Solventum Reports Fourth Quarter 2025 Financial Results and Introduces 2026 Full-Year Guidance
Rhea-AI Summary
Solventum (NYSE: SOLV) reported Q4 2025 results and issued full-year 2026 guidance. Q4 net sales were $1.998B, down 3.7% reported but +3.5% organic. GAAP diluted EPS was $0.36; adjusted diluted EPS was $1.57. Operating cash flow was $96M; free cash flow $33M. For 2026 the company guides organic sales +2.0%–3.0% (+3.0%–4.0% ex ~100bps SKU exit), adjusted EPS $6.40–$6.60, and free cash flow ~$200M.
Segment strength included MedSurg, Infection Prevention and Dental Solutions; Purification and Filtration was divested in Sept 2025, driving reported comparisons and debt paydown benefits.
Positive
- Organic sales +3.5% in Q4 2025
- Adjusted diluted EPS $1.57 in Q4 2025
- Debt paydown following Purification and Filtration sale improved EPS
- 2026 adjusted EPS guidance $6.40–$6.60
- 2026 free cash flow target ~$200M
Negative
- Reported net sales down 3.7% to $1.998B in Q4 2025
- Free cash flow fell to $33M in Q4 2025 (‑64.1% YoY)
- Net cash from operations declined to $96M in Q4 2025 (‑56.2% YoY)
- Adjusted diluted EPS 2025 full-year $6.11, down 8.8% YoY
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed but modest moves (e.g., BAX +1.42%, WST +0.67%, COO -0.11%), suggesting Solventum’s earnings and guidance were the primary drivers rather than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Positive | +7.9% | Q3 2025 beat with raised guidance and cost-savings program announcement. |
| Aug 07 | Q2 2025 earnings | Positive | +2.0% | Q2 2025 sales growth and higher full-year 2025 guidance across metrics. |
| May 08 | Q1 2025 earnings | Positive | +5.4% | Q1 2025 organic growth and increased organic sales guidance despite margin pressure. |
| Feb 27 | Q4 2024 earnings | Positive | -4.4% | Q4 2024 growth and 2025 guidance introduction amid margin headwinds. |
| Nov 07 | Q3 2024 earnings | Positive | -3.5% | Q3 2024 modest growth with raised 2024 guidance but lower margins. |
Earnings events often saw positive initial reactions, especially when guidance was raised, though there have been notable instances where strong reports coincided with negative price moves.
Over the past year, Solventum’s earnings releases have highlighted steady organic sales growth, frequent guidance increases, and a major portfolio shift with the Purification and Filtration divestiture. Events on Nov 7, 2024, Feb 27, 2025, and across 2025 showcased rising adjusted EPS, transformation initiatives, and stronger MedSurg and HIS contributions. The current Q4 2025 results and full-year 2026 guidance continue this narrative of gradual growth and ongoing cost and portfolio optimization, fitting into a pattern of operational transformation and margin focus.
Historical Comparison
Past earnings headlines moved SOLV about 1.47% on average. Today’s pre-news change of 2.26% is somewhat larger but still broadly consistent with typical earnings reactions.
Recent earnings have tracked a transformation story: steady organic growth, repeated guidance raises, and portfolio reshaping via the Purification and Filtration divestiture, with 2026 guidance extending that trajectory.
Regulatory & Risk Context
An effective Form S-3ASR filed on Aug 13, 2025 registers up to 34,369,190 Solventum shares for resale by 3M. Solventum receives no proceeds, but ongoing resale activity by 3M could add supply to the market and affect trading dynamics.
Market Pulse Summary
This announcement highlights Q4 2025 organic growth of 3.5%, solid adjusted EPS of $1.57, and detailed 2026 guidance, including organic sales growth of 2.0%–3.0% and adjusted EPS of $6.40–$6.60. Segment data underscore strength in MedSurg and Dental Solutions, while free cash flow of $33M and a ~$200M 2026 target keep cash generation in focus. Investors may watch execution on transformation initiatives, integration of recent portfolio changes, and consistency of organic growth versus these new targets.
Key Terms
organic sales financial
free cash flow financial
constant currency financial
non-GAAP financial measures financial
AI-generated analysis. Not financial advice.
- Reported sales decreased
3.7% ; organic sales increased3.5% - Introduces full-year 2026 organic sales growth, adjusted EPS and free cash flow guidance
Fourth Quarter 2025 Highlights
- Sales of
$2 billion 3.7% on a reported basis; an increase of3.5% on an organic basis - GAAP diluted earnings per share of
$0.36 $1.57 - Operating cash flow of
$96 million $33 million
"Solventum's fourth quarter results reflect another quarter of solid performance resulting in full year 2025 results ahead of our expectations for sales and EPS," said Bryan Hanson, chief executive officer of Solventum. "We continue to deliver on our commitments; our underlying momentum and the intentional steps we've taken in our transformation journey demonstrate clear progress towards achieving our long-range plan."
