UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under the
Securities Exchange Act of 1934
May 06,
2026
Commission
File Number 001-14978
SMITH & NEPHEW plc
(Registrant’s
name)
Building 5, Croxley Park, Hatters Lane
Watford, England, WD18 8YE
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form
20-F ✔
Form 40-F
__
Smith+Nephew First Quarter 2026 Trading Update
Q1 performance in line with expectations, full year outlook
unchanged and new $500 million buyback announced
6 May 2026
Highlights
● Q1
revenue $1,501 million (2025: $1,407 million), with underlying
revenue growth of 3.1%, and reported revenue growth of 6.6%
including a 350bps foreign exchange tailwind. There was one fewer
trading day versus the prior year, with underlying revenue
growth of 4.7% on an adjusted daily sales (ADS)
basis
● Group
growth consistent with management's expectations, with growth
across all business units and regions, strength in Sports Medicine
offsetting weakness in US Knee Implants
● More
than half of growth again came from innovation launched in the last
5 years, with multiple product platforms delivering double-digit
growth
● New
$500 million share buyback announced, reflecting confidence in 2026
performance and strong balance sheet and free cash flow
generation
● Full
year 2026 guidance unchanged, with Smith+Nephew on track to deliver
underlying revenue growth of around 6%, around 8% trading profit
growth (around $1.3 billion post-acquisition of Integrity
Orthopaedics), around $800 million free cash flow, and more than
10% adjusted ROIC (excluding impact of Integrity
Orthopaedics)
(Financial Performance - Q1 2026 results unless otherwise stated,
growth % and commentary are given on an underlying basis as defined
on page 6 and are for the quarter ended 28 March 2026. In Q1 2026,
the currency tailwind on reported growth versus underlying growth
primarily reflected the strengthening of the Euro against the
USD.)
Deepak Nath, Chief Executive Officer, said:
"First-quarter performance was in line with our expectations, with
strong execution in Sports Medicine and solid performance in
Advanced Wound Management and the rest of Orthopaedics offsetting
the anticipated softness in US knees, reflecting the resilience and
balance of our portfolio. For the first time, Sports Medicine is
now larger than Orthopaedic Reconstruction and Robotics. And recent
innovation continues to drive success across all three of our
business units, with many of our newer product platforms achieving
double-digit growth, including
REGENETEN◊,
CATALYSTEM◊,
AETOS◊,
FASTSEAL◊ and
LEAF◊ among
others.
"Our new RISE strategy has got off to a good start. While early
days, we are making progress, including announcing additional
clinical data demonstrating REGENETEN's superior effectiveness,
further expanding our leading shoulder portfolio by completing the
acquisition of Integrity Orthopaedics, and continuing to invest in
expanding PICO◊ into
additional wound segments.
"These help underpin our confidence in the future and we are on
track to deliver on our full year guidance. As previously noted,
revenue growth in 2026 will be weighted towards the second half of
the year, driven by the ramp up of our exciting product launches,
stabilisation in US skin substitutes and an improving trajectory in
US knees.
"Today we are also announcing another share buyback, as we
successfully deploy capital and our strong balance sheet, both to
invest in future growth and to return incremental value to
shareholders in the near term."
First quarter trading update
Our first quarter revenue was $1,501 million (2025: $1,407
million), reflecting underlying revenue growth of 3.1%. Reported
revenue growth was 6.6%, including 350bps tailwind from foreign
exchange. The first quarter of 2026 comprised 61 trading days, one
fewer than the same period of 2025. On an ADS basis, underlying
revenue growth was 4.7%.
Sports Medicine & ENT
|
|
|
28 March
|
|
29 March
|
|
Reported
|
|
Underlying
|
|
Acquisitions
|
|
Currency
|
|
Consolidated revenue by
|
|
2026
|
|
2025
|
|
growth
|
|
growth
|
|
/disposals
|
|
impact
|
|
business unit by product
|
|
$m
|
|
$m
|
|
%
|
|
%
|
|
%
|
|
%
|
|
Sports Medicine & ENT
|
|
491
|
|
444
|
|
10.4
|
|
6.7
|
|
-
|
|
3.7
|
|
Sports
Medicine Joint Repair
|
|
281
|
|
247
|
|
13.8
|
|
10.0
|
|
-
|
|
3.8
|
|
Arthroscopic
Enabling Technologies
|
|
163
|
|
146
|
|
10.8
|
|
6.7
|
|
-
|
|
4.1
|
|
ENT
(Ear, Nose and Throat)
|
|
47
|
|
51
|
|
-7.2
|
|
-9.4
|
|
-
|
|
2.2
|
The strong Sports
Medicine growth
was broad-based and all regions contributed.
