Want to see SNN full AI Analyst Report?
Top Page
Smith & Nephew Snats
(NYSE:SNN)
Select Model
Select Model
Rating:71Outperform
Price Target:
$36.00
▲(17.76% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by improving financial performance (notable 2025 margin and cash flow rebound) and a supportive earnings outlook anchored by strong cost savings and maintained profit/FCF targets. Offsetting factors include persistent moderate leverage and below-ideal cash conversion, plus revenue-growth risk highlighted by the earnings call (U.S. Orthopaedics and reimbursement headwinds). Technicals are moderately positive (above key short/mid-term averages), while valuation is fair but not a clear bargain.
Positive Factors
Margin recovery
Margin expansion to mid-teens operating and double-digit net margin in 2025 reflects improved pricing, cost discipline and product mix. Stable ~68–70% gross margins indicate resilient unit economics that support sustainable earnings power and help absorb demand volatility over the medium term.
Negative Factors
Top-line softness
Sustained revenue weakness, evidenced by very low underlying growth and a trimmed full-year guide, signals structural demand or competitive challenges. If U.S. knee and wound-care reimbursement pressure persist, revenue momentum may stay muted, constraining long-term organic growth despite margin gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery
Margin expansion to mid-teens operating and double-digit net margin in 2025 reflects improved pricing, cost discipline and product mix. Stable ~68–70% gross margins indicate resilient unit economics that support sustainable earnings power and help absorb demand volatility over the medium term.
Read all positive factors
Smith & Nephew Snats Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySmith & Nephew Snats (SNN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.10B
Dividend Yield2.48%
Average Volume (3M)482.36K
Price to Earnings (P/E)21.1
Beta (1Y)0.51
Revenue Growth6.30%
EPS Growth52.96%
CountryUS
Employees18,362
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.46
Shares Outstanding420,257,900
10 Day Avg. Volume593,629
30 Day Avg. Volume482,356
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)2.69
Price to Sales (P/S)2.31
P/FCF Ratio16.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$32.14Price Target Upside5.14% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.22
Revenue Forecast (FY)$6.54B
Smith & Nephew Snats Business Overview & Revenue Model
Company Description
Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices and services in the United Kingdom, the United States, and internationally. The company operates in three segments: Orthopaedics, Sports...
How the Company Makes Money
Smith & Nephew makes money primarily by selling medical devices and consumable healthcare products to hospitals, ambulatory surgery centers, clinics, and distributors. Key revenue streams include: (1) Orthopaedics/Recon—revenue from joint replacem...
Smith & Nephew Snats Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Neutral
The call painted a mixed picture: revenue growth came in below expectations, driven by weakness in U.S. Orthopaedics and reimbursement-related pressure in skin substitutes and bioactives. However, the company delivered strong profit and margin expansion, materially outperformed on efficiency savings (raising 2026 savings guidance), maintained trading profit, free cash flow and ROIC guidance, and highlighted multiple product and geographic growth drivers (notably in Sports Medicine & ENT, emerging markets, and a range of innovation milestones). Near‑term execution and reimbursement challenges create risk to topline momentum, but operational improvements and cost discipline have preserved earnings and cash targets.Positive Updates
Strong profit performance and margin expansion
Trading profit of $566 million in H1, up $43 million year-on-year; trading margin expanded 60 bps to 18.3%, and gross margin improved 60 bps to 71.1%.
Negative Updates
Revenue growth below expectations
Q2 underlying revenue growth was 1.6% (revenue $1.6 billion) and H1 underlying growth 2.3% ($3.1 billion); management revised full‑year underlying revenue growth guidance to around 4% (H2 expected 5%–5.5%).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong profit performance and margin expansion
Trading profit of $566 million in H1, up $43 million year-on-year; trading margin expanded 60 bps to 18.3%, and gross margin improved 60 bps to 71.1%.