Fourth Quarter and Year Ended 2025 Financial Results | |||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||
(Dollars in millions, except per share amounts) | 2025 | 2024 | Year over | 2025 | 2024 | Year over | |||||
Net sales | $ 1,998 | $ 2,074 | (3.7) % | $ 8,325 | $ 8,254 | 0.9 % | |||||
Selling, general and administrative expenses | $ 759 | $ 784 | (3.2) % | $ 3,080 | $ 2,782 | 10.7 % | |||||
Research and development expenses | $ 175 | $ 199 | (12.1) % | $ 739 | $ 775 | (4.6) % | |||||
Operating income margin | 6.2 % | 6.6 % | (40) bps | 26.2 % | 12.6 % | 1,360 bps | |||||
Adjusted operating income margin1 | 19.9 % | 20.4 % | (50) bps | 20.5 % | 22.0 % | (150) bps | |||||
Net income | $ 63 | $ 30 | 110.0 % | $ 1,556 | $ 479 | 224.8 % | |||||
Diluted earnings per share | $ 0.36 | $ 0.17 | 111.8 % | $ 8.88 | $ 2.76 | 221.7 % | |||||
Adjusted diluted earnings per share1 | $ 1.57 | $ 1.41 | 11.3 % | $ 6.11 | $ 6.70 | (8.8) % | |||||
Net cash provided by operating activities | $ 96 | $ 219 | (56.2) % | $ 369 | $ 1,185 | (68.9) % | |||||
Free cash flow1 | $ 33 | $ 92 | (64.1) % | $ (10) | $ 805 | (101.2) % | |||||
Organic sales growth in the quarter reflects positive performance from all segments, primarily driven by results of the Infection Prevention and Surgical Solutions business within MedSurg as well as Dental Solutions.
GAAP and adjusted operating income margin remained largely consistent with prior year. On an adjusted basis, operating expense savings and the accretive benefit of the Purification and Filtration divestiture more than offset incremental tariff headwinds. Debt paydown following the sale of Purification and Filtration was the primary driver of the increase to adjusted earnings per share.
1 Represents non-GAAP financial measure; see the "Non-GAAP Financial Measures" section for applicable information.
Segment and Total Company Net Sales for Fourth Quarter* | ||||||||||||||
Three months ended | Increase/(Decrease) | |||||||||||||
(Dollars in millions) | 2025 | 2024 | Reported | Currency | Constant | Other3 | Organic | |||||||
Advanced Wound Care | $ 483 | $ 466 | 3.8 % | 1.5 % | 2.2 % | 0.5 % | 1.7 % | |||||||
Infection Prevention and Surgical Solutions | 752 | 708 | 6.2 | 2.0 | 4.2 | — | 4.2 | |||||||
MedSurg | 1,235 | 1,174 | 5.2 | 1.8 | 3.4 | 0.2 | 3.2 | |||||||
Dental Solutions | 343 | 315 | 8.6 | 2.8 | 5.9 | — | 5.9 | |||||||
Health Information Systems | 348 | 336 | 3.7 | 0.5 | 3.2 | — | 3.2 | |||||||
Total business segment net sales | 1,926 | 1,825 | ||||||||||||
Purification and Filtration | — | 177 | NM | NM | NM | NM | NM | |||||||
All Other4 | 72 | 72 | 0.2 | 0.8 | (0.6) | — | (0.6) | |||||||
Total Company | $ 1,998 | $ 2,074 | (3.7) % | 1.7 % | (5.4) % | (8.9) % | 3.5 % | |||||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. "NM" reflects results considered not meaningful due to sale of the Purification and Filtration business in September 2025. |
2 Constant currency represents the change in net sales absent the impact on sales from foreign currency translation. |
3 Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Acquisitions include sales from the December 2025 acquisition of Acera. Divestitures primarily represents lost sales from the Company's Purification and Filtration business that was sold in September 2025. |
4 All Other includes the drinking water business, which was previously reported within Purification and Filtration, and sales related to product supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at Spin-Off. |
Full-Year 2026 Guidance
Solventum is providing its full year 2026 guidance as follows:
- Organic sales growth of +
2.0% to +3.0% ; +3.0% to +4.0% excluding ~100bps of SKU exit impact - Adjusted EPS of
$6.40 $6.60 - Free cash flow of
~ $200M
Organic sales, adjusted diluted EPS and free cash flow amounts included in Solventum's full-year guidance are non-GAAP financial measures. Solventum does not provide reconciliations of the forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items, such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items.
