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Smith & Nephew Snats
(NYSE:SNN)
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Rating:71Outperform
Price Target:
$30.00
▲(2.39% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by improving financial performance (notable 2025 margin and cash flow rebound) and a supportive earnings outlook anchored by strong cost savings and maintained profit/FCF targets. Offsetting factors include persistent moderate leverage and below-ideal cash conversion, plus revenue-growth risk highlighted by the earnings call (U.S. Orthopaedics and reimbursement headwinds). Technicals are moderately positive (above key short/mid-term averages), while valuation is fair but not a clear bargain.
Positive Factors
Margin and cash-flow recovery
The rebound in profitability and operating cash generation strengthens Smith & Nephew’s ability to fund innovation, absorb market pressures, and support shareholder returns. Stable gross margins near 68–70% also indicate resilient underlying economics across its medical-device portfolio.
Negative Factors
Slowing revenue outlook
The revenue downgrade indicates that operational improvements are not yet translating into broad-based top-line momentum. Slower growth can limit operating leverage, increase reliance on cost savings to meet earnings goals, and make the company more sensitive to execution across its recovery initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and cash-flow recovery
The rebound in profitability and operating cash generation strengthens Smith & Nephew’s ability to fund innovation, absorb market pressures, and support shareholder returns. Stable gross margins near 68–70% also indicate resilient underlying economics across its medical-device portfolio.
Read all positive factors
Smith & Nephew Snats Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlySmith & Nephew Snats (SNN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.53B
Dividend Yield2.85%
Average Volume (3M)1.61M
Price to Earnings (P/E)18.3
Beta (1Y)0.58
Revenue Growth5.26%
EPS Growth31.02%
CountryUS
Employees18,362
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.50
Shares Outstanding418,716,280
10 Day Avg. Volume1,212,843
30 Day Avg. Volume1,613,995
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)2.69
Price to Sales (P/S)2.31
P/FCF Ratio16.69
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue2.54
Enterprise Value/Gross Profit3.71
Enterprise Value/Ebitda10.69
Forecast
1Y Price Target
$26.14Price Target Upside-10.78% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.19
Revenue Forecast (FY)$6.47B
Smith & Nephew Snats Business Overview & Revenue Model
Company Description
Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices and services in the United Kingdom, the United States, and internationally. The company operates in three segments: Orthopaedics, Sports...
How the Company Makes Money
Smith & Nephew makes money primarily by selling medical devices and consumable products to healthcare providers (e.g., hospitals, health systems, and ambulatory surgery centers) and, in some markets, through distributors. Its revenue model is larg...
Smith & Nephew Snats Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Neutral
The call painted a mixed picture: revenue growth came in below expectations, driven by weakness in U.S. Orthopaedics and reimbursement-related pressure in skin substitutes and bioactives. However, the company delivered strong profit and margin expansion, materially outperformed on efficiency savings (raising 2026 savings guidance), maintained trading profit, free cash flow and ROIC guidance, and highlighted multiple product and geographic growth drivers (notably in Sports Medicine & ENT, emerging markets, and a range of innovation milestones). Near‑term execution and reimbursement challenges create risk to topline momentum, but operational improvements and cost discipline have preserved earnings and cash targets.Positive Updates
Strong profit performance and margin expansion
Trading profit of $566 million in H1, up $43 million year-on-year; trading margin expanded 60 bps to 18.3%, and gross margin improved 60 bps to 71.1%.
Negative Updates
Revenue growth below expectations
Q2 underlying revenue growth was 1.6% (revenue $1.6 billion) and H1 underlying growth 2.3% ($3.1 billion); management revised full‑year underlying revenue growth guidance to around 4% (H2 expected 5%–5.5%).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong profit performance and margin expansion
Trading profit of $566 million in H1, up $43 million year-on-year; trading margin expanded 60 bps to 18.3%, and gross margin improved 60 bps to 71.1%.
