Zimmer Biomet (ZBH) Under Investigation for Misleading Revenue Guidance Amid Order Cancellations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy ZBH?
Source: Globenewswire
- Revenue Target Scrutiny: Zimmer Biomet expressed “very high” confidence in its 2025 revenue growth during the August earnings call, projecting organic growth of 3.5% to 4.5%, but subsequent order cancellations in emerging markets led to a significant revenue miss in Latin America, causing a 15% stock drop on November 5.
- Severe Market Reaction: The company reported only 5% organic revenue growth in its November earnings, lowering its growth forecast to 4%, indicating that cancellations in emerging markets significantly pressured performance, which severely undermined market confidence in management.
- Management Confidence Eroded: CEO Ivan Tornos acknowledged the need for “more measured” external commentary in response to analyst scrutiny, highlighting the company's vulnerability in facing market challenges and potentially diminishing investor trust moving forward.
- Legal Investigation Initiated: Hagens Berman is investigating whether Zimmer Biomet violated federal securities laws by issuing overly optimistic guidance while concealing operational disruptions, which may have resulted in substantial investor losses.
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Analyst Views on ZBH
Wall Street analysts forecast ZBH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZBH is 100.47 USD with a low forecast of 88.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
4 Buy
11 Hold
3 Sell
Hold
Current: 88.730
Low
88.00
Averages
100.47
High
120.00
Current: 88.730
Low
88.00
Averages
100.47
High
120.00
About ZBH
Zimmer Biomet Holdings, Inc. is a global medical technology company. It designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; CMFT; surgical products; and a suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. Its segments include Americas, EMEA, and Asia Pacific. Its products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Its knee brands include the Persona Knee, NexGen Knee Implants, Vanguard Knee and Oxford Partial Knee. Its hip brands include the Taperloc Hip System, Avenir Complete Hip System, Arcos Modular Hip System and G7 Acetabular System. It also focused on a suite of orthopedic robotics, enabling solutions and analytics to address the needs of surgeons pre-, intra- and post-operatively. Its portfolio features imageless robotics through its ROSA Robotics platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Guidance Scrutiny: Despite management's claims of “very high” confidence in second-half growth in August 2025, subsequent cancellations of distributor orders and revenue shortfalls have raised serious questions about the validity of their previous assurances, potentially misleading investors.
- Legal Investigation Launched: Hagens Berman is investigating whether ZBH violated federal securities laws by issuing overly optimistic guidance while concealing operational disruptions, which may have led to significant investor losses following the stock crash.
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- Management Confidence Crisis: Despite previously expressing high confidence in second-half revenue growth during the August 2025 earnings call, the subsequent earnings report revealed serious operational issues, prompting the CEO to acknowledge the need for more measured external commentary.
- Legal Investigation Launched: Hagens Berman is investigating whether ZBH violated federal securities laws by issuing overly optimistic guidance that misled investors, urging affected shareholders to submit their claims.
See More
ZBH's 15% Stock Drop Triggers Investigation into Revenue Guidance
- Stock Price Plunge: Zimmer Biomet's stock dropped 15% due to reduced revenue guidance for 2025, significantly erasing market value and raising investor concerns about management's credibility.
- Crisis of Confidence: Despite management's claims of “very high” confidence in August 2025 regarding second-half growth, subsequent cancellations and revenue misses revealed potential misleading optimism about its international business stability.
- Legal Investigation Launched: Hagens Berman is investigating whether Zimmer Biomet violated federal securities laws by issuing overly optimistic guidance while concealing operational disruptions, which may have led to substantial investor losses.
- Investor Action Call: The firm urges affected investors to submit claims and provided contact information for participation in the investigation, highlighting a strong focus on corporate governance and transparency.
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- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
ZBH's 15% Stock Drop Triggers Investigation into Revenue Guidance
- Stock Price Collapse: Zimmer Biomet Holdings, Inc. (ZBH) experienced a 15% stock drop on November 5, 2025, due to significant revenue misses in Latin America, resulting in a substantial loss of market value and a severe blow to investor confidence.
- Revenue Guidance Scrutiny: Despite management's claims of “very high” confidence in second-half growth in August 2025, subsequent cancellations of distributor orders and revenue shortfalls have raised serious questions about the validity of their previous assurances, potentially misleading investors.
- Legal Investigation Launched: Hagens Berman is investigating whether ZBH violated federal securities laws by issuing overly optimistic guidance while concealing operational disruptions, which may have led to significant investor losses following the stock crash.
- Investor Action Call: The firm is urging affected investors to submit claims and provide information to support the investigation, highlighting a strong focus on corporate governance and transparency that could impact future investment decisions.
See More
ZBH Stock Plummets 15% Amid Revenue Guidance Scrutiny
- Stock Price Collapse: Zimmer Biomet (ZBH) experienced a 15% stock drop on November 5, 2025, due to reduced revenue guidance, significantly eroding market value and investor confidence.
- Revenue Guidance Cut: The company lowered its 2025 organic revenue growth forecast from 3.5%-4.5% to 4%, admitting that distributor order cancellations in emerging markets posed a headwind to growth, highlighting a stark contrast between management's optimistic outlook and the actual market conditions.
- Management Confidence Crisis: Despite previously expressing high confidence in second-half revenue growth during the August 2025 earnings call, the subsequent earnings report revealed serious operational issues, prompting the CEO to acknowledge the need for more measured external commentary.
- Legal Investigation Launched: Hagens Berman is investigating whether ZBH violated federal securities laws by issuing overly optimistic guidance that misled investors, urging affected shareholders to submit their claims.
See More
ZBH's 15% Stock Drop Triggers Investigation into Revenue Guidance
- Stock Price Plunge: Zimmer Biomet's stock dropped 15% due to reduced revenue guidance for 2025, significantly erasing market value and raising investor concerns about management's credibility.
- Crisis of Confidence: Despite management's claims of “very high” confidence in August 2025 regarding second-half growth, subsequent cancellations and revenue misses revealed potential misleading optimism about its international business stability.
- Legal Investigation Launched: Hagens Berman is investigating whether Zimmer Biomet violated federal securities laws by issuing overly optimistic guidance while concealing operational disruptions, which may have led to substantial investor losses.
- Investor Action Call: The firm urges affected investors to submit claims and provided contact information for participation in the investigation, highlighting a strong focus on corporate governance and transparency.
See More
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- Cantor's Positive Outlook on Strategy: Cantor Fitzgerald initiates Strategy with an overweight rating, suggesting that the crypto company is well-positioned for the bitcoin cycle, indicating now is a compelling time to invest in this financial engineering innovator.
- Citi's Bullish Stance on Novartis: Citi initiates Novartis as a buy, forecasting 4-5% sales growth for 2025-2030, which exceeds the consensus estimate of 3.5-4.0%, highlighting the company's consistent earnings performance.
- TD Cowen Upgrades Zimmer Biomet: TD Cowen upgrades Zimmer Biomet from hold to buy, citing the company's commitment to innovation and management strategies that are expected to drive stock price appreciation.
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