Globus Medical’s first quarter delivered results ahead of Wall Street’s expectations, but the market reacted negatively, with shares declining over 5%. Management attributed the quarter’s performance to continued share gains in U.S. Spine and improved supply chain execution, especially after resolving prior-year disruptions. CEO Keith W. Pfeil emphasized the company’s focus on cross-selling, competitive sales rep recruiting, and robotics pull-through as core drivers, noting, “Our U.S. Spine sales team remains resolute and focused, operating against the backdrop of driving achievement against key objectives.”
Is now the time to buy GMED? Find out in our full research report (it’s free for active Edge members).
Globus Medical (GMED) Q1 CY2026 Highlights:
- Revenue: $759.9 million vs analyst estimates of $739.8 million (27% year-on-year growth, 2.7% beat)
- Adjusted EPS: $1.12 vs analyst estimates of $0.92 (21.7% beat)
- Adjusted EBITDA: $245.3 million vs analyst estimates of $225.7 million (32.3% margin, 8.7% beat)
- The company reconfirmed its revenue guidance for the full year of $3.2 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $4.75 at the midpoint, a 6.7% increase
- Operating Margin: 19.8%, up from 16.2% in the same quarter last year
- Constant Currency Revenue rose 25.5% year on year (-0.8% in the same quarter last year)
- Market Capitalization: $10.26 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Globus Medical’s Q1 Earnings Call
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Ross Osborne (Wells Fargo): Asked whether there are incremental headwinds to revenue guidance or if management’s stance is simply conservatism. CFO Kyle Kline replied that guidance reflects confidence in current trends, with expected lumpiness in Nevro already factored in.
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Shagun Singh (RBC Capital Markets): Inquired about what is different in the current strategy, especially around enabling tech. CEO Keith W. Pfeil explained the shift to flexible robotics placements and a focus on driving recurring implant revenue rather than just capital sales.
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Matt Taylor (Jefferies): Sought clarification on the sources of EPS upside and why topline guidance wasn’t raised alongside EPS. CEO Pfeil pointed to margin expansion and ongoing synergy capture as the main drivers for higher profitability guidance, while noting that evolving robotics sales models and Nevro lumpiness warranted caution on raising revenue guidance.
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Brian Zimmerman (BTIG): Asked if Nevro’s challenges would worsen before improving. CFO Kline said further near-term lumpiness is likely, with normalization expected in the back half of the year as new sales personnel are trained.
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Matt Miksic (Barclays): Questioned changes in competitive dynamics for robotics. CEO Pfeil responded that Medtronic remains the main competitor, and while more entrants slow deal cycles, Globus believes ExcelsiusGPS’s feature set keeps it well positioned.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace and impact of the flexible robotics placement strategy on recurring revenue, (2) whether margin expansion holds as manufacturing and supply chain initiatives mature, and (3) the recovery and integration progress of Nevro’s sales force and product pipeline. Further product launches and international market execution will also be important markers for sustained growth.
Globus Medical currently trades at $76.65, down from $85.07 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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