Read all positive updates
Company Guidance
Updated 2026 guidance: underlying revenue growth now expected around 4% for the year (H2 growth guided to 5.0–5.5% with Q3 roughly in line with Q1 and a Q4 step‑up ~6–7% — ADS just north of 5% due to an extra trading day); trading profit guidance is unchanged at around 8% growth excluding M&A (~$1.3bn trading profit including Integrity, with marginal dilution in 2026); free cash flow still expected at ~ $800m and ROIC >10%. Management has increased efficiency savings guidance from ~$150m to ~$200m (H1 delivered ~$133m, cumulative savings ~$330m, ~ $70m more expected in H2), tariffs are expected to be broadly neutral net of refunds, and the trading‑profit headwind from skin substitutes is now expected toward the upper end of the prior $20–$40m range. H1 metrics include revenue $1.6bn (Q2) and $3.1bn (H1), gross margin 71.1% (+60bps), trading profit $566m (+$43m, trading margin 18.3% +60bps), H1 trading cash flow $437m, H1 free cash flow $231m, cash conversion 77%, net debt ≈ $3.0bn (leverage ~1.8x EBITDA), $260m of a $500m buyback completed, and an interim dividend of $0.156/share (adjusted EPS H1 $0.477, +11%).Smith & Nephew Snats Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.30B | 6.16B | 5.81B | 5.55B | 5.21B | 5.21B |
| Gross Profit | 4.31B | 4.21B | 4.08B | 3.90B | 3.70B | 3.70B |
| EBITDA | 1.49B | 1.45B | 1.44B | 1.27B | 1.21B | 1.27B |
| Net Income | 635.00M | 625.00M | 412.00M | 263.00M | 223.00M | 524.00M |
Balance Sheet | ||||||
| Total Assets | 11.01B | 10.46B | 10.35B | 9.99B | 9.97B | 10.92B |
| Cash, Cash Equivalents and Short-Term Investments | 754.00M | 557.00M | 619.00M | 302.00M | 350.00M | 1.29B |
| Total Debt | 3.79B | 3.33B | 3.32B | 3.08B | 2.87B | 3.34B |
| Total Liabilities | 5.83B | 5.17B | 5.09B | 4.77B | 4.71B | 5.35B |
| Stockholders Equity | 5.18B | 5.29B | 5.26B | 5.22B | 5.26B | 5.57B |
Cash Flow | ||||||
| Free Cash Flow | 855.00M | 852.00M | 606.00M | 181.00M | 110.00M | 469.00M |
| Operating Cash Flow | 1.34B | 1.28B | 987.00M | 608.00M | 468.00M | 877.00M |
| Investing Cash Flow | -682.00M | -406.00M | -569.00M | -448.00M | -472.00M | -691.00M |
| Financing Cash Flow | -581.00M | -955.00M | -86.00M | -200.00M | -926.00M | -645.00M |
Smith & Nephew Snats Technical Analysis
Neutral
29.30
Price Trends
28.17
Negative
29.14
Negative
30.83
Negative
Market Momentum
-0.28
Negative
55.03
Neutral
88.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNN, the sentiment is Neutral. The current price of 29.3 is above the 20-day moving average (MA) of 26.97, above the 50-day MA of 28.17, and below the 200-day MA of 30.83, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 88.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNN.
Smith & Nephew Snats Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $49.80B | 49.01 | 9.69% | ― | 14.55% | 15.09% | |
77 Outperform | $117.59B | 22.74 | 10.60% | 3.07% | 9.77% | 12.28% | |
73 Outperform | $108.40B | 29.05 | 16.36% | 1.25% | 8.48% | 27.36% | |
71 Outperform | $11.53B | 18.30 | 12.25% | 2.85% | 5.26% | 31.02% | |
71 Outperform | $17.58B | 22.30 | 6.36% | 1.04% | 8.62% | 0.09% | |
66 Neutral | $63.53B | 17.46 | 14.90% | ― | 13.53% | 46.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Smith & Nephew Snats
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-6.50
-18.92%
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Smith & Nephew Snats Corporate Events
Smith+Nephew Sets November 4 Date for Q3 2026 Trading Update
Oct 8, 2026
Smith+Nephew, a FTSE 100-listed medical technology group founded in 1856 and now active in over 100 countries, focuses on orthopaedics, sports medicine, ENT and advanced wound management solutions. The company aims to improve patient outcomes thro...
Smith & Nephew to Fully Redeem $350m 5.150% Notes Due 2027 Ahead of Maturity
Oct 1, 2026
On 1 October 2026, Smith Nephew announced it will redeem in full its $350m 5.150% notes due 2027, issued under an October 2020 indenture with The Bank of New York Mellon’s London branch. The company has set 5 October 2026 as the redemption ...
Smith & Nephew Updates Share Capital and Voting Rights as of 30 September 2026
Oct 1, 2026
Smith Nephew plc reported its voting rights and share capital position as at 30 September 2026, in line with FCA Disclosure Guidance and Transparency Rule 5.6.1. The company’s total issued share capital comprises 877,750,024 ordinary shares...
