SBA Communications Q1 2026 Outlook: Improved EPS and Steady Revenue Guidance

Zimmer Biomet Q1 2026: Sales growth and EPS increase (and the impact of the guidance change)

1) What actually happened in Q1 2026 (sales growth)

Organic / constant-currency growth remained at the upper end of the full-year guidance range. Zimmer Biomet reported that in Q1 it grew sales 2.9% on an organic, constant-currency basis and characterized this as being at the upper end of its annual 2026 revenue guidance range.¹

Reported net sales were higher as well, helped by Paragon 28 and FX adjustments. Management stated net sales were $2.087 billion, which was up 9.3% on a reported basis, and up 2.9% excluding foreign currency and the Paragon 28 acquisition.²

Drivers of Q1 sales growth (mix, timing, and product/technology momentum). Management attributed growth to:

• Opportunistic end-of-quarter purchases above historical levels.²
• Continued momentum from recently launched products.²
• Strong robotic sales.²
• In segment/product detail, U.S. increased 3.2% while international grew 2.5%.³

Contributing pillars within the business. Management also noted technology-related strength, including:

• Technology and data, bone cement and surgical businesses grew nearly 12% in the quarter.⁴
• Technology growth was described as 30% growth in the first quarter (with explicit mention that TMINI is 30%).⁵

Bottom line on Q1 sales growth: Q1 showed modest organic growth (2.9% constant-currency) with reported growth stronger due to acquisition/FX dynamics, and the quarter’s organic performance appears supported by product/technology momentum and certain purchase timing tailwinds.¹²⁴⁵

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2) What actually happened in Q1 2026 (EPS increase)

Adjusted EPS rose strongly year over year. Zimmer Biomet delivered adjusted EPS of $2.09, up 15% year-over-year.¹

Management further clarified the bridge mechanics for adjusted EPS:

• Adjusted diluted EPS was $2.09 vs. $1.81 in the prior-year quarter.²
• The increase was driven by higher revenue, the tariff benefit, and a lower share count, partially offset by increased commercial investments.²

Tariff benefit was explicitly part of the earnings story. Management highlighted a $0.20 benefit from tariff-related items relative to expectations.¹

GAAP EPS also increased materially. They reported GAAP diluted EPS of $1.22 vs. $0.91 in the prior year quarter.²

Bottom line on Q1 EPS: EPS improved substantially versus the prior year, with management explicitly linking the adjusted EPS rise to higher revenue plus a tariff-related benefit and lower share count, partially offset by higher investments.¹²

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3) The guidance change: what changed, and when it mattered

In the excerpt provided, management describes an update to full-year expectations that came alongside the confidence in the stronger start.

They raised full-year adjusted EPS guidance and free cash flow growth expectations. Management said they were raising both EPS and free cash flow growth expectations for 2026, with the specifics:

• Adjusted EPS now expected to be $8.40 to $8.55, up from $8.30 to $8.45.⁶
• Free cash flow growth expected 9% to 11%, up from 8% to 10%.⁶

Key nuance: the excerpts also show management did not raise certain revenue growth assumptions at the same time. They stated they would maintain full-year 2026 organic constant-currency revenue growth guidance of 1% to 3%.⁷ They also maintained pricing/FX assumptions, including up to 100 basis points of price erosion unchanged.⁷

So, the “guidance change” reflected a better-than-prior outlook for EPS and free cash flow, while revenue guidance remained broadly the same.⁶⁷

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4) Analysis: how Q1 sales growth and EPS increase connect to the guidance change

A. Sales growth was modest organically, but earnings improved more than sales (operating leverage + special factors)

Q1 organic constant-currency sales growth was 2.9%.¹ Yet adjusted EPS grew 15% YoY to $2.09.¹². This divergence suggests earnings benefited from factors beyond pure top-line growth, including:

• Tariff-related items (a stated $0.20 benefit relative to expectations).¹
• Lower share count (explicitly cited as a driver).²
• Gross margin / operating margin strength and tariff/mix benefits, including adjusted gross margin of 73%, with management attributing it to favorable mix and a benefit from tariffs.²

This combination helps explain why EPS was raised even though revenue guidance was maintained at 1% to 3% organic constant currency.⁶⁷

B. Management signaled the EPS raise was tied to the quarter’s execution, not just a single item

While the tariff benefit is clearly cited, management also described broader execution:

• They emphasized strong progress toward 2026 commitments, with the quarter delivering at the upper end of annual organic guidance and “momentum” from resilience and execution.¹
• They noted adjusted EPS was driven by higher revenue and lower share count, with tariff benefit as part of it, and offset by increased commercial investment.²
• They also highlighted cash generation strength: operating cash flows $359 million and free cash flow $246 million in Q1.⁸

Those items collectively support the rationale for raising EPS and free cash flow expectations.⁶⁸

C. The “guidance change” appears to be more financial than volumetric

Management maintained full-year organic revenue growth at 1% to 3% even while raising EPS and free cash flow guidance.⁶⁷ That implies the guidance change was primarily about:

• Expected improvements in profitability/margins and capital efficiency (supported by Q1 operating/cash results), rather than a major step-up in volume growth.⁶⁸

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Conclusion

• Q1 2026 sales growth: +2.9% organic constant-currency (upper end of the annual guidance range) with net sales $2.087B (+9.3% reported), driven by product/technology momentum and timing-related purchasing, alongside U.S. (+3.2%) and international (+2.5%) growth.¹²³
• Q1 2026 EPS increase: Adjusted EPS $2.09 (+15% YoY), supported by higher revenue, a $0.20 tariff-related benefit, and lower share count, partially offset by increased commercial investments.¹²
• Following the guidance change: Management raised full-year adjusted EPS guidance to $8.40–$8.55 and raised free cash flow growth to 9%–11%, while keeping full-year organic constant-currency revenue growth at 1%–3%—indicating the improved EPS/cash outlook was driven more by execution, margins, and capital efficiency (and Q1’s earnings drivers) than by a large upward revision to growth volumes.⁶⁷⁸