SNN · Smith & Nephew plc

Smith+Nephew's Q1 2026 trading update shows performance in line with expectations, with total revenue of $1,501 million, up 6.6% reported (3.1% underlying). The quarter had one fewer trading day; on an adjusted daily sales basis, underlying growth was 4.7%. Growth was broad-based across business units and regions, with Sports Medicine & ENT leading at 6.7% underlying growth, driven by shoulder repair and arthroscopic technologies. Advanced Wound Management grew 2.2% underlying, with strong foam portfolio and PICO sales offset by skin substitute reimbursement headwinds. Orthopaedics grew only 0.8% underlying, as US Knee Implants declined 10.3% due to deliberate trade-offs ahead of the LANDMARK Knee System launch, while Hip Implants and Trauma & Extremities posted solid growth. Management commentary highlighted the resilience of the portfolio and progress on the RISE strategy. The company announced a new $500 million share buyback to be completed within twelve months, reflecting confidence in cash flow and balance sheet. Full-year 2026 guidance was reaffirmed: underlying revenue growth around 6%, trading profit around $1.3 billion (post Integrity Orthopaedics acquisition), free cash flow around $800 million, and adjusted ROIC above 10% (excluding the acquisition). The acquisition of Integrity Orthopaedics is progressing as planned and is expected to be marginally dilutive to trading profit in 2026. Additionally, Nathan Folkert was appointed President of Orthopaedics, replacing Craig Gaffin. Overall, the filing indicates steady execution and a positive outlook, with the buyback signaling management's confidence.