In a big announcement on December 8, 2025, the British medical technology giant Smith & Nephew announced their new corporate strategy, named RISE, which is to speed its sales growth and increase its shareholder returns. The orthopaedic implants, wound management products, and surgical equipment company, which is based on the success of its three-year turnaround program, is growing on its success.
This action follows the transformation of the healthcare industry, which is still the subject of technological development and rising demands for innovative medical solutions. Through its operation in more than 100 countries, Smith and Nephew are strategically positioning itself to get a bigger portion of the global market where efficiency and innovation are essential in addressing the needs of patients and healthcare service providers all over the world.
The strategy is a major change, as it was the completion of a 12-point transformation plan in 2022, led by the Chief Executive Officer, Deepak Nath. This previous strategy re-energised the orthopaedics division, which is the largest branch of the company, by simplifying the work process and reducing expenses.
RISE is currently aimed at driving the firm to a period of consistent growth, with the main focus on serving an increased number of patients by providing more access, initiating product development, increasing investments into high-growth segments, and providing smooth operations in all business units.
Key Financial Targets
Smith & Nephew has established some ambitious medium-term ambitions, which include the underlying revenue growth of 6 to 7% a year between 2025 and 2028. By 2028, the company is expected to have a free cash flow of over 1 billion as well as a 9 to 10% increase in trading profits.
In the case of 2025, particularly, the company has narrowed down its outlook and is pegging underlying revenue growth of approximately 5.8% on present exchange rates. It has also increased its forecast of free cash flow to about 800 million, marking the second increase in a month since the previous forecast of 750 million. Moreover, the trading margin of profit will now be projected to hit at least 19.5%.
In order to buttress these goals, Smith and Nephew will rationalise its product range, and this will imply simplifying products and lowering gross inventory by approximately 500 million dollars. This will be a non-cash one-time provision of approximately 200 million in 2025.
In the coming 2026, the company forecasts underlying revenue growth of approximately 6% with a growth in trading profits more than revenue and the free cash flow remaining constant at approximately 800 million. These forecasts are an assurance of the ability of the strategy to provide stable value, despite the uncertainty of global economies.
Details of the RISE Strategy
There are four pillars linked to each other and positioned in the centre of RISE to build a more nimble and patient-centred organisation. To reach more patients, it is necessary to increase access to the market and enhance distribution channels to address underserved areas and population groups.
The innovation will provide the creation of new technologies, including advanced robotics used in the surgical process or robots’ wound management, where digital health tools can be introduced. Scaling up via investment is investing in the areas that have good prospects, such as sports medicine and reconstructive surgeries, where the demand is booming with the increasing population and active lifestyles. Lastly, effective implementation will concentrate on operational excellence, such as optimisation of supply chain and cost management, to make sure it is profitable amid inflationary pressure.
Background and CEO’s Vision
Smith and Nephew is a longstanding medical company that was started in 1856 and has grown to be a market leader in medtech. The 2022 makeover focused on such obstacles as pricing rivalry and regulatory barriers, which led to a more solid base.
The plan of RISE is a bold but feasible new chapter, according to CEO Deepak Nath, and he observed that the initiatives implemented in the last three years have given the company a much stronger business foundation and a platform to grow in the future. His vision is focused not only on the financial indicators but also on better patient outcomes due to quality and reliable products.
Market Response
The news was positively received by the shares of Smith and Nephew, whose stock rose by 2.5% to 1,150 pence in morning trading at the London Stock Exchange, indicating investor confidence in the potential of the strategy.
Upcoming Events
The company is also holding Capital Markets Day events in London on December 8 and in New York on December 11, during which the executives will explain the strategy in more detail and display prominent products, which will give additional details on how it will work.