Solventum Corporation (SOLV)
NYSE:SOLV
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Solventum Corporation
(NYSE:SOLV)
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Rating:55Neutral
Price Target:
$67.00
▲(2.68% Upside)
Action:ReiteratedDate:02/27/26
The score is held back primarily by weakened and volatile recent fundamentals—especially the sharp drop in operating cash flow and negative free cash flow in 2025—despite margin recovery. Valuation is a relative positive given the low P/E, while technical signals are mixed and the earnings call supports modest growth/margin improvement but with meaningful near-term execution and cost headwinds.
Positive Factors
Margin recovery and profitability
Solventum restored high underlying margins in 2025 after 2024 weakness. Sustained mid-to-high teens net margins and strong EBITDA margins support durable cash earnings capacity, provide cushion for reinvestment and restructuring costs, and indicate underlying operational leverage across its product portfolio.
Negative Factors
Severe cash-flow deterioration
A sharp drop in operating cash flow and a slight negative free cash flow in 2025 materially weaken funding flexibility. This reduces cushion for capex, acquisitions or sustained buybacks, raises dependence on one‑off adjustments or divestiture proceeds, and increases refinancing and execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery and profitability
Solventum restored high underlying margins in 2025 after 2024 weakness. Sustained mid-to-high teens net margins and strong EBITDA margins support durable cash earnings capacity, provide cushion for reinvestment and restructuring costs, and indicate underlying operational leverage across its product portfolio.
Read all positive factors
Solventum Corporation (SOLV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.48B
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)54.7
Beta (1Y)0.67
Revenue Growth2.53%
EPS Growth109.91%
CountryUS
Employees22,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.57
Shares Outstanding173,493,010
10 Day Avg. Volume1,192,778
30 Day Avg. Volume1,405,880
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)2.73
Price to Sales (P/S)1.66
P/FCF Ratio-1.38K
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit3.51
Enterprise Value/Ebitda5.56
Forecast
1Y Price Target
$91.50Price Target Upside40.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)6.47
Revenue Forecast (FY)$8.16B
Solventum Corporation Business Overview & Revenue Model
Company Description
Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Healt...
How the Company Makes Money
Solventum primarily makes money by selling healthcare products and solutions to hospitals, clinics, dental practices, and other healthcare customers. Key revenue streams include (1) sales of medical and dental consumables and devices (e.g., single...
Solventum Corporation Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
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.Positive Updates
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%.
Negative Updates
Reported Sales Decline Driven by Portfolio Actions
Reported sales declined -3.7% in Q4 due to the first full-quarter impact of the P&F divestiture and the Acera acquisition; net impact of P&F divestiture and Acera represented an ~890 basis point drag on reported growth despite a +170 bps FX tailwind.
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Q4-2025 Updates
Positive
Negative
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%.
