Solventum Corporation Financials
This page shows Solventum Corporation (SOLV) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 4 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
FY2025 shows a below-gross-line earnings rebound and balance-sheet repair, but the business lost its usual cash conversion.
FY2025 profit recovery did not start with stronger product economics, because gross margin kept sliding to53.5% from55.7% . Yet operating margin jumped to26.2% from12.6% , which makes the earnings swing look driven by costs or charges below gross profit rather than by a cleaner revenue mix.
Cash conversion weakened abruptly: net income reached
Balance-sheet repair was meaningful, with debt-to-equity improving to 1.0x from 2.6x. But current ratio stayed around 1.2x, meaning day-to-day funding still relies on working capital turnover and ongoing cash generation rather than on a large cash cushion.
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Solventum Corporation's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Solventum Corporation has an operating margin of 26.2%, meaning the company retains $26 of operating profit per $100 of revenue. This strong profitability earns a score of 69/100, reflecting efficient cost management and pricing power. This is up from 12.6% the prior year.
Solventum Corporation's revenue grew a modest 0.9% year-over-year to $8.3B. This slow but positive growth earns a score of 35/100.
Solventum Corporation carries a low D/E ratio of 1.00, meaning only $1.00 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 82/100, indicating a strong balance sheet with room for future borrowing.
Solventum Corporation's current ratio of 1.23 is below the typical benchmark, resulting in a score of 20/100. This tight liquidity could limit financial flexibility if cash inflows slow.
While Solventum Corporation generated $369.0M in operating cash flow, capex of $379.0M consumed most of it, leaving -$10.0M in free cash flow. This results in a low score of 42/100, reflecting heavy capital investment rather than weak cash generation.
Solventum Corporation's ROE of 30.8% shows moderate profitability relative to equity, earning a score of 61/100. This is up from 16.2% the prior year.
Solventum Corporation scores 2.19, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Solventum Corporation passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Solventum Corporation generates $0.24 in operating cash flow ($369.0M OCF vs $1.6B net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Key Financial Metrics
Earnings & Revenue
Solventum Corporation generated $8.3B in revenue in fiscal year 2025. This represents an increase of 0.9% from the prior year.
Solventum Corporation's EBITDA was $2.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 67.8% from the prior year.
Solventum Corporation reported $1.6B in net income in fiscal year 2025. This represents an increase of 224.8% from the prior year.
Solventum Corporation earned $8.88 per diluted share (EPS) in fiscal year 2025. This represents an increase of 221.7% from the prior year.
Cash & Balance Sheet
Solventum Corporation generated -$10.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 101.2% from the prior year.
Solventum Corporation held $878.0M in cash against $5.0B in long-term debt as of fiscal year 2025.
Solventum Corporation had 173M shares outstanding in fiscal year 2025. This represents an increase of 0.4% from the prior year.
Margins & Returns
Solventum Corporation's gross margin was 53.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 2.2 percentage points from the prior year.
Solventum Corporation's operating margin was 26.2% in fiscal year 2025, reflecting core business profitability. This is up 13.7 percentage points from the prior year.
Solventum Corporation's net profit margin was 18.7% in fiscal year 2025, showing the share of revenue converted to profit. This is up 12.9 percentage points from the prior year.
Solventum Corporation's ROE was 30.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 14.6 percentage points from the prior year.
Capital Allocation
Solventum Corporation invested $739.0M in research and development in fiscal year 2025. This represents a decrease of 4.6% from the prior year.
Solventum Corporation invested $379.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 0.3% from the prior year.
