Medical device company Globus Medical (NYSE: GMED) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 25.7% year on year to $826.4 million. The company’s full-year revenue guidance of $3.2 billion at the midpoint came in 1.2% above analysts’ estimates. Its non-GAAP profit of $1.28 per share was 11% above analysts’ consensus estimates.

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“Momentum built throughout 2025 accelerated in the fourth quarter, capping off a strong finish to the year with double-digit sales and earnings growth,” commented Keith Pfeil, President and Chief Executive Officer.

Company Overview

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Globus Medical grew its sales at an incredible 30.1% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Globus Medical’s annualized revenue growth of 36.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

Globus Medical also reports sales performance excluding currency movements, which are outside the company’s control and not indicative of demand. Over the last two years, its constant currency sales averaged 22.3% year-on-year growth. Because this number is lower than its normal revenue growth, we can see that foreign exchange rates have boosted Globus Medical’s performance.

This quarter, Globus Medical reported robust year-on-year revenue growth of 25.7%, and its $826.4 million of revenue topped Wall Street estimates by 3.2%.

Looking ahead, sell-side analysts expect revenue to grow 7.6% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and implies the market sees some success for its newer products and services.

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Operating Margin

Globus Medical has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 13.1%, higher than the broader healthcare sector.

Analyzing the trend in its profitability, Globus Medical’s operating margin decreased by 1.6 percentage points over the last five years, but it rose by 7.8 percentage points on a two-year basis. We like Globus Medical and hope it can right the ship.

In Q4, Globus Medical generated an operating margin profit margin of 20.5%, up 11.3 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Globus Medical’s EPS grew at an astounding 22.8% compounded annual growth rate over the last five years. However, this performance was lower than its 30.1% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded.

Diving into the nuances of Globus Medical’s earnings can give us a better understanding of its performance. As we mentioned earlier, Globus Medical’s operating margin expanded this quarter but declined by 1.6 percentage points over the last five years. Its share count also grew by 34.7%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

In Q4, Globus Medical reported adjusted EPS of $1.28, up from $0.84 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Globus Medical’s full-year EPS of $4 to grow 4.3%.

Key Takeaways from Globus Medical’s Q4 Results

We enjoyed seeing Globus Medical beat analysts’ full-year EPS guidance expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 1.7% to $93.45 immediately after reporting.

Sure, Globus Medical had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).