Read all positive updates
Company Guidance
Updated 2026 guidance: underlying revenue growth now expected around 4% for the year (H2 growth guided to 5.0–5.5% with Q3 roughly in line with Q1 and a Q4 step‑up ~6–7% — ADS just north of 5% due to an extra trading day); trading profit guidance is unchanged at around 8% growth excluding M&A (~$1.3bn trading profit including Integrity, with marginal dilution in 2026); free cash flow still expected at ~ $800m and ROIC >10%. Management has increased efficiency savings guidance from ~$150m to ~$200m (H1 delivered ~$133m, cumulative savings ~$330m, ~ $70m more expected in H2), tariffs are expected to be broadly neutral net of refunds, and the trading‑profit headwind from skin substitutes is now expected toward the upper end of the prior $20–$40m range. H1 metrics include revenue $1.6bn (Q2) and $3.1bn (H1), gross margin 71.1% (+60bps), trading profit $566m (+$43m, trading margin 18.3% +60bps), H1 trading cash flow $437m, H1 free cash flow $231m, cash conversion 77%, net debt ≈ $3.0bn (leverage ~1.8x EBITDA), $260m of a $500m buyback completed, and an interim dividend of $0.156/share (adjusted EPS H1 $0.477, +11%).Smith & Nephew Snats Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.16B | 5.81B | 5.55B | 5.21B | 5.21B |
| Gross Profit | 4.21B | 4.08B | 3.90B | 3.70B | 3.70B |
| EBITDA | 1.34B | 1.33B | 1.21B | 1.15B | 1.22B |
| Net Income | 625.00M | 412.00M | 263.00M | 223.00M | 524.00M |
Balance Sheet | |||||
| Total Assets | 10.46B | 10.35B | 9.99B | 9.97B | 10.92B |
| Cash, Cash Equivalents and Short-Term Investments | 557.00M | 619.00M | 302.00M | 350.00M | 1.29B |
| Total Debt | 3.33B | 3.32B | 3.08B | 2.87B | 3.34B |
| Total Liabilities | 5.17B | 5.09B | 4.77B | 4.71B | 5.35B |
| Stockholders Equity | 5.29B | 5.26B | 5.22B | 5.26B | 5.57B |
Cash Flow | |||||
| Free Cash Flow | 852.00M | 606.00M | 181.00M | 110.00M | 469.00M |
| Operating Cash Flow | 1.28B | 987.00M | 608.00M | 468.00M | 877.00M |
| Investing Cash Flow | -406.00M | -569.00M | -448.00M | -472.00M | -691.00M |
| Financing Cash Flow | -955.00M | -86.00M | -200.00M | -926.00M | -645.00M |
Smith & Nephew Snats Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $18.17B | 24.27 | 6.01% | 1.05% | 9.23% | -14.66% | |
73 Outperform | $49.56B | 49.47 | 9.71% | ― | 14.55% | 15.09% | |
72 Outperform | $124.86B | 33.47 | 15.10% | 1.05% | 8.48% | 27.36% | |
71 Outperform | $13.10B | 21.11 | 11.79% | 2.56% | 6.30% | 52.96% | |
70 Outperform | $69.46B | 18.84 | 15.29% | ― | 13.53% | 46.29% | |
68 Neutral | $109.30B | 22.77 | 9.85% | 3.43% | 8.43% | 3.17% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SNN
Smith & Nephew Snats
30.13
-4.58
-13.20%
BSX
Boston Scientific
47.74
-55.21
-53.63%
EW
Edwards Lifesciences
88.97
10.36
13.18%
MDT
Medtronic
85.99
-0.56
-0.64%
SYK
Stryker
337.03
-34.13
-9.20%
ZBH
Zimmer Biomet Holdings
98.16
7.96
8.82%
Smith & Nephew Snats Corporate Events
Smith & Nephew Delivers Strong H1 2026 Profit, Trims Full-Year Revenue Outlook
Aug 4, 2026
Smith Nephew reported its second-quarter and first-half 2026 results on 4 August 2026, showing modest revenue growth but strong profit progression. Q2 revenue rose to $1.60 billion, up 1.6% on an underlying basis, driven by robust Sports Medicine...
Smith & Nephew Delivers Strong H1 2026 Profit but Cuts Full-Year Revenue Outlook
Aug 4, 2026
Smith Nephew reported its second-quarter and first-half 2026 results on 4 August 2026, showing modest top-line expansion but stronger profitability. Second-quarter revenue rose to $1.597 billion, up 1.6% on an underlying basis and 2.8% reported, ...
