ZIMMER BIOMET HOLDINGS, INC.

Results for the Three and Nine-Month Periods ended September 30, 2026

In the three and nine-month periods ended September 30, 2026, our net sales increased 3.1 percent and 5.7 percent, respectively, when compared to the same prior year periods. Net sales growth was driven by a combination of opportunistic end-of-quarter customer purchases; the 2026 acquisitions; growth in sales of our foot and ankle, ROSA®Robot and bone cement products; market growth; and new product introductions. In addition, Paragon 28 had a positive impact on our net sales of 1.5 percent in the nine-month period ended September 30, 2026. Additionally, our net sales experienced a negative effect of 0.6 percent and a positive effect of 0.7 percent from changes in foreign currency exchange rates in the three and nine-month periods ended September 30, 2026, respectively.

Our net earnings were $191.6 million and $628.1 million in the three and nine-month periods ended September 30, 2026, respectively, compared to $230.9 million and $565.8 million, respectively, in the same prior year periods. The decrease in net earnings in the three-month period ended September 30, 2026, when compared to the same prior year period, was primarily due to favorable adjustments related to contingent consideration for previous acquisitions in the prior year period that did not recur. This unfavorable item was partially offset by increased net sales, lower spending on R&D projects and savings from our restructuring programs in the current year period. The increase in net earnings in the nine-month period ended September 30, 2026, when compared to the same prior year period, was primarily due to increased net sales, a favorable adjustment of approximately $30 million related to probable U.S. tariff refunds, lower acquisition and integration costs due to significant charges incurred in the 2025 period related to the Paragon 28 acquisition that did not recur, lower spending on R&D projects and savings from our restructuring programs.

2026 Outlook

We expect year-over-year net sales growth of 4.4 percent to 4.9 percent in 2026. Growth is expected to be driven by overall market growth, new products, acquisitions (including Paragon 28) and positive effects of changes in foreign currency exchange rates, partially offset by price declines and changes to our go-to-market strategy in both the U.S. and certain international markets. These expected impacts, combined with the uncertain timing of incentivized stocking orders and capital sales, could cause fluctuations in our quarterly results. We estimate that the Paragon 28 acquisition will contribute an additional 1.1 percent to the year-over-year net sales growth for the period up until the one-year anniversary of the deal closing in April 2026. We expect foreign currency to have a 0.25 percent positive impact on year-over-year net sales growth. We estimate operating profit will increase in 2026 compared to 2025 due to higher net sales and leverage from fixed operating expenses. Operating profit is also expected to benefit from refunds of U.S. tariffs paid in 2025, ongoing savings from our restructuring plans, non-recurrence of inventory and instrument charges recognized in 2025 related to certain product lines we expect to discontinue and lower employee termination and other charges from our restructuring plans. However, we expect that these favorable items may be partially offset by the impact from inflation, investments in our U.S. commercial sales channel and higher net interest expense.