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Smith & Nephew's Operating Income for the
six
months ended in Dec. 2025 was £320 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £636 Mil.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Smith & Nephew's annualizedROC % for the quarter that ended in Dec. 2025 was 7.96%.
Smith & Nephew's annualizedROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 27.92%.
Smith & Nephew (CHIX:SNl) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Smith & Nephew's annualizedROC % for the quarter that ended in Dec. 2025 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.
Be Aware
Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Smith & Nephew Operating Income Related Terms
Smith & Nephew Operating Income Historical Data
* Premium members only.
The historical data trend for Smith & Nephew's Operating Income can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.
Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was £636 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Smith & Nephew (CHIX:SNL) has a Operating Income of £636 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Smith & Nephew and its competitors.
Is Smith & Nephew's Operating Income too high?
Smith & Nephew's current Operating Income is £636 Mil. Overall, Smith & Nephew has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Smith & Nephew's Operating Income compare to ABT and SYK?
Smith & Nephew's Operating Income of £636 Mil can be compared against companies in the Medical Devices & Instruments industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Medical Devices & Instruments company?
A good Operating Income depends on the Medical Devices & Instruments industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Smith & Nephew and its competitors. Smith & Nephew's current Operating Income is £636 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smith & Nephew stock overvalued right now?
Based on GuruFocus' analysis, Smith & Nephew (CHIX:SNL) is currently considered Fairly Valued. The stock's GF Value™ is £11.92, compared to a current price of £11.48 — trading 3.7% below its estimated fair value. The current Operating Income is £636 Mil. Smith & Nephew's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Smith & Nephew (CHIX:SNL), the current Operating Income is £636 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Smith & Nephew (CHIX:SNL) Overvalued in 2026?
Based on GuruFocus' analysis, Smith & Nephew stock appears to be undervalued.
The current stock price of £11.48 is trading 3.7% below its estimated GF Value™ of £11.92.
GuruFocus considers Smith & Nephew to be Fairly Valued.
Key valuation signals for CHIX:SNL:
Operating Income: £636 Mil
GF Value™: £11.92 vs. price of £11.48 (3.7% below fair value)
No single metric tells the full story. See the CHIX:SNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smith & Nephew designs, manufactures, and markets orthopedic devices, sports medicine and arthroscopic technologies, and wound care solutions. Roughly 41% of the UK-based firm's revenue comes from orthopedic products, and another 30% is sports medicine and ENT. The remaining 29% of revenue is from the advanced wound therapy segment. Over half of Smith & Nephew's total revenue comes from the United States, just over 30% is from other developed markets, and emerging markets account for the remainder.
85GF Score
Get the complete analysis for CHIX:SNL
Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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