Globus Medical reported third‑quarter 2025 results that surpassed expectations, with revenue rising 22.9% to $769 million and non‑GAAP diluted earnings per share climbing 42.6% to $1.18. The earnings beat of $0.39 per share—about 49% above the consensus estimate of $0.79—was driven by disciplined cost management, a favorable product mix, and the continued integration of the Nevro acquisition, which contributed $99.3 million in sales and is expected to become accretive in 2025.
The company’s U.S. spine segment led the growth story, expanding 24.6% year‑over‑year to $312 million. Nevro’s contribution added a significant revenue lift, while the Enabling Technologies segment declined 26.8% to $58 million, reflecting a shift in demand toward higher‑margin spine and neuromodulation products. The mix shift toward spine and neuromodulation helped lift the overall gross margin to 68.1%, up from 66.5% in the prior year quarter, as lower inventory step‑up amortization and a higher proportion of high‑margin items offset any cost pressures.
Sequentially, Q3 revenue was $769 million versus $748 million in Q2, a 2.9% quarter‑over‑quarter increase, while non‑GAAP EPS rose from $0.86 in Q2 to $1.18 in Q3. The acceleration in revenue and earnings growth reflects sustained demand in the U.S. spine market and the successful integration of Nevro, which has begun to deliver incremental operating leverage from the NuVasive merger.
Management raised its full‑year 2025 revenue outlook to $2.86‑$2.90 billion from the previous $2.80‑$2.84 billion range, and lifted non‑GAAP diluted EPS guidance to $3.75‑$3.85 from $3.55‑$3.65. The upward revision signals confidence in continued demand, the ongoing benefit of operating leverage, and the expected accretive impact of Nevro in its second year of operation.
CEO Keith Pfeil highlighted the quarter as a “strong performance that demonstrates disciplined execution and the success of our integration strategy.” CFO Kyle Kline noted that the company generated record non‑GAAP free cash flow of $213.9 million, up 24% quarter‑over‑quarter, and that share repurchases of $40 million this quarter brought total repurchases to $255.5 million. Analysts reacted positively, citing the sizable earnings beat and guidance upgrade as evidence of robust growth prospects.
The market’s favorable reaction—reflected in a surge in after‑hours trading—was driven primarily by the significant EPS beat and the upward revision of full‑year guidance. Investors viewed the results as confirmation of Globus Medical’s ability to generate strong cash flow while pursuing strategic acquisitions and product innovation, reinforcing confidence in the company’s long‑term trajectory.
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