Smith & Nephew Stock Earnings Reports

Smith & Nephew delivered a strong finish to fiscal 2025, reporting 5.3% underlying full‑year revenue growth with broad‑based contributions across Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management. Innovation remains a key driver (over 60% of 2025 growth from products launched in the last five years) and CORI robot placements reached a record. Trading margin expanded by 160 bps to 19.7%, driven by enterprise cost savings, manufacturing optimization and better inventory management; free cash flow rose to $840m (up 52.5%), enabling a $500m buyback. Management completed the acquisition of Integrity Orthopaedics (up to $450m), views it as strategically complementary to its shoulder/rotator cuff offering, and reiterated capital allocation priority on organic R&D and targeted M&A aligned to the new RISE strategy. For 2026 the company guides to around 6% organic revenue growth and ~8% organic trading profit growth (trading profit of ~ $1.3bn including Integrity), expects stronger H2 vs H1, ~ $800m free cash flow, continued margin expansion (Orthopaedics margin target >20% by 2030) and further ROIC improvement. Key near‑term headwinds called out: China VBP (largely annualized for Joint Repair), CMS wound dressing reimbursement changes, tariffs, and inventory revaluation, which management expects to offset with revenue leverage and further operational savings.