Please note Solventum's Q1 2024 results were reported on a carve-out basis.
See the "Non-GAAP Financial Measures" section for explanations of our non-GAAP financial measures.
Earnings Conference Call
Solventum will host a conference call today, Feb. 26, at 4:30 p.m. Eastern Time to discuss its fourth quarter financial results and provide a fiscal year 2026 outlook. The conference call can be accessed via audio webcast at investors.solventum.com or by dialing (800) 715-9871 within the
A replay of the webcast, along with the earnings press release, slides highlighting the results, and supplemental financial disclosures, will also be available at the same link on the Investor Relations section of the company's website.
Forward-Looking Statements
This news release contains forward-looking information about Solventum that contains or incorporates by reference statements that relate to future events and expectations, including financial results, estimates and business prospects, including guidance for 2026, that constitute forward-looking statements that involve risk and uncertainties. Forward-looking statements include those containing such words as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially from those described in our forward-looking statements are the following: (1) any failure by the 3M Company ("3M") to perform any of its obligations under the various separation agreements in connection with the separation from 3M (the "Spin-Off"); (2) any failure to realize the expected benefits of the Spin-Off; (3) a determination by the IRS or other tax authorities that the Spin-Off or certain related transactions should be treated as taxable transactions; (4) financing transactions undertaken in connection with the Spin-Off and risks associated with additional indebtedness; (5) the risk that incremental costs of operating on a standalone basis (including the loss of synergies), costs of restructuring transactions and other costs incurred in connection with the Spin-Off will exceed Solventum's estimates; (6) the impact of the Spin-Off on its businesses and the risk that the Spin-Off may be more difficult, time-consuming or costly than expected, including the impact on its resources, systems, procedures and controls, diversion of management's attention and the impact on relationships with customers, suppliers, employees and other business counterparties; (7) the effects of, and changes in, worldwide economic, political, regulatory, international, trade and geopolitical conditions, natural disasters, war, and other events beyond Solventum's control; (8) the deployment of artificial intelligence and other emerging technologies in Solventum's products and services or a failure to adapt products and services to such technologies; (9) public health crises; (10) damage to our reputation or our brands; (11) risks from acquisitions, strategic alliances, divestitures and other strategic events, including integration; (12) the success of Solventum's restructuring program; (13) Solventum's ability to access the capital and credit markets and changes in Solventum's credit ratings; (14) exposure to interest rate and currency risks; (15) the highly competitive environment in which Solventum operates and consolidation in the healthcare industry; (16) reduction in customers' research budgets or government funding; (17) the timing and market acceptance of Solventum's new product and service offerings; (18) ongoing working relationships with certain key healthcare professionals; (19) changes in reimbursement practices of governments or private payers or other cost containment measures; (20) Solventum's ability to obtain components or raw materials supplied by third parties and other manufacturing and related supply chain difficulties, interruptions, and disruptive factors; (21) legal and regulatory proceedings and legal compliance risks (including third-party risks) with regards to antitrust, Foreign Corrupt Practices Act and other anti-bribery laws, environmental laws, anti-kickback and false claims laws, privacy laws, tax laws, and other laws and regulations in
The above list is not exhaustive or necessarily set forth in the order of importance. Forward-looking statements are based on certain assumptions and expectations of future events and trends, and actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. A further description of these factors is located under "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Solventum's periodic reports on file with the
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
Solventum calculates forward-looking non-GAAP financial measures, including organic sales growth, adjusted operating income, adjusted operating income margin, adjusted effective tax rate, adjusted diluted earnings per share, and free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. Solventum does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items. The timing and amounts of these items are uncertain and could have a material impact on Solventum's results in accordance with GAAP.
The Q4 2025 financial statements and financial information, including reconciliations of non-GAAP financial measures, are available on Solventum's website: investors.solventum.com.
About Solventum
At Solventum, we enable better, smarter, safer healthcare to improve lives. As a new company with a long legacy of creating breakthrough solutions for our customers' toughest challenges, we pioneer game-changing innovations at the intersection of health, material and data science that change patients' lives for the better — while empowering healthcare professionals to perform at their best. See how at Solventum.com.
