Medical technology company Smith & Nephew lowered its 2026 revenue and profit growth forecasts as continued weakness in U.S. hip and knee implant sales weighed on performance, even as third-quarter growth accelerated, according to a Nov. 4 Sharecast report.
The company now expects underlying revenue growth of around 3%, down from 4%, and trading profit growth of 4%, down from 8%. Its adjusted return on invested capital forecast also fell to around 9% from more than 10%.
Third-quarter underlying revenue increased 3.4% to $1.55 billion, with orthopedics revenue rising 2.3% to $590 million. However, U.S. knee implant sales declined 7.3%, while U.S. hip implant revenue fell 1%. CEO Deepak Nath said the company expects slower growth in U.S. orthopedics to continue through the fourth quarter.
Smith & Nephew also confirmed that discussions with Johnson & Johnson about a potential combination involving J&J’s DePuy Synthes business had ended. The company said it would continue exploring strategic options for its orthopedics division while prioritizing investment in Sports Medicine and Advanced Wound Management.
The company also said its $500 million share buyback remains on track, with $250 million completed by the end of September.
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