Solventum (NYSE:SOLV) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Solventum (NYSE:SOLV) released its earnings results on Thursday. The company reported $1.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.50 by $0.07, Zacks reports. Solventum had a net margin of 18.13% and a return on equity of 28.01%. 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 Stock Up 2.9%

NYSE:SOLV traded up $2.17 during trading hours on Thursday, hitting $77.25. 1,914,517 shares of the company traded hands, compared to its average volume of 1,054,152. The company has a quick ratio of 1.14, a current ratio of 1.50 and a debt-to-equity ratio of 1.03. The company has a market cap of $13.40 billion, a PE ratio of 8.90, a PEG ratio of 6.74 and a beta of 0.35. The firm’s 50-day simple moving average is $78.80 and its 200-day simple moving average is $76.18. Solventum has a one year low of $60.70 and a one year high of $88.20.

Institutional Investors Weigh In On Solventum

A number of institutional investors have recently added to or reduced their stakes in the company. Quadrant Capital Group LLC bought a new position in shares of Solventum during the 3rd quarter worth $86,000. Wilkerson Advisory Group LLC purchased a new stake in Solventum during the fourth quarter valued at about $68,000. Smartleaf Asset Management LLC boosted its position in Solventum by 23.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 744 shares of the company’s stock worth $60,000 after purchasing an additional 142 shares during the period. Los Angeles Capital Management LLC purchased a new stake in shares of Solventum during the 4th quarter valued at approximately $55,000. Finally, T. Rowe Price Investment Management Inc. boosted its holdings in Solventum by 1,482.4% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 538 shares of the company’s stock worth $43,000 after buying an additional 504 shares during the period.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Piper Sandler reiterated an “overweight” rating on shares of Solventum in a report on Wednesday, December 17th. UBS Group reaffirmed a “neutral” rating on shares of Solventum in a research note on Friday, November 21st. Stifel Nicolaus raised their price objective on Solventum from $88.00 to $105.00 and gave the company a “buy” rating in a research note on Wednesday, January 7th. Zacks Research downgraded Solventum from a “strong-buy” rating to a “hold” rating in a report on Monday, December 1st. Finally, BTIG Research upgraded Solventum from a “neutral” rating to a “buy” rating and set a $100.00 target price on the stock in a report on Tuesday, December 2nd. Seven analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $91.36.

Solventum declared that its Board of Directors has authorized a stock repurchase plan on Thursday, November 20th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 7.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its shares are undervalued.

About Solventum

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.