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Globus Medical (GMED) produced free cash flow over the last twelve months equal to 7.9% of its market value, compared with 4.3% for the median S&P 500 company. A yield that high marks either a business on sale or one the market expects to shrink. Globus is a hard call, because its cash continues to rise while its stock lost 17.5% in the three months to November 6. So what does that much cash actually do for you as an owner?
What Globus Medical's Cash Does For You
Shareholders own a portion of the free cash Globus generates, whether or not the company pays it out, just as they own a portion of its profit. The share price tends to rise as the market values that cash, particularly when the amount is growing. That is why a yield well above the median company's deserves your attention.
How Globus Medical Makes Its Cash
The company sells spine implants, trauma products and surgical robots. Musculoskeletal Solutions generated $2.8 billion of its $2.94 billion revenue in fiscal 2025, with Enabling Technologies, the robots and navigation systems, making up the rest.
Globus retains a much larger portion of each sale than it did two years ago. The operating margin reached 22.8% over the twelve months to September 30, 2026, up from 6.8% over the twelve months to September 2024. Capital spending consumed only 18.3% of the $926 million in cash generated by operations over the latest twelve months.
This leaves substantial free cash, and the total has increased each year. Free cash flow climbed to $757 million over the twelve months to September 30, 2026, up from $580 million a year earlier. Over the twelve months to September 2024, the figure stood at $294 million.
The company also carries minimal debt. Globus held $517 million in cash and short-term investments at September 30, 2026, against $108 million of debt, so its cash far exceeds what it owes.
Where Globus Medical's Sales Have Slowed
Sales have stalled at Globus, and management has cut its forecast. Revenue in the third quarter of fiscal 2026 fell 0.7% from a year earlier, following a 5.9% increase in the second quarter. On November 5, management lowered its 2026 revenue forecast to $3.09 billion, from a range of $3.18 billion to $3.22 billion. Management said the new forecast implies a mid-single-digit decline in the fourth quarter.
Management tied the third-quarter results to three problems: shrinking sales at Nevro, the pain therapy business Globus acquired; new spine products that launched late; and less business than hoped from sales reps recruited from rivals. Revenue at Nevro fell 25.7% from a year earlier. Management said its SCRIPT implants and other delayed launches will add little before 2027, when it expects them to contribute to growth. The company kept its 2026 forecast for adjusted earnings per share at $4.95 to $5.05.
Based on these figures, Globus looks closer to a business on sale than a shrinking one. Sales fell in one quarter and are forecast to slip in the next, while its margin and cash continued to rise over the twelve months. Its operating margin was 15.6% a year earlier, against 22.8% now. The price appears to assume the stall lasts.
What To Watch In Globus Medical's Next Report
Debt is the smaller worry, because Globus holds more cash than it owes. The open question is whether the cash keeps growing through a fourth quarter in which management expects lower sales. Globus is expected to report its fourth quarter in February 2027, and its free cash flow over the twelve months is the measure to watch.
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