Globus Medical (GMED) has just wrapped up FY 2025 with fourth quarter revenue of US$826.4 million and basic EPS of US$1.05, against a backdrop of trailing twelve month EPS of US$3.98 supported by net income of US$537.9 million. The company has seen revenue move from US$657.3 million in Q4 2024 to US$826.4 million in Q4 2025. Trailing net margin sits at 18.3% compared with 4.1% a year earlier, giving a clearer view of how sales and EPS are feeding through to profitability. Taken together with very strong reported year over year earnings growth and a five year EPS growth rate in the high teens, the latest results put margins and earnings quality squarely in focus for investors assessing how much of each revenue dollar is turning into profit.

See our full analysis for Globus Medical.

With the headline figures on the table, the next step is to evaluate these margins and earnings trends against the most common narratives around Globus Medical to see which views the latest numbers support and which they challenge.

TTM EPS Near US$3.98 Puts Q4 Into Context

• Across the last twelve months, basic EPS totals US$3.98 on net income of US$537.9 million from US$2.9b of revenue, so the full year picture is much stronger than the single Q4 EPS of about US$1.05 alone might suggest.
• Consensus narrative leans on this higher earnings base to support expectations that earnings could reach about US$624.6 million with EPS of US$4.97 by around 2029. However, the trailing EPS jump of roughly 7x over the past year sets a high bar for that view, because it implies the recent profitability step change needs to hold while margins are forecast to ease from 18.3% to 17.3%.

18.3% Net Margin Tests Bullish Optimism

• The trailing 12 month net profit margin of 18.3% compares with 4.1% a year earlier, so Globus Medical is currently converting a much larger share of its roughly US$2.9b in sales into profit than it did in the prior period.
• Bulls argue that cost actions and integration synergies can keep margins strong even if they dip slightly, and the current 18.3% net margin strongly supports the idea that efficiency gains are already flowing through. Yet the same bullish narrative also assumes margins ease to 16.8% over the next few years, which means the current margin level is already above what that optimistic case is underwriting.
  • This creates a tension for bullish expectations, because to reach the projected US$632.9 million in earnings by about 2029 from US$537.9 million today, the company would need revenue growth and cost control to offset that margin step down rather than rely on further margin expansion.
  • The large reported earnings increase of more than 4x over the past year gives bulls evidence that operating leverage is real, but it also raises the question of how repeatable that gain is if future forecasts are anchoring to slightly lower margins than today.

What bullish investors are really betting on is whether the current 18.3% margin is a sustainable base or a high watermark, and that tension is unpacked in far more detail in the 🐂 Globus Medical Bull Case.

P/E of 21.5x vs 39.4x Peers Under Bear Scrutiny

• On the trailing numbers, the stock trades on a P/E of 21.5x with a share price of US$85.07, compared with a peer average of 39.4x, an industry average of 23.9x, an analyst consensus target of US$110.08, and a DCF fair value of about US$144.41.
• Bears highlight integration risk and slower forecast growth of roughly 5% earnings and 6.5% revenue per year. Yet the current multiple sits below both peer and industry averages and also below what would be implied if the consensus target of US$110.08 or the DCF fair value of about US$144.41 were reached, so the cautious view rests more on those forward growth rates and deal execution than on any obvious stretch in the present valuation.
  • Critics point out that bearish analysts still assume revenue growth of about 8.8% per year with margins nudging from 13.6% to 13.7%, which is different from the 18.3% trailing margin investors can see today and shows how much of the bearish stance is about concern over future mix and integration rather than the latest profitability snapshot.
  • What stands out for a beginner investor is that analysts who are more cautious still model earnings growth from US$356.6 million to US$462.2 million, so their worry is whether the stock deserves a higher P/E in the future rather than whether the business is currently loss making.

Skeptical investors often focus on slower forecast growth and acquisition execution, and those concerns come through clearly when you read the full cautious case for Globus Medical in the 🐻 Globus Medical Bear Case.

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 the mix of optimism and caution in these results feels intense, it helps to see the numbers in context and form your own takeaway. To sense what others are hopeful about, start with the 5 key rewards

See What Else Is Out There

Globus Medical's story mixes strong trailing margins with concerns about whether those profits and forecast growth rates truly justify a higher P/E than today.

If you want stocks where pricing already looks more supportive of the earnings profile, take a few minutes now to scan the 51 high quality undervalued stocks and compare the trade offs.

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.