Read all positive updates
Company Guidance
Solventum guided full-year 2026 to organic sales growth of 2%–3% (3%–4% excluding an estimated 100‑bp SKU exit impact), with a ~100‑bp FX tailwind mostly in H1 and Acera expected to add to reported growth; operating margin of 21.0%–21.5% (≈50–100 bps expansion vs. 2025’s 20.5%) driven by sales leverage, supply‑chain/programmatic savings and the Transform for the Future initiative (a $500M multiyear cost‑takeout program with most benefits in 2027+ but some beginning in 2026); EPS $6.40–$6.60; free cash flow ~ $200M (≈$1B excluding separation/divestiture costs and payments to 3M); capital expenditures $400M–$450M; effective tax rate 19.5%–20.5%; non‑operating expenses about $300M (net interest ~$270M); tariffs are assumed to impose ~$100M–$120M of headwinds and Q1 will face a tough ~180‑bp comp and typical seasonal gross‑margin pressure, making Q1 the lowest‑margin quarter.Solventum Corporation Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
52
Neutral
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.32B | 8.25B | 8.20B | 8.13B | 8.17B |
| Gross Profit | 4.45B | 4.59B | 4.69B | 4.70B | 4.92B |
| EBITDA | 2.55B | 1.53B | 2.23B | 2.27B | 2.48B |
| Net Income | 1.56B | 479.00M | 1.35B | 1.34B | 1.46B |
Balance Sheet | |||||
| Total Assets | 14.29B | 14.46B | 13.94B | 13.59B | 14.07B |
| Cash, Cash Equivalents and Short-Term Investments | 878.00M | 762.00M | 194.00M | 61.00M | 91.00M |
| Total Debt | 5.04B | 8.01B | 8.30B | 0.00 | 0.00 |
| Total Liabilities | 9.24B | 11.50B | 2.28B | 1.85B | 2.02B |
| Stockholders Equity | 5.05B | 2.96B | 11.67B | 11.74B | 12.06B |
Cash Flow | |||||
| Free Cash Flow | -10.00M | 805.00M | 1.63B | 1.43B | 1.93B |
| Operating Cash Flow | 369.00M | 1.19B | 1.92B | 1.68B | 2.20B |
| Investing Cash Flow | 2.80B | -380.00M | -230.00M | -253.00M | -278.00M |
| Financing Cash Flow | -3.06B | -240.00M | -1.55B | -1.46B | -1.96B |
Solventum Corporation Technical Analysis
Negative
65.25
Price Trends
70.95
Negative
76.11
Negative
74.46
Negative
Market Momentum
-2.12
Negative
44.48
Neutral
32.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOLV, the sentiment is Negative. The current price of 65.25 is below the 20-day moving average (MA) of 65.29, below the 50-day MA of 70.95, and below the 200-day MA of 74.46, indicating a bearish trend. The MACD of -2.12 indicates Negative momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOLV.
Solventum Corporation Risk Analysis
Solventum Corporation disclosed 42 risk factors in its most recent earnings report. Solventum Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Solventum's restructuring program may not be successful or Solventum may not fully realize the expected cost savings and/or operating efficiencies from its restructuring initiatives. Q4, 2025
2.
Solventum may not be able to effectively integrate acquired businesses into its operations or achieve expected cost savings or profitability from its acquisitions. Q4, 2025
3.
The deployment and use of artificial intelligence ("AI"), machine learning, or other emerging technologies in Solventum's products and services, including as part of its research and development efforts, or its failure to adapt its products or services to industry trends and developments related to such technologies in a timely manner, or at all, could adversely affect Solventum's business, financial condition, results of operations and cash flows. Q4, 2025
Solventum Corporation Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $11.47B | 9.31 | 21.03% | 0.35% | 10.21% | 39.58% | |
70 Outperform | $10.77B | 18.84 | 24.48% | 0.65% | 11.13% | 27.53% | |
63 Neutral | $10.07B | 10.44 | -160.63% | ― | 5.14% | 4.37% | |
62 Neutral | $17.56B | 12.83 | 34.82% | ― | -0.56% | -53.50% | |
60 Neutral | $13.60B | 12.07 | 7.13% | 3.29% | 4.09% | 13.17% | |
55 Neutral | $11.48B | 54.74 | 36.74% | ― | 2.53% | 109.91% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SOLV
Solventum Corporation
66.18
1.01
1.55%
DVA
DaVita
150.68
-2.68
-1.75%
FMS
Fresenius Medical Care
23.61
0.24
1.03%
EHC
Encompass Health
108.33
6.88
6.78%
THC
Tenet Healthcare
201.87
74.35
58.30%
UHS
Universal Health
187.88
10.34
5.83%
Solventum Corporation Corporate Events
Executive/Board Changes
Solventum Announces Planned Retirement of Chief Accounting Officer
Neutral
Mar 24, 2026
Solventum Corporation, a company that has not disclosed its specific industry or product focus in this notice, announced an upcoming leadership transition in its finance function.On March 20, 2026, Chief Accounting Officer Mary Wilcox informed the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.