Upside case
Bull case
$60+100.3%
SNN would need investors to value it at roughly 27x earnings — about 14x more generous than today's 14x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
Smith & Nephew plc (SNN) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
22
analysts
6 bullish · 1 bearish · 22 covering SNN
Strong Buy
0
Buy
6
Hold
15
Sell
1
Strong Sell
0
Consensus Target
$31
+2.8% vs today
Scenario Range
$29 – $60
Model bear to bull value window
Coverage
22
Published analyst ratings
Valuation Context
13.6x
Forward P/E · Market cap $12.8B
SNN price targets
Three scenarios for where SNN stock could go
Current
~$30
Confidence
43 / 100
Updated
Jun 18, 2026
Where we are now
Current · $30
Bear
$29
Base
$46
Bull
$60
Market caseClosest to today
Base case
$46+52.0%
At 21x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$29-4.3%
If investor confidence fades or macro conditions deteriorate, a 1x multiple contraction could push SNN down roughly 4% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Smith & Nephew plc
SNN · NYSEHealthcareMedical - DevicesDecember year-end
Smith & Nephew is a global medical device company specializing in orthopedic reconstruction, sports medicine, and advanced wound management. It generates revenue primarily from orthopedic implants (~60% of sales) and sports medicine/arthroscopy products (~25%), with the remainder from advanced wound care and trauma solutions. The company's competitive advantage lies in its established portfolio of minimally invasive surgical technologies and strong surgeon relationships built over decades in key orthopedic markets.
Market Cap
$12.8B
Revenue TTM
$11.6B
Net Income TTM
$799M
Net Margin
6.9%
SNN Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
17%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
-64.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q1 2025
Q3 2025
Q1 2026
Q1 2026
Last 4 Quarters
EPS beats: 2 of 4Q1 2025
EPS
$0.23/$0.92
Revenue
$3.0B/$1.5B
Q3 2025
EPS
$0.67/$0.86
Revenue
$3.0B/$1.5B
Q1 2026
EPS
$1.18/$1.16
Revenue
$3.2B/$2.8B
Q1 2026
EPS
$1.18/$1.16
Revenue
$3.2B/$2.8B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q1 2025 | $0.23/$0.92 | -75.5% | $3.0B/$1.5B | +96.0% |
| Q3 2025 | $0.67/$0.86 | -21.7% | $3.0B/$1.5B | +98.0% |
| Q1 2026 | $1.18/$1.16 | +1.7% | $3.2B/$2.8B | +15.5% |
| Q1 2026 | $1.18/$1.16 | +1.7% | $3.2B/$2.8B | +15.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$12.1B
+4.3% YoY
FY2
$12.7B
+4.4% YoY
EPS Outlook
FY1
$2.02
+11.5% YoY
FY2
$2.15
+6.4% YoY
Trailing FCF (TTM)$1.1B
FCF Margin: 9.5%
Next Earnings
August 4, 2026
Expected EPS
$0.94
Expected Revenue
$3.5B
SNN beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
SNN Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $11.6B
Product Mix
Latest annual revenue by segment or product family
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management
50.0%
+4.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management is the largest disclosed segment at 50.0% of FY 2024 revenue, up 4.7% YoY.
SNN Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $51 — implies +70.5% from today's price.
