Globus Medical, Inc.

What they do

Globus develops and commercializes healthcare solutions for musculoskeletal disorders and manages the business globally within one reportable segment, split into two product categories: Musculoskeletal Solutions and Enabling Technologies. Musculoskeletal Solutions consist primarily of implantable devices, biologics, accessories, instruments, spinal cord stimulation therapy and neuromonitoring services. Enabling Technologies comprise imaging, navigation and robotics systems for assisted surgery. It sells in the U.S. through a combination of direct sales representatives and exclusive independent distributors, with international sales at 19.4% of total sales in 2025.

Revenue drivers

• Musculoskeletal Solutions — Implantable devices, biologics, instrumentation, spinal cord stimulation therapy and neuromonitoring services used across spinal, orthopedic and neurosurgical procedures; the company does not disclose separate dollar revenue for this category.
• Enabling Technologies — Imaging, navigation and robotics (INR) systems for assisted surgery, including the Excelsius ecosystem; management describes this market as still in its infancy stage and expects adoption to rise as it integrates with Musculoskeletal Solutions.
• U.S. Spine — Categorized by management as the largest growth driver, with second quarter 2026 U.S. Spine growth of 7% and a fifth consecutive quarter of above-market revenue growth.
• International Spine — International Spine grew 14% as-reported and 12% on a constant currency basis in the second quarter of 2026; international sales were 19.4% of 2025 total sales.

Recent performance

Second quarter 2026 worldwide net sales were $789.6 million, up 5.9% as reported and 5.6% on a constant currency basis, with U.S. net sales up 3.0% and international net sales up 18.0% as reported. GAAP net income was $151.6 million and GAAP diluted EPS was $1.10, down 26.2% from $1.49, primarily because the prior-year quarter included a $110.5 million bargain purchase gain related to the Nevro acquisition. Non-GAAP diluted EPS was $1.34, up 55.8% from $0.86. Management cited adjusted gross margin expansion of 200 basis points versus the prior-year quarter and said revenue growth was 9% excluding Nevro. First half 2026 net sales were $1.549 billion versus $1.343 billion in the first half of 2025.

Strategy

Globus aims to become the market leader in innovative solutions for musculoskeletal disorders, centered on its self-described closed-loop surgical intelligence ecosystem that combines patient selection, surgical technique and complementary implants and technology. It plans to keep leveraging an integrated, surgeon-informed product development engine, having launched 9 products in 2025, including Excelsius XR and Reline 3D Towers. The company is also executing on integration of the NuVasive and Nevro acquisitions, citing synergy realization and operating leverage as contributors to margin expansion. It continues to expand direct and distributor sales forces in the U.S. and internationally and operates across 65 countries.

Risks

• Surgeon and hospital adoption — The company states it must convince surgeons and hospitals that its products are an attractive alternative to competitors' products and to existing surgical treatments of musculoskeletal disorders.
• Pricing pressure — Globus lists pricing pressure from competitors and customers as a risk to its ability to sell products profitably.
• Reimbursement — If customers cannot obtain adequate coverage and reimbursement for their purchases of Globus products, the company may not be able to sell them profitably.
• Sales network and supplier concentration — Globus depends on maintaining and expanding its direct sales representatives and independent distributors, and on a limited number of third-party suppliers whose loss or inability to supply could harm the business.

Outlook

Management reaffirmed full-year 2026 revenue guidance of $3.18 billion to $3.22 billion and raised non-GAAP fully diluted EPS guidance to $4.95 to $5.05 from a prior range of $4.70 to $4.80. It cited margin expansion, operating leverage and synergy realization as positioning the company for sustained earnings growth and enhanced shareholder returns through the year. The company does not provide GAAP EPS guidance reconciliation detail in the excerpt provided.