Smith & Nephew trades in line during Q1, reiterates FY guidance

(Sharecast News) - Medical equipment manufacturer Smith & Nephew said on Wednesday that its first-quarter trading performance was in line with expectations, with underlying revenues growing year-on-year on the back of a solid performance across all business units and regions.

Smith & Nephew reported first‑quarter revenue of $1.50bn, up from $1.41bn a year earlier, representing underlying growth of 3.1%, while reported revenue rose 6.6%, helped by a 350‑basis‑point foreign‑exchange tailwind.

Sports medicine and ENT revenues grew 6.7% on an underlying basis to $491m, while underlying revenue in Smith & Nephew's advanced wound management unit were up 2.2% at $411m. Underlying orthapaedics revenues ticked up 0.8% to $599m.

For the full year, Smith & Nephew reiterated guidance for underlying revenue growth of around 6%, which it said would mark a new level for the company. Based on exchange rates as of 1 May, it said this equates to reported revenue growth of roughly 7.7%.

The FTSE 100-listed group continues to expect organic trading‑profit growth of around 8%, free cash flow of about $800m, and adjusted return on invested capital of more than 10%.

Smith & Nephew also launched a new $500m share buyback, reflecting its confidence its FY26 performance, its strong balance sheet and free cash flow generation.

Chief executive Deepak Nath said: "First-quarter performance was in line with our expectations, with strong execution in Sports Medicine and solid performance in Advanced Wound Management and the rest of Orthopaedics offsetting the anticipated softness in US knees, reflecting the resilience and balance of our portfolio.

"As previously noted, revenue growth in 2026 will be weighted towards the second half of the year, driven by the ramp up of our exciting product launches, stabilisation in US skin substitutes and an improving trajectory in US knees."

As of 0810 BST, Smith & Nephew shares were down 3.06% at 1,123.50p.

Reporting by Iain Gilbert at Sharecast.com

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