Zimmer Biomet Holdings, Inc. stock research
FY2025 Q4
Zimmer Biomet Holdings (ZBH) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened versus both periods, as cost of revenue rose at a faster rate than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened versus both periods, as cost of revenue rose at a faster rate than revenue.
- The gross margin decline was driven by a proportionally larger increase in cost of revenue relative to revenue. Revenue grew while cost of revenue rose more sharply, compressing the margin.
- Compared to the prior quarter, gross margin was lower; compared to the same quarter last year, gross margin was also lower. Revenue and gross profit were higher in both comparisons, but cost of revenue increased more substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.7%
Gross profit
$1.5B
Revenue
$2.2B
Cost of revenue
$792.4M
Quarter-over-quarter change
-7.4 pts
Year-over-year change
-6.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $1.9B | $1.4B | $549.8M | 71.2% |
| Jun 30, 2025 | $2.1B | $1.5B | $592.2M | 71.5% |
| Sep 30, 2025 | $2.0B | $1.4B | $559.3M | 72.1% |
| Dec 31, 2025 | $2.2B | $1.5B | $792.4M | 64.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-7.4 pts
Year-over-year change
Dec 31, 2024
-6.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by a proportionally larger increase in cost of revenue relative to revenue. Revenue grew while cost of revenue rose more sharply, compressing the margin.
Compared to the prior quarter, gross margin was lower; compared to the same quarter last year, gross margin was also lower. Revenue and gross profit were higher in both comparisons, but cost of revenue increased more substantially.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess margin stability.