Smith & Nephew PLC (LSE:SN.) has unveiled a new set of mid-term performance goals, outlining revenue compound annual growth of 6–7% through 2028 — well above the current analyst consensus of 5.2%. The targets were presented during the company’s Capital Markets Day in London, where management detailed its “RISE” strategy aimed at accelerating both top-line and profitability metrics over the next several years.

Under this plan, Smith+Nephew is aiming for a 9–10% trading profit CAGR, more than $1 billion in free cash flow, and a return on invested capital (ROIC) of 12–13% by 2028. For 2025, the company reaffirmed its expectation of roughly 5% revenue growth and raised its trading margin forecast to at least 19.5%. It also lifted its free cash flow target to around $800 million, citing improvements in working capital management and operational efficiency.

Management projects post-tax ROIC above 9% for 2025, excluding any effects from portfolio rationalisation. As part of its optimisation initiatives, the company believes it can reduce gross inventory by $500 million and will recognise a $200 million non-cash charge in its 2025 accounts.

Looking toward 2026, Smith+Nephew anticipates around 6% underlying revenue growth, with profits expected to grow at a faster pace due to margin expansion from operating leverage. The company also projects approximately $800 million in free cash flow for the year and ROIC above 10%.

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