Smith & Nephew (SN) Q3 2026 TU earnings summary

Executive summary

• Q3 revenue grew 3.4% underlying and reported, accelerating from 1.6% in Q2; Sports Medicine & ENT led, Wound improved and Orthopaedics returned to growth.

• More than 50% of Q3 growth came from products launched in the last five years.

• Weaker US Hips and Knees trading prompted lower FY26 guidance.

Financial highlights

• Q3 revenue was $1,551m versus $1,501m in Q3 2025; underlying and reported growth were both 3.4%, with no FX or trading-day impact.

• Nine-month revenue was $4,648m versus $4,461m; underlying growth was 2.7% and reported growth was 4.2%.

• Q3 business-unit revenue: Orthopaedics $590m, Sports Medicine & ENT $507m and Advanced Wound Management $454m.

• Regional underlying growth was 3.0% in the US, 3.2% in Other Established Markets and 4.8% in Emerging Markets; excluding China, growth was 4.0%.

Outlook and guidance

• FY26 underlying revenue growth is expected at ~3%, versus prior ~4%; reported growth is ~4.0% at 30 October exchange rates.

• FY26 trading profit is expected at ~$1.25bn, with ~4% growth, versus prior ~$1.3bn and ~8% growth; profit growth is expected to remain ahead of revenue growth.

• FY26 free cash flow is expected at ~$750m versus prior ~$800m; trading cash conversion is ~95% and ROIC is expected at ~9%.

• China is expected to be broadly neutral to full-year growth; 2027 guidance and a medium-term outlook update are planned with Q4 results.

• LANDMARK cemented launch is planned for Q2 2027, with meaningful traction expected in H2; CORI Hip and CORI Hip Impactor launches are planned for Q1 and Q3 2027.