SOLV Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.0B+0.5% | $2.0B-4.7% | $2.1B-3.0% | $2.2B+4.4% | $2.1B-0.2% | $2.1B-0.3% | $2.1B0.0% | $2.1B |
| Cost of Revenue | $796.0M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | $1.1B+6.8% | $1.0B-9.5% | $1.1B-3.4% | $1.2B+5.5% | $1.1B-0.4% | $1.1B-3.9% | $1.2B+2.5% | $1.1B |
| R&D Expenses | $189.0M+8.6% | $174.0M-4.9% | $183.0M-3.2% | $189.0M-2.1% | $193.0M-3.0% | $199.0M+5.3% | $189.0M-1.6% | $192.0M |
| SG&A Expenses | $827.0M+9.0% | $759.0M-2.7% | $780.0M+1.0% | $772.0M+0.4% | $769.0M-1.9% | $784.0M+11.8% | $701.0M0.0% | $701.0M |
| Operating Income | $81.0M-35.2% | $125.0M-92.6% | $1.7B+689.7% | $214.0M+40.8% | $152.0M+11.8% | $136.0M-50.5% | $275.0M+12.7% | $244.0M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $3.0M+160.0% | -$5.0M-102.0% | $248.0M+1807.7% | $13.0M+113.1% | -$99.0M-482.4% | -$17.0M-137.8% | $45.0M+542.9% | $7.0M |
| Net Income | $13.0M-79.4% | $63.0M-95.0% | $1.3B+1306.7% | $90.0M-34.3% | $137.0M+341.9% | $31.0M-74.6% | $122.0M+37.1% | $89.0M |
| EPS (Diluted) | $0.07 | N/A | $7.22+1315.7% | $0.51-34.6% | $0.78 | N/A | $0.70+37.3% | $0.51 |
SOLV Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $14.1B-1.4% | $14.3B+2.3% | $14.0B-7.3% | $15.1B+3.8% | $14.5B+0.5% | $14.5B-2.0% | $14.7B+1.1% | $14.6B |
| Current Assets | $3.6B-7.2% | $3.9B-12.4% | $4.4B+37.4% | $3.2B+5.1% | $3.1B-6.0% | $3.2B-3.1% | $3.4B-0.3% | $3.4B |
| Cash & Equivalents | $561.0M-36.1% | $878.0M-46.5% | $1.6B+233.7% | $492.0M-7.9% | $534.0M-29.9% | $762.0M-1.3% | $772.0M-13.9% | $897.0M |
| Inventory | $1.1B+2.2% | $1.1B+1.6% | $1.0B+9.0% | $962.0M+11.1% | $866.0M-10.3% | $965.0M+1.3% | $953.0M+6.0% | $899.0M |
| Accounts Receivable | $1.1B+2.4% | $1.0B+1.5% | $1.0B-4.3% | $1.1B+15.0% | $926.0M-11.3% | $1.0B-5.5% | $1.1B+7.5% | $1.0B |
| Goodwill | $5.6B-1.4% | $5.7B+8.4% | $5.3B-0.3% | $5.3B+5.7% | $5.0B-21.7% | $6.4B-3.3% | $6.6B+2.2% | $6.4B |
| Total Liabilities | $9.1B-1.3% | $9.2B+2.9% | $9.0B-21.4% | $11.4B+1.5% | $11.3B-2.0% | $11.5B-0.5% | $11.6B-1.3% | $11.7B |
| Current Liabilities | $3.3B+6.7% | $3.1B+6.7% | $2.9B+12.1% | $2.6B+2.1% | $2.6B-5.1% | $2.7B-6.9% | $2.9B+13.0% | $2.6B |
| Long-Term Debt | $4.6B-9.1% | $5.0B-2.0% | $5.1B-34.3% | $7.8B0.0% | $7.8B0.0% | $7.8B0.0% | $7.8B-6.0% | $8.3B |
| Total Equity | $5.0B-1.6% | $5.0B+1.3% | $5.0B+36.8% | $3.6B+11.7% | $3.3B+10.2% | $3.0B-7.3% | $3.2B+11.3% | $2.9B |
| Retained Earnings | $1.8B+0.7% | $1.8B+3.6% | $1.7B+270.5% | $468.0M+23.8% | $378.0M+56.2% | $242.0M+14.7% | $211.0M+137.1% | $89.0M |
SOLV Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$189.0M-298.9% | $95.0M+25.0% | $76.0M-55.0% | $169.0M+482.8% | $29.0M-86.8% | $219.0M+29.6% | $169.0M-52.4% | $355.0M |
| Capital Expenditures | $84.0M+33.3% | $63.0M-35.1% | $97.0M-11.8% | $110.0M+0.9% | $109.0M-14.2% | $127.0M+36.6% | $93.0M+60.3% | $58.0M |
| Free Cash Flow | -$273.0M-953.1% | $32.0M+252.4% | -$21.0M-135.6% | $59.0M+173.8% | -$80.0M-187.0% | $92.0M+21.1% | $76.0M-74.4% | $297.0M |
| Investing Cash Flow | -$77.0M+89.7% | -$745.0M-119.8% | $3.8B+3523.6% | -$110.0M+3.5% | -$114.0M+10.2% | -$127.0M-36.6% | -$93.0M-60.3% | -$58.0M |
| Financing Cash Flow | -$50.0M+56.5% | -$115.0M+95.7% | -$2.7B-2348.2% | -$110.0M+20.9% | -$139.0M-33.7% | -$104.0M+48.5% | -$202.0M+49.0% | -$396.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $67.0M | N/A | N/A | N/A | $0 | N/A | N/A | N/A |
SOLV Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.7%+3.3pp | 51.4%-2.7pp | 54.1%-0.2pp | 54.4%+0.5pp | 53.8%-0.1pp | 53.9%-2.0pp | 56.0%+1.3pp | 54.6% |
| Operating Margin | 4.0%-2.2pp | 6.3%-74.4pp | 80.6%+70.7pp | 9.9%+2.6pp | 7.3%+0.8pp | 6.6%-6.7pp | 13.2%+1.5pp | 11.7% |
| Net Margin | 0.7%-2.5pp | 3.1%-57.3pp | 60.4%+56.2pp | 4.2%-2.5pp | 6.6%+5.1pp | 1.5%-4.4pp | 5.9%+1.6pp | 4.3% |
