempered reaction suggests that while the strong quarterly beat is positive, investors may have already priced in some of the company's growth trajectory or are focusing intently on the forward-looking guidance.
Key Highlights from the Earnings Report
Beyond the headline numbers, the press release underscored several important themes for Globus Medical:
- Strong Organic Growth: Excluding the contribution from the recently acquired Nevro business, the company's base business net sales grew 10.6% year-over-year in the quarter to $726.7 million. For the full year, base business sales increased 5.0%.
- Significant Margin Expansion: The company highlighted "meaningful margin expansion" driven by disciplined execution. This is evidenced by the leap in GAAP operating income to $169.3 million in Q4, up from $60.3 million in the prior-year period.
- Successful Integration: Management, including CEO Keith Pfeil and CFO Kyle Kline, emphasized the value created through the successful integration of prior acquisitions NuVasive and Nevro. The Nevro acquisition contributed $99.7 million to the quarter's sales increase.
- Raised Forward Guidance: For the full year 2026, the company reaffirmed its revenue guidance range of $3.18 to $3.22 billion. Notably, it raised the midpoint of its non-GAAP EPS guidance to a new range of $4.40 to $4.50, up from the previous range of $4.30 to $4.40.
Outlook and Analyst Expectations
The company's updated 2026 guidance provides a benchmark against current analyst projections. Globus Medical's revenue guidance midpoint of $3.20 billion is slightly below the current analyst sales estimate of approximately $3.23 billion. However, the raised EPS guidance range, with a midpoint of $4.45, positions the company to meet or exceed the current analyst EPS estimate of $4.35 for the full year 2026. This upward revision in profit guidance likely serves as a positive signal to investors about the company's confidence in sustaining operational leverage.
For a detailed look at upcoming earnings dates and a comprehensive history of analyst estimates, you can review the information available on the GMED earnings and estimates page.
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