Globus Medical Cuts 2026 Sales Outlook After Revenue Decline

The Tip Desk · November 6, 2026 · 3 min read

The musculoskeletal technology company now sees $3.09 billion of 2026 sales after third-quarter net sales of $763.7 million.

Globus Medical (GMED) cut its full-year 2026 revenue outlook to $3.09 billion from a prior range of $3.18 billion to $3.22 billion after worldwide net sales fell 0.7% in the third quarter, reversing the 5.9% as-reported increase recorded in the second quarter.

The musculoskeletal technology company said the lower target still represents 5.1% growth versus fiscal 2025. It reaffirmed full-year non-GAAP fully diluted EPS of $4.95 to $5.05.

Worldwide net sales were $763.7 million, down 0.5% on a constant currency basis. Base business sales excluding Nevro were $690.0 million, up 3.0% as reported, after 9% growth excluding Nevro in the second quarter.

President and Chief Executive Officer Keith Pfeil said third-quarter revenue finished at $764 million, down slightly from the prior-year quarter. U.S. Spine grew 2%, he said, versus double-digit growth in the prior-year quarter, and that on an average two-year basis the U.S. Spine business is growing mid-single digits.

U.S. net sales increased 0.5% versus the year-ago quarter. International net sales decreased 5.7% as reported and 5.0% on a constant currency basis, after an 18.0% as-reported increase in the second quarter.

GAAP net income was $141.2 million, up 18.7% from the year-ago quarter, after a 25.3% year-over-year decline in the second quarter that the company tied to a $110.5 million bargain purchase gain in the prior-year second quarter. GAAP diluted EPS was $1.04, up 18.2% from $0.88 a year earlier. Non-GAAP diluted EPS was $1.23, up 4.4% from $1.18.

The company said the increase in GAAP net income was primarily driven by a $19.6 million decrease in cost of sales and a $25.9 million decrease in operating expenses versus the third quarter of 2025. Operating income was $177.6 million, up from $137.4 million a year earlier.

GAAP gross profit was 66.7% of net sales, up 2.5% from 64.2% a year earlier. Non-GAAP adjusted gross profit was 69.5% of sales, up 1.4% from 68.1%. Chief Financial Officer Kyle Kline said the company delivered the eighth straight quarter of sequential adjusted gross profit margin expansion.

Enabling Technologies revenue grew 24% versus the year-ago quarter, and the company said it deployed 73% more robot and navigation units than in the prior-year quarter. Enabling Technologies net sales were $34.9 million. Musculoskeletal Solutions net sales were $728.9 million. Adjusted EBITDA was $262.2 million, or 34.3% of net sales.

On November 2, 2026, the board authorized a $500 million increase to the existing share repurchase program, which has no expiration date. Kline said the company delivered record quarterly operating cash flow and free cash flow generation.