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Smith & Nephew plc (MX:SN1N)
:SN1N
Mexico Market
EarningsQ2 2026 Earnings Report

Smith & Nephew (SN1N) Q2 2026 Earnings Report

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MX:SN1N Q2 2026 EPS Results

Actual EPS$3.66
Consensus EPS$8.00
Beat/MissMissed by -$4.34
One Year Ago EPS$7.30

MX:SN1N Q2 2026 Revenue Results

Actual Revenue$53.08B
Expected Revenue$27.82B
Beat/MissBeat by +$25.26B
YoY Revenue Growth+0.82%

Earnings Announcement Details

QuarterQ2 2026
Date08/04/2026
TimeBefore Open
Conference CallTuesday, August 4, 2026
MX:SN1N Upcoming Earnings
Smith & Nephew's next earnings date is estimated for February 23, 2027, based on past reporting schedules.

Q2 2026 Earnings Call Audio

No earnings call audio is available for this earnings event.

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 04, 2026|
% Change Since:
|
Earnings Call Sentiment|Neutral
The call balanced clear operational and financial progress (strong trading profit, margin expansion, sizeable efficiency savings, product launches and robotics/innovation momentum) against a disappointing top-line start driven by U.S. Orthopaedics and Advanced Wound Bioactives reimbursement/market frictions. Management lowered revenue growth guidance for 2026 to around 4% but maintained profit, cash flow and ROIC targets by accelerating savings and offsetting tariff impacts. Execution risk remains in Orthopaedics set deployments, skin substitute reimbursement adaptation and near-term cash timing, while multiple innovation and commercial levers are positioned to drive recovery in H2 and into 2027.
Company Guidance
Management lowered 2026 revenue guidance to around 4% underlying growth (Q2 underlying +1.6%; Q2 revenue $1.6bn; Q2 reported +2.8% including a 120bp FX tailwind) and now expects H2 growth of 5–5.5%; H1 revenue was $3.1bn (+2.3% underlying; ADS +3.1%). They reaffirmed profit and cash targets: trading profit guidance ~8% growth excluding M&A (H1 trading profit $566m; trading margin 18.3%), ~ $1.3bn trading profit including Integrity (marginally dilutive in 2026), adjusted EPS $0.477 (+11%), basic EPS +6.2%, interim dividend $0.156 (+4%). Efficiency savings were stepped up to ~$200m for 2026 (additional $50m), with ~ $133m delivered in H1 and cumulative savings of $330m (target $325–375m); gross profit H1 $2.2bn (gross margin 71.1%, +60bps). Cash metrics: H1 trading cash flow $437m, free cash flow $231m (guidance ~ $800m for 2026), cash conversion 77%, net debt ≈ $3bn (up $260m), leverage 1.8x EBITDA; $500m buyback announced ($260m completed). Other call metrics: ROIC >10%, tariffs broadly neutral net of refunds, inventory DSI reduced (group down 72 days incl. reclassification, 40 days excl.), and a skin‑substitutes trading‑profit headwind now expected toward the upper end of the previously guided $20–40m range.
Strong profitability and margin expansion
Trading profit of $566 million (up $43 million), trading margin 18.3% (up 60 bps); underlying gross profit $2.2 billion with gross margin 71.1% (up 60 bps).
Efficiency savings ahead of plan
Delivered ~$133 million of efficiency savings in H1; cumulative savings $330 million (reached lower end of $325m–$375m target more than a year early); upgraded FY savings target from ~$150 million to ~$200 million (additional $50 million).
Resilient profit and cash guidance despite lower revenue
Management maintained full-year guidance for trading profit (~$1.3 billion including Integrity, ~8% reported trading profit growth excluding M&A), free cash flow (~$800 million) and ROIC (>10%) even after reducing revenue outlook.
Sports Medicine & ENT strong growth
Sports Medicine & ENT grew 8.6% in Q2; REGENETEN delivered ~20% growth in H1; multiple key products delivered double-digit growth (Q-FIX KNOTLESS, REGENETEN, REGENETEN, FASTSEAL, ARIS COBLATION, HALO).
Innovation and product momentum
9 new product launches in H1 (target 16 for the year); FDA approval for TESSA spatial surgery system; CORI XT completed first knee and shoulder procedures; ALLEVYN COMPLETE CARE launched in U.S. and Europe.
Robotics and recon deployment progress
Double-digit growth in CORI deployments and continued increases in utilization and penetration (utilization up 4–5 percentage points vs end-2025; penetration up ~2 percentage points).
Inventory and capital efficiency progress
Group DSI fell by 72 days including instrument-set reclassification (40 days excluding reclassification); Orthopaedics DSI down 62 days (excluding reclassification), reflecting capital efficiency efforts.
Cash generation and leverage within targets
Free cash flow of $231 million (down $13 million); trading cash flow $437 million; cash conversion 77%; net debt increased to ~$3.0 billion with leverage 1.8x adjusted EBITDA (within ~2x target); $500 million buyback announced ( $260 million completed).

MX:SN1N Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Feb 23, 2027
2026 (Q4)
10.25 / -
10.043―
2026 (Q2)
8.00 / 3.66
7.303-49.88% (-3.64)
2025 (Q4)
9.84 / 10.04
7.98325.80% (+2.06)
2025 (Q2)
6.72 / 7.30
6.43413.49% (+0.87)
2024 (Q4)
7.83 / 7.98
8.154-2.09% (-0.17)
2024 (Q2)
6.69 / 6.43
5.9588.00% (+0.48)
2023 (Q4)
8.26 / 8.15
7.40510.11% (+0.75)
2023 (Q2)
6.23 / 5.96
6.485-8.14% (-0.53)
2022 (Q4)
6.21 / 7.40
6.8098.75% (+0.60)
2022 (Q2)
6.43 / 6.49
6.605-1.80% (-0.12)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed