Smith & Nephew SNATS (NYSE:SNN) Posts Quarterly Earnings Results, Misses Expectations By $0.46 EPS

Smith & Nephew SNATS (NYSE:SNN) announced its earnings results on Tuesday. The medical equipment provider reported $0.48 EPS for the quarter, missing the consensus estimate of $0.94 by ($0.46), FiscalAI reports. The firm had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.64 billion.

Here are the key takeaways from Smith & Nephew SNATS’s conference call:

• Revenue growth fell short of expectations, with Q2 underlying growth of 1.6% and the full-year 2026 outlook reduced to around 4%, primarily due to weakness in U.S. Orthopaedics and Advanced Wound Bioactives.
• Despite the revenue shortfall, trading profit rose 9% excluding M&A to $566 million, with margin expanding 60 basis points to 18.3%. The company maintained its guidance for approximately $1.3 billion of 2026 trading profit, around $800 million of free cash flow, and ROIC above 10%.
• Sports Medicine and ENT remained a major growth engine, increasing 8.6% on broad-based demand for products including REGENETEN, Q-FIX KNOTLESS, Fast Seal, and ENT wands. CORI robotic placements also grew by double digits, alongside improving utilization and penetration.
• U.S. Orthopaedics remains the key operational weakness, particularly knees, where the company lacks a cementless offering across part of its installed base. Management expects improvement from LEGION MS and the LANDMARK Porous launch, while U.S. hip growth was temporarily slowed by Catalyst Stem instrument-set deployment delays.
• Efficiency savings significantly exceeded expectations, reaching about $133 million in the first half and prompting the company to raise its 2026 savings target from $150 million to $200 million. These savings, along with tariff refunds that broadly offset 2026 tariff costs, are helping protect profitability despite slower sales.

Smith & Nephew SNATS Price Performance

NYSE SNN traded down $1.76 on Tuesday, hitting $30.39. 1,235,978 shares of the stock traded hands, compared to its average volume of 1,181,449. Smith & Nephew SNATS has a 12 month low of $28.56 and a 12 month high of $38.79. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.57 and a quick ratio of 1.25. The business’s fifty day moving average is $30.45 and its two-hundred day moving average is $32.19.

Wall Street Analysts Forecast Growth

SNN has been the topic of several analyst reports. Kepler Capital Markets cut shares of Smith & Nephew SNATS from a “buy” rating to a “hold” rating in a report on Thursday, June 4th. The Goldman Sachs Group restated a “buy” rating on shares of Smith & Nephew SNATS in a research note on Monday, May 25th. Canaccord Genuity Group reduced their target price on Smith & Nephew SNATS from $32.00 to $30.00 and set a “hold” rating for the company in a report on Monday, May 11th. Wall Street Zen raised Smith & Nephew SNATS from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 4th. Finally, Weiss Ratings lowered Smith & Nephew SNATS from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, June 11th. One analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Smith & Nephew SNATS has an average rating of “Hold” and an average target price of $30.93.

Hedge Funds Weigh In On Smith & Nephew SNATS

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SNN. Smartleaf Asset Management LLC boosted its stake in shares of Smith & Nephew SNATS by 13.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,820 shares of the medical equipment provider’s stock valued at $93,000 after purchasing an additional 334 shares in the last quarter. Vise Technologies Inc. increased its position in Smith & Nephew SNATS by 4.7% during the 3rd quarter. Vise Technologies Inc. now owns 9,642 shares of the medical equipment provider’s stock valued at $350,000 after buying an additional 437 shares in the last quarter. Quadrant Capital Group LLC increased its holdings in shares of Smith & Nephew SNATS by 3.6% during the third quarter. Quadrant Capital Group LLC now owns 12,757 shares of the medical equipment provider’s stock valued at $463,000 after acquiring an additional 440 shares in the last quarter. First Trust Advisors LP raised its holdings in Smith & Nephew SNATS by 4.6% in the third quarter. First Trust Advisors LP now owns 10,532 shares of the medical equipment provider’s stock worth $382,000 after buying an additional 459 shares during the last quarter. Finally, Arax Advisory Partners lifted its stake in shares of Smith & Nephew SNATS by 142.6% in the fourth quarter. Arax Advisory Partners now owns 968 shares of the medical equipment provider’s stock worth $32,000 after buying an additional 569 shares in the last quarter. Institutional investors own 25.64% of the company’s stock.

About Smith & Nephew SNATS

Smith & Nephew plc is a global medical technology company specializing in the design, development and manufacture of advanced surgical devices, orthopaedic reconstruction implants, trauma and extremities products, sports medicine solutions and wound care therapies. Founded in 1856 in Hull, United Kingdom, the company has grown through both organic innovation and strategic acquisitions to offer a broad portfolio that addresses patient needs across joint replacement, minimally invasive surgery and wound healing.

In its orthopaedics business, Smith & Nephew provides hip and knee replacement systems, modular joint revision implants and biologic solutions for bone repair.