Globus Medical, Inc. (GMED) Earnings & Analysis

Latest quarter

Globus Medical reported Q3 FY2026 revenue of $763.7 million, down from $769.0 million a year earlier. Diluted earnings per share rose to $1.04 from $0.88, while the company reported non-GAAP diluted EPS of $1.23.

CEO Keith Pfeil said revenue excluding Nevro grew 3% to $690 million, while Nevro revenue fell 25.7% to $73.7 million. The company’s filing attributed lower U.S. spinal cord stimulation sales to declines in trial volumes; higher spine implant, trauma and neuromonitoring volumes partly offset that decline. International sales fell 5.7%, with lower spine implant and spinal cord stimulation volumes contributing, according to the filing.

CFO Kyle Klin said Enabling Technologies revenue rose 24% to $34.9 million, helped by upfront robot sales and service revenue. He reported a GAAP gross margin of 66.7%, compared with 64.2% a year earlier, and attributed the adjusted margin improvement to manufacturing and supply-chain initiatives and sales mix, partly offset by freight costs. Globus reported free cash flow of $224.8 million, compared with $204.2 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Keith Pfeil said delayed product introductions and lower contributions from recruiting experienced sales representatives slowed U.S. spine growth. Asked about the revenue shortfall, the CEO said, “I’m not going to break out the parts of the Q3 revenue miss.” He added that Globus had worked through manufacturing issues, although some smaller items remained.

Pfeil said the Scrip patient-specific implant line was available, while the X-Lift prone solution and two-blade retractor would be available later in the quarter. Asked about demand, he described surgeon interest in Scrip as anticipation rather than a backlog. He said the prone products could help generate associated implant sales and support sales-representative recruiting.

On Nevro, Pfeil said the company had substantially completed rehiring sales staff lost earlier in the year and was seeing output from newly trained associates. Kyle Klin said the recovery of lost sales volume had been “delayed beyond our previous expectations.” Pfeil said Globus planned to introduce the HFX Elite pain-therapy device in the first half of 2027.

Klin said the company continued to shift Enabling Technologies toward rental, lease and volume-based deals. Asked about the fourth quarter, he said that transition would reduce upfront revenue, while providing opportunities for recurring implant and service revenue. Pfeil said biologics pricing remained competitive and that Globus was looking to increase the use of its biologics in procedures.

On margins and investment, Klin attributed adjusted gross margin improvement to manufacturing and supply-chain initiatives and sales mix, partly offset by freight costs. Pfeil said he expected further gross margin gains, partly offset by increased research and development spending in 2027. Klin said product development remained the first priority for capital allocation, followed by investment in surgical sets and manufacturing. He also said the board had authorized an additional $500 million for share repurchases.

Guidance

Globus Medical lowered its FY2026 revenue guidance to $3.09 billion from its previous range of $3.18 to $3.22 billion. CFO Kyle Klin said the revision reflected third-quarter revenue and an early view of the fourth quarter, with pressure from Nevro and limited contributions from newly launched products expected during 2026.