TopFunds

Solventum

NYSE: SOLV

Stock price

86.41 USD

(+8.01%) 5 years

Health Care TechnologyMedical - Care Facilities

Financial Performance

Share

5Y price score: 10

Help

The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 8%

DATE RANGE:

%

ㅤ

  • Earnings per share

  • Free cash flow per share

  • Stock price

Time scale:

By default your notes are visible only to you.

62.3

52-week range

94.1

86.41

Your model inputs

Required return / cost of capital
%
FCFF terminal growth rate
%

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

Help
FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

(0.8) %

Dividend Yield TTM

-

Market cap $

$ 14,964

Price / Earnings TTM

Help
P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

10.6

Price / Book TTM

3.1

PEG TTM

Help
Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

0

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

19.3 %

8 %

8 %

Free cash flow per share growth

145.2 %

(100.6) %

-

Earnings per share growth

3.9 %

34.5 %

-

Founded: 2,023

Employees: 22,000

Business Summary:Solventum Corporation, established in 2023 and headquartered in Saint Paul, Minnesota, operates as a healthcare entity dedicated to pioneering, producing, and commercializing diverse solutions that address critical needs for both customers and patients. The company's business activities are organized into four principal segments. The Medsurg division furnishes various products and services, including sophisticated wound care items, intravenous (I.V.) site management tools, sterilization assurance systems, temperature regulation devices, surgical instruments, stethoscopes, and medical electrodes. Its Dental Solutions segment provides a comprehensive range of dental and orthodontic offerings, such as brackets, clear aligners, restorative filling materials, and bonding agents. The Health Information Systems division concentrates on advanced software platforms, covering functionalities like computer-assisted physician documentation, direct billing and coding automation, classification frameworks, voice recognition capabilities, and data visualization tools. Finally, the Purification and Filtration segment supplies an array of purification and filtration technologies, including various filters, purifiers, cartridges, and specialized membranes.

Q&A

SEARCH
Get answers on financials, industry, fundamentals or other questions.

Contribute

By providing well-researched and detailed answer you increase your chance of becoming Top Contributor. TopFunds is free for all top contributors. Learn more

VIEW ALL Q&A

Contribute or ask questions about business following TopFunds community guidelines

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Aug 5, 2026)

1) Strategy & Leadership
- CEO Bryan Hanson emphasized the team's strong execution and momentum, leading to results that exceeded expectations.
- The company is nearing completion of its separation from 3M, which is expected to improve operational efficiency and free cash flow.
- Solventum is advancing the separation of its Health Information Systems (HIS) business to unlock shareholder value and refocus on MedTech.
- The company plans to host its third Annual Investor Day in Q1 2027 to outline its long-range plan post-HIS separation.

2) Financial & Segment Results
- Q2 2026 sales reached $2.2 billion, a 9.5% increase organically YoY, with a reported growth of 2.2%.
- MedSurg segment sales were $1.4 billion, up 8.9% organically, driven by advanced orders and strong performance in infection prevention.
- Dental Solutions grew 15.2% organically, while HIS reported 5.4% growth, benefiting from revenue cycle management solutions.
- Gross margins improved to 60.1%, aided by a one-time tariff refund of $100 million, while operating income was $627 million, reflecting an operating margin of 28.4%.

3) Problems / Headwinds
- The company faced challenges related to its ERP cutover, which involved advanced orders of approximately $125 million that are expected to reverse in Q3 2026.
- The impact of SKU rationalization and the timing of separations created temporary headwinds, affecting normalized organic growth rates.
- Litigation costs of $157 million were recorded, which will impact GAAP earnings but are excluded from non-GAAP measures.

4) Operational or Product Plans
- Solventum is focused on its five growth drivers, which include IV site management and advanced wound care, with nearly 20 new product launches expected by Q1 2028.
- The integration of the Acera acquisition is progressing well, with year-over-year revenue growth above 40%.
- The company is committed to maintaining its innovation pipeline, particularly in MedSurg and Dental, to drive future growth.

5) Guidance & Outlook / Investor Angle
- The company raised its organic sales growth guidance for 2026 to 2.5% to 3%, with expectations of improved performance in 2027.
- Earnings per share guidance was increased to $7.10 to $7.20, reflecting confidence in ongoing operational improvements and tariff refunds.
- The HIS separation is expected to provide clarity on future financial impacts, with ongoing updates planned as the process unfolds.

Bottom line: Solventum's Q2 results demonstrate strong execution and a clear path toward operational efficiency and growth, particularly with the upcoming HIS separation. The company is well-positioned to enhance shareholder value through focused innovation and disciplined capital allocation.

Annual Reports, Presentations And IR Contacts

Go to the website
Annual report links (10K)
20252024

Solventum — Financial Overview, Stock Price, Market Cap

Solventum is a company. Founded in 2023. As of October 9, 2026, the company's market capitalization is $14964026864 with a current stock price of $86.41.