Max Stanyard, Healthcare and Life Sciences Senior Analyst at RSM UK, comments on Smith & Nephew's H1 2026 results: "Revenues fell short of expectations and Smith & Nephew has cut its full-year revenue guidance from around 6% to around 4% alongside these results. That will sharpen questions about whether the business can still deliver the growth promised.

"The number that matters the most sits within Orthopaedics. Growth in the US market appears to have turned the corner with a modest improvement from the double-digit decline seen in Q1. This lends credence to management’s assertion that Q1 represented the lowest point in the performance ‘trough’ and suggests the worst may be behind this part of the business, ahead of the cementless LANDMARK knee launch due in Q3.

“Meeting the H2 growth target of 5.0-5.5% is a smaller ask than before. While it’s a step up on the first half, it’s a far more modest target than the acceleration originally built into guidance. What matters more than the headline growth number is whether there's real proof the LANDMARK launch is on schedule, including orders from hospitals and instrument sets being rolled out ahead of the launch.

“The improvement in margin is a genuine bright spot, particularly against the ongoing reimbursement reset in skin substitutes, which is clear evidence the cost savings programme is ahead of plan. With Cevian now holding over 14% of the register, this kind of delivery on cost control will matter to how the market reads today's results, even with revenue guidance coming down.

“Today's results will make sceptics harder to win over on growth, but it also shows Smith & Nephew can protect profitability even when the top line falls short. Management has responded by lowering the target rather than defending the original one – a more cautious, and arguably more credible, position. What matters most from here is whether even this smaller step-up in the second half of the year materialises."

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