Business
New Strategy and 2028 Financial Targets
Smith+Nephew has announced its new RISE strategy, aiming to drive shareholder value through enhanced financial and operational performance, with 2028 targets including a 6-7% revenue CAGR and 9-10% trading profit CAGR, and over $1 billion in free cash flow. The company has updated its 2025 full-year guidance, now expecting a trading profit margin of at least 19.5% and an upgraded free cash flow forecast of around $800 million, while also planning a $200 million non-cash inventory provision in 2025 to rationalise its product portfolio. Provisional guidance for 2026 includes around 6% revenue growth and free cash flow of approximately $800 million. Disclaimer*
About this update from Smith & Nephew Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nSmith+Nephew Announces New Strategy and 2028 Financial Targets\n8 December 2025\n \nHighlights:\n· RISE, Smith+Nephew's new strategy, builds on our successful 12-Point Plan transformation and will deliver new levels of financial and operational performance to drive shareholder value\n· 2028 financial targets announced, including significant acceleration in revenue growth, profit, free cash flow and Return on Invested Capital (ROIC)\n· 2025 full year guidance updated, with trading profit margin guidance now expected to be at least 19.5% and expected free cash flow upgraded to around $800 million\n· Further opportunities to rationalise product portfolio identified, with an estimated $200 million non-cash inventory provision in 2025, reducing complexity to drive growth, efficiency and returns, and delivering a significant and on-going reduction in the capital requirements of the business\n· 2026 full year provisional guidance issued, building on 2025 progress\nSmith+Nephew (LSE: SN, NYSE: SNN), the global medical technology company, will today present its new strategy, RISE, 2026 provisional guidance and 2028 financial targets at its Capital Markets Day in London.\nThe RISE strategy is designed to drive stronger returns for shareholders by elevating Smith+Nephew's financial and operational performance to new levels by raising the standard of care within our segments and reaching more patients with our continued focus on innovation. This new strategy builds on the success of the 12-Point Plan, announced in 2022, through which we have transformed into a stronger, more agile, and higher growth company.\nRISE has four elements:\n· To REACH more patients by driving adoption of our differentiated portfolio and taking share across indications, settings and markets worldwide.\n· To INNOVATE to enhance the standard of care through accelerating new product launches and rapidly scaling existing innovation platforms.\n· To SCALE through strategic investment, allocating capital to high return and high growth opportunities aligned to our portfolio priorities.\n· To EXECUTE efficiently, driving enterprise productivity and asset effi...