Globus Medical (GMED) just closed out FY 2025 with Q4 revenue of US$826.4 million and basic EPS of US$1.05. Trailing twelve month revenue reached about US$2.9 billion and EPS came in at US$3.98, setting the stage for a sharply different earnings profile compared with a year earlier. Over the past six quarters, the company has seen quarterly revenue move from US$625.7 million in Q3 2024 to US$826.4 million in Q4 2025, with basic EPS shifting from US$0.38 to US$1.05 across the same period. This feeds into a trailing net margin that now looks much healthier for shareholders watching profitability.

See our full analysis for Globus Medical.

With the headline numbers on the table, the next step is to see how this stronger margin picture lines up with the stories investors usually tell about Globus Medical and where those narratives might need updating.

18.3% net margin reshapes the profit story

• On a trailing twelve month basis, Globus Medical generated US$2.9b in revenue and US$537.9 million of net income, which works out to an 18.3% net margin compared with 4.1% a year earlier.
• Bullish investors note that this higher margin lines up with their view that cost actions, integration synergies, and manufacturing automation can support stronger profitability. The jump in trailing EPS to US$3.98 and a very large year over year earnings increase also tests how much of that optimism is already visible in the reported numbers.
  • Support for the bullish view comes from the step up in trailing net income from US$103.0 million a year ago to US$537.9 million, which is far above the 19.7% five year annual EPS growth rate and points to a very different earnings base than in the earlier period.
  • At the same time, bulls talk about future EPS of US$7.22 by 2028, so the current trailing EPS of US$3.98 shows progress but also leaves a gap that depends on margins holding near, or above, the recent 18.3% level.

Bulls argue that this margin reset could be the first leg of a longer earnings run, especially if integration and automation keep paying off. 🐂 Globus Medical Bull Case

P/E of 24.3x sits below peers

• Based on the trailing figures, the shares trade on a P/E of 24.3x at a price of US$96.71, compared with a peer average of 51.5x and a US medical equipment industry average of 30.4x.
• Critics point out that even with a lower P/E than peers, the current price is still above the DCF fair value of US$83.90, which lines up with the bearish narrative that investors are paying up for earnings that may not grow as quickly as some expect.
  • The gap between the share price of US$96.71 and the DCF fair value of US$83.90 gives bears a concrete figure for their concern that cash flow based valuation work comes in below where the stock currently trades.
  • On top of that, forecast earnings growth of 3.3% a year and revenue growth of 6.5% a year are both below the cited broader US market forecasts of 15.7% and 10.4%, which is exactly the kind of slower forward profile bears focus on when they question how generous a 24.3x P/E really is.

Skeptics warn that paying above DCF fair value while growth forecasts trail the wider market could limit how much re rating room is left. 🐻 Globus Medical Bear Case

Very large 422.3% earnings jump and mixed growth outlook

• Over the last 12 months, trailing earnings grew by about 422.3% while analysts are currently looking for earnings growth of 3.3% a year and revenue growth of 6.5% a year, both below the cited US market averages of 15.7% and 10.4%.
• The consensus narrative leans on ongoing product development, robotics adoption, and acquisition synergies to support continued expansion, yet the contrast between a very large recent earnings jump and more modest forecast growth suggests the past year may include factors that are not expected to repeat at the same scale.
  • On one hand, the trailing net margin of 18.3% and TTM EPS of US$3.98 match the idea that integration of NuVasive and Nevro plus higher value technologies can support better profitability than the 4.1% margin seen a year earlier.
  • On the other, the move from a 4.1% to 18.3% margin and the roughly 7x style increase in earnings over twelve months sit well above the projected 3.3% annual earnings growth, which highlights how different the recent history is from the path analysts are using in their models.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Globus Medical on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of bullish and cautious takes leaves you unsure, it is worth looking through the full numbers yourself and deciding what holds up. To see what is currently exciting more optimistic investors, take a look at the 2 key rewards and weigh it against your own expectations.

See What Else Is Out There

The mix of a 24.3x P/E, price above DCF fair value of US$83.90, and slower forecast growth than the wider US market may make some investors question the upside.

If you are worried about paying up for limited growth potential, it is worth checking our 53 high quality undervalued stocks which highlights companies where pricing looks more attractive relative to fundamentals right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.