Smith & Nephew Admits New Employee Scheme Shares to LSE Main Market
Sep 18, 2026
Smith Nephew plc has admitted 16,274 additional ordinary shares of USD 0.20 each to trading on the London Stock Exchange’s Main Market, increasing its total issued share capital to 877,750,024 shares, of which 40,317,488 are held in treasur...
Smith & Nephew to Fully Redeem $350 Million 5.150% Notes Due 2027
Sep 18, 2026
On September 18, 2026, Smith Nephew announced that it has called for the full redemption of its $350 million 5.150% notes due 2027, issued under an indenture dated October 14, 2020. The company has notified the trustee, The Bank of New York Mello...
Smith+Nephew trims 2030 debt after oversubscribed $250m bond tender
Sep 16, 2026
Smith+Nephew, the global medical technology group, has moved to manage its debt profile through a targeted repurchase of part of its outstanding 2.032% Senior Notes due 2030. The company’s scale and diversified portfolio across orthopaedics,...
Smith+Nephew Prices $250 Million Tender Offer for 2030 Notes
Sep 16, 2026
On September 15, 2026, Smith+Nephew priced a cash tender offer for up to $250 million of its outstanding 2.032% senior notes due October 14, 2030, out of a total $900 million issue, offering tender consideration of $878.90 per $1,000 principal amo...
Smith & Nephew Issues $700m 5.75% Notes Due 2036 to Bolster U.S. Funding
Sep 11, 2026
On 11 September 2026, Smith Nephew filed a Form 6-K in the United States to report the issuance of $700 million aggregate principal amount of 5.750% notes due 2036. The notes are being issued under an existing 2020 indenture, with a new supplemen...
Smith & Nephew Raises $700 Million in 10‑Year U.S. Dollar Notes
Sep 10, 2026
On September 10, 2026, Smith Nephew filed a Form 6‑K with the U.S. Securities and Exchange Commission in connection with a new debt offering. The company is issuing $700 million of 5.750% notes due 2036, supported by an underwriting agreeme...
Smith & Nephew Prices $700 Million US Bond to Refinance 2030 Notes
Sep 10, 2026
On September 9, 2026, Smith+Nephew announced it had priced a new US dollar bond issue of USD 700 million 5.750% notes maturing in 2036. Net proceeds of about USD 690.9 million are earmarked chiefly to finance the tender offer for its outstanding 2...
Smith & Nephew Prices USD 700 Million 2036 Notes to Refinance 2030 Debt
Sep 10, 2026
On September 10, 2026, Smith Nephew priced a USD 700 million bond offering of 5.750% notes due 2036, securing net proceeds of about USD 690.9 million after underwriting discounts. The transaction is scheduled to close on September 11, 2026, subje...
Smith & Nephew Discloses Executive Share Award Vesting and Sales
Sep 9, 2026
On 7 September 2026, Smith Nephew reported the vesting of share awards under its Global Share Plan 2020 and Restricted Share Plan 2024 for Chief Strategy Corporate Development Officer Ajay Dhankhar, with part of the resulting ordinary shares sol...
Smith+Nephew Launches $250 Million Tender Offer for 2030 Notes and Plans New 2036 Debt Issue
Sep 8, 2026
On September 8, 2026, Smith+Nephew launched a cash tender offer to repurchase up to $250 million of its outstanding 2.032% senior notes due 2030 from existing holders, out of a total $900 million issued, with pricing to be set on September 15 and ...
Smith & Nephew Details New Share Awards for Orthopaedics President
Sep 2, 2026
On 1 September 2026, Smith Nephew granted President of Orthopaedics Nate Folkert a performance share award over 117,933 ordinary shares under its Performance Share Plan 2026, based on an average market price of £11.0265 following the company...
Smith & Nephew Implements 2026 Pay Plan After Extended Shareholder Consultation
Sep 2, 2026
Smith Nephew has completed a further round of shareholder consultation on its 2026 Directors’ Remuneration Policy and Performance Share Plan after both measures received less than 80% support at the Annual General Meeting on 6 May 2026. Bet...
Smith & Nephew Updates Voting Share Capital as of 31 August 2026
Sep 1, 2026
Smith Nephew plc, a U.K.-headquartered medical technology company and foreign private issuer in the U.S., reported its latest share capital structure as part of ongoing regulatory transparency. The disclosure aligns with its obligations under the...
