Solventum (NYSE:SOLV) Posts Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Solventum (NYSE:SOLV) announced its quarterly earnings results on Thursday. The company reported $1.57 earnings per share for the quarter, topping analysts’ consensus estimates of $1.50 by $0.07, Zacks reports. The business had revenue of $2 billion for the quarter, compared to analysts’ expectations of $1.96 billion. Solventum had a return on equity of 28.01% and a net margin of 18.13%.The business’s quarterly revenue was down 3.7% on a year-over-year basis. During the same period in the prior year, the firm earned $1.41 EPS. Solventum updated its FY 2026 guidance to 6.400-6.600 EPS.

Here are the key takeaways from Solventum’s conference call:

• Solventum closed FY2025 with 3.3% organic sales growth, adjusted EPS of $6.11 and a 20.5% operating margin, and announced a $1 billion share repurchase program that began execution in January.
• 2026 guidance targets 2%–3% organic growth (3%–4% ex‑SKU), operating margin expansion to 21%–21.5%, EPS of $6.40–$6.60, and management says underlying free cash flow would be roughly $1B excluding separation/divestiture costs.
• Management flagged material headwinds — an estimated $100M–$120M tariff impact, ERP/distribution cutover and separation/divestiture costs (one‑time ~150 bps Q4 gross‑margin effect) — and expects Q1 2026 to be the weakest quarter sequentially.
• Portfolio moves are active — the Acera acquisition closed in December to expand synthetic tissue/advanced wound care, the Purification & Filtration divestiture is underway (target end‑2027), and SKU rationalization/targeted tuck‑ins remain core levers for growth and margin improvement.
• Health Information Systems (revenue cycle management) and AI‑enabled autonomous coding are strategic growth priorities; management emphasizes proprietary rules, large datasets and multi‑year contracts as competitive advantages for scaling automation.

Solventum Price Performance

Shares of SOLV traded down $3.58 during mid-day trading on Friday, hitting $73.36. The company’s stock had a trading volume of 911,477 shares, compared to its average volume of 1,049,255. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.50 and a quick ratio of 1.14. The firm has a 50-day moving average price of $78.73 and a 200 day moving average price of $76.19. Solventum has a fifty-two week low of $60.70 and a fifty-two week high of $88.20. The stock has a market capitalization of $12.72 billion, a price-to-earnings ratio of 8.49, a PEG ratio of 6.90 and a beta of 0.35.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Pacer Advisors Inc. boosted its stake in shares of Solventum by 28.2% during the 4th quarter. Pacer Advisors Inc. now owns 17,149 shares of the company’s stock worth $1,359,000 after acquiring an additional 3,768 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its position in shares of Solventum by 1,482.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 538 shares of the company’s stock worth $43,000 after purchasing an additional 504 shares during the period. Invesco Ltd. lifted its holdings in shares of Solventum by 3.4% during the fourth quarter. Invesco Ltd. now owns 2,930,010 shares of the company’s stock valued at $232,174,000 after purchasing an additional 96,236 shares during the last quarter. Corient Private Wealth LLC boosted its position in shares of Solventum by 8.3% in the 4th quarter. Corient Private Wealth LLC now owns 44,882 shares of the company’s stock valued at $3,334,000 after purchasing an additional 3,443 shares during the period. Finally, CrossGen Wealth LLC purchased a new position in Solventum in the 4th quarter worth about $25,000.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Mizuho set a $100.00 target price on Solventum and gave the company an “outperform” rating in a research note on Tuesday, January 20th. UBS Group reissued a “neutral” rating on shares of Solventum in a research note on Friday, November 21st. KeyCorp upped their target price on shares of Solventum from $97.00 to $99.00 and gave the stock an “overweight” rating in a research report on Friday. Wall Street Zen cut Solventum from a “buy” rating to a “hold” rating in a report on Saturday, February 7th. Finally, Zacks Research downgraded Solventum from a “strong-buy” rating to a “hold” rating in a research report on Monday, December 1st. Seven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Solventum currently has an average rating of “Hold” and a consensus price target of $91.64.

Solventum declared that its Board of Directors has initiated a stock buyback program on Thursday, November 20th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 7.5% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Key Solventum News

Here are the key news stories impacting Solventum this week:

• Positive Sentiment: Analysts raised targets and reiterated conviction — KeyCorp bumped its price target to $99 and set an “overweight” rating, signaling meaningful upside from current levels. KeyCorp raises price target to $99 (TickerReport)
• Positive Sentiment: BTIG reaffirmed its “buy” rating and kept a $100 price target, another vote of confidence from the sell side. BTIG reaffirms buy, $100 PT (Benzinga)
• Positive Sentiment: Q4 beat: SOLV posted $1.57 EPS vs. ~$1.50 expected and $2.0B revenue vs. ~$1.96B, driven by strong demand in wound care and sterilization — a near‑term revenue/earnings positive. Reuters: Solventum beats quarterly estimates
• Positive Sentiment: Company raised FY‑2026 EPS guidance to $6.40–$6.60 (above consensus ~6.35), giving investors a clearer, slightly improved outlook for the year. PR Newswire: Solventum Q4 results and 2026 guidance
• Neutral Sentiment: Analysts and outlets published detailed call transcripts and highlights — useful for modeling but not a direct catalyst. Earnings call transcript (Seeking Alpha)
• Neutral Sentiment: Underlying sales mix: Solventum reported a 3.5% organic sales increase but overall reported sales were down 3.7% year‑over‑year — mixed signals for growth outlook. Zacks: Key metrics vs estimates
• Negative Sentiment: Management flagged margin pressures on the call and some analysts noted margin challenges despite organic growth — a risk to profit expansion and investor sentiment. Yahoo: Call highlights margin challenges
• Negative Sentiment: Questions persist about meeting growth targets post‑3M spin‑off; some coverage frames upcoming quarters as a test of the standalone company’s growth trajectory. Investing.com: Growth test post spin-off

Solventum Company Profile

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, Health Information Systems, and Purification and Filtration. The Medsurg segment is a provider of solutions including advanced wound care, I.V. site management, sterilization assurance, temperature management, surgical supplies, stethoscopes, and medical electrodes.