Solventum Reports Third Quarter 2026 Financial Results

Higher adjusted earnings guidance accompanies completed system cutovers, while quarterly sales and adjusted operating margin declined.

Rhea-AI Summary

Solventum (NYSE: SOLV) reported third-quarter 2026 sales of $1.9 billion, down year over year, while raising its full-year adjusted earnings outlook.

Reported sales fell 7.0%; organic sales fell 2.8%, reflecting a 630-basis-point reversal of second-quarter advance orders ahead of the enterprise resource planning system cutover. The net loss was $12 million, or $0.07 per diluted share, versus earnings of $1,266 million a year earlier, when a business-sale gain boosted results. Adjusted diluted earnings fell 3.6% to $1.45. Operating cash flow rose to $177 million.

Solventum expects organic growth toward the high end of 2.5%–3.0% and raised adjusted EPS guidance to $7.20–$7.30, while affirming $200 million–$300 million in free cash flow. System cutovers are complete, and approximately 90% of 3M transition service agreements have been exited.

19 points · 1 major

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0 major · 20 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted EPS guidance increased to $7.20–$7.30 from $7.10–$7.20.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year organic growth is expected toward the high end of +2.5% to +3.0%.
• Moderate pointThird-quarter operating cash flow rose 136.0% to $177 million year over year.
• Moderate pointThird-quarter free cash flow reached $97 million, versus negative $22 million a year earlier.
• Moderate pointAdvanced Wound Care quarterly sales rose 8.9% to $528 million; organic growth was 1.5%.
• Moderate pointHealth Information Systems quarterly sales rose 3.3% to $356 million; organic growth was 4.4%.
• Moderate pointNine-month adjusted diluted EPS rose 20.9% to $5.48 year over year.
• Moderate pointNine-month adjusted operating margin increased 210 basis points to 22.8%.
• Moderate pointNine-month organic sales grew 2.9%, despite reported sales falling 2.6% to $6,165 million.

10 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year free cash flow guidance affirmed at $200 million to $300 million.
• Minor pointEnterprise resource planning system cutovers are complete; approximately 90% of 3M transition service agreements exited.
• Minor pointFDA 510(k) clearance received for combined use of Restrata and V.A.C. Therapy.
• Minor pointAdvanced Wound Care nine-month sales rose 11.5% to $1,561 million; organic growth was 3.6%.
• Minor pointInfection Prevention and Surgical Solutions nine-month sales rose 3.4% to $2,256 million; organic growth was 1.8%.
• Minor pointDental Solutions nine-month sales rose 6.0% to $1,067 million; organic growth was 3.7%.
• Minor pointHealth Information Systems nine-month sales rose 4.0% to $1,052 million; organic growth was 4.8%.
• Minor pointNine-month free cash flow improved to negative $32 million from negative $42 million.
• Minor pointResearch and development expenses fell 1.1% quarterly and 2.8% over nine months to $181 million and $548 million.
• Minor pointNet interest expense fell to $68 million quarterly and $194 million over nine months, from $89 million and $296 million.

Negative

• Moderate pointQuarterly sales fell 7.0% to $1,949 million; organic sales declined 2.8%.
• Moderate pointQuarterly adjusted diluted EPS declined 3.6% to $1.45 year over year.
• Moderate pointQuarterly adjusted operating margin declined 70 basis points to 19.9%.
• Moderate pointSelling, general and administrative expenses rose 4.2% quarterly and 10.6% over nine months to $813 million and $2,567 million.
• Moderate pointNine-month net income declined 93.8% to $93 million year over year.
• Moderate pointNine-month operating cash flow declined 21.5% to $215 million.

