Zimmer Biomet's stock surged 5.32% during intraday trading on Tuesday, following the company's release of its fourth-quarter financial results.

The medical device maker reported quarterly adjusted earnings of $2.42 per share, beating analyst estimates of $2.40. Quarterly sales reached $2.244 billion, also surpassing expectations of $2.231 billion and marking a 10.9% increase year-over-year. The strong performance was driven by robust demand for the company's hips and knees devices, with both segments reporting sales growth.

Additionally, Zimmer Biomet announced that its board approved a new $1.5 billion stock repurchase authorization, providing further support to shareholder value. The company also issued its 2026 financial guidance, projecting adjusted earnings per share in the range of $8.30 to $8.45.