Zimmer Biomet (ZBH) official guidance

For the full year, we expect adjusted net interest and other non-operating expenses to be approximately $295 million, our adjusted effective tax rate to be about 18%, and to end the year with about 194-195 million shares outstanding.

| Adjusted Diluted EPS(2) | $8.40 - $8.55 | $8.47 - $8.59 |

We now expect adjusted EPS to be $8.40-$8.55 from the previous guide of $8.30-$8.45.

| Adjusted Diluted EPS(2) | $8.30 - $8.45 | $8.40 - $8.55 |

We now expect full-year organic constant currency revenue growth for 2026 in the low single-digit range, or 1%-3% growth, with an adjusted EPS, earnings per share, of $8.30-$8.45, which includes the contribution from Paragon 28 beginning April 21st, the one-year anniversary of the deal closing.

| Adjusted Diluted EPS(2) | $8.30 - $8.45 |

We expect our free cash flow growth to be in the range of 9%-11% versus the previous guide of 8%-10%.

In addition, we expect adjusted EPS of $8.30-$8.45, with free cash flow growth of 8%-10%, which would mark the fourth consecutive year of high single-digit or greater free cash flow growth, quickly approaching 80% free cash flow conversion.

| Foreign Currency Exchange Impact | +0.5% | +0.5% |

We continue to anticipate an approximate 50 basis points FX tailwind to full year revenue growth, with the second quarter being about neutral at current rates and Paragon 28 to contribute around 100 basis points to reported sales growth in 2026 before being reflected in organic growth.

| Foreign Currency Exchange Impact | +0.5% | +0.5% |

At current rates, we expect FX to be approximately a 50 basis point tailwind to full-year revenue growth, which includes approximately 250 basis points of tailwind in the first quarter.

| Foreign Currency Exchange Impact | +0.50% |

As you think about gross margin for the full year, we still expect it to be down modestly versus prior year at around 71%, give or take.

So we expect gross margins for 2026 to be in the range of 70%-71%.

We now expect 2026 operating margins to be better than anticipated, down slightly less than 50 basis points from 2025, which still contemplates lower growth margins, dilution from the Paragon 28 acquisition, and increased investments in our U.S. commercial channel.

As we have discussed previously, we expect our operating margins to be down about 50 basis points from 2025, which contemplates lower gross margins, dilutions from the Paragon 28 acquisition, and increased investments in our U.S. commercial channel.

We anticipate operating margins in the second quarter of 2026 being down roughly 200 basis points from the second quarter of 2025, and the third quarter operating margins being down around 50 basis points sequentially from the second quarter.

Well, first of all, that is the range that we've been given for a while, you know, flat to 100 basis points. In 2025, we did better than that. There were a couple of one-time events in international markets. As we enter 2026, we guided, you know, flat to 100.

This guidance contemplates end-market growth in line with 2025, the risk of disruption from the U.S. Salesforce transition, continued evolution of our international go-to-market models, up to 100 basis points of pricing erosion, and a stable tariff and policy environment.

We continue to anticipate an approximate 50 basis points FX tailwind to full year revenue growth, with the second quarter being about neutral at current rates and Paragon 28 to contribute around 100 basis points to reported sales growth in 2026 before being reflected in organic growth.

We expect Paragon 28 to contribute around 100 basis points to reported sales growth in 2026 before being reflected in organic growth in April.

Our guidance for interest expense, tax rate, and end of year shares outstanding, which we continue to assume up to $750 million of share repurchases, remains unchanged.

This share count reflects a share buyback program in 2026 of up to $750 million.

| 2026 Organic Constant Currency Revenue Change(1) | 1.0% - 3.0% | 1.0% - 3.0% |

We now expect full-year organic constant currency revenue growth for 2026 in the low single-digit range, or 1%-3% growth, with an adjusted EPS, earnings per share, of $8.30-$8.45, which includes the contribution from Paragon 28 beginning April 21st, the one-year anniversary of the deal closing.

| 2026 Organic Constant Currency Revenue Change(1) | 1.0% - 3.0% |

| 2026 Reported Revenue Change | 2.5% - 4.5% | 2.5% - 4.5% |

| 2026 Reported Revenue Change | 2.5% - 4.5% |

| 2026 Constant Currency Revenue Change | 2.0% - 4.0% | 2.0% - 4.0% |

| 2026 Constant Currency Revenue Change | 2.0% - 4.0% |

Operating margins in the first quarter are expected to be down about 100 basis points from the first quarter of 2025 before increasing sequentially by about 100 basis points into the second quarter.

We have made a commitment that we're going to grow this business double-digit in 2026, early in 2026, but we like what we see.