Smith & Nephew plc (SNN) Surpasses Earnings and Revenue Estimates

Smith & Nephew plc reported adjusted earnings per share of $1.02 for the full year (up 21% from the prior year). Fourth-quarter revenue reached $1.70 billion, beating consensus estimates of approximately $1.67–1.68 billion. Full-year revenue was $6.16 billion, exceeding consensus estimates of approximately $6.14 billion.

 

Operating profit rose by 20.7% to $794 million, and free cash flow increased by 52.5% to $840 million. Smith & Nephew plc, trading as NYSE:SNN, is a British company specializing in medical products. It competes with other healthcare giants in the industry.

 

On March 2, 2026, SNN reported its fourth-quarter and full-year 2025 results.The company’s recent earnings call revealed a strong conclusion to 2025. SNN’s fourth-quarter revenue surged by 8.3% to $1.7 billion, contributing to a full-year revenue increase of 6.1% to $6.2 billion. This growth reflects the successful completion of its three-year turnaround plan (the “12-Point Plan”), which has strengthened the business. Operating profit saw a substantial rise of 20.7% to $794 million, while trading profit increased by 15.5% to $1.21 billion. Trading margins improved to 19.7% from 18.1%, indicating enhanced profitability. Free cash flow experienced a remarkable 52.5% increase to $840 million, showcasing the company’s strong cash generation capabilities. Smith & Nephew’s financial metrics provide further insights into its performance.

 

The company has a price-to-earnings (P/E) ratio of approximately 31.64, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 2.62, reflecting the value placed on each dollar of sales. Additionally, the enterprise value to sales ratio is around 3.08, suggesting a strong market valuation.The company’s enterprise value to operating cash flow ratio is approximately 16.03, providing insight into its valuation compared to cash flow from operations. With an earnings yield of about 3.16%, SNN offers a perspective on return on investment. The debt-to-equity ratio is approximately 0.62, indicating a balanced approach to financing. Lastly, the current ratio of around 3.00 suggests a strong ability to cover short-term liabilities.