| Return on Equity | 0.3%-1.0pp | 1.3%-24.1pp | 25.4%+22.9pp | 2.5%-1.7pp | 4.2%+3.1pp | 1.1%-2.8pp | 3.8%+0.7pp | 3.1% |
| Return on Assets | 0.1%-0.4pp | 0.4%-8.6pp | 9.1%+8.5pp | 0.6%-0.3pp | 0.9%+0.7pp | 0.2%-0.6pp | 0.8%+0.2pp | 0.6% |
| Current Ratio | 1.07-0.2 | 1.23-0.3 | 1.50+0.3 | 1.22+0.0 | 1.19-0.0 | 1.20+0.0 | 1.16-0.2 | 1.31 |
| Debt-to-Equity | 0.92-0.1 | 1.00-0.0 | 1.03-1.1 | 2.14-0.3 | 2.40-0.2 | 2.64+0.2 | 2.45-0.5 | 2.90 |
| FCF Margin | -13.6%-15.2pp | 1.6%+2.6pp | -1.0%-3.7pp | 2.7%+6.6pp | -3.9%-8.3pp | 4.4%+0.8pp | 3.6%-10.6pp | 14.3% |
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Frequently Asked Questions
What is Solventum Corporation's annual revenue?
Solventum Corporation (SOLV) reported $8.3B in total revenue for fiscal year 2025. This represents a 0.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Solventum Corporation's revenue growing?
Solventum Corporation (SOLV) revenue grew by 0.9% year-over-year, from $8.3B to $8.3B in fiscal year 2025.
Is Solventum Corporation profitable?
Yes, Solventum Corporation (SOLV) reported a net income of $1.6B in fiscal year 2025, with a net profit margin of 18.7%.
What is Solventum Corporation's EBITDA?
Solventum Corporation (SOLV) had EBITDA of $2.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Solventum Corporation have?
As of fiscal year 2025, Solventum Corporation (SOLV) had $878.0M in cash and equivalents against $5.0B in long-term debt.
What is Solventum Corporation's gross margin?
Solventum Corporation (SOLV) had a gross margin of 53.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Solventum Corporation's operating margin?
Solventum Corporation (SOLV) had an operating margin of 26.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Solventum Corporation's net profit margin?
Solventum Corporation (SOLV) had a net profit margin of 18.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Solventum Corporation's return on equity (ROE)?
Solventum Corporation (SOLV) has a return on equity of 30.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Solventum Corporation's free cash flow?
Solventum Corporation (SOLV) generated -$10.0M in free cash flow during fiscal year 2025. This represents a -101.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Solventum Corporation's operating cash flow?
Solventum Corporation (SOLV) generated $369.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Solventum Corporation's total assets?
Solventum Corporation (SOLV) had $14.3B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Solventum Corporation's capital expenditures?
Solventum Corporation (SOLV) invested $379.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Solventum Corporation spend on research and development?
Solventum Corporation (SOLV) invested $739.0M in research and development during fiscal year 2025.
What is Solventum Corporation's current ratio?
Solventum Corporation (SOLV) had a current ratio of 1.23 as of fiscal year 2025, which is considered adequate.
What is Solventum Corporation's debt-to-equity ratio?
Solventum Corporation (SOLV) had a debt-to-equity ratio of 1.00 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Solventum Corporation's return on assets (ROA)?
Solventum Corporation (SOLV) had a return on assets of 10.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Solventum Corporation's Altman Z-Score?
Solventum Corporation (SOLV) has an Altman Z-Score of 2.19, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Solventum Corporation's Piotroski F-Score?
Solventum Corporation (SOLV) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Solventum Corporation's earnings high quality?
Solventum Corporation (SOLV) has an earnings quality ratio of 0.24x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Solventum Corporation?
Solventum Corporation (SOLV) scores 51 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.