Smith & Nephew plc/Carl Zeiss Meditec AG: Read-across from JNJ 2Q26 results

Research evidence excerpt

Smith & Nephew plc/Carl Zeiss Meditec AG: Read-across from JNJ 2Q26 results

Equity Research

15 July 2026

Smith & Nephew plc/Carl Zeiss Meditec AG

Read-across from JNJ 2Q26 results

A modest Q2 ortho beat, with Hips and Knees broadly in line

but softer US Knee trends, is a mixed read-across for the

complex. Together with yesterday's weaker US procedure SN.L/SN/ LN EQUAL WEIGHT European Medical

Technology & Servicestrends flagged by HCA, this further challenges POSITIVE

Price Target GBp 1290

Smith+Nephew's implied H2 ramp. Vision was a modest Price (14-Jul-26) GBp 1114

negative for AFX. Potential Upside/Downside +15.8%

Source: Bloomberg, Barclays Research

The following listed company is not under coverage by Barclays Research: Johnson & Johnson. AFXG.DE/AFX GY EQUAL WEIGHT

Information about this company is being provided for information purposes only and is not an European Medical POSITIVEinvestment recommendation by Barclays Research. Technology & Services

Price Target EUR 28.00

Johnson & Johnson (not covered) reported its Q2 2026 results today and we benchmark Price (14-Jul-26) EUR 28.48

performance relative to peers and history below. Potential Upside/Downside -1.7%

Orthopaedics reported Q2 sales came c.1% above Bloomberg consensus, with +4.2% growth at

constant currency. Management noted growth was driven by new product launches and European Medical Technology &

commercial execution. Within this, Knees were broadly in line with consensus, as a beat in OUS Services

(up +10.3% ccy) was offset by weaker US performance in the quarter at +1.1% ccy, which Hassan Al-Wakeel, CFA

decelerated from +3.3% in Q1 26. Hips were also broadly in line with Bloomberg consensus, with +44 (0)20 7773 3898

OUS trends c.1% ahead of expectations and US performance broadly in line.