Globus Medical’s third quarter results were met with a significant positive market reaction, reflecting the company’s outperformance on key metrics. Management attributed the strong quarter to robust growth in its U.S. Spine business and sustained contribution from the recently integrated Nevro business. CEO Keith Pfeil emphasized the breadth of growth across the core implant portfolio and highlighted the impact of aggressive competitive recruiting. He stated, “All signs point to strength within this core objective,” noting 32 consecutive weeks of growth in U.S. Spine. Operational efficiencies and synergy realization from the Nevro acquisition further supported margin expansion and profitability.
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Globus Medical (GMED) Q3 CY2025 Highlights:
- Revenue: $769 million vs analyst estimates of $734.8 million (22.9% year-on-year growth, 4.7% beat)
- Adjusted EPS: $1.18 vs analyst estimates of $0.77 (53.7% beat)
- Adjusted EBITDA: $252.6 million vs analyst estimates of $198.4 million (32.8% margin, 27.3% beat)
- The company lifted its revenue guidance for the full year to $2.88 billion at the midpoint from $2.85 billion, a 1.1% increase
- Management raised its full-year Adjusted EPS guidance to $3.80 at the midpoint, a 20.6% increase
- Operating Margin: 17.9%, up from 7.7% in the same quarter last year
- Constant Currency Revenue rose 22.3% year on year (63.4% in the same quarter last year)
- Market Capitalization: $11.34 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 Q3 Earnings Call
- Richard Newitter (Truist Securities) asked about the drivers and sustainability of U.S. Core Spine growth. CEO Keith Pfeil pointed to broad-based implant growth, robotics pull-through, and competitive recruiting as key contributors, emphasizing ongoing focus on differentiating Globus in spine.
- Vikramjeet Chopra (Wells Fargo) requested color on Nevro’s margin trajectory and integration. Pfeil described ongoing cost reductions, commercial alignment, and a plan to further optimize SG&A, while CFO Kyle Kline highlighted sequential cash flow improvements.
- Matthew Miksic (Barclays) probed the strategy for expanding Nevro’s product bag and future adjacencies. Pfeil discussed potential development in peripheral nerve and diabetic neuropathy, noting these initiatives would require longer-term investment.
- Caitlin Roberts (Canaccord Genuity) inquired about slower enabling technology sales and customer adoption of new XR solutions. Pfeil cited increased competitive bidding processes, hospitals’ focus on new acquisition models, and the appeal of lower-cost navigation platforms like ExcelsiusXR.
- David Saxon (Needham & Company) focused on trauma portfolio breadth and whether critical mass was achieved. Pfeil responded that with the latest launches, Globus can now effectively compete for primary vendor contracts at major trauma centers.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will watch (1) the pace of U.S. Spine growth and whether competitive rep recruiting maintains momentum, (2) margin trends as Nevro integration continues and cost actions mature, and (3) adoption of flexible sales models for enabling technologies. Modernization of the joint replacement portfolio and international market execution will also be key milestones.
Globus Medical currently trades at $84.72, up from $61.69 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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