Quick Verdict
Globus Medical posted Q2 2026 GAAP EPS of $1.10 and record adjusted EPS of $1.34, while revenue reached $789.6 million, up 5.9%. The adjusted EPS beat consensus, prompting a cautiously positive read; the latest available after-hours quote showed shares down 0.49% following a 1.39% regular-session gain on Friday.
About Globus Medical
Globus Medical, Inc. (NYSE: GMED) is a musculoskeletal technology company headquartered in Audubon, Pennsylvania. Founded in 2003, it develops products and technologies for spine surgery, orthopedic trauma, joint reconstruction, biomaterials, and enabling technologies such as surgical navigation and robotics. Its operating model combines direct commercial coverage with an integrated product and technology portfolio.
As of the latest available market snapshot following the earnings release, Globus had an approximately $11.2 billion market capitalization, traded near $82.35 per share, and had a trailing P/E ratio of approximately 19.0x. The company employs roughly 6,000 people. Globus does not currently pay a regular cash dividend, positioning retained capital toward innovation, acquisitions, and share repurchases.
Top Financial Highlights
- Worldwide net sales reached $789.6 million, up 5.9% year over year and 5.6% in constant currency.
- Revenue excluding the acquired Nevro business rose 9%, indicating stronger underlying base-business momentum than the consolidated figure suggests.
- GAAP net income was $151.6 million, down 25.3% year over year, primarily because Q2 2025 included a $110.5 million Nevro bargain-purchase gain.
- GAAP diluted EPS was $1.10, down 26.2% from $1.49 a year earlier.
- Non-GAAP diluted EPS reached a quarterly record of $1.34, up 55.8% year over year.
- Non-GAAP net income rose to $184.3 million, from $116.8 million in Q2 2025.
- GAAP gross margin increased to 66.8%, while adjusted gross margin expanded 200 basis points to 69.4%.
- Adjusted EBITDA was $279.8 million, producing a 35.4% margin versus 28.0% in the prior-year quarter.
- Musculoskeletal Solutions revenue increased to $763.5 million, up approximately 7.5% year over year.
- Enabling Technologies revenue fell to $26.1 million, down 25.8%, reflecting the company’s shift toward more flexible capital-acquisition models.
- U.S. sales increased 3.0%; international sales grew 18.0% reported and 16.2% in constant currency.
- U.S. Spine grew 7%, and International Spine increased 14% as reported; trauma revenue rose 31% year over year.
- Operating cash flow totaled $412.1 million for the first six months of 2026; Q2 operating cash flow was $209.7 million and free cash flow was $176.6 million.globenewswire+1
- Cash, cash equivalents, and marketable securities were $840.5 million as of June 30, 2026, up from $629.1 million at year-end 2025.
- Globus repurchased $136.1 million of stock during the first half, while full-year 2026 revenue guidance was reaffirmed at $3.18 billion–$3.22 billion and non-GAAP EPS guidance was raised to $4.95–$5.05 from $4.70–$4.80. No standalone Q3 guidance was issued.
Beat or Miss?
| Metric | Reported | Difference/Analysis |
| Revenue | $789.6 million | Beat the $786.9 million consensus estimate by roughly $2.7 million. |
| Non-GAAP diluted EPS | $1.34 | Beat the $1.12 consensus estimate by $0.22, or about 19.6%. |
| GAAP diluted EPS | $1.10 | N/A; comparison is less meaningful because Q2 2025 included a $110.5 million bargain-purchase gain. |
| Adjusted EBITDA margin | 35.40% | Expanded 740 basis points year over year, underlining the benefit of lower integration costs and operating leverage. |
| FY 2026 revenue outlook | $3.18B–$3.22B | Reaffirmed, signaling management did not lift its sales outlook despite the quarterly revenue beat. |
| FY 2026 non-GAAP EPS outlook | $4.95–$5.05 | Raised from $4.70–$4.80, reflecting improved expected profitability and margin performance. |
Globus Medical, Inc. And Subsidiaries Consolidated Statements Of Income
(Source: investors.globusmedical.com)
What Leadership Is Saying
“Momentum continued into the second quarter with 6% overall revenue growth, or 9% growth excluding Nevro, driven by share gains across a majority of our underlying businesses, most notably US Spine, growing 7% and International Spine, growing 14% as-reported and 12% on a constant currency basis.” — Keith Pfeil, President and Chief Executive
“This broad-based growth, paired with adjusted gross margin expansion of 200 basis points compared to the second quarter of the prior year, drove record second quarter non-GAAP net income and diluted earnings per share.” — Kyle Kline, Chief Financial
Historical Performance
| Category | Q2 2026 | Q2 2025 | Change (%) |
| Revenue | $789.6 million | $745.3 million | 5.90% |
| GAAP net income | $151.6 million | $202.8 million | -25.30% |
| GAAP diluted EPS | $1.10 | $1.49 | -26.20% |
| Non-GAAP diluted EPS | $1.34 | $0.86 | 55.80% |
| Total operating costs and expenses* | $607.2 million | $669.2 million | -9.30% |
| Operating income | $182.4 million | $76.1 million | 139.70% |
Includes cost of sales, R&D, SG&A, intangible amortization, acquisition-related costs, and restructuring costs. The sharp GAAP income comparison is distorted by the prior-year Nevro bargain-purchase gain; adjusted earnings and operating income provide a more representative view of the operational improvement.
Competitor Historical Performance
The following comparison uses large orthopedic and musculoskeletal technology peers that reported results for the quarter ended June 30, 2026. Scale, product mix, acquisition accounting, and non-GAAP definitions differ materially across companies.
| Category | Q2 2026 | Q2 2025 | Change (%) |
| Globus Medical revenue | $789.6 million | $745.3 million | 5.90% |
| Globus Medical GAAP net income | $151.6 million | $202.8 million | -25.30% |
| Globus Medical operating costs and expenses | $607.2 million | $669.2 million | -9.30% |
| Stryker revenue | $6.59 billion | $6.02 billion | 9.40% |
| Stryker reported net earnings | $1.28 billion | approximately $884 million | 44.30% |
| Stryker total operating expenses | $2.84 billion | $2.73 billion | 4.10% |
| Zimmer Biomet revenue | $2.18 billion | $2.08 billion | 4.80% |
| Zimmer Biomet net earnings attributable to company | $198.3 million | $152.8 million | 29.80% |
| Zimmer Biomet operating expenses | $1.85 billion | $1.78 billion | 4.10% |
Globus’ 5.9% reported sales growth trailed Stryker’s 9.4% but exceeded Zimmer Biomet’s 4.8%. Its adjusted earnings growth was particularly strong because of gross-margin expansion, lower acquisition and restructuring costs, and operating leverage; however, its GAAP net-income comparison remains affected by the one-time Q2 2025 Nevro accounting gain.
How the Market Reacted?
The earnings release was fundamentally constructive: both revenue and adjusted EPS surpassed consensus expectations, and management raised full-year adjusted EPS guidance while retaining its revenue outlook. That combination points to investor confidence in profitability and execution, while also signaling management’s caution on top-line conditions, including lower Enabling Technologies and Nevro sales. The latest available market snapshot showed GMED closing at $82.20, up 1.39% on August 7, followed by a modest 0.49% decline in extended trading.
Sources
