Smith & Nephew Shares Rally After Operational Improvement Drives Q1 Revenue Growth

Smith & Nephew (LON: SN.) shares rose more than 5% on Wednesday after the medical technology firm reported a 3.1% underlying revenue increase for the first quarter of 2025, driven by operational improvements and recent product launches.

Group revenue for the period ended 29 March totalled $1.41 billion, up from $1.39 billion in Q1 2024. 

Reported growth was 1.6%, reflecting a 150 basis point foreign exchange headwind. The company said it was a “good start to the year,” reinforcing confidence in its full-year outlook.

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Chief Executive Officer Deepak Nath credited the company’s “12-Point Plan” for delivering improved performance. 

“Key platforms, such as CORI, EVOS, REGENETEN and our Negative Pressure Wound Therapy portfolio all delivered strong double-digit growth,” Nath said, noting continued momentum from innovation and new product launches.

The company revealed that Orthopaedics delivered 3.2% underlying revenue growth, supported by a sustained improvement in U.S. hip and knee implants. Sports Medicine & ENT posted 2.4% underlying growth, with strong demand in established markets partly offset by weakness in China. 

Advanced Wound Management grew 3.8%, led by foams and negative pressure wound therapy.

Despite ongoing tariff-related uncertainty, Smith & Nephew reiterated its 2025 guidance. The company continues to expect around 5% underlying revenue growth and a trading profit margin between 19% and 20%.

Headwinds from China remained a factor, but the company believes their impact has “now passed their peak.”