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Globus Medical
(NYSE:GMED)
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Rating:81Outperform
Price Target:
$99.00
▲(19.13% Upside)
Action:Reiterated
Date:08/17/26
GMED scores well primarily due to strong financial performance (low leverage, improving profitability, and robust cash generation) and a constructive earnings update (raised EPS guidance with margin expansion). Technicals add support with the stock trading above key moving averages and positive momentum. The main offsets are only moderate valuation support (P/E ~21.6 and no dividend) and operational/mix risks highlighted on the call (Enabling Tech revenue compression and Nevro integration pressure).
Positive Factors
Broad-based revenue growth
Growth is broad across domestic and international spine markets, supported by procedural volume, competitive recruiting, and new product pull-through. This demonstrates continued commercial momentum and expands the company’s revenue base beyond a single geography or isolated product cycle.
Negative Factors
Margin volatility
Although current profitability has recovered, uneven margins indicate that earnings power remains sensitive to product mix, pricing, or cost pressures. Sustaining recent profitability will therefore require continued execution, particularly as the business integrates products and manages changing revenue channels.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue growth
Growth is broad across domestic and international spine markets, supported by procedural volume, competitive recruiting, and new product pull-through. This demonstrates continued commercial momentum and expands the company’s revenue base beyond a single geography or isolated product cycle.
Read all positive factors
Globus Medical Key Performance Indicators (KPIs)
Any
Revenue By Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments to improve performance.
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments to improve performance.
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The Fly
The FlyGlobus Medical (GMED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.51B
Dividend YieldN/A
Average Volume (3M)1.28M
Price to Earnings (P/E)19.7
Beta (1Y)0.71
Revenue Growth19.74%
EPS Growth51.10%
CountryUS
Employees6,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.97
Shares Outstanding111,831,820
10 Day Avg. Volume1,045,912
30 Day Avg. Volume1,284,712
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)2.58
Price to Sales (P/S)4.02
P/FCF Ratio20.04
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$102.55Price Target Upside23.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)4.98
Revenue Forecast (FY)$3.20B
Globus Medical Business Overview & Revenue Model
Company Description
Globus Medical, Inc. is a global medical technology company dedicated to inventing, developing, and marketing a diverse range of healthcare solutions. Their primary focus is on addressing musculoskeletal disorders for patients worldwide. Their ext...
How the Company Makes Money
Globus Medical makes money primarily by selling musculoskeletal medical devices and related surgical solutions to hospitals, healthcare providers, and distributors. Its core revenue stream is product sales in spine-focused categories (e.g., spinal...
Globus Medical Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
Overall the call was constructive: the company reported broad-based revenue growth (including strong U.S. and International Spine), meaningful margin expansion, record non-GAAP EPS, strong cash generation and continued product and commercial momentum. The main near-term headwinds are Enabling Technologies revenue compression due to a strategic shift to flexible capital models and a temporary top-line drag from the Nevro integration and trial cadence. Management provided reaffirmed revenue guidance and raised EPS guidance, signaling confidence in margin leverage and recovery of transitional businesses.Positive Updates
Top-Line Growth and Revenue Mix
Q2 revenue of $789.6M, up 6% as reported; excluding Nevro, base business growth was 9%. Musculoskeletal sales were $763.5M, up 8% YoY and 4% sequentially. Base business Globus sales were $708.6M, up 8.9% as reported (9% day-adjusted).
Negative Updates
Enabling Technologies Revenue Decline
Enabling Tech revenue was $26.1M, down ~26% YoY (25.8% decline reported) and a $9M decline cited; decline driven by shift to more flexible capital acquisition models (leases/rentals) which reduces near-term cash sales though unit deployments grew.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Growth and Revenue Mix
Q2 revenue of $789.6M, up 6% as reported; excluding Nevro, base business growth was 9%. Musculoskeletal sales were $763.5M, up 8% YoY and 4% sequentially. Base business Globus sales were $708.6M, up 8.9% as reported (9% day-adjusted).