Sports Medicine Joint Repair growth
was led by our shoulder repair portfolio, including
double-digit growth from our REGENETEN Bioinductive Implant and
the Q-FIX◊ KNOTLESS
All-Suture Anchor. The roll-out of our CARTIHEAL◊ AGILI-C◊ Cartilage
Repair Implant is going well, delivering strong growth in the
quarter. The
integration of Integrity Orthopaedics, and its Tendon
Seam◊ technology
for rotator cuff repair, acquired at the start of the year, is
progressing as planned.
Arthroscopic Enabling Technologies growth
was led by the WEREWOLF FASTSEAL 6.0 Hemostasis Wand and our video
portfolio, as well as our service business. We saw strong demand in
China where the Volume-Based Procurement (VBP) process has been
delayed. We now expect this will be implemented in the beginning of
the second half.
ENT underlying
revenue declined, as expected, as we continued
to reduce channel inventory in China in response to the expected
VBP process in this segment. Growth was strong in Other Established
Markets and
Latin America, and we saw good demand for our ARIS◊ COBLATION
Turbinate Reduction Wand.
Advanced Wound Management
|
|
|
28 March
|
|
29 March
|
|
Reported
|
|
Underlying
|
|
Acquisitions
|
|
Currency
|
|
Consolidated revenue by
|
|
2026
|
|
2025
|
|
growth
|
|
growth
|
|
/disposals
|
|
impact
|
|
business unit by product
|
|
$m
|
|
$m
|
|
%
|
|
%
|
|
%
|
|
%
|
|
Advanced Wound Management
|
|
411
|
|
385
|
|
6.6
|
|
2.2
|
|
-
|
|
4.4
|
|
Advanced
Wound Care
|
|
194
|
|
173
|
|
11.7
|
|
4.9
|
|
-
|
|
6.8
|
|
Advanced
Wound Bioactives
|
|
119
|
|
120
|
|
-1.1
|
|
-1.7
|
|
-
|
|
0.6
|
|
Advanced
Wound Devices
|
|
98
|
|
92
|
|
7.0
|
|
1.9
|
|
-
|
|
5.1
|
Advanced Wound Management performance
included strong growth from key platforms and recent launches
offset by the reimbursement reset for skin substitutes and a strong
comparative period in Advanced Wound Devices.
Advanced Wound Care performance
included strong growth from our foam portfolio led by
ALLEVYN◊ LIFE.
The launch of ALLEVYN COMPLETE CARE in the US is going well and we
will be expanding the launch into Europe in the second
quarter.
Advanced Wound Bioactives saw
a small underlying revenue decline driven by the reimbursement
reset for skin substitutes in 2026. This is driving a decline in
both volumes and pricing in non-surgical settings, particularly in
mobile where we have limited exposure. We have also seen reduced
billing efficiency and elevated inventory clearing in the system.
The market is adapting slowly to the reimbursement changes but, so
far, the impact on our business has been in line with our
expectations. Looking ahead, we remain convinced of the long-term
attractiveness of the skin substitute segment beyond this
transition year. Elsewhere in the portfolio we saw double-digit
growth from our enzymatic debrider SANTYL◊ reflecting
distributor stocking patterns.
Advanced Wound Devices performance
included good growth from our PICO Negative Pressure Wound
Therapy System (sNPWT), driven by demand in surgical settings, and
double-digit growth from the LEAF Patient Monitoring System as we
continue to drive our pressure injury prevention strategy. While
sales of our traditional RENASYS◊ NPWT
System continue to be soft in the acute care channel in the US, it
is performing well in post-acute, and we are continuing
to expand into Emerging Markets.
Orthopaedics
|
|
|
28 March
|
|
29 March
|
|
Reported
|
|
Underlying
|
|
Acquisitions
|
|
Currency
|
|
Consolidated revenue by
|
|
2026
|
|
2025
|
|
growth
|
|
growth
|
|
/disposals
|
|
impact
|
|
business unit by product
|
|
$m
|
|
$m
|
|
%
|
|
%
|
|
%
|
|
%
|
|
Orthopaedics
|
|
599
|
|
578
|
|
3.7
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|
0.8
|
|
-
|
|
2.9
|
|
Knee
Implants
|
|
245
|
|
244
|
|
0.2
|
|
-2.8
|
|
-
|
|
3.0
|
|
Hip
Implants
|
|
162
|
|
151
|
|
7.3
|
|
4.1
|
|
-
|
|
3.2
|
|
Other
Reconstruction
|
|
31
|
|
29
|
|
9.3
|
|
6.0
|
|
-
|
|
3.3
|
|
Trauma
& Extremities
|
|
161
|
|
154
|
|
4.5
|
|
2.4
|
|
-
|
|
2.1
|
The majority of our Orthopaedics portfolio delivered solid growth, with Hip
Implants both in the US and outside the US, and Knee Implants
outside the US, all beating the market, offsetting a decline in US
Knee Implants. There
was a headwind to growth this quarter from one fewer trading day,
which is made up in Q4 2026.
