SMITH & NEPHEW (SNN) Company Report

Smith+Nephew (SNN) launched its new RISE strategy, targeting 6%-7% organic revenue growth and 9%-10% trading profit growth by 2028.
The strategy aims to deliver $1 billion in free cash flow and 12%-13% Return on Invested Capital (ROIC) by 2028.
Innovation is a key focus, with new products expected to contribute approximately 50% of revenue growth and a pipeline including the new LANDMARK knee system.
The company completed a $500 million share buyback in Q3 2025 and plans to prioritize strategic M&A for high-growth segments.

3 days ago

Transcript

Smith & Nephew Unveils RISE Strategy with Ambitious 2028 Financial Targets

SNN

Guidance Update

New Projects/Investments

M&A

Smith & Nephew launched its new RISE strategy, targeting 6%-7% organic revenue growth and 9%-10% trading profit growth over the next three years. The company aims to achieve $1 billion in free cash flow and a 12%-13% Return on Invested Capital (ROIC) by 2028.
The strategy includes significant operational improvements, such as the Ortho 360 model, which plans to reduce product families by 54% (from 128 to 59) over three to five years, expecting to reduce gross inventory by approximately $500 million. The company also reduced its manufacturing footprint by 33% and headcount by 30%.
Orthopaedics is targeted for substantial margin expansion, aiming for over 20% margin by 2030 and a doubling of ROIC by 2030, with 300-400 basis points of Ortho margin expansion by 2028.
For 2026, the company anticipates headwinds including $60 million in tariffs, approximately 110 basis points from inventory revaluation, 40 basis points from wound pricing, and 20 basis points from ENT VBP in China. Despite these, operational leverage and $150 million in savings are expected to drive profit growth greater than sales growth.
Strategic M&A will prioritize high-growth and high-return businesses, particularly in sports medicine and wound management, to reinforce success.

3 days ago

Transcript

Smith+Nephew Announces New Strategy and Updated Financial Targets

SNN

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Smith+Nephew introduced its new RISE strategy, designed to drive new levels of financial and operational performance by building on the success of its 12-Point Plan.
The company announced 2028 financial targets, including an underlying revenue compound annual growth rate (CAGR) of 6-7%, a trading profit CAGR of 9-10%, and free cash flow of more than $1 billion.
For 2025, full-year guidance was updated, with the trading profit margin now expected to be at least 19.5% and free cash flow upgraded to around $800 million. Provisional 2026 full-year guidance includes underlying revenue growth accelerating to around 6% and free cash flow of around $800 million.
Further portfolio rationalisation opportunities were identified, with an estimated $200 million non-cash inventory provision in 2025 to reduce complexity and capital requirements.

3 days ago

6-K

Smith+Nephew Reports Q3 2025 Results and Raises Free Cash Flow Guidance

SNN

Earnings

Guidance Update

Share Buyback

Smith+Nephew reported Q3 2025 revenue of $1,501 million, representing 5.0% underlying revenue growth.
The company maintains its full-year outlook for around 5.0% underlying revenue growth and expects the trading profit margin to expand to between 19.0% and 20.0%.
Free cash flow guidance was raised to around $750 million for the full year, up from the previous guidance of more than $600 million.
A $500 million share buyback was completed on October 7, 2025.

Nov 6, 2025, 11:54 AM

6-K

Smith+Nephew Reports Q3 2025 Results and Raises Free Cash Flow Guidance

SNN

Earnings

Guidance Update

Share Buyback

Smith+Nephew reported Q3 2025 revenue of $1,501 million, representing 5.0% underlying revenue growth and 6.3% reported growth.
The company reaffirmed its full-year outlook for underlying revenue growth to be around 5.0% and trading profit margin to expand to between 19.0% and 20.0%.
Free cash flow guidance was raised to around $750 million (previously more than $600 million), driven by strong working capital discipline and operational efficiency.
A $500 million share buyback was completed on October 7, 2025.

