Globus Medical Shares Slide Despite Record Quarter and Upgraded Outlook

The market delivered a starkly different verdict than the numbers suggested. Globus Medical reported a standout first quarter, lifted its full-year profit forecast, and still watched its stock tumble more than 11 percent on Friday, sliding to €66.82 — well below its 50-day moving average.

The disconnect between operational performance and market reaction highlights just how high expectations had been running for the musculoskeletal technology specialist.

Quarterly Results Surpass Estimates

Revenue for the three months ended March 31 reached $759.9 million, a 27 percent jump from the prior year. Excluding the contribution from the Nevro acquisition, organic growth in the core business came in at 13.2 percent. The musculoskeletal solutions segment generated $733 million of that total, while the supportive technologies division posted a 21 percent gain.

Should investors sell immediately? Or is it worth buying Globus Medical?

The bottom line delivered the real surprise. Net income surged nearly 65 percent to $124.3 million. On an adjusted basis, earnings per share hit $1.12 — a 20-cent beat versus the consensus estimate of $0.92 and roughly two-thirds higher than the year-ago figure. Gross margin held steady at 68 percent.

Guidance Raised, Revenue View Unchanged

Management now expects adjusted EPS for the full fiscal year to land between $4.70 and $4.80. That represents a meaningful upgrade from the previous ceiling of $4.50. The annual revenue forecast remains intact at approximately $3.2 billion, with the upper end of the range pegged at $3.22 billion.

Analyst Reactions Split

Needham responded by lifting its price target to $117 while maintaining a buy rating. Stifel took a more cautious approach, raising its target to just $95. The firm’s analysts cautioned that the comparison base becomes more challenging in the second half, which could temper the pace of year-over-year growth.

The broader analyst community continues to rate the stock a “Moderate Buy,” though Friday’s price action suggests some investors are already looking past the strong quarter toward what comes next.

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