Medical device company Globus Medical (NYSE: GMED) beat Wall Street’s revenue expectations in Q1 CY2026, with sales up 27% year on year to $759.9 million. The company expects the full year’s revenue to be around $3.2 billion, close to analysts’ estimates. Its non-GAAP profit of $1.12 per share was 21.7% above analysts’ consensus estimates.

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“We’re off to a strong start in 2026 with 27% overall revenue growth and record first quarter earnings. Organic revenue grew over 13%, driven by share gains and procedural volume strength in core spine, while Enabling Technologies delivered against its pipeline and continued to expand its customer base,” 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

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Globus Medical’s sales grew at an incredible 30.3% compounded annual growth rate over the last five years. 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 27.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

We can dig further into 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 22.8% year-on-year growth. Because this number is lower than its normal revenue growth, we can see that foreign exchange rates have boosted Globus Medical’s performance.

This quarter, Globus Medical reported robust year-on-year revenue growth of 27%, and its $759.9 million of revenue topped Wall Street estimates by 2.7%.

Looking ahead, sell-side analysts expect revenue to grow 4.6% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and suggests its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.

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Adjusted Operating Margin

Globus Medical has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average adjusted operating margin of 23.3%.

Looking at the trend in its profitability, Globus Medical’s adjusted operating margin decreased by 1.4 percentage points over the last five years, but it rose by 4.3 percentage points on a two-year basis. We like Globus Medical and hope it can right the ship.

This quarter, Globus Medical generated an adjusted operating margin profit margin of 21.5%, down 2 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

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 22.2% compounded annual growth rate over the last five years. However, this performance was lower than its 30.3% 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. As we mentioned earlier, Globus Medical’s adjusted operating margin declined by 1.4 percentage points over the last five years. Its share count also grew by 34.9%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

In Q1, Globus Medical reported adjusted EPS of $1.12, up from $0.68 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 of $4.44 to grow 4.2%.

Key Takeaways from Globus Medical’s Q1 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. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 3.9% to $88.35 immediately after reporting.

Globus Medical put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. 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).