Read all positive updates
Company Guidance
Globus reaffirmed full‑year 2026 revenue guidance of $3.18B–$3.22B (implying growth of ~8.2%–9.6% vs. 2025) and raised full‑year non‑GAAP diluted EPS to $4.95–$5.05 (up from $4.70–$4.80), implying EPS growth of ~24.4%–26.9%; they expect adjusted gross profit margin of 69%–70% in 2026 (a 90–190 bp improvement vs. 2025) with a return to mid‑70s gross margin targeted in 2027, a revised non‑GAAP tax rate of 23%–24% (down from 24%–25%), R&D spending of ~5%–6% of sales for the year, and reaffirmed a trajectory to mid‑30s adjusted EBITDA margins (Q2 adjusted EBITDA was 35.4% and base business was 36.9%); liquidity and capital allocation metrics highlighted included $840.5M cash at 6/30/26, $136.1M of Q2 share repurchases (1.6M shares) under a $500M buyback program with $253.9M remaining, and continued capex and product investment to support the guide.Globus Medical Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.14B | 2.94B | 2.52B | 1.57B | 1.02B | 958.10M |
| Gross Profit | 2.16B | 1.98B | 1.48B | 1.02B | 759.12M | 718.88M |
| EBITDA | 876.26M | 729.90M | 473.73M | 346.58M | 304.50M | 264.73M |
| Net Income | 535.46M | 537.90M | 102.98M | 122.87M | 190.17M | 149.19M |
Balance Sheet | ||||||
| Total Assets | 5.49B | 5.30B | 5.25B | 5.09B | 2.08B | 1.96B |
| Cash, Cash Equivalents and Short-Term Investments | 595.14M | 557.24M | 890.06M | 517.79M | 446.06M | 443.45M |
| Total Debt | 111.19M | 118.66M | 537.19M | 520.40M | 6.01M | 0.00 |
| Total Liabilities | 719.65M | 729.51M | 1.07B | 1.09B | 229.75M | 215.88M |
| Stockholders Equity | 4.77B | 4.57B | 4.18B | 4.00B | 1.85B | 1.74B |
Cash Flow | ||||||
| Free Cash Flow | 750.59M | 588.77M | 405.21M | 165.22M | 104.42M | 219.38M |
| Operating Cash Flow | 910.39M | 753.45M | 520.64M | 243.50M | 178.47M | 276.27M |
| Investing Cash Flow | -499.01M | -355.01M | -176.05M | 302.97M | -110.36M | -375.94M |
| Financing Cash Flow | -135.13M | -679.16M | -27.70M | -231.82M | -109.96M | 54.15M |
Globus Medical Technical Analysis
Negative
83.10
Price Trends
80.98
Negative
82.54
Negative
85.89
Negative
Market Momentum
-0.59
Positive
38.03
Neutral
10.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMED, the sentiment is Negative. The current price of 83.1 is below the 20-day moving average (MA) of 83.79, above the 50-day MA of 80.98, and below the 200-day MA of 85.89, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 38.03 is Neutral, neither overbought nor oversold. The STOCH value of 10.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GMED.
Globus Medical Risk Analysis
Globus Medical disclosed 56 risk factors in its most recent earnings report. Globus Medical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Globus Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $10.51B | 19.72 | 11.59% | ― | 19.74% | 51.10% | |
74 Outperform | $18.71B | 23.75 | 6.36% | 0.98% | 8.62% | 0.09% | |
72 Outperform | $116.27B | 31.15 | 16.36% | 1.15% | 8.48% | 27.36% | |
72 Outperform | $829.14M | -54.44 | -8.23% | ― | 15.30% | 40.66% | |
62 Neutral | $1.46B | -13.13 | -818.99% | ― | 19.47% | 36.87% | |
55 Neutral | $378.41M | -6.05 | -14.05% | ― | 2.99% | 51.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GMED
Globus Medical
78.29
18.74
31.47%
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9.45
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OFIX
Orthofix Medical
9.29
-5.41
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SYK
Stryker
303.13
-86.02
-22.10%
ZBH
Zimmer Biomet Holdings
98.07
-5.55
-5.36%
SIBN
SI-Bone
18.50
2.37
14.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.