Globus Medical Inc (GMED) · Nov 5, 2026 · Earnings
Miss — Revenue $763.7M vs ~$792.4M consensus; adjusted EPS $1.23 vs ~$1.20
Globus Medical earnings beat on adjusted EPS, but revenue missed expectations and full-year revenue guidance was cut sharply.
Globus Medical is integrating the Nevro acquisition while trying to build a broader spine, robotics, and surgical-navigation ecosystem; before this filing, management had held 2026 revenue guidance at $3.18 billion-$3.22 billion while raising adjusted EPS guidance to $4.95-$5.05.
The top-line outcome is a clear miss. Third-quarter revenue was $763.7 million, about 3.6% below the published consensus of roughly $792.4 million and down 0.7% year over year. The weakness was not just currency: international sales fell 5.0% on a constant-currency basis, while Nevro product revenue dropped to $73.7 million from $99.3 million.
Management has now conceded that revenue is running below the prior plan. Full-year 2026 revenue guidance was cut to $3.09 billion from $3.18 billion-$3.22 billion, roughly 3%-4% below the previous range, while adjusted EPS guidance was left unchanged at $4.95-$5.05.
| Metric | Q3 2026 | Q3 2025 | Consensus / Prior guide |
|---|---|---|---|
| Net sales (Financial Statements) | $763.7M (-0.7%) | $769.0M | ~$792.4M |
| Non-GAAP diluted EPS (EPS reconciliation) | $1.23 (+4.4%) | $1.18 | ~$1.20 |
| Adjusted gross margin (Adjusted Gross Profit) | 69.5% (+140 bps) | 68.1% | |
| Free cash flow (Free Cash Flow) | $224.8M (+5.1%) | $213.9M | |
| FY 2026 revenue guidance (Guidance) | $3.09B | $3.18B-$3.22B prior | |
| FY 2026 adjusted EPS guidance (Guidance) | $4.95-$5.05 | $4.95-$5.05 prior |
Profitability is the important offset, but it does not erase the growth problem. Adjusted EPS of $1.23 modestly beat the roughly $1.20 consensus, and adjusted gross margin expanded for the eighth consecutive quarter. Operating cash flow reached $265.2 million and free cash flow reached $224.8 million, showing that cost control and mix are protecting earnings even as sales momentum slows.
The strategic technology story is progressing, but remains too small to offset the weak spots. Enabling Technologies revenue grew 24% and robot and navigation-unit placements increased 73%, while the base business excluding Nevro grew about 3%. That supports the robotics and ecosystem strategy, but the quarter still produced falling total revenue because the Nevro business and international sales contracted. 〔0〕
The larger buyback signals financial confidence, not a repaired revenue trajectory. The board added $500 million to the repurchase authorization, leaving approximately $611 million available, and the company had $871.2 million of cash and marketable securities at September 30. This improves the capital-return story, but repurchases cannot substitute for restoring organic growth.
Bottom line: Globus delivered better-than-expected adjusted earnings through margin and cash-flow execution, but the revenue miss and sizable guidance cut are the more important change. The business is becoming more profitable, yet this filing weakens confidence that its growth engine is currently running as planned.
Q4 results and 2027 guidance
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