Upside to Fair Value
70.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
SNN
20.9x
vs
S&P 500
24.4x
15% discount
vs Healthcare Trailing P/E
SNN
20.9x
vs
Healthcare
22.1x
6% discount
vs SNN 5Y Avg P/E
Today
20.9x
vs
5Y Average
30.9x
32% discount
Forward PE
13.6x
S&P 500
18.8x
-28%
Healthcare
18.3x
-26%
5Y Avg
—
—
Trailing PE
20.9x
S&P 500
24.4x
-15%
Healthcare
22.1x
-6%
5Y Avg
30.9x
-32%
PEG Ratio
2.93x
S&P 500
1.66x
+76%
Healthcare
1.59x
+84%
5Y Avg
—
—
EV/EBITDA
9.8x
S&P 500
15.2x
-35%
Healthcare
14.2x
-31%
5Y Avg
12.5x
-21%
Price/FCF
15.0x
S&P 500
20.7x
-28%
Healthcare
18.5x
-19%
5Y Avg
41.4x
-64%
Price/Sales
2.1x
S&P 500
3.1x
-33%
Healthcare
2.6x
-22%
5Y Avg
2.1x
-1%
Dividend Yield
2.52%
S&P 500
1.91%
+32%
Healthcare
1.50%
+68%
5Y Avg
3.16%
-20%
| Metric | SNN | S&P 500 | Healthcare | 5Y Avg SNN |
|---|---|---|---|---|
| Forward PE | 13.6x | 18.8x-28% | 18.3x-26% | — |
| Trailing PE | 20.9x | 24.4x-15% | 22.1x | 30.9x-32% |
| PEG Ratio | 2.93x | 1.66x+76% | 1.59x+84% | — |
| EV/EBITDA | 9.8x | 15.2x-35% | 14.2x-31% | 12.5x-21% |
| Price/FCF | 15.0x | 20.7x-28% | 18.5x-19% | 41.4x-64% |
| Price/Sales | 2.1x | 3.1x-33% | 2.6x-22% | 2.1x |
| Dividend Yield | 2.52% | 1.91% | 1.50% | 3.16% |
SNN trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSNN Financial Health
Verdict
Strong
SNN generates $1.1B in free cash flow at a 9.5% margin — returns 6.5% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$11.6B
Revenue Growth
TTM vs prior year
+9.9%
Gross Margin
Gross profit as a share of revenue
70.2%
Operating Margin
Operating income divided by revenue
12.9%
Net Margin
Net income divided by revenue
6.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$1.82
Free Cash Flow (TTM)
Cash generation after capex
$1.1B
FCF Margin
FCF as share of revenue — the primary cash quality signal
9.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
9.4%
ROA
Return on assets, trailing twelve months
7.7%
Cash & Equivalents
Liquid assets on the balance sheet
$557M
Net Debt
Total debt minus cash
$2.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.5× FCF
~2.5 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
15.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
6.5%
Dividend
2.5%
Buyback
3.9%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$503M
Dividend / Share
Annualized trailing dividend per share
$0.76
Payout Ratio
Share of earnings distributed as dividends
52.8%
Shares Outstanding
Declining as buybacks retire shares
424M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageSNN Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Guidance downgrade risk
RBC Capital highlights a material risk of downgrades to 2026 guidance, outweighing short-term positives.
Medium
Execution uncertainty
The company's RISE strategy and 12 Point Plan completion leave limited room for further upside, per RBC.
Lower
Earnings model risk
Projected EPS carries a low confidence score (40/100), reflecting uncertainty in revenue and margin trends.
Medium
Market sentiment shift
Shares have already rallied 22% in 2025, suggesting recovery thesis may be priced in.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why SNN Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Strong revenue growth
Smith & Nephew's fourth-quarter revenue of $1.7 billion exceeded Wall Street forecasts by $20 million, driven by an 8.3% year-over-year growth.
Strategic transformation under CEO
The company is undergoing a strategic transformation under CEO Deepak Nath, with the RISE strategy aimed at accelerating revenue growth, expanding profit margins, and enhancing performance.
Positive 2026 guidance
Smith & Nephew's 2026 guidance, unveiled at its 2025 Investor Day, indicates confidence in future growth and profitability.
FTSE100 constituent
As a constituent of the FTSE100, Smith & Nephew benefits from increased visibility and credibility among investors.