Solventum Corporation | ||||||||||
CONSOLIDATED STATEMENTS OF INCOME* | ||||||||||
(Dollars in millions, except per-share data) | ||||||||||
(Unaudited) | ||||||||||
Three months ended | Year Ended December 31, | |||||||||
2025 | 2024 | 2025 | 2024 | 2023 | ||||||
Net sales of product | $ 1,490 | $ 1,581 | $ 6,349 | $ 6,348 | $ 6,296 | |||||
Net sales of software and rentals | 508 | 493 | 1,976 | 1,906 | 1,901 | |||||
Total net sales | 1,998 | 2,074 | 8,325 | 8,254 | 8,197 | |||||
Cost of product | 855 | 830 | 3,402 | 3,172 | 3,023 | |||||
Cost of software and rentals | 116 | 125 | 472 | 489 | 481 | |||||
Gross profit | 1,027 | 1,119 | 4,451 | 4,593 | 4,693 | |||||
Selling, general and administrative expenses | 759 | 784 | 3,080 | 2,782 | 2,299 | |||||
Research and development expenses | 175 | 199 | 739 | 775 | 758 | |||||
Gain on sale of business | (31) | — | (1,549) | — | (56) | |||||
Operating income | 124 | 136 | 2,181 | 1,036 | 1,692 | |||||
Interest expense, net | 51 | 107 | 347 | 367 | — | |||||
Loss on debt extinguishment, net | — | — | 82 | — | — | |||||
Other expense (income), net | 14 | 16 | 39 | 64 | 25 | |||||
Income before income taxes | 58 | 13 | 1,713 | 605 | 1,667 | |||||
Provision for (benefit from) income taxes | (5) | (18) | 157 | 127 | 321 | |||||
Net Income | $ 63 | $ 30 | $ 1,556 | $ 479 | $ 1,346 | |||||
Earnings per share: | ||||||||||
Basic earnings per share | $ 0.36 | $ 0.17 | $ 8.94 | $ 2.77 | $ 7.79 | |||||
Diluted earnings per share | 0.36 | 0.17 | 8.88 | 2.76 | 7.79 | |||||
Weighted-average number of shares outstanding: | ||||||||||
Basic | 174.4 | 173.4 | 174.1 | 173.2 | 172.7 | |||||
Diluted | 175.7 | 174.5 | 175.3 | 173.7 | 172.7 | |||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
Solventum Corporation | ||||
CONSOLIDATED BALANCE SHEETS* | ||||
(Dollars in millions, except per-share data) | ||||
(Unaudited) | ||||
December 31, | December 31, | |||
2025 | 2024 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ 878 | $ 762 | ||
Accounts receivable — net of allowances of | 1,034 | 1,044 | ||
Due from related parties | 150 | 185 | ||
Inventories | ||||
Finished goods | 636 | 539 | ||
Work in process | 201 | 190 | ||
Raw materials and supplies | 229 | 236 | ||
Total inventories | 1,066 | 965 | ||
Other current assets | 731 | 293 | ||
Total current assets | 3,859 | 3,249 | ||
Property, plant and equipment — net | 1,326 | 1,622 | ||
Goodwill | 5,704 | 6,377 | ||
Intangible assets — net | 2,592 | 2,544 | ||
Other assets | 814 | 665 | ||
Total assets | $ 14,294 | $ 14,457 | ||
Liabilities | ||||
Current liabilities | ||||
Short-term borrowings and current portion of long-term debt | $ — | $ 200 | ||
Accounts payable | 687 | 618 | ||
Due to related parties | 435 | 272 | ||
Unearned revenue | 621 | 572 | ||
Other current liabilities | 1,393 | 1,041 | ||
Total current liabilities | 3,136 | 2,703 | ||
Long-term debt | 5,035 | 7,810 | ||
Pension and postretirement benefits | 363 | 350 | ||
Deferred income taxes | 164 | 225 | ||
Other liabilities | 547 | 410 | ||
Total liabilities | $ 9,245 | $ 11,498 | ||
Equity | ||||
Common stock, par value | $ 2 | $ 2 | ||
Shares issued and outstanding - December 31, 2025: 173,490,864 | ||||
Shares issued and outstanding - December 31, 2024: 172,785,606 | ||||
Additional paid-in capital | 3,876 | 3,771 | ||
Retained earnings | 1,797 | 242 | ||
Accumulated other comprehensive income (loss) | (625) | (1,056) | ||
Total equity | 5,049 | 2,959 | ||
Total liabilities and equity | $ 14,294 | $ 14,457 | ||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
Solventum Corporation | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS* | ||||||
(Dollars in millions) | ||||||
(Unaudited) | ||||||
Twelve months ended December 31, | ||||||
2025 | 2024 | 2023 | ||||
Cash Flows from Operating Activities | ||||||
Net income | $ 1,556 | $ 479 | $ 1,346 | |||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||
Depreciation and amortization | 489 | 555 | 561 | |||
Pension and postretirement benefit expense | 62 | 34 | 41 | |||
Stock-based compensation expense | 161 | 112 | 39 | |||
Gain on sale of business | (1,549) | — | (56) | |||