Nov 6, 2025, 11:00 AM

6-K

Smith & Nephew Reports Q3 2025 Results, Reaffirms Full-Year Guidance, and Raises Free Cash Flow Outlook

SNN

Earnings

Guidance Update

Product Launch

Smith & Nephew reported $1.5 billion in revenue for Q3 2025, with 5% underlying growth and 6.3% reported growth.
The company reaffirmed its full-year guidance for around 5% revenue growth and a trading margin within the range of 19-20%, expressing confidence in achieving the midpoint or slightly above for margin.
Free cash flow guidance for the full year was raised from more than $600 million to around $750 million.
Orthopedics grew 4.1% on an underlying basis, driven by strong performance in US hips, trauma, and extremities, which helped offset softer performance in US knees due to portfolio rationalization. Sports medicine and ENT grew 5.1%, and Advanced Wound Management grew 6%.
For 2026, the company anticipates headwinds from tariffs and Medicare reimbursement changes for skin substitutes, which are expected to have a 25-50 basis point negative impact on group trading profit margin, but still expects overall margin expansion beyond 2025.

Nov 6, 2025, 8:30 AM

Transcript

Smith & Nephew Reports Q3 2025 Results, Raises Free Cash Flow Guidance

SNN

Earnings

Guidance Update

Product Launch

Smith & Nephew reported Q3 2025 underlying revenue growth of 5%, reaching $1.5 billion, driven by continued momentum in sports medicine and advanced wound management, and strong global growth in trauma and extremities.
The company raised its full-year 2025 free cash flow guidance to around $750 million (from over $600 million) and reaffirmed its revenue growth guidance of around 5% and trading margin of 19-20%.
Operational improvements under the 12-point plan and strong working capital discipline are contributing to an expected step-up in profitability in the second half of 2025.
While US hips, trauma, and extremities showed strong performance, US knees remained soft due to ongoing portfolio rationalization efforts.
For 2026, the company anticipates headwinds from Medicare reimbursement changes for skin substitutes (25-50 basis point negative impact on group trading profit margin) and tariffs, but still expects overall margin expansion.

Nov 6, 2025, 8:30 AM

Transcript

Smith & Nephew Reports Q3 2025 Results and Raises Free Cash Flow Guidance

SNN

Earnings

Guidance Update

Product Launch

Smith & Nephew reported Q3 2025 revenue of $1.5 billion, with 5% underlying growth and 6.3% reported growth.
The company reiterated its full-year 2025 guidance for around 5% revenue growth and a trading margin within the 19%-20% range.
Free cash flow guidance for 2025 was raised from more than $600 million to around $750 million.
Performance was driven by continued momentum in sports medicine and advanced wound management, with strong global trauma and extremities growth, while U.S. knees remained soft due to portfolio rationalization.
Looking to 2026, the company anticipates margin expansion despite headwinds such as tariffs and skin substitutes pricing.

Nov 6, 2025, 8:30 AM

Transcript

Smith+Nephew's PICO sNPWT Demonstrates Superior Performance in Clinical Study

SNN

Smith+Nephew announced findings from a comparative study showing that its PICO sNPWT (-80 mmHg) significantly reduces the risk of wound dehiscence, hospital length of stay (LoS), and overall healthcare costs compared to PrevenaTM -125 mmHg sNPWT.
The study, which analyzed over 22,000 patients, found that in cardiovascular surgery, PICO sNPWT resulted in a 57.8% relative reduction in wound dehiscence risk and a 10.34% relative reduction in admission-related costs.
For orthopedic surgery, PICO sNPWT demonstrated a 63.9% relative reduction in wound dehiscence incidence and a 21.95% relative reduction in mean index admission cost.
Prophylactic use of PICO sNPWT on at-risk patients undergoing orthopedic or cardiovascular surgeries helps reduce surgical site complications and strain on healthcare resources, leading to improved health economic outcomes for hospitals.

Oct 27, 2025, 3:30 PM

Press Release

Smith+Nephew Secures Category I CPT Code for CARTIHEAL Implant

SNN

Product Launch

New Projects/Investments

Smith+Nephew announced that the American Medical Association (AMA) CPT Editorial Panel has established a Category I Current Procedural Terminology (CPT) code for procedures involving its CARTIHEAL AGILI-C Cartilage Repair Implant, effective January 1, 2027.
The CARTIHEAL Implant is the only FDA-approved device for treating cartilage and osteochondral defects in the knee, including in patients with mild to moderate osteoarthritis, and demonstrated an 87% reduction in the relative risk of total knee arthroplasty or osteotomy at 4 years in clinical trials.
This new CPT code is expected to streamline reimbursement processes for providers and payers, facilitating broader access and integration of the CARTIHEAL Implant into standard clinical practice.