The company's new RISE framework is designed to accelerate growth, expand margins and improve operational efficiency to strengthen shareholder returns. Smith & Nephew has outperformed peers, driven by strong sports medicine and wound care, despite ongoing ortho business challenges, with management executing a focused turnaround under CEO Deepak Nath.
Cyborg Score Rationale
2025 has been one of Smith & Nephew's most stable periods in recent years, with the company delivering year-on-year growth across all three major segments. The company set out 2028 objectives including 6-7% underlying revenue CAGR, 9-10% trading profit CAGR and 12-13% post-tax ROIC, though valuation risk exists with trailing P/E near 60x.
Top Insights
2026 guidance projects around 6% underlying revenue growth, profit growth ahead of sales, and free cash flow of roughly $800 million
Portfolio rationalization expected to reduce gross inventory by about $500 million and create a non-cash provision of roughly $200 million in 2025
UFC partnership multi-year extension announced October 2025, with the second Smith+Nephew UFC Combat Sports Medicine Course held in Las Vegas February 18-20, 2026
Integrity Orthopaedics acquisition announced January 2026 to bolster shoulder repair portfolio
Named Competitors
Stryker Orthopaedic Platforms — Leading orthopaedic and trauma implant manufacturer
Zimmer Biomet Orthopedic Portfolio — Major knee and hip implant competitor
Arthrex Sports Medicine — Sports medicine and soft tissue repair leader
Medtronic Wound Care — Advanced wound management and therapies
Recent Developments
(January 2026) Acquired Integrity Orthopaedics to expand shoulder repair capabilities
(December 2025) Announced RISE strategy with 2028 targets at Capital Markets Day
(October 2025) Extended UFC partnership as preferred sports medicine technology partner
(December 2025) Issued 2026 provisional guidance for 6% revenue growth and $800M free cash flow
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