Medical device company Globus Medical (NYSE: GMED) announced better-than-expected revenue in Q2 CY2026, with sales up 5.9% year on year to $789.6 million. The company expects the full year’s revenue to be around $3.2 billion, close to analysts’ estimates. Its non-GAAP profit of $1.34 per share was 21.9% above analysts’ consensus estimates.

Is now the time to buy Globus Medical? Find out by accessing our full research report, it’s free.

“Momentum continued into the second quarter with 6% overall revenue growth, or 9% growth excluding Nevro, driven by share gains across a majority of our underlying businesses, most notably US Spine, growing 7% and International Spine, growing 14% as-reported and 12% on a constant currency basis,” 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 experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Globus Medical’s 27.7% annualized revenue growth over the last five years was exceptional. 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 18.6% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

We can better understand the company’s sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 20.7% year-on-year growth. Because this number is better than its normal revenue growth, we can see that foreign exchange rates have been a headwind for Globus Medical.

This quarter, Globus Medical reported year-on-year revenue growth of 5.9%, and its $789.6 million of revenue exceeded Wall Street’s estimates by 0.9%.

Looking ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.

ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.

Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.

Adjusted Operating Margin

Globus Medical’s adjusted operating margin has been trending up over the last 12 months and averaged 23.8% over the last five years. On top of that, its profitability was top-notch for a healthcare business, showing it’s a well-run company that manages its expenses efficiently and benefits from immense operating leverage as it scales.

Analyzing the trend in its profitability, Globus Medical’s adjusted operating margin of 25.8% for the trailing 12 months may be around the same as five years ago, but it has increased by 5.3 percentage points over the last two years. This dynamic unfolded because its sales growth gave it operating leverage and shows it has some momentum on its side.

In Q2, Globus Medical generated an adjusted operating margin profit margin of 24.8%, up 3.5 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 18.3% compounded annual growth rate over the last five years. However, this performance was lower than its 27.7% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded.

We can take a deeper look into Globus Medical’s earnings to better understand the drivers of its performance. A five-year view shows Globus Medical has diluted its shareholders, growing its share count by 32.8%. This has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q2, Globus Medical reported adjusted EPS of $1.34, up from $0.86 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 to stay about the same, moving from $4.92 to $4.94.

Key Takeaways from Globus Medical’s Q2 Results

We were impressed by how significantly Globus Medical blew past analysts’ full-year EPS guidance expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 1.5% to $82.43 immediately following the results.

Globus Medical may have had a good quarter, but does that mean you should invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).