Smith & Nephew Updates Voting Share Capital as of July 31, 2026
Aug 3, 2026
As of 31 July 2026, Smith Nephew plc reported total issued share capital of 877,733,750 ordinary shares of US$0.20 each, of which 37,876,589 are held in treasury without voting rights. The company confirmed that its effective issued share capital...
Cevian Capital Lifts Smith & Nephew Stake Above 14% in Late-July Disclosure
Jul 27, 2026
On July 27, 2026, Smith Nephew filed a Form 6-K noting that activist investor Cevian Capital II GP Limited crossed a UK disclosure threshold in the company. The filing reports that on July 22, 2026, Cevian’s holdings rose from about 13.21% ...
Smith+Nephew Sets 4 August Date for Second-Quarter and First-Half 2026 Results
Jul 23, 2026
Smith+Nephew, the London-listed and New York-listed medical technology group, said on 23 July 2026 that it will publish its second-quarter trading update and first-half 2026 results for the period ended 27 June 2026 on 4 August 2026. The company w...
Smith & Nephew Discloses Bank of America 3.17% Stake After Voting Rights Threshold Crossed
Jul 22, 2026
Smith Nephew plc reported to the U.S. Securities and Exchange Commission on July 22, 2026 that Bank of America Corporation crossed a major shareholding notification threshold in the company on July 20, 2026. The disclosure indicates Bank of Ameri...
Smith & Nephew Executives Boost Holdings with July ADS Purchases
Jul 21, 2026
On July 21, 2026, Smith Nephew disclosed that several senior executives purchased American Depositary Shares under the company’s Employee Stock Purchase Plan. The transactions, reported in line with UK Market Abuse Regulation, involved ADSs...
Smith & Nephew Plans Block Admission of Shares for Employee Incentive Schemes
Jul 2, 2026
Smith Nephew plc, a U.K.-based medical technology company whose ordinary shares are listed on the London Stock Exchange, reported on 2 July 2026 that it had applied for a block admission of 150,000 ordinary shares of US$0.20 each. The group, whic...
Smith & Nephew Updates Voting Share Capital as of June 30, 2026
Jul 1, 2026
On July 1, 2026, Smith Nephew plc reported that as of June 30, 2026, its total issued share capital comprised 877,733,750 ordinary shares of US$0.20 each, including 32,697,503 shares held in treasury. After excluding treasury stock, the company&#...
Cevian Capital Slightly Lifts Stake in Smith & Nephew
Jun 30, 2026
Cevian Capital II G.P. Limited, acting through its investment funds, modestly increased its stake in Smith Nephew plc on 25 June 2026, according to a disclosure filed with regulators and completed on 29 June 2026. Its aggregate holding rose from ...
Smith & Nephew Discloses Increased Cevian Stake Above 13%
Jun 26, 2026
Smith Nephew disclosed that activist investor Cevian Capital II GP Limited has increased its stake in the company, according to a June 26, 2026 filing with U.S. regulators. The move underscores growing shareholder interest in the UK medical devic...
Cevian Capital Lifts Smith & Nephew Stake to 12.24% Without Triggering New Threshold
Jun 17, 2026
On June 17, 2026, Smith Nephew disclosed that activist investor Cevian Capital II G.P. Limited slightly increased its stake in the company, according to a major holdings notification filed with U.S. regulators. As of June 12, 2026, Cevian’s...
Cevian Capital Lifts Smith & Nephew Stake Above 12% in June 2026
Jun 11, 2026
On 8 June 2026, activist investor Cevian Capital II GP Limited increased its indirect holding in Smith Nephew to 12.07% of the company’s voting rights, up from 11.18%, according to a major holdings notification filed with regulators. The st...
Smith & Nephew Executives Reinvest 2025 Final Dividend Into ADS Purchases
Jun 4, 2026
On 3 June 2026, Smith Nephew disclosed that its chief executive and several senior managers acquired American Depositary Shares through the company’s Employee Stock Purchase Plan. The purchases, executed on the New York Stock Exchange at ab...
Smith & Nephew Executives Reinvest 2025 Final Dividend into Company Shares
Jun 3, 2026
Smith Nephew plc reported that several senior executives acquired ordinary shares under its Dividend Re-Investment Plan following the 2025 final dividend payment on 27 May 2026. The purchases, made on the London Stock Exchange, involved ordinary ...
Smith & Nephew Lists €500m Long-Dated Notes on London Stock Exchange
Jun 3, 2026
On 3 June 2026, Smith Nephew plc announced that EUR 500 million of 4.250% notes due 3 June 2038 have been admitted to trading on the Main Market of the London Stock Exchange. The notes were issued under the company’s US$5 billion Euro Mediu...
Smith & Nephew Updates Share Capital and Voting Rights as of 31 May 2026
Jun 1, 2026
On 1 June 2026, Smith Nephew disclosed that as of 31 May 2026 its total issued share capital comprised 877,733,750 ordinary shares of US$0.20 each, including 27,524,042 shares held in treasury. After excluding treasury stock, the company’s ...
Smith & Nephew Admits Additional Shares From Employee Schemes to London Market
May 22, 2026
On May 22, 2026, Smith Nephew plc reported the admission to trading of an additional 8,905 ordinary shares of USD 0.20 each on the Main Market of the London Stock Exchange. These new shares, fully fungible with existing stock, were issued between...
Smith & Nephew Discloses Executive Share Vesting Under Global Plan
May 20, 2026
On 19 May 2026, Smith Nephew plc reported the vesting of conditional share awards granted under its Global Share Plan 2020, in line with UK Market Abuse Regulation disclosure requirements. The transaction involved US$0.20 ordinary shares listed o...
Cevian Capital Lifts Smith & Nephew Stake to Just Over 11%
May 19, 2026
On May 19, 2026, Smith Nephew disclosed that activist investor Cevian Capital II GP Limited had slightly increased its stake in the company, as reported in a regulatory filing to U.S. authorities. The filing shows that, as of May 14, 2026, Cevian...
Cevian Capital Lifts Smith & Nephew Stake Above 11%
May 14, 2026
On 11 May 2026, activist investor Cevian Capital II GP Limited increased its stake in Smith Nephew plc, crossing a key disclosure threshold in the UK. The holding rose from 10.09% to 11.01% of the company’s voting rights, equivalent to 94,0...
Smith & Nephew Sets Sterling Rate for 2025 Final Dividend Ahead of May 27 Payout
May 12, 2026
Smith Nephew plc has confirmed the sterling equivalent of its previously announced final dividend for the year ended 31 December 2025, with a payout of 24.1 US cents per ordinary share to be made on 27 May 2026 to shareholders on the register as ...
Smith+Nephew launches up to $250 million share buyback first tranche
May 8, 2026
On 8 May 2026 Smith+Nephew, the London- and New York-listed medical technology group, announced details of the first tranche of a share buyback programme authorised at its 2026 annual general meeting. The company, which focuses on orthopaedics, sp...
Smith & Nephew AGM Approves All Resolutions Amid Pushback on Pay Plans
May 6, 2026
On 6 May 2026, Smith Nephew reported that all resolutions at its Annual General Meeting were passed by shareholders, including approval of the audited accounts, a final dividend, the re-election and election of all nominated directors, and the re...
Smith & Nephew posts solid Q1 2026 growth and launches $500m buyback
May 6, 2026
On 6 May 2026, Smith Nephew reported first-quarter 2026 revenue of $1.50 billion, up 3.1% on an underlying basis and 6.6% reported, with growth across all business units and regions despite one fewer trading day. Sports Medicine ENT led performa...
Smith & Nephew Holds Guidance, Unveils $500 Million Buyback on Solid Q1 2026 Trading
May 6, 2026
Smith Nephew reported first-quarter 2026 revenue of $1,501 million, up 3.1% on an underlying basis and 6.6% on a reported basis, aided by a foreign exchange tailwind and despite one fewer trading day versus 2025. Growth was broad-based across bus...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.