AUDUBON, PA — Globus Medical Inc. (NYSE: GMED) cut its 2026 revenue forecast by more than $100 million after third-quarter sales declined 0.7%, even as the Pennsylvania-based medical device manufacturer reported an 18.7% increase in net income and authorized an additional $500 million in share repurchases.
The company now expects full-year revenue of $3.09 billion, down from its previous forecast of $3.18 billion to $3.22 billion, reflecting a reduction of $90 million to $130 million from the earlier range.
The revised outlook represents projected annual revenue growth of 5.1% over 2025, while the company maintained its adjusted earnings forecast despite the lower sales expectations.
Globus reported worldwide revenue of $763.7 million for the quarter ended Sept. 30, compared with approximately $769.1 million a year earlier. Revenue declined 0.5% on a constant-currency basis.
The results reflected slower growth in the company’s U.S. spine business and declining international sales, partially offset by stronger demand for surgical robotics and navigation technology.
U.S. revenue increased 0.5% from the prior-year quarter, while international revenue declined 5.7%, or 5% excluding currency fluctuations.
The company’s base business, excluding Nevro, generated $690 million in quarterly sales, an increase of 3%.
Globus President and Chief Executive Officer Keith Pfeil attributed part of the slowdown to difficult comparisons with the previous year’s performance.
“U.S. Spine faced difficult prior year comparables, growing 2% in the third quarter, as compared to double digit growth in the prior year quarter,” Pfeil stated.
He noted that the U.S. spine business has averaged mid-single-digit growth over the past two years.
The company’s Enabling Technologies business performed more strongly, with revenue increasing 24% from the year-earlier period.
Deployments of robotic and navigation systems rose 73%, reflecting continued demand for technology used in surgical procedures.
The growth in surgical technology contrasted with the more modest performance of the company’s traditional spine business, illustrating differences in demand across its product portfolio.
Despite the overall revenue decline, Globus increased profitability through lower costs and improved gross margins.
Third-quarter net income rose to $141.2 million from approximately $119 million a year earlier, an increase of 18.7%.
Diluted earnings per share increased to $1.04 from 88 cents, representing growth of 18.2%.
On an adjusted basis, diluted earnings rose to $1.23 per share from $1.18, an increase of 4.4%.
The adjusted earnings measure excludes certain expenses, including intangible asset amortization, merger and acquisition costs, and restructuring charges.
Globus reported a gross profit margin of 66.7%, an improvement of 2.5 percentage points from the year-earlier quarter.
Its adjusted gross profit margin reached 69.5%, up 1.4 percentage points.
The company reduced cost of sales by $19.6 million and operating expenses by $25.9 million compared with the third quarter of 2025, contributing to the increase in net income.
Chief Financial Officer Kyle Kline reported that the quarter marked the company’s eighth consecutive period of sequential adjusted gross margin expansion.
Globus also generated record quarterly operating cash flow and free cash flow, according to Kline.
“Our third quarter results highlight our Company’s commitment to delivering consistent adjusted gross profit margin expansion, bottom-line profit, and free cash flow generation,” Kline stated.
The stronger cash generation accompanied a decision by the company’s board to increase its existing share repurchase authorization by $500 million.
The additional authorization expands the amount Globus may spend buying back its shares, providing another mechanism for returning capital to shareholders.
The company reaffirmed its full-year adjusted diluted earnings forecast of $4.95 to $5.05 per share.
That range represents projected earnings growth of 24.4% to 26.9% over fiscal 2025, despite the reduction in expected revenue.
The unchanged earnings guidance indicates that Globus expects its profitability improvements to continue offsetting weaker-than-previously-anticipated sales.
Globus Medical develops musculoskeletal technologies, including spinal implants, surgical robotics and navigation systems.
Its third-quarter results underscore the company’s reliance on margin expansion and cost management to support earnings growth as revenue performance varies across its domestic, international and surgical technology businesses.
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