14 minor points

• Minor pointQuarterly organic sales reflected a 630-basis-point reversal of second-quarter advance orders ahead of the system cutover.
• Minor pointQuarterly net loss was $12 million, versus $1,266 million net income a year earlier.
• Minor pointQuarterly diluted EPS fell to negative $0.07 from $7.22 a year earlier.
• Minor pointQuarterly operating margin fell to 3.5% from 80.6%, reflecting the prior-year sale gain and higher restructuring costs.
• Minor pointInfection Prevention and Surgical Solutions quarterly sales fell 5.3% to $683 million; organic sales declined 5.7%.
• Minor pointDental Solutions quarterly sales fell 6.7% to $317 million; organic sales declined 7.4%.
• Minor pointAll Other quarterly sales fell 15.9% to $64 million; organic sales declined 15.5%.
• Minor pointNine-month diluted EPS fell 93.7% to $0.54 year over year.
• Minor pointNine-month operating margin fell 2,720 basis points to 5.3%.
• Minor pointAll Other nine-month sales fell 1.0% to $227 million; organic sales declined 2.1%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year organic sales guidance includes approximately 100 basis points of impact from exiting product offerings.
• Minor pointCash and equivalents fell to $451 million at September 30, 2026, from $878 million at December 31, 2025.
• Minor pointShort-term borrowings and current long-term debt reached $507 million, versus none at December 31, 2025.
• Minor pointFinance lease liabilities reached $206 million at September 30, 2026, versus none at December 31, 2025.

News Explained

At September 30, 2026, Solventum reported cash and equivalents, short-term borrowings and the current portion of long-term debt, and long-term debt.

Key Figures

Q3 net sales: $1,949 million; down 7.0% reported Organic sales: Down 2.8% Adjusted diluted EPS: $1.45; down 3.6% +5 more

Q3 net sales

$1,949 million; down 7.0% reported

Third quarter 2026

Organic sales

Down 2.8%

Third quarter 2026

Adjusted diluted EPS

$1.45; down 3.6%

Third quarter 2026

Operating cash flow

$177 million

Third quarter 2026

Free cash flow

$97 million

Third quarter 2026

Organic sales growth guidance

+2.5% to +3.0%, toward the high end

Full-year 2026

Adjusted EPS guidance

$7.20 to $7.30, raised from $7.10 to $7.20

Full-year 2026

Free cash flow guidance

$200 million to $300 million, affirmed

Full-year 2026

Previous Earnings Reports

1 past event · Latest: Aug 05

Same Type 1 event

1. Aug 05

   2Q earnings

   24h Move

   -5.2%

   Q2 raised full-year guidance; ERP-related advance orders were disclosed as a source of timing benefit.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

510(k) clearance, non-gaap financial measure, constant currency

3 terms

510(k) clearance regulatory

"Received FDA 510(k) clearance for the combined use of Restrata and V.A.C. Therapy"

A 510(k) clearance is a U.S. regulatory approval that lets a medical device be sold because it is shown to be substantially similar to an already-legal device; think of it as a passport saying the new product is close enough to a known item to enter the market without a full, lengthy review. For investors, 510(k) clearance signals faster, lower-cost market access and reduced regulatory risk compared with new, untested device pathways, which can materially affect timelines, costs and revenue prospects.

non-gaap financial measure financial

"Represents non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

constant currency financial

"Constant currency represents the change in net sales absent the impact"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Reported sales decreased 7.0%; organic sales decreased 2.8%, reflecting the expected 630 basis point (bps) impact of prior quarter advance orders placed ahead of the planned ERP system cutover during the current quarter
• Expects full-year organic sales growth toward the high end of +2.5% to +3.0% range
• Increases full-year adjusted EPS guidance to $7.20 to $7.30

EAGAN, Minn., Nov. 5, 2026 /PRNewswire/ -- Solventum (NYSE: SOLV) today reported financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 Highlights

• Sales of $1.9 billion, decreased 7.0% on a reported basis; a decrease of 2.8% on an organic basis
• GAAP diluted earnings per share of $(0.07); adjusted diluted earnings per share of $1.45, a 3.6% decrease
• Operating cash flow of $177 million; free cash flow of $97 million
• Have exited ~90% of 3M transition service agreements; ERP system cutovers complete

"Solventum delivered third quarter results ahead of our expectations, with every segment contributing, even as we completed our largest ERP cutover; we expect to be near the top end of our full-year organic sales growth range and are raising our full-year adjusted earnings per share outlook," said Bryan Hanson, chief executive officer of Solventum. "With separation now more than 90% complete and our growth drivers gaining momentum, we are well positioned to accelerate sales growth and expand margins. We have differentiated innovation, a strong pipeline of new products and a significant opportunity to expand penetration of our existing brands with customers we already serve."

