Solventum Corporation earnings date
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Solventum Corporation (SOLV) Q3 2026 Earnings Report
SOLV Q3 2026 EPS Results
- Actual EPS
- $1.45
- Consensus EPS
- $1.34
- Beat/Miss
- Beat by +$0.11
- One Year Ago EPS
- $1.50
SOLV Q3 2026 Revenue Results
- Actual Revenue
- $1.95B
- Expected Revenue
- $1.93B
- Beat/Miss
- Beat by +$18.05M
- YoY Revenue Growth
- -7.01%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- After Close
- Conference Call
- Thursday, November 5, 2026
Solventum Corporation's next earnings date is estimated for March 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was predominantly positive. Management reported solid execution through a highly complex ERP cutover, raised full-year EPS and operating-margin expectations, advanced the 3M separation beyond 90%, improved the supply agreement outlook, and highlighted broad product and growth-driver momentum. The principal challenges were the ERP-related timing reversal, reported and segment-level sales declines, tariff and inflation headwinds, remaining separation work, and anticipated margin dilution from the HIS separation. Overall, the stated achievements and outlook significantly outweighed the disclosed challenges.
For 2026, Solventum expects organic sales growth toward the high end of its 2.5% to 3% range; excluding the expected 100 basis point impact for SKU exits this year, this would represent growth closer to 4%, with foreign currency exchange rates having a favorable impact of approximately 100 basis points on reported sales growth. Full year gross margins are expected to be approximately 57%, including 120 basis points annual margin benefit from the Q2 tariff refund, while operating margin is expected toward the high end of the previously raised 22.2% to 22.7% range, compared with the initial fiscal year outlook of 21% to 21.5% before adding 120 basis points for tariff refunds; excluding the tariff refund benefit, this indicates an expected 100 basis points of expansion over prior year. Annual nonoperating expense is expected to be approximately $300 million, the tax rate is expected to be 19.5% to 20.5%, earnings per share are expected to be $7.20 to $7.30 versus the prior range of $7.10 to $7.20, and free cash flow is expected to be $200 million to $300 million, with a large majority in the fourth quarter; excluding separation and portfolio-related costs, free cash flow is tracking to approximately $1 billion for 2026. For RemainCo, the aggregate market growth rate and existing long-range plan organic sales growth target remain 4% to 5%, while the HIS separation is expected to result in approximately 400 basis points of annualized net operating margin dilution after considering the anticipated benefit of transition service offsets in the short term.
- ERP Cutover Completed Despite Operational ComplexitySolventum executed the largest and most complex ERP cutover in company history, completing all approximately 1,200 application system moves. Although the cutover was not seamless, management said its mitigation plan held, product continued moving to patients, and all key financial metrics were in line with or ahead of expectations, with organic growth and EPS above plan.
- Separation from 3M More Than 90% CompleteThe separation from 3M is now more than 90% complete, with the structural and higher-risk work described as finished. The company has exited just over 90% of its transition service agreements, and plans are underway to complete the balance by the end of 2027.
- Supply Agreement Removes Expected Margin HeadwindSolventum renegotiated its raw material and reverse master supply agreements with 3M. In exchange for a volume commitment over a period of time, the amended agreement eliminates the significant product-cost step-up scheduled for April 2027 and removes the previously anticipated additional 100 basis points of gross-margin headwind that could have begun in Q3 2027.
- Supply Chain Footprint Rationalization ProgressThe company reduced its manufacturing plant footprint to 21 from 67 at the time of separation, including two new plants announced in 2024 and the Acera manufacturing site. Five manufacturing line moves remain and are expected to be completed in 2027. Distribution centers were reduced to 54 from 73, with nine more exits planned to reach a target of 45.
- Third-Quarter Revenue and Normalized Organic GrowthQ3 sales were $1.95 billion. Reported sales decreased 7%, while organic sales decreased 2.8%, including the reversal of $125 million of ERP-related advanced orders. After adjusting for the ERP-related timing impact and 90 basis points of SKU rationalization headwinds, normalized organic growth was approximately 4%. Volume remained the primary driver of underlying growth, while pricing remained within the expected range of plus or minus 1%.
- Gross Margin and Operating Margin ExecutionQ3 gross margin was 57.1%, up 120 basis points year over year, reflecting programmatic savings, portfolio optimization and operating improvements, partially offset by inflation and tariffs. Operating income was $387 million, and excluding the ERP timing impact, operating margin was approximately 22.3%, ahead of expectations.
- Raised Full-Year 2026 OutlookManagement expects full-year organic sales growth toward the high end of the 2.5% to 3% range. Excluding the expected 100 basis point impact from SKU exits, growth would be closer to 4%. The operating-margin outlook moved toward the high end of the previously raised 22.2% to 22.7% range, and EPS guidance increased to $7.20 to $7.30 from $7.10 to $7.20.
