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Smith+Nephew Misses Revenue Target, Shares Drop
6 May
Summary
- First-quarter revenue growth fell just short of expectations.
- Company reiterated annual outlook despite recent slowdown.
- US tariffs and reimbursement policy changes pose future risks.
As of May 6, 2026, medical products maker Smith+Nephew reported a first-quarter underlying revenue growth of 3.1%, falling slightly below the anticipated 3.2%. This performance led to a 5% decrease in the company's share price.
The company, which specializes in orthopaedic implants and wound dressings, is undergoing a turnaround focused on growth acceleration after previous restructuring efforts. Despite current inflationary pressures and supply chain issues impacting its performance, Smith+Nephew reiterated its full-year outlook for approximately 6% revenue growth.
However, external factors present ongoing uncertainties. Potential US tariffs could impact trading profit by $60 million in 2026, and changes to U.S. reimbursement policies for skin substitutes may affect its wound business. The company's orthopaedics unit is also in a recovery phase, with U.S. knee implants seeing a 10.3% decline in the first quarter.
