Zimmer Biomet raises annual profit forecast on lower tariff impact

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(Corrects to “Thursday” from “Wednesday” in paragraph 1)

By Kamal Choudhury

(Reuters) -Medical device maker Zimmer Biomet Holdings raised its annual adjusted profit forecast on Thursday as it anticipates lower-than-expected tariff impacts, sending shares up 6% in morning trading.

The Warsaw, Indiana-based company now expects about $40 million in tariff headwinds for 2025, down from its previous estimate of $60 million to $80 million.

“Our tariff assumption is better than we originally expected, as we’ve had more time to work through our mitigation strategies and are seeing lower overall tariff rates,” CFO Suketu Upadhyay told analysts in post-earnings conference call.

The company previously expected tariff risks in China.

Medical device makers have benefited from a surge in demand as more people, particularly older Americans, seek health care services and surgical procedures.

Zimmer lifted its 2025 adjusted profit per share $8.10 to $8.30, up from its prior view of $7.90 to $8.10 per share. Analysts were expecting $7.97 per share, according to data compiled by LSEG.

It posted an adjusted profit of $2.07 per share during the quarter ended June 30, topping estimates of $1.98 per share. Its second-quarter revenue came in at $2.08 billion, also above expectations of $2.05 billion.

“We think this performance should be enough to satisfy cautious investor expectations,” said J.P. Morgan analyst Robbie Marcus.

Zimmer said it expects 2025 revenue growth between 6.7% and 7.7%, from its prior 5.7% to 8.2% forecast.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Harikrishnan Nair)