$SNN · SMITH & NEPHEW PLC
Smith+Nephew's Q3 FY2026 trading update reported revenue of $1,551M, up 3.4% underlying and reported, driven by Sports Medicine & ENT (+7.9% underlying) and Advanced Wound Devices (+10.7%). Orthopaedics returned to growth (+2.5% underlying) but US Knee Implants fell 7.3% and US Hip Implants fell 1.0%. The company cut full-year guidance to ~3% revenue growth, ~$1.25B trading profit, and ~$750M free cash flow. It also confirmed talks with Johnson & Johnson over a possible Depuy Synthes combination have ended.
- Q3 revenue $1,551M, up 3.4% underlying and reported vs $1,501M a year ago.
- FY2026 revenue growth guidance cut to ~3% from ~4%; trading profit to ~$1.25B from ~$1.3B.
- Free cash flow guidance cut to ~$750M from ~$800M; adjusted ROIC to ~9% from >10%.
- US Knee Implants fell 7.3% and US Hip Implants fell 1.0% in Q3.
- Confirmed J&J Depuy Synthes combination talks have ended; strategic review of Orthopaedics continues.
Extended-hours last trade $30.40, up 0.76% vs the $30.17 regular close, suggesting the market took the guidance cut and ended J&J talks in stride. Regular session had not yet reacted at filing time.
A guidance cut plus the end of J&J combination talks removes a potential catalyst while flagging persistent US orthopaedics weakness.
The guidance cut reflects a softer US orthopaedics market and reimbursement-driven weakness in skin substitutes, echoing pressures across medtech peers.
US reconstruction remains weak with knee implant share losses and slow CATALYMENT set deployment limiting hip conversion. Skin-substitute reimbursement changes continue to pressure Advanced Wound Bioactives, now expected near the upper end of the $20-40M headwind.