Third Quarter and First Nine Months 2026 Financial Results*

	Three months ended September 30,						Nine Months Ended September 30,
(Dollars in millions, except per share amounts)	2026		2025		Year-over-year change		2026		2025		Year-over-year change
Net sales	$      1,949		$      2,096		(7.0) %		$      6,165		$      6,327		(2.6) %
Selling, general and administrative expenses	$         813		$         780		4.2 %		$      2,567		$      2,321		10.6 %
Research and development expenses	$         181		$         183		(1.1) %		$         548		$         564		(2.8) %
Operating income margin	3.5 %		80.6 %		(7,710) bps		5.3 %		32.5 %		(2,720) bps
Adjusted operating income margin1	19.9 %		20.6 %		(70) bps		22.8 %		20.7 %		210 bps
Net income (loss)	$          (12)		$      1,266		(100.9) %		$           93		$      1,493		(93.8) %
Diluted earnings per share	$       (0.07)		$        7.22		(101.0) %		$        0.54		$        8.53		(93.7) %
Adjusted diluted earnings per share1	$        1.45		$        1.50		(3.6) %		$        5.48		$        4.53		20.9 %
Net cash provided by (used in) operating activities	$         177		$           75		136.0 %		$         215		$         274		(21.5) %
Free cash flow1	$           97		$          (22)		540.9 %		$          (32)		$          (42)		23.8 %
*Year-over-year changes may not calculate due to rounding.
1 Represents non-GAAP financial measure; see the "Non-GAAP Financial Measures" section for applicable information

Discussion of Third Quarter Results

All comparisons are to the prior year period unless otherwise noted

• Organic sales decline of 2.8% in the quarter reflects the expected 630 bps reversal of Q2 2026 advance orders placed ahead of the planned ERP system cutover during Q3 2026.
• GAAP and adjusted gross margin both increased, primarily driven by portfolio optimization, mix benefits and savings programs, partially offset by inflation and tariffs.
• GAAP selling, general and administrative expenses increased primarily due to higher operating expenses associated with restructuring.
• GAAP operating income margin decreased, primarily driven by prior year's gain on sale of the purification & filtration business and higher current year restructuring costs. Adjusted operating income margin decreased primarily due to the expected impact of Q2 2026 advance orders placed ahead of the planned ERP system cutover during Q3 2026.
• Operating cash flow for the quarter was $177 million and free cash flow was $97 million, ahead of expectations driven by IEEPA tariff refund.

Other Business and Operational Highlights

• Received FDA 510(k) clearance for the combined use of Restrata and V.A.C. Therapy, bringing together two advanced wound care technologies and demonstrating continued progress integrating Acera Surgical's technology into Solventum's Advanced Wound Care portfolio.
• Earned a 2026 Red Dot Award for Product Design for the Solventum Filtek™ Composite Warmer with the device noted for its clean, compact form that combines performance with flexibility and features a simplified user interface to keep operation clear and straightforward, making it easy for dental providers to use.
• The Bair Hugger™ warming system was named the 2026 Coolest Thing Made in Minnesota, an annual recognition presented by the Minnesota Chamber of Commerce and the Minnesota Manufacturers' Council.  Used in healthcare facilities around the world, the Bair Hugger warming system is recognized as a standard of care in forced-air warming helping drive better patient outcomes and lower complication-related costs.