Transaction costs | (111) | — | — | |||
Deferred income taxes | (120) | (155) | (142) | |||
Changes in assets and liabilities | ||||||
Accounts receivable | 34 | 43 | (129) | |||
Due from related parties | 44 | 233 | — | |||
Inventories | (139) | (132) | 23 | |||
Accounts payable | 104 | 266 | 105 | |||
Due to related parties | (11) | (395) | — | |||
Accrued compensation | 43 | 78 | 142 | |||
All other operating activities — net | (194) | 67 | (15) | |||
Net cash provided by operating activities | 369 | 1,185 | 1,915 | |||
Cash Flows from Investing Activities | ||||||
Purchases of property, plant and equipment | (379) | (380) | (290) | |||
Acquisitions, net of cash acquired | (696) | — | — | |||
Proceeds from sale of business | 3,890 | — | 60 | |||
Other — net | (18) | — | — | |||
Net cash provided by (used in) investing activities | 2,797 | (380) | (230) | |||
Cash Flows from Financing Activities | ||||||
Repayment of debt | (3,070) | (300) | — | |||
Net transfers to 3M | (33) | (8,251) | (1,553) | |||
Proceeds from long-term debt, net of issuance costs | — | 8,303 | — | |||
Other — net | 46 | 8 | 1 | |||
Net cash used in financing activities | (3,057) | (240) | (1,552) | |||
Effect of exchange rate changes on cash and cash equivalents | 7 | 3 | — | |||
Net increase (decrease) in cash and cash equivalents | 116 | 568 | 133 | |||
Cash and cash equivalents at beginning of year | 762 | 194 | 61 | |||
Cash and cash equivalents at end of year | $ 878 | $ 762 | $ 194 | |||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
Solventum Corporation | ||||||||||||||
SALES CHANGE ANALYSIS* | ||||||||||||||
(Dollars in millions) | ||||||||||||||
(Unaudited) | ||||||||||||||
Segment and Total Company Net Sales for the Years Ended | ||||||||||||||
Twelve months ended | Increase/(Decrease) | |||||||||||||
2025 | 2024 | Reported | Currency | Constant | Other3 | Organic | ||||||||
Advanced Wound Care | $ 1,883 | $ 1,835 | 2.6 % | 0.5 % | 2.1 % | 0.1 % | 2.0 % | |||||||
Infection Prevention and Surgical Solutions | 2,934 | 2,802 | 4.7 | 0.5 | 4.2 | (0.4) | 4.5 | |||||||
MedSurg | 4,817 | 4,637 | 3.9 | 0.6 | 3.3 | (0.2) | 3.5 | |||||||
Dental Solutions | 1,349 | 1,295 | 4.2 | 1.1 | 3.1 | (0.2) | 3.3 | |||||||
Health Information Systems | 1,360 | 1,306 | 4.1 | 0.2 | 3.9 | — | 4.0 | |||||||
Total business segment net sales | 7,526 | 7,238 | ||||||||||||
Purification and Filtration | 497 | 709 | (29.9) | 1.1 | (31.0) | (36.5) | 5.5 | |||||||
All Other4 | 302 | 306 | (1.5) | 0.3 | (1.8) | 4.3 | (6.1) | |||||||
Total Company | $ 8,325 | $ 8,254 | 0.9 % | 0.6 % | 0.3 % | (3.0) % | 3.3 % | |||||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
2 Constant currency represents the change in net sales absent the impact on sales from foreign currency translation. |
3 Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Acquisitions include sales of Acera that was acquired in December 2025, non-healthcare related supply agreements that conveyed from 3M to the Company at Spin-Off and sales from new supply agreements with 3M that commenced at Spin-Off. Divestiture impacts include lost sales from the Company's Purification and Filtration business that was sold in September 2025, certain health care businesses retained by 3M |
4 All Other includes the drinking water business, which was previously reported within the Purification and Filtration, and sales related to product supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at Spin-Off. |
Solventum Corporation and Subsidiaries
BUSINESS SEGMENTS – (CONTINUED)*
(Unaudited)
The Company's operating activities are primarily managed through three segments: MedSurg, Dental Solutions, and Health Information Systems.
- MedSurg provides:
- advanced wound care products such as negative pressure wound therapy, advanced wound dressings, advanced skin care, and synthetic tissue matrices; and
- infection prevention and surgical solutions products, such as I.V. site management, sterilization assurance, temperature management, surgical supplies, medical tapes and wraps, stethoscopes, medical electrodes, and medical technologies Original Equipment Manufacturer ("OEM").
