Cool Move ZBH. Zimmer Acquires iovera from Pacira, Bringing Cold Therapy to a Broader Audience. Neutral

Research evidence excerpt

Cool Move ZBH. Zimmer Acquires iovera from Pacira, Bringing Cold Therapy to a Broader Audience. Neutral

Investment Thesis

FY25 was a challenging year for ZBH despite efforts to improve growth and profitability. Our Neutral view is based on the belief

that shares are not likely to see much return over the quarters ahead as ZBH undertakes additional measures to improve growth

and profitability. While ZBH launched a number of new products in FY25, there were not many new products to highlight for FY26,MEDICAL diligence on prior launches was average, Paragon 28 is underperforming expectations, and the salesforce changes that ZBH is

undertaking are likely to put a cap on outperformance. Collectively, much of this is priced into ZBH shares, but it's hard to see a

scenario where ZBH can realistically outperform these dynamics in FY26 even with modest guidance.

Upcoming Catalysts Price Performance

■ FY26 - Increasing contributions from FY25 product cycle $120

■ FY26 - Cadence of new product launches $115

$110TECHNOLOGY ■ FY26 - Meaningful contributions from ROSA Shoulder

■ FY26 - Launch of posterior hip $105

$100 ■ Early 2027 - Anticipated mBôs launch $95

■ YE27 - Completion of US sales-force specialization $90EQUITY ■ Throughout - Integration of Paragon 28 $85

■ Throughout - ~50+ product launches through LRP $80

■ Throughout - Strategic M&A $75

Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26

Base Case Assumptions ZBH S&P 500 (rebased)

Source: FactSetRESEARCH We model ZBH revenue at $8.595B in FY26 (+4.4% Y/Y, +3.7% xFx, 2.4% organic) and

adj. EPS of $8.50. These targets are in line with ZBH's FY26 guidance, which calls for

reported revenue growth of 2.5% to 4.5% (2% - 4% xFx, 1% - 3% xFx organic) and adj. Company Description