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…
Earnings analysis · 10-Q
SOLV earnings analysis
Filed May 5, 2026 · Our reading of the company's report
The latest report
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,…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- 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 stood out
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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.
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Strong Adjusted EPS Performance
Q1 2026 adjusted EPS was reported at $1.48, exceeding expectations of $1.35, representing a beat of 9.6%.
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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.
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Cash Position Declines
Cash and cash equivalents decreased to $561 million from $878 million as of year-end 2025.
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Significant Operating Margin Decline
Operating income fell by 46.7% to $81 million from $152 million in Q1 2025.
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Free Cash Flow Recovery
Free cash flow showed improvement compared to the prior quarter, though specifics were not disclosed.
What to watch
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Operating Income Drop
Total company operating income fell by 46.7% to $81 million compared to $152 million in Q1 2025.
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Increased Operational Costs
Higher costs driven by tariffs and inflation impacted margins, with MedSurg operating income margin dropping from 17.8% to 13.1%.
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Negative Cash Flow from Operations
Cash used in operating activities was $(189) million, a decrease from $29 million in Q1 2025.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.