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Solventum Corporation (SOLV)
NYSE:SOLV
Earnings Data
Report Date
May 07, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.35Last Year’s EPS
1.34Same Quarter Last Year
Moderate Buy
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a constructive operational progression: the company delivered organic growth, a full-year EPS beat, meaningful restructuring savings, strategic portfolio moves (Acera acquisition and P&F divestiture) and a $1B repurchase program while making visible progress on separation from 3M. However, near-term pressures remain material — Q4 gross margin headwinds from ERP/DC cutovers and logistics, free cash flow and separation/divestiture costs, SKU rationalization impacts, tariff exposure and an elevated net debt position. Management provided credible plans (Transform for the Future, additional ERP/system independence, supply-chain optimization) and guidance showing modest margin expansion and mid-single-digit organic growth targets for 2026, with the bulk of larger program benefits expected in 2027+. Overall, positives (growth acceleration, EPS beat, cost savings, strategic M&A and buyback) outweigh the near-term operational and separation-related headwinds, but execution risk remains important over the next 12–18 months.Company Guidance
Organic Revenue Growth and Segment Outperformance
Q4 sales of $2.0B with organic sales growth of +3.5% year-over-year; full-year 2025 organic growth +3.3% (normalized ~3.5%). MedSurg sales $1.2B, organic +3.2%; Infection Prevention & Surgical Solutions +4.2%; Dental Solutions $343M, organic +5.9% (normalized ~3%); Health Information Systems $348M, organic +3.2%.
Earnings Beat and Full-Year Margins in Guidance
Full-year adjusted non-GAAP EPS $6.11, ahead of prior guidance range $5.98–$6.08. Full-year operating margin finished at 20.5% (within prior 20%–21% assumption). Q4 adjusted operating income $397M.
Strategic Portfolio Moves — Acera Acquisition and P&F Divestiture
Closed Acera Surgical acquisition (funded ~$725M) to expand synthetic tissue exposure within Advanced Wound Care and closed sale of Purification & Filtration (P&F) business; portfolio moves support commercial synergies and rebalanced portfolio.
Capital Allocation Progress: Deleveraging and Buyback
P&F divestiture enabled ~$2.7B debt paydown; company ended Q4 with ~ $900M cash and net debt ~$4.2B. Announced $1.0B share repurchase program and began execution in January 2026.
Operational Cost Savings and Programs
Completed Solventum Way restructuring delivering ~ $125M annualized savings at ~$90M cost. SKU rationalization program progressing (70 bps impact in Q4; full-year impact 60 bps). Launched Transform for the Future ($500M targeted cost takeout) expected to contribute to 50–100 bps operating margin expansion in 2026 (majority of benefits weighted to 2027+).
Product & Commercial Momentum Driving Growth
Revitalized innovation increased vitality index with strong demand for recent product launches (examples: ClinPro Clear, Filtek Easy Match, V.A.C. Peel and Place, Tegaderm CHG). Management cites ~20 new products planned over next 2 years, balanced across MedSurg (~half), HIS and Dental. Dental backorders reduced to historic lows, supporting growth.
Separation Progress and Systems Independence
Exited >40% of transition service agreements (TSAs) and targeting ~90% exit by end of 2026. ERP deployments ongoing (latest APAC go-live) and ~50% of >1,000 systems transitioned; distribution center network reduced to 55 locations (goal 45).
Health IT Competitive Positioning and AI Opportunity
HIS revenue cycle management showing adoption and HIS organic growth +3.2%; company positions itself as leading autonomous coding vendor with extensive proprietary rules/algorithms (~1M+ rules) and large datasets — management views AI as an opportunity to accelerate autonomous coding adoption.
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 May 07, 2026, Before Open (Confirmed).
What is Solventum Corporation (SOLV) earnings time?
Solventum Corporation (SOLV) earnings time is at May 07, 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 (Q1) is 1.35.
