British medical technology group Smith & Nephew said it expects trading profit to rise by about 8% organically in 2026, as stronger revenue leverage and ongoing cost reductions help counter

pressures from inventory revaluation, tariffs, and a difficult operating environment in China.

The company has just wrapped up a three-year turnaround programme that reshaped its orthopaedics business, streamlined operations, and delivered renewed momentum in its wound care and sports medicine divisions. The overhaul followed a period of margin strain caused by inflation and global supply-chain disruption.

Looking ahead, Smith & Nephew plans to further simplify its product portfolio and cut inventory levels by roughly $500 million as part of a new strategy outlined in December. Savings from the move are expected to be reinvested in faster-growing segments, particularly sports medicine, which management sees as a key driver of future growth.

For the year ended December 2025, the company reported trading profit of $1.21 billion, an increase of 15.5% from the previous year and broadly in line with market expectations. Smith & Nephew manufactures a wide range of medical products, including orthopaedic implants, wound dressings, and surgical devices.

Despite ongoing macroeconomic and regional challenges, the company said its improved operating base leaves it better positioned to deliver sustainable growth over the medium term. Photo by Clive-Piston, Wikimedia commons.