SOLV earnings analysis
What we found in SOLV's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Solventum reported a Q1 2026 revenue of $2.007 billion, slightly down 3.0% year-over-year but surpassing expectations with an EPS of $1.48, beating estimates of $1.35. Organic growth across segments was positive, especially in Advanced Wound Care and Health Information Systems, although the overall operating income dropped significantly by 46.7% driven by increased costs and restructuring impacts.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Expectations
- Actual revenue of $2.007 billion was 3.0% lower than the prior year but surpassed consensus estimates of $1.975 billion.
- Strong Adjusted EPS Performance
- Q1 2026 adjusted EPS was reported at $1.48, exceeding expectations of $1.35, representing a beat of 9.6%.
- Segment Growth in Key Areas
- Advanced Wound Care grew 10.9% to $497 million; Dental Solutions and Health Information Systems saw growths of 7.9% and 4.1% respectively.
- Cash Position Declines
- Cash and cash equivalents decreased to $561 million from $878 million as of year-end 2025.
- Significant Operating Margin Decline
- Operating income fell by 46.7% to $81 million from $152 million in Q1 2025.
- Free Cash Flow Recovery
- Free cash flow showed improvement compared to the prior quarter, though specifics were not disclosed.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating Income Drop
- Total company operating income fell by 46.7% to $81 million compared to $152 million in Q1 2025.
- Increased Operational Costs
- Higher costs driven by tariffs and inflation impacted margins, with MedSurg operating income margin dropping from 17.8% to 13.1%.
- Negative Cash Flow from Operations
- Cash used in operating activities was $(189) million, a decrease from $29 million in Q1 2025.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.48
- Segment
- Advanced Wound Care
- Segment
- Infection Prevention and Surgical Solutions
- Segment
- MedSurg
- Segment
- Dental Solutions
- Segment
- Health Information Systems
What they said about what is next.
The company affirms full-year organic sales growth guidance of +2.0% to +3.0%, adjusted EPS guidance toward high end of $6.40 to $6.60.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 27, 2026
- Solventum positions itself as a diversified healthcare company with strong MedSurg exposure (57.9% of 2025 sales), a 2,000-person R&D organization, and a strategy anchored in materials science, data science and digital…
- 10-Q · November 6, 2025
- Solventum reported Q3 2025 revenue of $2,096 million, a modest increase of $14 million (+0.7%) versus Q3 2024, and delivered diluted EPS of $7.22 driven largely by a one-time pre-tax gain on the sale of its Purification…
- 10-Q · May 9, 2025
- Solventum reported Q1 2025 revenue of $2,070,000,000 (up $54,000,000 vs Q1 2024) but showed material margin and cash-flow deterioration. Gross margin compressed to 53.8% and operating income fell to $152 million (7.3%…
- 10-Q · August 9, 2024
- Solventum reported Q2 net sales of $2,081 million (up $65 million vs. Q1'24 and up $5 million vs. Q2'23) with diluted EPS of $0.51. Revenue was broadly stable but margins and EPS compressed materially as operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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