- Margin Expansion Expected Excluding Tariff Refund BenefitThe company expects approximately 57% full-year gross margin, including a 120 basis point annual margin benefit from the Q2 tariff refund that offset expected full-year tariff costs. Excluding the tariff refund benefit, management said the outlook indicates approximately 100 basis points of operating-margin expansion over the prior year, with underlying margin expansion this year described as approximately 150 basis points after considering tariff annualization.
- Strong Free Cash Flow and Capital ReturnsQ3 free cash flow increased by $97 million. Excluding separation and portfolio-optimization activities, free cash flow would have been $334 million. The company maintained full-year free-cash-flow guidance of $200 million to $300 million, while underlying cash generation is tracking to approximately $1 billion for 2026 excluding separation and portfolio-related costs. Solventum repurchased approximately 570,000 shares for nearly $50 million in Q3 and approximately 5.3 million shares for just over $400 million through the first nine months.
- Transform for the Future Program ProgressSolventum has spent approximately $180 million of the program's estimated $500 million total cost and achieved approximately $160 million of the targeted $500 million in estimated total annual savings. Management said the program has already helped expand margins, add capacity for investment, offset Purification & Filtration stranded costs, absorb tariffs and support the roll-off of 3M transition service agreements.
- Acera Performance and Regulatory ClearanceAcera integration remains on track, and the business delivered its best quarter on record. Acera contributed $35 million to reported sales and grew 35%, driven by its synthetic tissue matrix technology. Solventum also received a 510(k) clearance for combined use of Restrata with V.A.C. therapy faster than expected, enabling the companies to co-market the technologies.
- Negative Pressure Wound Therapy OpportunityStudies cited by management show V.A.C. therapy wounds are ready for closure almost twice as fast and show a 60% reduction in amputations versus non-V.A.C. treatments. V.A.C. therapy is currently used about 10% of the time, leaving roughly 90% of the stated opportunity in front of the company. The V.A.C. Peel and Place dressing reduced application time by 61%, can remain in place for up to 7 days versus changes every 2 to 3 days, and had 10 out of 10 patients reporting no pain upon removal.
- MedSurg Growth Drivers and Product TractionAdvanced Wound Care grew 1.5% organically, supported by negative pressure wound therapy innovation and commercial execution. Tegaderm CHG and Curos caps continued to gain traction in IV site management, and Solventum is fully in market with three new Attest sterilization-assurance products. Prevena also continued to build on the single-use side of the wound-therapy business.
- Dental Innovation and Early Clarity Composite Veneers ValidationDental growth was supported by Clinpro Clear, the Filtek Easy Match family, the composite warmer and Clarity aligner attachments. The limited launch of Clarity Composite Veneers delivered more than 1,000 transformed smiles, providing early market-access validation ahead of the full launch expected in the first part of 2027.
- Health Information Systems Continued GrowthHealth Information Systems grew 4.4% organically to $356 million, driven by revenue cycle management solutions, strong customer retention and continued commercial execution. Adoption of 360 Encompass expanded, AI-driven autonomous coding applications gained traction, and international expansion continued.
- RemainCo Growth and Portfolio StrategyManagement expects four of the five growth drivers, as well as Acera, to remain with Solventum after the HIS separation. The company said the majority of its go-forward margin-expansion levers sit within RemainCo and that its multibillion-dollar growth-driver opportunity is focused largely on customers it already serves. Purification & Filtration divestiture activities are also moving ahead and remain on plan.
SOLV Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 04, 2027 | 2026 (Q4) | 1.77- | 1.57 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | 1.341.45 | 1.5 | -3.33% (-0.05) | |
| Aug 05, 2026 | 2026 (Q2) | 1.912.55 | 1.69 | 50.89% (+0.86) | |
| May 05, 2026 | 2026 (Q1) | 1.351.48 | 1.34 | 10.45% (+0.14) | |
| Feb 26, 2026 | 2025 (Q4) | 1.501.57 | 1.41 | 11.35% (+0.16) | |
| Nov 06, 2025 | 2025 (Q3) | 1.431.50 | 1.64 | -8.54% (-0.14) | |
| Aug 07, 2025 | 2025 (Q2) | 1.451.69 | 1.56 | 8.33% (+0.13) | |
| May 08, 2025 | 2025 (Q1) | 1.211.34 | 2.08 | -35.58% (-0.74) | |
| Feb 27, 2025 | 2024 (Q4) | 1.311.41 | 2.31 | -38.99% (-0.90) | |
| Nov 07, 2024 | 2024 (Q3) | 1.391.64 | 2.66 | -38.44% (-1.02) |
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.