This was the fourth consecutive quarter that
US Hip
Implants grew above the
market, with underlying and reported revenue growth of 5.8%. This
was driven again by the recently launched CATALYSTEM Primary
Hip System as we increased our penetration of the direct anterior
segment. We continue to invest in the further rollout of this
product.
US Knee
Implants declined
-10.3% on both an underlying and reported basis. This sales
softness reflects our continuing and deliberate trade-offs to
balance growth, profit and asset efficiency ahead of the launch of
our new kinematic LANDMARK◊ Knee
System. We are being disciplined about set placement and in
managing our customer tail to improve the quality of our base. The
US market continues to shift towards cementless
knees, and
we are excited about
the launch of the cementless version of LANDMARK, expected in the
third quarter of 2026.
Looking ahead, while we continue to expect softness in sales
performance versus the market, we anticipate an improving
trajectory. We are stepping up set deployment for our recently
launched LEGION◊ Medial
Stabilized insert, which enhances the competitiveness of our LEGION
Knee System and is performing strongly and will support incremental
growth in LEGION CONCELOC◊,
our cementless version of LEGION, which is currently growing
double-digit.
Outside the US, Knee Implants delivered strong underlying revenue
growth of 6.0% (reported growth 13.4%), driven by our
JOURNEY◊ II
Knee System. Hip Implants delivered underlying revenue growth of
2.1% (reported growth 9.4%) outside the US, led by the
POLAR3◊ Total
Hip System.
Other Reconstruction underlying
revenue growth reflected a strong prior year comparator period, as
well as contract mix as
we continued to see good trends in system utilisation and
penetration. First quarter highlights
included our largest ever multi-system deal for
the CORI◊ Surgical
System with
a US teaching institution.
Trauma & Extremities performance
was driven
by the EVOS◊ Plating
System and IM Nail growth. We also drove strong double-digit growth
from the recently launched AETOS Shoulder System. During the
quarter we launched
CORI Shoulder on the latest-generation CORI
platform.
Orthopaedics leadership
Today we are also announcing the appointment of Nathan Folkert as
President, Orthopaedics, replacing Craig Gaffin who will be leaving
Smith+Nephew to pursue a new opportunity. Nathan will join later in
May and brings with him more than two decades of global
orthopaedics leadership experience, spanning
commercial and operational roles across large medical technology
organisations. He has held senior
leadership roles at Stryker, Conmed and Zimmer, including
as President of Zimmer's Trauma Division. Most recently, he has
served as CEO of Orchid Orthopedic Solutions, where he led a
significant business turnaround delivering profit growth and
sustainable improvements.
We thank Craig for his contributions to the Company over the last
seven years and wish him the best for the future.
Performance by geography
|
|
|
28 March
|
|
29 March
|
|
Reported
|
|
Underlying
|
|
Acquisitions
|
|
Currency
|
|
Consolidated revenue by
|
|
2026
|
|
2025
|
|
growth
|
|
growth
|
|
/disposals
|
|
impact
|
|
geography
|
|
$m
|
|
$m
|
|
%
|
|
%
|
|
%
|
|
%
|
|
US
|
|
775
|
|
759
|
|
2.1
|
|
2.1
|
|
-
|
|
-
|
|
Other Established Markets(i)
|
|
469
|
|
427
|
|
9.8
|
|
1.0
|
|
-
|
|
8.8
|
|
Total Established Markets
|
|
1,244
|
|
1,186
|
|
4.9
|
|
1.7
|
|
-
|
|
3.2
|
|
Emerging
Markets
|
|
257
|
|
221
|
|
16.0
|
|
10.5
|
|
-
|
|
5.5
|
|
Total
|
|
1,501
|
|
1,407
|
|
6.6
|
|
3.1
|
|
-
|
|
3.5
|
(i) Other Established Markets are
Europe, Japan, Australia, Canada
and New Zealand
Other Established Markets performance was led by growth from Canada
and Australia & New Zealand. Emerging Markets growth was led by
China, and we expect 2026 to be the first year since 2021 that
China will not be a major headwind to Group revenue
growth.
Delivering our RISE strategy
We are one quarter into the RISE strategy to accelerate growth and
improve returns over the next three years. Execution against the
strategy is on track and will support performance through 2026 and
beyond.
To REACH more patients, we are focused on driving
adoption of our portfolio by expanding into additional indications
and geographies. Highlights in the quarter included the expansion
of CATALYSTEM into Japan and the introduction of LEAF 3.0, a
cloud-based update to our patient monitoring
system.
To INNOVATE and enhance the standard of care, we
continue to progress a patient-led approach to innovation,
prioritising areas with the potential to improve outcomes. During
the quarter we
continued to build out the evidence base supporting our biologics
portfolio, announcing
new clinical data that compared REGENETEN implant patients with
partial-thickness rotator cuff tears with patients receiving
traditional suture anchor repair which indicated that early
recovery time was halved. This is the third randomised controlled
trial (RCT) demonstrating improved outcomes for the REGENETEN
Bioinductive Implant compared with traditional rotator cuff repair
techniques. We also announced five-year outcomes data indicating
that patients treated with CARTIHEAL AGILI-C reported improved knee
pain relief and quality-of-life measures.
To SCALE through strategic investment, we continued
to allocate capital to targeted categories and channels. This
includes the acquisition of Integrity Orthopaedics, announced in
January. Tendon Seam's biomechanical approach to rotator cuff
repair further expands our leading portfolio in shoulder pathology.
The Group also continues to invest in expanding PICO into
additional wound segments, including applications focused on
preventing surgical site complications.
To EXECUTE efficiently, we are maintaining cost
discipline and progressing the deployment of AI and data analytics
to support improvements in selected business processes. During the
quarter we created a digital twin within our supply chain which we
are integrating into our end-to-end workflows to drive process
optimisation and enhance decision-making.
New share buyback announced
Today, Smith+Nephew is announcing a share buyback of $500 million
to be completed within the next twelve months.
The buyback demonstrates our commitment to disciplined capital
allocation, balancing investment in strategic growth with the
return of surplus capital to shareholders, in line with our
framework. The buyback will be financed from free cash flow and
existing cash balances.
The $500 million buyback announced today, together with the
anticipated ordinary dividends, would result in us returning more
than $835 million to shareholders over the next twelve months,
equivalent to 6.3% of our market cap based on the closing price on
1 May 2026. This new buyback follows the $500 million buyback
completed in 2025.
2026 guidance unchanged
We continue to expect the following results for the full year of
2026:
● Underlying
revenue growth around 6% for the full year, a new level for
Smith+Nephew. This equates to reported revenue growth of around
7.7% based on exchange rates prevailing on 1 May
2026
● Trading
profit growth on an organic basis of around 8%
● Around
$800 million in free cash flow
● Greater
than 10% adjusted ROIC (excluding the impact of Integrity
Orthopaedics)
As previously stated, we expect revenue leverage and operational
savings to more than offset the headwinds in 2026 to drive trading
profit growth ahead of revenue growth before acquisitions. Within
this, we still expect around $60 million impact from tariffs and
$20 to $40 million incremental impact from the reimbursement reset
for skin substitutes. As previously disclosed, the acquisition of
Integrity Orthopaedics is expected to be marginally dilutive to
trading profit in 2026, broadly neutral in 2027 and accretive in
2028. Including this dilution, we expect 2026 trading profit to be
around $1.3 billion based on current forecast exchange
rates.
We expect a stronger second half to the year compared to the first
half for both revenue and profit growth, in keeping with normal
seasonal phasing plus a ramp-up of product launches, stabilisation
in the skin substitutes market, an improving trajectory in US Knee
Implants, and an extra trading day in the fourth
quarter.
Analyst conference call
An analyst conference call to discuss Smith+Nephew's first quarter
results will be held at 8.30am BST / 3.30am EDT on Wednesday 6 May
2026, details of which can be found on the Smith+Nephew website
at https://www.smith-nephew.com/en/who-we-are/investors.
Forward calendar
Surgeon expert insights event in London 9 June 2026.
Results for the second quarter and first half of 2026 will be
released on 4 August 2026.
Investor contacts
|
Emily Heaven, Smith+Nephew
|
+44 (0) 7811 919437
|
|
Craig Bijou, Smith+Nephew
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+1 (475) 850-8282
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Media contacts
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Charles Reynolds, Smith+Nephew
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+44 (0) 1923 477314
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Susan Gilchrist / Ayesha Bharmal, Brunswick
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+44 (0) 20 7404 5959
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Reporting definitions
Unless otherwise specified as 'reported' all revenue growth
throughout this document is 'underlying' after adjusting for the
effects of currency translation and including the comparative
impact of acquisitions and excluding disposals. All percentages
compare to the equivalent 2025 period.
