Smith+Nephew cut its full-year 2026 revenue and profit outlook after weaker-than-expected orthopaedics growth and confirmed that merger talks with Johnson & Johnson’s orthopaedics unit had ended. It will continue exploring options for the business, which accounts for about 40% of annual sales.
Smith+Nephew cut its full-year revenue and profit forecast on Wednesday after weaker-than-expected third-quarter growth in its orthopaedics business. The company also confirmed that talks about a potential merger with Johnson & Johnson’s orthopaedics unit had ended.
Smith+Nephew had approached Johnson & Johnson earlier this year with an offer valuing its hip and knee replacement unit at as much as $22 billion, a person familiar with the matter told Reuters in October. The discussions collapsed after the parties could not agree on who would run the enlarged group, the person said. Smith+Nephew did not explain why the talks ended and said it would continue exploring strategic options for orthopaedics, which accounts for about 40% of its annual sales.
Smith+Nephew forecast a continued slowdown in orthopaedics through the final quarter. Its shares were down 1.7% in early trade. J.P. Morgan analysts said the company’s confirmation that it was exploring strategic options could be welcomed by bullish investors, while others might question the timeline and potential buyer interest.