Smith & Nephew Discloses Updated Bank of America Shareholding on August 19 Threshold Crossing
Aug 21, 2026
On 19 August 2026 Bank of America Corporation crossed a disclosure threshold in Smith Nephew, prompting a regulatory notification to the UK issuer. The U.S.-based bank reported a combined holding of 24,191,594 voting rights, equal to 2.888834% of...
Smith+Nephew CFO John Rogers to Exit; Interim Successor Named
Aug 19, 2026
Smith+Nephew announced on 19 August 2026 that Chief Financial Officer John Rogers has resigned and will leave the company on 30 September 2026 to take up an external role in the U.S., stepping down from the board with immediate effect. The move co...
Smith & Nephew Discloses CEO Share Vesting and Tax-Related Sale Under 2024 Plan
Aug 18, 2026
On 17 August 2026, Smith Nephew plc reported the vesting of awards under its 2024 Restricted Share Plan, resulting in the issue of US$0.20 ordinary shares to participants, including chief executive Deepak Nath. A portion of the vested shares was ...
Smith & Nephew Delivers Strong H1 2026 Profit, Trims Revenue Outlook but Confirms Full-Year Margin and Cash-Flow Targets
Aug 14, 2026
Smith Nephew, a global medtech group specialising in orthopaedics, sports medicine and advanced wound care, reported its second-quarter and first-half 2026 results showing modest top-line growth but strong profitability. The company continues to ...
Smith & Nephew Reports Executive Share Award Vesting and Transactions
Aug 12, 2026
Smith Nephew plc is a U.K.-based medical technology company specialising in orthopaedics, sports medicine, and advanced wound management products, supplying surgical devices and wound care solutions to healthcare providers globally. Its London-li...
Smith & Nephew Discloses Cevian’s Incremental Increase in Voting Stake
Aug 12, 2026
On August 12, 2026, Smith Nephew reported a regulatory notification that activist investor Cevian Capital II G.P. Limited has marginally increased its stake in the company. The disclosure, triggered after a voting-rights threshold event dated Aug...
Smith & Nephew Delivers Strong H1 2026 Profit, Trims Full-Year Revenue Outlook
Aug 4, 2026
Smith Nephew reported its second-quarter and first-half 2026 results on 4 August 2026, showing modest revenue growth but strong profit progression. Q2 revenue rose to $1.60 billion, up 1.6% on an underlying basis, driven by robust Sports Medicine...
Smith & Nephew Delivers Strong H1 2026 Profit but Cuts Full-Year Revenue Outlook
Aug 4, 2026
Smith Nephew reported its second-quarter and first-half 2026 results on 4 August 2026, showing modest top-line expansion but stronger profitability. Second-quarter revenue rose to $1.597 billion, up 1.6% on an underlying basis and 2.8% reported, ...
Smith & Nephew Updates Voting Share Capital as of July 31, 2026
Aug 3, 2026
As of 31 July 2026, Smith Nephew plc reported total issued share capital of 877,733,750 ordinary shares of US$0.20 each, of which 37,876,589 are held in treasury without voting rights. The company confirmed that its effective issued share capital...
Cevian Capital Lifts Smith & Nephew Stake Above 14% in Late-July Disclosure
Jul 27, 2026
On July 27, 2026, Smith Nephew filed a Form 6-K noting that activist investor Cevian Capital II GP Limited crossed a UK disclosure threshold in the company. The filing reports that on July 22, 2026, Cevian’s holdings rose from about 13.21% ...
Smith+Nephew Sets 4 August Date for Second-Quarter and First-Half 2026 Results
Jul 23, 2026
Smith+Nephew, the London-listed and New York-listed medical technology group, said on 23 July 2026 that it will publish its second-quarter trading update and first-half 2026 results for the period ended 27 June 2026 on 4 August 2026. The company w...
Smith & Nephew Discloses Bank of America 3.17% Stake After Voting Rights Threshold Crossed
Jul 22, 2026
Smith Nephew plc reported to the U.S. Securities and Exchange Commission on July 22, 2026 that Bank of America Corporation crossed a major shareholding notification threshold in the company on July 20, 2026. The disclosure indicates Bank of Ameri...
Smith & Nephew Executives Boost Holdings with July ADS Purchases
Jul 21, 2026
On July 21, 2026, Smith Nephew disclosed that several senior executives purchased American Depositary Shares under the company’s Employee Stock Purchase Plan. The transactions, reported in line with UK Market Abuse Regulation, involved ADSs...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.