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

Solventum (NYSE:SOLV) released its quarterly earnings data 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 return on equity of 28.01% and a net margin of 18.13%. 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 Solventum stock traded up $2.17 during trading on Thursday, hitting $77.25. 1,914,517 shares of the stock 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 stock has a market cap of $13.40 billion, a price-to-earnings ratio of 8.90, a PEG ratio of 6.74 and a beta of 0.35. The firm’s fifty day moving average is $78.80 and its 200-day moving average is $76.18. Solventum has a 52 week low of $60.70 and a 52 week high of $88.20.

Solventum declared that its board has initiated a share repurchase program on Thursday, November 20th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to repurchase up to 7.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

Institutional Trading of Solventum

Hedge funds and other institutional investors have recently bought and sold shares of the company. Boston Partners grew its holdings in Solventum by 26.1% in the 3rd quarter. Boston Partners now owns 4,630,300 shares of the company’s stock worth $338,006,000 after acquiring an additional 959,543 shares during the last quarter. Balyasny Asset Management L.P. bought a new position in shares of Solventum during the third quarter valued at about $42,393,000. Raymond James Financial Inc. boosted its holdings in shares of Solventum by 116.5% during the third quarter. Raymond James Financial Inc. now owns 702,411 shares of the company’s stock worth $51,276,000 after purchasing an additional 378,024 shares during the period. Zimmer Partners LP bought a new stake in shares of Solventum in the third quarter worth about $20,075,000. Finally, AQR Capital Management LLC grew its stake in shares of Solventum by 82.0% in the fourth quarter. AQR Capital Management LLC now owns 469,288 shares of the company’s stock worth $37,186,000 after purchasing an additional 211,440 shares during the last quarter.

Wall Street Analyst Weigh In

SOLV has been the topic of several analyst reports. Mizuho set a $100.00 price target on Solventum and gave the company an “outperform” rating in a research report on Tuesday, January 20th. Wall Street Zen cut shares of Solventum from a “buy” rating to a “hold” rating in a research note on Saturday, February 7th. UBS Group reaffirmed a “neutral” rating on shares of Solventum in a report on Friday, November 21st. Piper Sandler reissued an “overweight” rating on shares of Solventum in a report on Wednesday, December 17th. Finally, Zacks Research lowered shares of 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 given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Solventum has an average rating of “Hold” and a consensus target price of $91.36.

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.