Smith & Nephew plc (LSE: SN., NYSE: SNN) has reported third-quarter 2026 revenue of $1,551 million, representing 3.4% underlying growth compared with $1,501 million in Q3 2025. The FTSE 100 medical technology group, which operates across Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management in around 100 countries, has simultaneously revised its full-year guidance downward, citing weaker-than-expected performance in US Hip and Knee Implants. Investors will be watching whether the revised targets and confirmed strategic review of the Orthopaedics division signal a more significant structural shift for the business.

Key Points

  • Smith & Nephew plc (LSE: SN., NYSE: SNN)
  • Q3 2026 underlying revenue growth of 3.4% to $1,551 million, with full-year guidance cut from "around 4%" to "around 3%" on an underlying basis
  • Full-year trading profit now expected at around $1.25 billion; free cash flow guided to around $750 million with cash conversion of around 95%
  • Investors should monitor the outcome of the ongoing strategic review of the Orthopaedics business and the progress of the $500 million share buyback, with $250 million completed by end of Q3

Sports Medicine & ENT Delivers Double-Digit Joint Repair Growth While Advanced Wound Devices Accelerates

Sports Medicine & ENT was the standout performer in the quarter, generating $507 million in revenue against $469 million in Q3 2025, representing 8.0% reported and 7.9% underlying growth. Sports Medicine Joint Repair grew 11.1% on a reported basis to $283 million, with the announcement citing broad-based strength across shoulder, hip, and small joint repair. Key platforms including REGENETEN, CARTIHEAL, and Q-FIX contributed to this momentum. Advanced Wound Devices also delivered double-digit growth of 10.7%, driven by investment behind the PICO Single-Use NPWT System and the LEAF Patient Monitoring System, partially offsetting continued declines in Advanced Wound Bioactives, where reimbursement rule changes for skin substitutes remained a headwind.

US Knee and Hip Implants Drive Orthopaedics Guidance Cut Despite LANDMARK Cementless Clearance Milestone

Orthopaedics returned to overall growth at 2.5% underlying, reaching $590 million, but persistent weakness in US reconstructive procedures forced the guidance revision. US Knee Implants declined 7.3% on both an underlying and reported basis, primarily reflecting business lost in prior periods rather than new losses, alongside market softness. US Hip Implants declined 1.0%, with CATALYSTEM set deployment limiting customer conversion. The quarter did include an important product milestone: the cementless LANDMARK Total Knee System received FDA 510(k) clearance and completed its first US surgical cases. The TESSA Spatial Surgery System also completed its first femoral repair cases and was submitted for FDA clearance for tibial tunnel placement.

Smith & Nephew Confirms Ended Discussions With Johnson & Johnson on Potential DePuy Synthes Combination

The announcement confirmed that Smith & Nephew's board has been reviewing strategic options for its Orthopaedics business for several months. The company disclosed it had approached Johnson & Johnson earlier in the year regarding a possible combination with its DePuy Synthes business, and that discussions subsequently took place but have now concluded. The company stated it will continue to actively explore the full range of strategic options. The announcement also confirmed the company's five-year partnership with Imperial College London to accelerate innovation in surgical robotics for musculoskeletal conditions, announced during the quarter.

Full-Year 2026 Guidance Revised Downward Across Revenue, Trading Profit and ROIC

Smith & Nephew updated its full-year 2026 guidance across multiple metrics. Underlying revenue growth is now expected at around 3%, reduced from around 4% previously. Trading profit growth is now guided at around 4%, down from around 8%, with absolute trading profit of around $1.25 billion compared with the prior guidance of around $1.3 billion. Free cash flow guidance moved from around $800 million to around $750 million, though trading cash conversion remains guided at around 95%. Adjusted ROIC is now expected at around 9%, reduced from more than 10%. The $500 million share buyback, announced in May 2026, remains on track with $250 million completed by the end of Q3. Full-year results are scheduled for 1 March 2027.