$SNN · SMITH & NEPHEW PLC
Smith+Nephew reported Q3 2026 revenue of $1,551M, up 3.4% underlying and reported (Q3 2025: $1,501M). Sports Medicine & ENT grew 7.9% underlying, Advanced Wound Management was flat (-0.2%), and Orthopaedics returned to growth at +2.5% underlying. The company cut full-year guidance: revenue growth to ~3% (from ~4%), trading profit to ~$1.25B (from ~$1.3B), and free cash flow to ~$750M (from ~$800M). It also confirmed talks with Johnson & Johnson over a possible Depuy Synthes combination have ended.
- Q3 revenue $1,551M, +3.4% underlying and reported vs $1,501M a year ago.
- FY trading profit guidance cut to ~$1.25B from ~$1.3B; revenue growth to ~3% from ~4%.
- US Knee Implants fell 7.3% and US Hip Implants fell 1.0% in Q3.
- Free cash flow guidance lowered to ~$750M from ~$800M; adjusted ROIC to ~9% from >10%.
- Confirmed J&J Depuy Synthes combination talks have ended; Orthopaedics strategic review continues.
Markets closed — no regular-session reaction yet; extended-hours last trade $30.23 (+0.20% vs close) suggests a muted initial response to the guidance cut.
A guidance cut plus confirmation that J&J combination talks collapsed signals both near-term demand weakness and strategic uncertainty in Orthopaedics.
The guidance cut reflects soft US orthopaedics demand and a slower-than-expected recovery from skin-substitute reimbursement changes, pressuring medtech peers with similar exposure.
US reconstruction weakness is expected to persist through Q4; skin-substitute reimbursement headwind is tracking toward the upper end of the $20–$40M range. The ended J&J talks leave Orthopaedics strategic options unresolved.