Zimmer Biomet Holdings, Inc. stock research
FY2026 Q1
Zimmer Biomet Holdings (ZBH) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased compared to the prior quarter, while gross profit remained steady, leading to a notable improvement in gross margin. Both revenue and gross profit increased versus the same quarter last year, with gross margin also moving higher.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased compared to the prior quarter, while gross profit remained steady, leading to a notable improvement in gross margin. Both revenue and gross profit increased versus the same quarter last year, with gross margin also moving higher.
- The gross margin strengthened compared to both the prior quarter and the same quarter last year. The relationship between revenue and cost of revenue shifted favorably, as cost of revenue declined at a faster rate than revenue relative to the preceding period.
- Compared to the immediately preceding quarter, revenue was lower but gross profit was essentially unchanged, resulting in a higher gross margin. Versus the same quarter one year earlier, both revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.4%
Gross profit
$1.5B
Revenue
$2.1B
Cost of revenue
$576.2M
Quarter-over-quarter change
+7.7 pts
Year-over-year change
+1.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $2.1B | $1.5B | $576.2M | 72.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+7.7 pts
Year-over-year change
Mar 31, 2025
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened compared to both the prior quarter and the same quarter last year. The relationship between revenue and cost of revenue shifted favorably, as cost of revenue declined at a faster rate than revenue relative to the preceding period.
Compared to the immediately preceding quarter, revenue was lower but gross profit was essentially unchanged, resulting in a higher gross margin. Versus the same quarter one year earlier, both revenue and gross profit were higher, and gross margin improved.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the gross margin improvement this quarter.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Zimmer Biomet Holdings, Inc. (ZBH) | 72.4% |