'Underlying revenue growth' reconciles to reported revenue growth,
the most directly comparable financial measure calculated in
accordance with IFRS, by making two adjustments, the 'constant
currency exchange effect' and the 'acquisitions and disposals
effect', described below.
The 'constant currency exchange effect' is a measure of the
increase/decrease in revenue resulting from currency movements on
non-US Dollar sales and is measured as the difference between: 1)
the increase/decrease in the current year revenue translated into
US Dollars at the current year average exchange rate and the prior
revenue translated at the prior year rate; and 2) the
increase/decrease being measured by translating current and prior
year revenues into US Dollars using the same exchange
rates.
The 'acquisitions and disposals effect' is the measure of the
impact on revenue from newly acquired material business
combinations and recent material business disposals. This is
calculated by comparing the current year, constant currency actual
revenue (which includes acquisitions and excludes disposals from
the relevant date of completion) with prior year, constant currency
actual revenue, adjusted to include the results of acquisitions and
exclude disposals for the commensurate period in the prior year.
These sales are separately tracked in the Group's internal
reporting systems and are readily identifiable.
About Smith+Nephew
Smith+Nephew is a portfolio medical technology business focused on
the repair, regeneration and replacement of soft and hard tissue.
We exist to restore people's bodies and their self-belief by using
technology to take the limits off living. We call this purpose
'Life Unlimited'. Our 17,000 employees deliver this mission every
day, making a difference to patients' lives through the excellence
of our product portfolio, and the invention and application of new
technologies across our three global business units of
Orthopaedics, Sports Medicine & ENT and Advanced Wound
Management.
Founded in Hull, UK, in 1856, we now operate in around 100
countries, and generated annual sales of $6.2 billion in 2025.
Smith+Nephew is a constituent of the FTSE100 (LSE:SN, NYSE:SNN).
The terms 'Group' and 'Smith+Nephew' are used to refer to Smith
& Nephew plc and its consolidated subsidiaries, unless the
context requires otherwise.
For more information about Smith+Nephew, please
visit www.smith-nephew.com and
follow us on X, LinkedIn, Instagram or Facebook.
Forward-looking Statements
This document may contain forward-looking statements that may or
may not prove accurate. For example, statements regarding expected
revenue growth and trading profit margins, market trends and our
product pipeline are forward-looking statements. Phrases such as
"aim", "plan", "intend", "anticipate", "well-placed", "believe",
"estimate", "expect", "target", "consider" and similar expressions
are generally intended to identify forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause actual
results to differ materially from what is expressed or implied by
the statements. For Smith+Nephew, these factors include: conflicts
in Europe and the Middle East, economic and financial conditions in
the markets we serve, especially those affecting healthcare
providers, payers and customers; price levels for established and
innovative medical devices; developments in medical technology;
regulatory approvals, reimbursement decisions or other government
actions; product defects or recalls or other problems with quality
management systems or failure to comply with related regulations;
litigation relating to patent or other claims; legal and financial
compliance risks and related investigative, remedial or enforcement
actions; disruption to our supply chain or operations or those of
our suppliers; competition for qualified personnel; strategic
actions, including acquisitions and disposals, our success in
performing due diligence, valuing and integrating acquired
businesses; disruption that may result from transactions or other
changes we make in our business plans or organisation to adapt to
market developments; relationships with healthcare professionals;
reliance on information technology and cybersecurity; disruptions
due to natural disasters, weather and climate change related
events; changes in customer and other stakeholder sustainability
expectations; changes in taxation regulations; effects of foreign
exchange volatility; and numerous other matters that affect us or
our markets, including those of a political, economic, business,
competitive or reputational nature. Please refer to the documents
that Smith+Nephew has filed with the U.S. Securities and Exchange
Commission under the U.S. Securities Exchange Act of 1934, as
amended, including Smith+Nephew's most recent annual report on Form
20-F, which is available on the SEC's website at www. sec.gov, for
a discussion of certain of these factors. Any forward-looking
statement is based on information available to Smith+Nephew as of
the date of the statement. All written or oral forward-looking
statements attributable to Smith+Nephew are qualified by this
caution. Smith+Nephew does not undertake any obligation to update
or revise any forward-looking statement to reflect any change in
circumstances or in Smith+Nephew's expectations.
◊ Trademark
of Smith+Nephew. Certain marks registered in US Patent and
Trademark Office.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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Smith & Nephew plc
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(Registrant)
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Date:
May 06, 2026
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By:
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/s/
Helen Barraclough
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Helen
Barraclough
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Company
Secretary
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