Market leadership in medical devices
The company is a global leader in medical devices, positioning it well for sustained growth in the healthcare sector.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
SNN Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$30.08
52W Range Position
16%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$28.40
+5.9% from the low
52-Week High
$38.79
-22.5% from the high
1 Month
-0.73%
3 Month
-8.65%
YTD
-8.5%
1 Year
+5.2%
3Y CAGR
-1.7%
5Y CAGR
-6.5%
10Y CAGR
-1.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
SNN vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
13.6x
vs 13.5x median
+1% above peer median
Revenue Growth
+4.3%
vs +8.0% median
-46% below peer median
Net Margin
6.9%
vs 12.9% median
-47% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
SNN SNN Smith & Nephew plc | $12.8B | 13.6x | +4.3% | 6.9% | Hold | +2.8% |
ZBH ZBH Zimmer Biomet Holdings, Inc. | $17.2B | 10.4x | +4.2% | 9.1% | Hold | +9.5% |
SYK SYK Stryker Corporation | $117.9B | 20.5x | +10.1% | 12.9% | Buy | +25.9% |
BSX BSX Boston Scientific Corporation | $67.3B | 13.5x | +9.7% | 14.4% | Buy | +83.0% |
HOL HOLX Hologic, Inc. | $17.0B | 17.2x | +4.3% | 13.2% | Hold | +3.5% |
CNM CNMD CONMED Corporation | $1.0B | 7.5x | +8.0% | 4.0% | Hold | +139.4% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
SNN Dividend and Capital Return
SNN returns capital mainly through $503M/year in buybacks (3.9% buyback yield), with a modest 2.52% dividend — combining for 6.5% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
6.5%
Dividend + buyback return per year
Buyback Yield
3.9%
Dividend Yield
2.52%
Payout Ratio
52.8%
How SNN Splits Its Return
Div 2.52%
Buyback 3.9%
Dividend 2.52%Buybacks 3.9%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.76
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
0.5%
5Y Div CAGR
0.3%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
2 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$503M
Estimated Shares Retired
17M
Approx. Share Reduction
3.9%
Shares Outstanding
Current diluted share count from the screening snapshot
424M
At 3.9%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.48 | — | — | — |
| 2025 | $0.76 | +1.6% | 3.5% | 5.8% |
| 2024 | $0.75 | 0.0% | 0.0% | 3.0% |
| 2023 | $0.75 | 0.0% | 0.0% | 5.5% |
| 2022 | $0.75 | 0.0% | 1.3% | 4.1% |
FAQ
7 questionsSNN Investor Questions
Common questions answered from live analyst data and company financials.
01Is Smith & Nephew plc (SNN) stock a buy or sell in 2026?
Smith & Nephew plc (SNN) is rated Hold by Wall Street analysts as of 2026. Of 22 analysts covering the stock, 6 rate it Buy or Strong Buy, 15 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $31, implying +2.8% from the current price of $30. The bear case scenario is $29 and the bull case is $60.
02What is the SNN stock price target for 2026?
The Wall Street consensus price target for SNN is $31 based on 22 analyst estimates. The high-end target is $32 (+5.9% from today), and the low-end target is $30 (-0.3%). The base case model target is $46.
03Is Smith & Nephew plc (SNN) stock overvalued in 2026?
SNN trades at 13.6x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Smith & Nephew plc (SNN) stock in 2026?
The primary risks for SNN in 2026 are: (1) Guidance downgrade risk — RBC Capital highlights a material risk of downgrades to 2026 guidance, outweighing short-term positives. (2) Execution uncertainty — The company's RISE strategy and 12 Point Plan completion leave limited room for further upside, per RBC. (3) Market sentiment shift — Shares have already rallied 22% in 2025, suggesting recovery thesis may be priced in. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Smith & Nephew plc's revenue and earnings forecast?
Analyst consensus estimates SNN will report consensus revenue of $12.1B (+4.3% year-over-year) and EPS of $2.02 (+11.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $12.7B in revenue.
06When does Smith & Nephew plc (SNN) report its next earnings?
Smith & Nephew plc is expected to report its next earnings on approximately 2026-08-04. Consensus expects EPS of $0.94 and revenue of $3.5B. Over recent quarters, SNN has beaten EPS estimates 17% of the time.
07How much free cash flow does Smith & Nephew plc generate?
Smith & Nephew plc (SNN) generated $1.1B in free cash flow over the trailing twelve months — a free cash flow margin of 9.5%. SNN returns capital to shareholders through dividends (2.5% yield) and share repurchases ($503M TTM).