Smith & Nephew PLC (SNN) shares plummeted 6.25% in pre-market trading Tuesday, following the company's release of its fiscal second-quarter results and a downward revision to its full-year revenue outlook.

The medical-technology company reported Q2 revenue of $1.6 billion, up from $1.55 billion a year earlier, but fell short of the $1.63 billion consensus estimate. Consequently, Smith & Nephew lowered its 2026 underlying revenue growth guidance to about 4%, down from its previous forecast of around 6%. The company cited weakness in its U.S. orthopedics segment, particularly in hip and knee implants, as well as challenges in its advanced wound management division due to changes in U.S. reimbursement rules for skin substitutes.

CEO Deepak Nath noted that orthopedics is not where the company wants it to be, but expects growth to accelerate as portfolio gaps are filled later this year and into 2027. The guidance cut and revenue miss triggered a sharp sell-off, dominating the pre-market session.