Solventum Corporation (SOLV)
NYSE:SOLV
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Earnings Data
Report Date
Aug 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.66Last Year’s EPS
1.69Same Quarter Last Year
Moderate Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed clear operational momentum: Q1 results beat expectations with organic growth, EPS upside (+11% YoY), improved gross margins (+80 bps), strong segment performance (MedSurg, Dental, HIS) and tangible progress on separation, SKU rationalization, and integration of Acera. Management reiterated multiyear savings (Transform for the Future $500M) and an intent to accelerate share repurchases while maintaining full-year guidance. The primary negatives are timing and separation-related volatility: reported sales declined -3% due to acquisition/divestiture impacts, tariff and inflationary headwinds ($100M–$120M range) remain, ERP cutover phasing will drive >$100M of order timing into Q2 that reverses in Q3, and certain legacy product lines (clinician productivity solutions) face double-digit declines. Overall, most issues are described as transitory or manageable via mitigation programs and the company emphasized accelerating margin expansion and product-driven growth, supporting a constructive outlook.Company Guidance
Q1 Results Ahead of Plan and Expectations
Reported Q1 sales of $2.0 billion with organic sales growth of +2.1% and adjusted EPS of $1.48 (+11% YoY), both ahead of plan and Street expectations; company reiterated full-year organic sales and free cash flow guidance and now expects EPS toward the high end of $6.40–$6.60.
Strong Margin Performance
Gross margin of 56.4%, an improvement of +80 basis points YoY; adjusted operating income of $392 million and operating margin of 19.5%; company targets full-year operating margin of 21.0%–21.5% (up 50–100 bps vs prior year).
Segment-Level Growth
MedSurg: $1.2B sales, organic +1.2% (Advanced Wound Care +2.1%, Acera contributed $28M). Dental Solutions: $354M sales, organic +3.4%. Health Information Systems: $342M sales, organic +4.7% (strength in revenue cycle management and performance management).
Acquisitions and Portfolio Actions Showing Early Benefit
Acera acquisition immediately contributed $28M to reported sales and integration is tracking to plan; company completed sale of P&F (purification and filtration) and continues active portfolio optimization.
Separation and ERP Progress
Exited ~50% of transition service agreements (TSAs) and on pace to exit >90% by end of 2026; migrated ~75% of >1,200 system applications with successful ERP cutover in Asia Pacific (including China); reduced distribution centers to 54 worldwide.
SKU Rationalization and Innovation Pipeline
More than 50% through SKU rationalization (100 bps headwind in Q1, expected to finish by year-end); company expects ~20 new product launches over next two years targeted at growth-driver areas to fuel future organic growth.
Transform for the Future Savings Program
Multiyear program targeting $500 million of savings through system streamlining, automation, and global footprint optimization; program already delivering benefits and expected to deliver more meaningfully in 2027 and beyond.
Improved Supply Chain and Backorder Reduction
Supply chain actions and ERP/distribution changes improved manufacturing performance and reduced backorders across the portfolio, supporting stronger customer fulfillment.
Balance Sheet and Capital Return Actions
Ended Q1 with $561 million cash and equivalents, net debt of $4.5 billion; repurchased ~923,000 shares for $67 million in Q1 (share buyback authorization up to $1 billion); free cash flow ahead of expectations for the quarter.
Health Information Systems Momentum with Autonomous Coding
RCM business and autonomous coding offering gaining traction (international expansion tailwind); management sees compelling economics (productivity gains, reduced FTE cost, improved revenue capture) and believes AI-enabled autonomous coding adoption will expand meaningfully over the strategic period.
SOLV Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SOLV Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 26, 2026 | $76.94 | $74.20 | -3.56% |
Nov 06, 2025 | $66.28 | $71.52 | +7.91% |
Aug 07, 2025 | $71.95 | $73.39 | +2.00% |
May 08, 2025 | $66.63 | $70.23 | +5.40% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Solventum Corporation (SOLV) report earnings?
Solventum Corporation (SOLV) is schdueled to report earning on Aug 06, 2026, Before Open (Confirmed).
What is Solventum Corporation (SOLV) earnings time?
Solventum Corporation (SOLV) earnings time is at Aug 06, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SOLV EPS forecast?
SOLV EPS forecast for the fiscal quarter 2026 (Q2) is 1.66.
