Smith & Nephew (SN) entered 2025 with a simple goal: to deliver more consistent performance across Orthopaedics, Sports Medicine, and Advanced Wound Management. These businesses rely on steady global demand, but competition, supply chain hurdles, and uneven execution have created challenges in past years. The company focused heavily on resolving operational issues, improving product availability, and investing in higher-growth categories. That work is showing up in results, with 2025 marking one of the company’s more stable stretches in recent periods.
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Through the first nine months of the year, Smith & Nephew delivered growth across its segments, supported by stronger volumes, improved supply chain reliability, and product launches in core areas such as robotics, sports medicine solutions, and wound treatment technologies. Markets such as the United States and Europe produced steady demand, and the company benefited from broader improvements in elective procedure volumes. These dynamics helped Smith & Nephew rebuild some operational confidence after several years of resets.
Looking toward 2026, Smith & Nephew appears positioned to build on this momentum. Management noted that orthopedic recon volumes remain healthy, sports medicine continues to benefit from innovation, and wound care retains a strong global need. The company also emphasized improved manufacturing performance, which has been a key drag on margins in the past. While execution still matters, the company enters 2026 with a clearer operating baseline than it had in previous years.
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Financial Story
Smith & Nephew’s Q3 2025 results showed steady improvement across the business. Underlying revenue through the first nine months grew year on year, supported by solid demand in Orthopaedics and Advanced Wound Management. Sports Medicine and ENT remained important contributors, with growth tied to new technologies and increased procedure volumes. The company reported stronger volume performance, helping offset regional mix variability.
| Metric | Trend | Notes |
|---|---|---|
| Underlying Revenue | Higher YoY | Growth across all three segments |
| Orthopaedics | Higher YoY | Better volumes and more reliable fulfillment |
| Sports Medicine & ENT | Higher YoY | Growth tied to innovation and procedure volumes |
| Advanced Wound Management | Higher YoY | Continued demand in negative pressure and advanced dressings |
| Margins | Improving | Supported by supply chain and cost controls |
| Cash Flow | Improving | Better earnings quality and working capital |
Margins showed signs of progress. Improvements in supply chain efficiency, better production stability, and more consistent fulfillment helped ease some of the pressure that has weighed on profitability in previous years. While management continues to focus on cost improvements and operational simplification, the early signs suggest that underlying margin recovery is moving in the right direction. The company highlighted cost actions that helped offset inflationary pressures and contributed to more stable operating performance.
Cash flow performance improved as well, supported by healthier earnings quality and more disciplined working capital management. Management also noted ongoing investments in surgical robotics, sports medicine portfolios, and wound therapy innovations. These strategic priorities position Smith & Nephew for more balanced growth and are central to the company’s goal of achieving stronger, more predictable results heading into 2026.
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Broader Market Context
Smith & Nephew competes in markets shaped by demographics, surgical innovation, and global procedure volumes. These markets generally provide steady demand, but they also require strong execution, consistent product availability, and competitive product pipelines. Over the past few years, operational reliability has been one of Smith & Nephew’s biggest hurdles. Q3 2025 results show meaningful progress toward solving those issues, but investors will want to see sustained consistency as the company moves into 2026.
Competition remains strong. Larger players in orthopedics and wound care continue to push new systems, expand robotics capabilities, and broaden their distribution. Smith & Nephew does not have the same scale advantages, which makes operational execution even more important. But the company’s unique mix of sports medicine technologies, differentiated wound care products, and a growing robotics platform still gives it clear areas of potential differentiation.
1. Orthopaedics Stabilizes With Better Supply Chain Performance
Orthopaedics has been one of Smith & Nephew’s most challenging segments over the past few years. Product availability, fulfillment delays, and higher manufacturing costs contributed to uneven performance. In 2025, those issues began to ease. The company reported better supply chain reliability, which helped translate into improved volumes across hips, knees, and trauma products. Surgeons and hospital systems rely on consistency, and Smith & Nephew’s operational improvements played a direct role in the segment’s steadier performance.
Growth was also supported by healthier elective surgery volumes in key markets, particularly in the United States. These gains helped offset competitive pricing pressures. Management noted that the segment still requires continued operational focus, but the direction of travel is clearer than it has been in years. Entering 2026, Orthopaedics appears to be on firmer footing with more predictable execution.
2. Sports Medicine Benefits From Innovation and Strong Demand
Sports Medicine continues to be one of Smith & Nephew’s most attractive segments. The company saw healthy revenue growth through 2025, supported by procedure volumes and product innovation. Smith & Nephew’s arthroscopy portfolio, soft tissue repair solutions, and technological investments helped the segment deliver steady performance. The company’s focus on expanding its sports medicine technology pipeline contributed to improved customer engagement, particularly among orthopedic surgeons.
Management highlighted several innovation-driven tailwinds, including new instrumentation and upgrades to key product platforms. These investments help the segment maintain competitive relevance against larger peers. With global sports injury volumes rising and more advanced treatment procedures gaining adoption, Sports Medicine remains a strategic pillar heading into 2026.
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3. Advanced Wound Management Shows Resilience Across Markets
Advanced Wound Management delivered steady growth across the first nine months of 2025. Demand for negative pressure wound therapy, surgical wound care, and advanced dressings remained solid across major markets. Hospitals continued to prioritize effective wound treatment solutions as part of broader efforts to manage infection risk and improve outcomes. This created a stable environment for Smith & Nephew’s portfolio.
The company also emphasized ongoing investments in innovation and training programs to support clinicians. These investments strengthened relationships across health systems while increasing product penetration. As the company enters 2026, wound care remains a stable contributor with long-term structural demand tied to aging populations, chronic conditions, and hospital quality metrics.
The TIKR Takeaway
TIKR highlights a company moving toward more consistent performance after several uneven years. The platform shows steady revenue growth across all three major segments, clearer margin improvement, and improved operational execution. With long-term market growth tied to demographics and clinical demand, TIKR makes it easier to track Smith & Nephew’s recovery, evaluate segment trends, and see whether operational gains are translating into more predictable results.
Should You Buy, Sell, or Hold Smith & Nephew Stock in 2025?
Smith & Nephew enters 2026 with signs of improved execution, healthier margins, and steadier demand across its portfolio. Investors who value operational turnarounds may see encouraging progress. Those looking for faster margin expansion or more aggressive innovation cycles may prefer to watch for sustained consistency. The company’s outlook for 2026 depends on continuing to strengthen its operating foundation while supporting growth in core segments.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
