Globus Medical surges on earnings beat, guidance raise
Medical device company raises FY2026 outlook after integrating NuVasive and Nevro acquisitions
Globus Medical shares climbed sharply Tuesday after the medical device maker reported fourth-quarter earnings that blew past Wall Street expectations and raised its 2026 guidance, signaling strong momentum following its recent acquisitions.
The Audubon, Pennsylvania-based company posted non-GAAP earnings per share of $1.28 for the quarter ended December 31, crushing analyst estimates of $0.77. Revenue reached $826.4 million, exceeding the consensus forecast of $734.7 million and representing a 12.5 percent beat, according to the company's regulatory filing.
Full-year revenue for 2025 totaled $2.94 billion, up 16.7 percent year-over-year, demonstrating the benefit of consolidating acquisitions in the orthopedic and spine markets. The company now expects fiscal 2026 EPS of $4.40 to $4.50, up from its previous guidance of $4.30 to $4.40.
"Momentum accelerated in Q4" as the integration of NuVasive and Nevro continues to progress smoothly, Chief Executive Officer Dan Scavella stated. The two transactions, completed in recent years, transformed Globus Medical into a larger player in the musculoskeletal technology space.
Segment performance showed broad strength. U.S. spine revenue grew 10 percent, while the Enabling Technologies business surged 19 percent, reflecting demand across the company's surgical navigation, robotics, and biologics offerings. International markets also contributed to growth, though specific figures were not disclosed.
The earnings beat comes amid what has been a period of expansion for the medical device maker, which closed its $1.35 billion acquisition of NuVasive in 2023, combining two of the largest spine surgery companies. The subsequent purchase of Nevro added neuromodulation products to its portfolio.
Analysts have responded positively to the results. Shares currently carry an average target price of $107.17, representing upside from current levels, with 11 analysts rating the stock a buy or strong buy and four recommending hold, according to market data. The stock has more than doubled from its 52-week low of $51.79 reached last year.
The company's forward price-to-earnings ratio of 15.8 suggests investors are pricing in continued growth, though not at the premium multiples commanded by some medical device peers. Globus Medical's 30.8 percent trailing P/E reflects its recent earnings surge, while its enterprise value-to-EBITDA of 12.5 times remains in line with industry averages.
Looking ahead, the raised 2026 guidance signals management confidence in sustaining growth. The company faces a competitive landscape in spine surgery, where companies such as Medtronic, Johnson & Johnson, and Stryker also operate. However, its diversified product mix and recent scale improvements have positioned it for market share gains.
Investors will watch for updates on integration milestones and margin expansion when the company hosts its next earnings call. The successful combination of NuVasive and Nevro's operations remains a key factor in achieving the higher end of its guidance range.