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Solventum Corporation (MX:SOLV)
:SOLV
Mexico Market
EarningsQ2 2026 Earnings Report

Solventum Corporation (SOLV) Q2 2026 Earnings Report

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MX:SOLV Q2 2026 EPS Results

Actual EPS$43.71
Consensus EPS$32.65
Beat/MissBeat by +$11.06
One Year Ago EPS$28.97

MX:SOLV Q2 2026 Revenue Results

Actual Revenue$37.87B
Expected Revenue$36.92B
Beat/MissBeat by +$941.99M
YoY Revenue Growth+1.19%

Earnings Announcement Details

QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
MX:SOLV Upcoming Earnings
Solventum Corporation's next earnings date is estimated for November 5, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:SOLV Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 05, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive tone: the company beat expectations on top and bottom lines, raised full-year guidance (organic growth, operating margin, EPS, and free cash flow), accelerated share repurchases, showed strong segment performance (especially Dental and MedSurg) and highlighted successful M&A (Acera) and progress on separation/ERP migration and product pipeline. Notable near-term headwinds include ERP advanced-order timing that will reverse in Q3 (creating quarter-to-quarter volatility), tariff and inflation pressures (partly offset by a one-time $100M tariff refund), material litigation charges, and separation-related cash demands. Overall, management presented confidence in transformation execution and a pathway to improved cash flow and margin expansion despite measurable one-time and timing-related challenges.
Company Guidance
Solventum tightened and raised its 2026 guidance: organic sales growth to 2.5–3.0% (3.5–4.0% excluding ~100 bps of SKU exits), with FX expected to benefit ~+100 bps; operating margin now guided to 22.2–22.7% (up from 21.0–21.5%, reflecting ~120 bps of tariff‑refund benefit); annual non‑operating expense ≈ $300M and tax rate 19.5–20.5%; EPS raised to $7.10–7.20 (prior $6.40–6.60); free cash flow now expected $200–300M (prior ≈$200M), with the large majority of FCF in Q4. Q2 included ~$125M of ERP advanced orders (added ≈$0.34 to EPS and ~700 bps to MedSurg growth) that will mostly reverse in Q3 (≈‑$0.34 EPS headwind), plus a ~$100M one‑time tariff refund (≈$0.48 EPS benefit); Q2 results: sales $2.2B (+9.5% organic, +2.2% reported), MedSurg $1.4B (+8.9% organic), Dental $396M (+15.2% organic), HIS $354M (+5.4% organic); gross margin 60.1% (ex‑refund ≈55.6%); operating income $627M (28.4% margin; ex timing/refund ≈21.7%); EPS $2.55 (ex orders/refund $1.73); cash $403M, net debt $4.7B, Q2 FCF $144M; repurchased ~4M shares for $288M in Q2 (4.8M / $355M YTD); separation progress: ~70% of ~200 TSAs exited, ~950 of 1,200 systems migrated, targeting 90% TSA exit by end‑2026.
Top-line Beat and Organic Growth
Total sales of $2.2B; reported sales growth 2.2% and organic sales growth 9.5% year-over-year. Management noted organic growth and EPS were ahead of expectations; normalized Q2 organic growth ~4% after adjusting for ERP advanced orders (~630 bps).
Segment Strength — MedSurg
MedSurg sales $1.4B with organic growth of 8.9%. Advanced Wound Care grew 7.1% organically. Infection Prevention & Surgical Solutions grew 10.1% organically. ERP advanced orders contributed ~700 bps to MedSurg in the quarter.
Segment Strength — Dental
Dental Solutions sales $396M with organic growth of 15.2%, driven by new product launches and aided by ~10 percentage points of ERP advanced orders.
Segment Performance — Health Information Systems (HIS)
HIS sales $354M with organic growth of 5.4%, driven by revenue cycle management strength and healthy customer retention; company announced intention to pursue separation of HIS to unlock shareholder value and accelerate AI investments.
Acera Acquisition Outperformance
Acera contributed $32M to sales and delivered ~48% year-over-year growth in the quarter (management previously stated Acera revenue growth above 40%) with gross margin above 80%, validating the tuck‑in M&A strategy.
Improved Margins and One-time Tariff Benefit
Reported gross margin 60.1% in Q2, including a one-time $100M tariff refund; excluding the refund gross margin ~55.6%. Operating income $627M with operating margin 28.4%; adjusted operating margin (excluding ~670 bps from advanced orders and tariff refund) ~21.7%.
Raised Full-Year Guidance
Organic sales growth guidance raised to 2.5%–3% (3.5%–4% ex SKU exits); operating margin guidance increased to 22.2%–22.7% (from 21%–21.5%); EPS guidance increased to $7.10–$7.20 (from $6.40–$6.60); free cash flow outlook raised to $200M–$300M.
Capital Allocation and Balance Sheet Activity
Accelerated $1B share repurchase program: repurchased nearly 4M shares in Q2 for $288M (4.8M shares / $355M in first 2 quarters). Ended quarter with $403M cash and equivalents and net debt $4.7B; management signaled balanced use of proceeds if HIS generates sale proceeds.
Separation & Transformation Progress
Exited nearly 70% of ~200 transition service agreements (on pace to exit 90% by end of 2026); migrated ~950 of 1,200 systems including majority of ERP implementations; management expects separation to free talent, simplify operations and improve free cash flow.
Product Pipeline and Innovation
Expect to launch almost 20 new products through Q1 2028 (meaningful MedSurg launches in H1 2027 and Dental aesthetics later this year); innovation and specialized commercial teams are driving conversions to higher-value solutions.

MX:SOLV Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 05, 2026
2026 (Q3)
23.07 / -
25.712
2026 (Q2)
32.65 / 43.71
28.96950.89% (+14.74)
2026 (Q1)
23.19 / 25.37
22.9710.45% (+2.40)
2025 (Q4)
25.63 / 26.91
24.16911.35% (+2.74)
2025 (Q3)
24.51 / 25.71
28.112-8.54% (-2.40)
2025 (Q2)
24.86 / 28.97
26.7418.33% (+2.23)
2025 (Q1)
20.76 / 22.97
35.654-35.58% (-12.68)
2024 (Q4)
22.52 / 24.17
39.614-38.99% (-15.44)
2024 (Q3)
23.90 / 28.11
45.665-38.44% (-17.55)
2024 (Q2)
25.80 / 26.74
31.866-16.08% (-5.13)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed