Globus Medical reported second-quarter fiscal year 2026 revenue of $789.6 million, a 6% increase year-over-year. Excluding the Nevro acquisition, base business revenue grew 9%. Non-GAAP earnings per share rose 56% to $1.34.

The company achieved a quarterly record for fully diluted non-GAAP EPS, driven by adjusted EBITDA margin expansion to 35.4% from 28% in the prior-year quarter. U.S. Spine revenue grew 7%, while International Spine sales increased 14%. The company repurchased $136 million worth of shares during the period.

Segment Performance and Growth Drivers

Musculoskeletal revenue reached $763.5 million, growing 8% year-over-year. The growth was led by strong procedural volumes in the U.S. and international markets. Trauma revenue surged 31% year-over-year as supply constraints eased.

International revenue totaled $170.5 million, an 18% increase as reported. Double-digit growth was recorded across EMEA, Latin America, and APAC regions. The company highlighted deeper market penetration and improved inventory availability as key factors supporting international expansion.

Margin Expansion and Cost Discipline

Adjusted gross profit margin improved by 200 basis points to 69.4%, marking the seventh consecutive quarter of margin expansion. Management attributed this improvement to fixed-cost leverage, favorable sales mix, and synergy execution from manufacturing and supply chain initiatives.

SG&A expenses decreased to 36.3% of sales from 40.7% in the prior-year quarter. This reduction reflects lower employee-related costs from synergy actions and timing benefits on employee benefit claims, partially offset by higher sales compensation due to increased volume.

Strategic Initiatives and Capital Allocation

The company launched three new products during the quarter, including two trauma devices and one spine product. Over 60 organic development projects are currently in progress. The acquisition of Nevro aims to expand the addressable market into pain management, with integration efforts focused on restoring trial volumes by late Q4FY26.

Capital allocation priorities include internal investment in product development and share repurchases. Since September 2023, Globus Medical has invested $747 million in share buybacks, representing over 50% of free cash flow generation in that period.

What the Numbers Show

A divergence exists between top-line growth and bottom-line acceleration. While revenue grew 6%, non-GAAP EPS increased 56%, highlighting significant operating leverage. Adjusted EBITDA dollars grew 34% against a 6% revenue increase, indicating that margin expansion is outpacing volume growth. Additionally, the shift toward flexible leasing models for enabling technologies caused a 26% decline in that segment's reported revenue, yet unit deployments grew 25% year-over-year, suggesting a strategic transition rather than a demand loss.

Guidance Update

For fiscal year 2026, Globus Medical reaffirmed revenue guidance of $3.18 billion to $3.22 billion, implying growth of 8.2% to 9.6%. Non-GAAP fully diluted EPS guidance was raised to $4.95 to $5.05, up from the previous range of $4.70 to $4.80. This revision reflects stronger-than-expected margin performance in the first half of the year.

Globus Medical, Inc. has received CE marking for its Excelsius3D intelligent 3-in-1 imaging system, clearing the path for commercial sale in the European Union and the United Kingdom.

What the CE mark covers

Excelsius3D is a mobile X-ray system designed for 2D fluoroscopy, 2D digital radiography, and 3D cone-beam computed tomography in a single platform. Indicated for use in adult and pediatric patients, the system provides 2D and 3D information on anatomic structures and high-contrast objects such as bony anatomy and metallic objects. Its images are compatible with image-guided systems, including the ExcelsiusGPS robotic navigation system.

The system is designed for intraoperative use and features a compact footprint with omnidirectional wheels to facilitate positioning and transport within the operating room. It can function as a stand-alone intraoperative imaging platform or as an integrated component of the broader Excelsius Ecosystem alongside ExcelsiusGPS.

Integration with the Excelsius Ecosystem

The CE marking expands Globus Medical's Excelsius Ecosystem of enabling technologies and enhances the capabilities of the ExcelsiusGPS robotic navigation system in the European Union. The integration connects intraoperative imaging, navigation, and robotics within a single procedural workflow.

Key features of the Excelsius3D system include:

• Combined 3D cone-beam CT, 2D fluoroscopy, and digital radiography in one platform
• Seamless integration with ExcelsiusGPS for intraoperative imaging and robotic navigation
• Compact footprint with omnidirectional wheels for operating room mobility
• Stand-alone or integrated deployment flexibility for hospitals and surgical teams

Regulatory milestones

The following table summarises the regulatory clearances obtained for the Excelsius3D system:

The U.S. Food and Drug Administration granted 510(k) clearance for Excelsius3D in 2021. With CE marking now secured, Globus Medical plans to begin commercialising the system in the European Union and United Kingdom markets.

Executive commentary

Keith Pfeil, President and Chief Executive Officer of Globus Medical, described the CE mark as an important milestone in the continued expansion of the Excelsius Ecosystem, noting the company's commitment to bringing enabling technologies to surgeons globally. Norbert Johnson, Chief Technology Officer, highlighted that the system was developed to bring advanced imaging capabilities into a mobile platform that integrates within the surgical workflow, with its connection to ExcelsiusGPS representing a step toward linking imaging, navigation, and robotics within the ecosystem.