- Dental Solutions provides dental and orthodontic products, including brackets, aligners, restorative cements, and bonding agents that span the "life of the tooth," including products designed for preventative dental care, direct and indirect restoration, and broad orthodontic needs.
- Health Information Systems provides healthcare systems with software solutions – including computer-assisted physician documentation, direct-to-bill and coding automation, classification methodologies, speech recognition, and data visualization platforms – that are designed to eliminate revenue cycle waste, create more time for patient care, and support value-based care.
Purification and Filtration consists of filters and membranes for biopharmaceutical and medical technologies, as well as microelectronics and food and beverage that were reported prior to the sale of the business in September 2025.
All Other primarily consists of the Water Business that was retained after the sale of the Purification and Filtration Business. All Other also includes sales and cost of sales related to our agreements to supply 3M and other supply agreements assumed by the Company at Spin-Off related to legacy 3M businesses, which were historically included within Corporate and Unallocated.
BUSINESS SEGMENT INFORMATION AND DISAGGREGATED NET SALES* | ||||||||||||
Three months ended December 31, | Three months ended December 31, | |||||||||||
(Dollars in millions) | Net Sales | Operating | Operating | Net Sales | Operating | Operating | ||||||
Advanced Wound Care | $ 483 | $ 466 | ||||||||||
Infection Prevention and Surgical Solutions | 752 | 708 | ||||||||||
MedSurg | 1,235 | 191 | 15.5 % | 1,174 | $ 208 | 17.8 % | ||||||
Dental Solutions | 343 | 84 | 24.4 | 315 | 73 | 23.3 | ||||||
Health Information Systems | 348 | 133 | 38.3 | 336 | 114 | 34.1 | ||||||
Total reportable segment net sales and operating income | 1,926 | 408 | 1,825 | 395 | ||||||||
Purification and Filtration | — | — | — | 177 | 12 | 6.8 | ||||||
All Other | 72 | 11 | 15.3 | 72 | 6 | 8.3 | ||||||
Amortization Expense | (77) | (88) | ||||||||||
Corporate and Unallocated | (218) | (189) | ||||||||||
Total Company | $ 1,998 | $ 124 | 6.2 % | $ 2,074 | $ 136 | 6.6 % | ||||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
Solventum Corporation and Subsidiaries | ||||||||||||
BUSINESS SEGMENTS – (CONTINUED)* | ||||||||||||
(Unaudited) | ||||||||||||
BUSINESS SEGMENT INFORMATION AND DISAGGREGATED NET SALES* | ||||||||||||
Twelve months ended December 31, | Twelve months ended December 31, | |||||||||||
(Dollars in millions) | Net Sales | Operating | Operating | Net Sales | Operating | Operating | ||||||
Advanced Wound Care | $ 1,883 | $ 1,835 | ||||||||||
Infection Prevention and Surgical Solutions | 2,934 | 2,802 | ||||||||||
MedSurg | 4,817 | $ 810 | 16.8 % | 4,637 | $ 887 | 19.1 % | ||||||
Dental Solutions | 1,349 | 346 | 25.6 | 1,295 | 350 | 27.0 | ||||||
Health Information Systems | 1,360 | 496 | 36.5 | 1,306 | 431 | 33.0 | ||||||
Total reportable segment net sales and operating income | 7,526 | 1,652 | 7,238 | 1,668 | ||||||||
Purification and Filtration | 497 | 96 | 19.3 | 709 | 74 | 10.4 | ||||||
All Other | 302 | 42 | 13.9 | 306 | 30 | 9.8 | ||||||
Amortization Expense | (312) | (349) | ||||||||||
Corporate and Unallocated | 702 | (387) | ||||||||||
Total Company | $ 8,325 | $ 2,181 | 26.2 % | $ 8,254 | $ 1,036 | 12.6 % | ||||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(Unaudited)
In addition to reporting financial results in accordance with
There are limitations to the use of the non-GAAP financial measures presented in this information statement. These non-GAAP financial measures are not prepared in accordance with
The tables below reconcile our non-GAAP financial measures to the nearest financial measure that is in accordance with
Adjusted Operating Income, Adjusted Operating Income Margin and Adjusted Earnings Per Share (Non-GAAP measures)
Adjusted operating income and adjusted operating income margin are not defined under
Adjusted diluted earnings per share is not defined under
Solventum Corporation | ||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||||||||
NON-GAAP MEASURES – (CONTINUED)* | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three months ended December 31, 2025 | ||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Net sales | Cost of | Gross | Operating | Operating | Operating | Non- | Income | Net Income | Diluted | Effective | |||||||||||
