Mitigation Efforts: Zimmer is adjusting transfer pricing and supply chains to offset tariffs, anticipating a $60–80 million impact in 2025 4. This represents ~1% of projected annual revenue (based on Q1 2025 revenue of $1.91 billion 1 3, annualized to ~$7.64 billion)

Zimmer Biomet's projected $60–80 million tariff impact in 2025 represents ~4.4% of its adjusted net income and reduces full-year EPS by $0.35, though broader guidance revisions show a smaller net decline due to offsetting factors

The $0.35 EPS drag from tariffs is partially offset by:

• Paragon 28 acquisition synergies
  
  
• Currency fluctuations (now projected as neutral vs. prior 1.5–2% headwind 4 7)
  
  

Contextual Notes

• Adjusted vs. Reported: The $70 million tariff impact applies to adjusted earnings, which exclude acquisition costs and other one-time items.
  
  
• Peer Comparison: Stryker’s $200 million tariff impact represents ~5% of its 2023 net income, showing Zimmer’s relatively lower exposure 4 7.
  
  

This strategic balance between tariff mitigation (e.g., transfer pricing adjustments 8) and growth initiatives underscores Zimmer’s focus on maintaining profitability amid external pressures.