Smith & Nephew Q4 Revenue Hits $1.7B, Orthopedics Up 7.9% and CORI Boosts Knee Growth
Smith & Nephew reported Q4 revenue of $1.7 billion, up 6.2% underlying and 8.3% reported, with orthopedics delivering 7.9% growth—its strongest in over two years—and CORI robot deployments boosting knee growth by 850 basis points. Full-year revenue reached $6.2 billion (5.3% underlying), gross margin rose 60 bps to 70.9%, and free cash flow jumped 52.5% to $840 million.
1. Q4 Financial Highlights
Smith & Nephew delivered fourth-quarter revenue of $1.7 billion, up 6.2% on an underlying basis and 8.3% reported, driven by a 210 basis-point FX tailwind and an extra trading day. Daily sales rose 4.5%, with U.S. revenue increasing 5.6%, established markets up 7.2%, and emerging markets up 6.4%.
2. Robotics and Orthopedics Growth
Orthopedics achieved 7.9% underlying growth, its strongest quarterly performance in over two years, supported by 40.8% growth in “other recon” and 45% of CORI robotic deployments to ambulatory surgery centers. Accounts with CORI saw knee growth 850 basis points higher, while hip gains were fueled by Catalyst Stem uptake and LEGION MS launches.
3. Full-Year Performance and Cash Flow
Full-year 2025 revenue rose 5.3% underlying to $6.2 billion (6.1% reported), with all business units growing above 5%. Underlying gross margin expanded 60 basis points to 70.9%, trading profit hit $1.2 billion, adjusted EPS climbed 21% to $1.02, and free cash flow surged 52.5% to $840 million.
4. 2026 Outlook and Headwinds
Management guides to roughly 6% organic revenue growth and 8% trading profit expansion in 2026, forecasting approximately $1.3 billion in trading profit including the Integrity Orthopaedics acquisition. Anticipated headwinds include $60 million in tariffs, $20–40 million in wound reimbursement changes, and anticipated stronger second-half growth from new knee systems.