GAAP | $ 1,998 | $ 971 | 51.4 % | $ 934 | $ 124 | 6.2 % | $ 65 | $ 58 | $ 63 | $ 0.36 | (8.3) % | |||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | (77) | 77 | 3.8 | — | 77 | 65 | 0.37 | |||||||||||||
Restructuring costs (a) | (1) | — | (51) | 52 | 2.6 | — | 52 | 40 | 0.23 | |||||||||||||
3M spin-off and separation-related costs (b) | (42) | 2.1 | (104) | 146 | 7.3 | — | 146 | 111 | 0.63 | |||||||||||||
Certain litigation-related costs (d) | — | — | (22) | 22 | 1.1 | — | 22 | 16 | 0.09 | |||||||||||||
Purification and Filtration separation-related (e) | 1 | — | 4 | (5) | (0.3) | — | (5) | (5) | (0.03) | |||||||||||||
Gain on sale of business(f) | — | — | — | (31) | (1.6) | — | (31) | (22) | (0.13) | |||||||||||||
Acquisition-related costs(g) | — | — | (12) | 12 | 0.6 | — | 12 | 9 | 0.05 | |||||||||||||
Non-GAAP | $ 1,998 | $ 929 | 53.5 % | $ 672 | $ 397 | 19.9 % | $ 65 | $ 332 | $ 277 | $ 1.57 | 16.6 % | |||||||||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
Three months ended December 31, 2024 | ||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Net sales | Cost of | Gross | Operating | Operating | Operating | Non- | Income | Net Income | Diluted | Effective | |||||||||||
GAAP | $ 2,074 | $ 955 | 54.0 % | $ 983 | $ 136 | 6.6 % | $ 123 | $ 13 | $ 30 | $ 0.17 | (142.0) % | |||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | (88) | 88 | 4.2 | — | 88 | 73 | 0.42 | |||||||||||||
Restructuring costs (a) | (23) | 1.0 | (42) | 65 | 3.1 | — | 65 | 53 | 0.30 | |||||||||||||
3M spin-off and separation-related costs (b) | (24) | 1.2 | (108) | 132 | 6.4 | — | 132 | 99 | 0.57 | |||||||||||||
Legal entity restructuring (c) | — | — | — | — | — | — | — | (10) | (0.06) | |||||||||||||
Non-GAAP | $ 2,074 | $ 908 | 56.2 % | $ 745 | $ 422 | 20.4 % | $ 123 | $ 299 | $ 247 | $ 1.41 | 17.4 % | |||||||||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. | |
(a) | 2025 restructuring costs primarily related to the Company's Transform for the Future program. Includes employee termination costs of |
(b) | Consists of costs specifically incurred in connection with the Company's separation from 3M. |
(c) | Reflects the tax impacts for legal entity restructuring in connection with the separation from 3M. |
(d) | Consists of charges and recoveries related to certain litigation business and related transaction cost. |
(e) | Costs related to the separation of the Company's Purification and Filtration business, including legal, finance and tax advisory, and information technology-related. |
(f) | Primarily related to the sale of a business within the Company's Health Information Systems clinician solutions portfolio. |
(g) | Transaction costs and employee retention related to the acquisition of Acera Surgical. |
5 Cost of sales is the combination of cost of product and cost of software and rentals line items from the Consolidated Statements of Income and represents the total company cost of sales. | |
6 Operating expenses is the combination of selling, general and administrative expenses and research and development expenses from the Consolidated Statements of Income and represents the total company other operating expenses. | |
7 Non-operating expense (income), net is the combination of interest expense, net, loss on debt extinguishment, net, and other expense (income), net line items from the Consolidated Statements of Income and represents the total company non-operating expense. | |
Solventum Corporation | ||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||||||||
NON-GAAP MEASURES – (CONTINUED)* | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Twelve months ended December 31, 2025 | ||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Net sales | Cost of | Gross | Operating | Operating | Operating | Non- Operating | Income | Net Income | Diluted | Effective | |||||||||||
GAAP | $ 8,325 | $ 3,874 | 53.5 % | $ 3,819 | $ 2,181 | 26.2 % | $ 1,713 | $ 1,556 | $ 8.88 | 9.2 % | ||||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | — | (312) | 312 | 3.7 | — | 312 | 264 | 1.50 | ||||||||||||
Restructuring costs (a) | — | (10) | 0.1 | (70) | 80 | 1.0 | — | 80 | 60 | 0.34 | ||||||||||||
3M spin-off and separation-related costs (b) | — | (139) | 1.7 | (439) | 579 | 7.0 | — | 579 | 444 | 2.54 | ||||||||||||
Certain litigation-related costs (d) | — | — | — | (51) | 51 | 0.6 | — | 51 | 38 | 0.22 | ||||||||||||
Purification and Filtration separation-related (e) | — | 1 | — | (45) | 44 | 0.5 | — | 44 | 33 | 0.19 | ||||||||||||
