Smith+Nephew delivered fourth-quarter revenue of $1.70 billion, beating consensus estimates by 1.6% with 6.2% underlying growth. The British medical technology company posted its strongest orthopedics quarter in over two years, with 7.9% underlying growth, while advanced wound management growth of 2.8% disappointed against expectations. Advanced Wound Bioactives revenue declined 0.2% year-over-year.

For 2026, the company forecasts trading profit of around $1.3 billion, down from the $1.27 billion consensus. The January acquisition of Integrity Orthopaedics for $225 million upfront, with up to $225 million more contingent on performance, will be marginally dilutive to earnings this year. U.S. reimbursement changes will create a $20-40 million headwind in the wound care business.

The company targets 6% underlying revenue growth and 9-10% trading profit CAGR through 2028 under its new RISE strategy. RBC Capital Markets expressed concern about the 2026 outlook, noting a "material risk of guidance downgrades through the year" despite the Q4 beat. The stock trades at 1,350 pence with a "sector perform" rating.