Smith & Nephew PLC (LSE:SN.) saw its shares drop 7.6% on Thursday after posting third-quarter results that came in below analyst forecasts, despite reaffirming its full-year guidance. The medical technology group reported underlying revenue growth of 5.0%—missing the consensus estimate of 6.3%—as weakness in U.S. knee implant sales and a slower-than-expected recovery in Sports Medicine offset gains in its wound care division.

Revenue for the three months ended 27 September 2025 totaled $1.50 billion, up 5.0% on an underlying basis and 6.3% on a reported basis, including a 1.3% positive currency impact. The results marked a slowdown from the 6.7% growth recorded in the prior quarter, even as year-over-year comparisons eased.

Chief Executive Officer Deepak Nath said, “Our third-quarter results again demonstrate how the 12-Point Plan has improved Smith+Nephew’s revenue growth profile, keeping us on track to meet our full-year outlook for revenue growth and a step-up in trading profit margin. As we approach the end of the 12-Point Plan, our business is undoubtedly in a better place.”

By segment, Orthopaedics revenue rose 4.1%, missing expectations of 6.2%, with U.S. Knee Implants down 2.3% amid ongoing portfolio rationalization. This was partly offset by a 6.3% rise in U.S. Hip Implants, supported by the successful rollout of the CATALYSTEM Primary Hip System. Sports Medicine & ENT grew 5.1%, below the 7.2% forecast, as recovery from China’s Volume-Based Procurement (VBP) program lagged. Advanced Wound Management was the strongest performer, climbing 6.0%—ahead of expectations—driven by a 12.2% increase in Advanced Wound Bioactives.

Despite the top-line miss, Smith+Nephew reaffirmed its guidance for around 5% underlying revenue growth and a trading profit margin between 19% and 20%. The company also raised its free cash flow forecast to approximately $750 million, up from the previous target of more than $600 million, citing improved working capital management and operational efficiencies. In addition, Smith+Nephew confirmed the completion of its $500 million share buyback program on 7 October.

More about Smith & Nephew PLC

Smith & Nephew PLC is a global medical technology company specializing in advanced wound management, orthopaedics, and sports medicine solutions. Headquartered in London, the company operates in more than 100 countries, providing innovative surgical and medical products that improve patient outcomes and enhance recovery times. Its growth strategy focuses on expanding in high-demand markets and improving profitability through operational discipline and portfolio optimization.

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