Hi mate,
It does through the Smart trainer. I use Wahoo Kickr Core. There is a build in power meter, cadance meter etc. in that. When it goes up hill it increases the resistance on the trainer to simulate the incline. This is quite realistic to be honest. You would be surprised how accurate it is :)
I gotta test it one day. I thought one could use a simple trainer and hook the sensors on the bicycle to Zwift. When I was recovering my broken leg I used to cycle a bit on a sort of magnetic trainer, very simple one but would also increase resistance as I pedaled harder,