London, Jan 19, 2026, 10:42 GMT — Regular session underway.
- Smith & Nephew’s shares slipped 1.8% soon after the London market opened, retreating from their earlier gains
- European stocks slip after Trump’s tariff threat on Greenland shakes risk sentiment
- Investors are focused on the deal closing at the end of January and Smith & Nephew’s results set for March 2
Shares of Smith & Nephew (SN.L) fell 1.8% to 1,214.0 pence by 1026 GMT, deepening their morning slide in London amid a broader European sell-off. The stock kicked off at 1,217.0 pence, down from Friday’s 1,236.0 close. Over the past year, it has swung between 937.8 and 1,441.5 pence. 1
Sentiment soured after President Donald Trump threatened new tariffs on eight European countries unless the U.S. was allowed to buy Greenland. The STOXX 600 dropped 1%, dragging Britain’s FTSE 100 down with it. “Following a quiet start to the year, equities may face some downside pressure,” said Kyle Rodda, senior financial market analyst at Capital.com. He also noted that thin trading volumes, because of Martin Luther King Jr. Day in the U.S., might amplify market swings. 2
Tariff concerns are squeezing Smith & Nephew. The company, with factories in the UK, Switzerland, Costa Rica, Malaysia, and China, revealed last week that it’s shifting production and raw material routes to handle tariff expenses. 3
The medtech firm is moving forward with acquisitions, announcing a U.S. deal to buy Integrity Orthopaedics for $225 million in cash upfront, with another $225 million possible tied to performance milestones over five years. The transaction is expected to wrap up before January ends. Smith & Nephew said the acquisition will boost its trading profit margin by 2028, implying improved operating profits. 4
The company highlighted Integrity’s Tendon Seam rotator cuff repair system, designed to tackle the common re-tear problem seen with traditional techniques. In the U.S., roughly 500,000 of these procedures happen yearly. “Smith+Nephew now has an unrivalled portfolio for shoulder,” said Scott Schaffner, head of Sports Medicine. Integrity CEO Tom Westling noted “early results” point to less pain and “low retear/failure rates.” The system received 510(k) clearance from the FDA in 2023, clearing the regulatory hurdle. 5
Investors are still grappling with whether the company can meet its growth targets post-turnaround. In December, it set a goal of 6%-7% compounded annual “underlying” revenue growth by 2028, excluding currency fluctuations and acquisitions or disposals. The company maintained its 2025 underlying growth forecast around 5%, aiming for roughly 6% in 2026. But RBC Capital Markets analyst Jack Reynolds-Clark urged caution: “We remain nervous until the company can demonstrate… it can generate this growth.” 6
Smith & Nephew’s November trading update sticks to its 2025 growth targets, projecting a trading profit margin in the 19% to 20% range for the year. The company also bumped up its free cash flow guidance to about $750 million. Their 2025 forecast factors in a net tariff hit of $15 million to $20 million, reflecting announced policies and planned offsets. CEO Deepak Nath said the quarterly results “keep us on track” for meeting full-year goals. 7
The risk is obvious. Should tariff threats materialize, medical device costs could soar—these products and parts move across borders constantly, and firms have limited ability to hike prices. Any misstep in merging Integrity, or weaker demand from hospitals and clinics, would hit investors hard, especially those already jittery about execution hurdles.
Smith & Nephew is set to release its Q4 and full-year results on March 2, followed by a Q1 trading update on May 6. Investors will be keen to check if growth targets and tariff outlooks remain on track. 8