Gain on sale of business(f) | — | — | — | — | (1,549) | (18.6) | — | (1,549) | (1,397) | (7.97) | ||||||||||||
Loss on debt extinguishment, net(h) | — | — | — | — | — | — | (82) | 82 | 62 | 0.35 | ||||||||||||
Acquisition-related costs(g) | (12) | 12 | 0.1 | — | 12 | 9 | 0.05 | |||||||||||||||
Non-GAAP | $ 8,325 | $ 3,725 | 55.2 % | $ 2,890 | $ 1,709 | 20.5 % | $ 1,324 | $ 1,070 | $ 6.11 | 19.1 % | ||||||||||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
Twelve months ended December 31, 2024 | ||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Net sales | Cost of | Gross | Operating | Operating | Operating | Non- | Income | Net Income | Diluted | Effective | |||||||||||
GAAP | $ 8,254 | $ 3,661 | 55.6 % | $ 3,557 | $ 1,036 | 12.6 % | $ 431 | $ 605 | $ 479 | $ 2.76 | 20.9 % | |||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | — | (349) | 349 | 4.2 | — | 349 | 291 | 1.68 | ||||||||||||
Restructuring costs (a) | — | (28) | 0.3 | (50) | 78 | 0.9 | — | 78 | 61 | 0.35 | ||||||||||||
3M spin-off and separation-related costs (b) | — | (74) | 0.9 | (275) | 349 | 4.2 | (38) | 387 | 306 | 1.76 | ||||||||||||
Legal entity restructuring (c) | — | — | — | — | — | — | — | — | 25 | 0.14 | ||||||||||||
Non-GAAP | $ 8,254 | $ 3,559 | 56.9 % | $ 2,882 | $ 1,812 | 22.0 % | $ 392 | $ 1,419 | $ 1,162 | $ 6.70 | 18.1 % | |||||||||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. | |
(a) | 2025 restructuring costs primarily related to the Company's Transform for the Future program and Solventum way program. Includes employee termination costs of |
(b) | Consists of costs specifically incurred in connection with the Company's separation from 3M. |
(c) | Reflects the tax impacts for legal entity restructuring in connection with the separation from 3M. |
(d) | Consists of charges and recoveries related to certain litigation business and related transaction cost. |
(e) | Costs related to the separation of the Company's Purification and Filtration business, including legal, finance and tax advisory, and information technology-related. |
(f) | Gain on sale of the Purification and Filtration business, net of applicable tax impacts, in addition to a business in the Health Information Systems business . |
(g) | Transaction and employee retention costs related to the acquisition of Acera Surgical. |
(h) | Premium paid and related expenses incurred in connection with tender of debt, net of gains from related interest rate hedging contracts. |
5 Cost of sales is the combination of cost of product and cost of software and rentals line items from the Consolidated Statements of Income and represents the total company cost of sales. | |
6 Operating expenses is the combination of selling, general and administrative expenses and research and development expenses from the Consolidated Statements of Income and represents the total company other operating expenses. | |
7 Non-operating expense (income), net is the combination of interest expense, net, loss on debt extinguishment, net, and other expense (income), net line items from the Consolidated Statements of Income and represents the total company non-operating expense. | |
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)
Free Cash Flow (non-GAAP measure):
Free cash flow is not defined under
(Dollars in millions) | Three months ended | Twelve months ended | ||||||
Major GAAP Cash Flow Categories | 2025 | 2024 | 2025 | 2024 | ||||
Net cash provided by operating activities | $ 96 | $ 219 | $ 369 | $ 1,185 | ||||
Net cash provided by (used in) investing activities | (746) | (127) | 2,797 | (380) | ||||
Net cash used in financing activities | (115) | (104) | (3,057) | (240) | ||||
Free Cash Flow (non-GAAP measure) | ||||||||
Net cash provided by operating activities | $ 96 | $ 219 | $ 369 | $ 1,185 | ||||
Purchases of property, plant and equipment | (63) | (127) | (379) | (380) | ||||
Free cash flow | 33 | 92 | (10) | 805 | ||||
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. |
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SOURCE Solventum
FAQ
What were Solventum's (SOLV) Q4 2025 sales and organic growth?
How much did Solventum (SOLV) earn per share in Q4 2025 and on an adjusted basis?
What full‑year 2026 guidance did Solventum (SOLV) provide for organic sales and EPS?
What free cash flow did Solventum (SOLV) report and what is the 2026 target?
Which Solventum (SOLV) segments drove Q4 2025 organic growth?
How did the Purification and Filtration divestiture affect Solventum (SOLV) results?
