Smith & Nephew Projects 6% 2026 Revenue Growth, Acquisition to Dilute Profits
Smith & Nephew forecasts 6% revenue growth for 2026, with new product launches contributing over 50% and H2 growth of 7.5%–8% versus 4.5%–5% in H1. The company anticipates US tariff and reimbursement pressures and says the Integrity Orthopedics acquisition will dilute 2026 trading profit before turning accretive in 2028.
1. 2026 Revenue Growth Guidance
The company expects revenue to rise around 6% in 2026, driven by innovation with new product launches responsible for over half of growth. First-half growth is projected at 4.5%–5% due to a shorter trading period in Q1, while second-half growth is expected to accelerate to 7.5%–8%.
2. 2025 Revenue Performance and Innovation
Underlying revenue grew 5.3% in the full year, with all three business units posting over 5% increases. Innovation fueled this performance, as more than 60% of growth stemmed from products launched in the past five years, delivering double-digit expansion across divisions.
3. Headwinds from Tariffs and Reimbursement
Smith & Nephew anticipates significant headwinds from US tariff adjustments and changes to reimbursement in its AWM business, which may pressure profit margins. The company is monitoring these developments as it navigates evolving regulatory and trade environments.
4. Integrity Orthopedics Acquisition Effects
The acquisition of Integrity Orthopedics aligns with the company’s strategy to bolster its sports medicine portfolio, but it is expected to dilute trading profit in 2026. Management forecasts the transaction becoming accretive by 2028 as synergies and scale benefits materialize.