Strong Top-line Growth
Q1 revenue of $759.9M, up 27.0% as reported and up 25.5% on a constant currency basis, driven by broad-based strength across businesses.
Globus Medical
· GMED
May 7th, 2026
Summary
- Earnings Call Date:
- 2026-05-07
- Change Since:
- -3.47%
- Next Earnings Date:
- 2026-07-30
Earnings Call Sentiment
PositiveThe call highlighted strong top-line growth, meaningful margin expansion, record non-GAAP EPS, robust cash generation, international and trauma momentum, regulatory wins for patient-specific implants, and upgraded full-year EPS guidance — all indicating solid operational execution and profitable scaling. Primary negatives centered on the Nevro integration (revenue lumpiness and elevated SG&A), a shift in enabling tech deal structures toward leases/rentals that can depress near-term revenue recognition, and some competitive/longer sales cycles in robotics. Overall, the positive performance and durable margin improvements materially outweigh the integration and mix headwinds, while management provided clear plans and targets (mid-70s gross margin long term) that support an optimistic outlook.
Company Guidance
Globus reaffirmed full‑year 2026 revenue guidance of $3.18–$3.22 billion (implying +8.2% to +9.6% vs. 2025) and raised non‑GAAP fully diluted EPS to $4.70–$4.80 (from $4.40–$4.50), implying +18.1% to +20.6% growth, citing Q1 margin expansion as the driver; management expects adjusted gross profit margin of ~69%–70% in 2026 (long‑term target mid‑70s) and R&D of ~5%–6% of sales for the year. Q1 metrics supporting the update included revenue of $759.9M (base business $677.2M), Q1 non‑GAAP EPS $1.12 (+64.7% YoY), adjusted gross margin 69.2% (GAAP 66.4%), adjusted EBITDA margin 32.3% (base Globus 34.8%, Nevro standalone 11.8%), Nevro contribution $82.7M (‑$17.1M sequentially), cash and marketable securities $799.3M, Q1 capex $39.6M (5.2% of sales), and $390M of remaining share‑repurchase authorization.
Significant EPS and Margin Expansion
Fully diluted non-GAAP EPS of $1.12 in Q1, up 64.7% year-over-year; GAAP EPS of $0.90. Adjusted gross profit margin improved to 69.2% (GAAP gross margin 66.4% vs 63.6% prior year). Adjusted EBITDA margin was 32.3%.
Base Business Momentum
Base business revenue of $677.2M, up 13.2% as reported (11.9% constant currency); base musculoskeletal revenue $650.3M, up 12.9% as reported, indicating healthy organic growth across legacy operations.
U.S. Spine Outperformance and Share Gains
U.S. Spine grew ~10% in Q1 (third consecutive quarter of ~10% growth) and the company reported 58 weeks of consecutive growth, with growth driven largely by market share gains across multiple implant categories.
Enabling Technologies and Robotics Traction
Enabling Technologies revenue $26.9M, up ~21% year-over-year; ExcelsiusGPS has supported almost 130,000 robotic procedures to date, supporting continued robotics pull-through and cross-selling opportunities.
International and Trauma Strength
International Spine grew 16.4% as reported and 9.8% constant currency. Trauma business grew 34% year-over-year; neuromonitoring and trauma each grew over 30%, and PRECICE manufacturing now fully supplying the market.
Product and Regulatory Wins
Received two FDA 510(k) clearances early in Q2 for patient-specific Scripps lumbar spacers (7 systems) and Scripps patient-specific rods, positioning the company as the only provider of a complete integrated patient-specific lumbar implant portfolio with its enabling tech.
Balance Sheet and Cash Generation
Cash, cash equivalents, and marketable securities of $799.3M as of 03/31/2026 (up from $629.1M), operating cash flow of $202.4M, and capital expenditures of $39.6M (5.2% of sales). Reiterated $500M buyback program with $390M remaining authorization; company is debt-free after prior debt extinguishment.
Upgraded Full-Year Profit Guidance
Reaffirmed 2026 revenue guidance of $3.18B–$3.22B (implying 8.2%–9.6% growth) and raised non-GAAP fully diluted EPS guidance to $4.70–$4.80 (up from $4.40–$4.50), implying EPS growth of 18.1%–20.6% vs. 2025 driven by margin expansion.
Operator
Welcome to Globus Medical, Inc.'s first quarter 2026 earnings call. At this time, all lines will be on mute. A Q&A session will be held after the prepared remarks. Please be advised that today's conference is being recorded. I will now turn the call over to Brian Kearns, Senior Vice President of Business Development and Investor Relations. Mr. Kearns, please go ahead.
Brian Kearns
Thank you, Kathy, and thank you, everyone, for being with us today. Joining today's call from Globus Medical, Inc. will be Keith W. Pfeil, President and CEO, and Kyle Kline, Chief Financial Officer. This review is being made available via webcast accessible through the Investor Relations section of the Globus Medical, Inc. website at www.globusmedical.com. Before we begin, let me remind you that some of the statements made during this review are or may be considered forward-looking statements. Our Form 10-Ks for the 2025 fiscal year and our subsequent filings with the Securities and Exchange Commission identify certain factors that could cause our actual results to differ materially from those projected in any forward-looking statements made today.
Our SEC filings, including the 10-Ks, are available on our website. We do not undertake to update any forward-looking statements as a result of new information or future events or developments. Our discussion today will also include certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We believe these non-GAAP financial measures provide additional information pertinent to our business performance. Th...
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