Segment and Total Company Net Sales for Third Quarter and First Nine Months*
		Three months ended September 30,				Increase/(Decrease)
(Dollars in millions)		2026		2025		Reported growth		Currency impact		Constant currency2		Other3		Organic growth
Advanced Wound Care		$          528		$          485		8.9 %		0.2 %		8.7 %		7.2 %		1.5 %
Infection Prevention and Surgical Solutions		683		722		(5.3)		0.4		(5.7)		—		(5.7)
MedSurg		1,211		1,206		0.4		0.3		0.1		2.9		(2.8)
Dental Solutions		317		340		(6.7)		0.7		(7.4)		—		(7.4)
Health Information Systems		356		345		3.3		0.1		3.2		(1.2)		4.4
Total reportable segment net sales		1,884		1,891
Purification and Filtration		—		128		NM		NM		NM		NM		NM
All Other4		64		77		(15.9)		(0.4)		(15.5)		—		(15.5)
Total Company		$       1,949		$       2,096		(7.0) %		0.3 %		(7.3) %		(4.5) %		(2.8) %
		Nine months ended September 30,				Increase/(Decrease)
(Dollars in millions)		2026		2025		Reported growth		Currency impact		Constant currency2		Other3		Organic growth
Advanced Wound Care		$       1,561		$       1,400		11.5 %		1.2 %		10.3 %		6.7 %		3.6 %
Infection Prevention and Surgical Solutions		2,256		2,182		3.4		1.6		1.8		—		1.8
MedSurg		3,818		3,581		6.6		1.5		5.1		2.6		2.5
Dental Solutions		1,067		1,006		6.0		2.3		3.7		—		3.7
Health Information Systems		1,052		1,012		4.0		0.4		3.6		(1.2)		4.8
Total reportable segment net sales		5,937		5,600
Purification and Filtration		—		497		NM		NM		NM		NM		NM
All Other4		227		230		(1.0)		1.1		(2.1)		—		(2.1)
Total Company		$       6,165		$       6,327		(2.6) %		1.3 %		(3.9) %		(6.8) %		2.9 %
*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
2Constant currency represents the change in net sales absent the impact on sales from foreign currency translation
3Other 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
4All 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 updating its full year 2026 guidance as follows:

• Increased organic sales growth range toward the high end of +2.5% to +3.0% (toward the high end of +3.5% to +4.0% excluding ~100 bps of SKU exit impact)
• Increased adjusted EPS range to $7.20 to $7.30; from prior range of $7.10 to $7.20
• Affirming free cash flow in the range of $200 million to $300 million

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.

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, November 5, at 4:30 p.m. Eastern Time to discuss its third quarter financial results and 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 U.S. or +1 (646) 307-1963 for international callers, using the conference ID 6342275.

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 press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 that are subject to risks and uncertainties. Solventum intends the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Forward-looking statements include all statements that are not historical facts, but instead represent only Solventum's beliefs regarding future goals, plans and expectations about its prospects for the future and other events, many of which, by their nature, are inherently uncertain and outside of Solventum's control. Forward-looking statements include those containing such words as "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "potential," "predicts," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning in connection with any discussion of future operating or financial performance, business plans or prospects, Solventum's review of strategic alternatives for its health information systems business, or the potential benefits of any such strategic alternatives or transaction.

Among the factors that could cause actual results to differ materially from those described in our forward-looking statements are the following: (1) whether Solventum will be able to identify or develop any strategic alternatives for Solventum's health information systems business; (2) Solventum's ability to execute on material aspects of any strategic alternatives that are identified and pursued; (3) whether Solventum can actually achieve the potential benefits of any strategic alternatives; (4) the occurrence of any event, change or other circumstances that could give rise to the abandonment of the review of strategic alternatives or pursuit of a different structure or strategic alternative; (5) uncertainties as to the timing of the review of strategic alternatives; (6) the effects of, and changes in, worldwide economic, political, regulatory, international, trade and geopolitical conditions, natural disasters, war, public health crises and other events beyond Solventum's control; (7) operational execution risks; (8) damage to Solventum's reputation or its brands; (9) risks from acquisitions, strategic alliances, divestitures and other strategic events; (10) Solventum's business dealings involving third-party partners in various markets; (11) Solventum's ability to access the capital and credit markets and changes in Solventum's credit ratings; (12) exposure to interest rate and currency risks; (13) the highly competitive environment in which Solventum operates and consolidation in the healthcare industry; (14) reduction in customers' research budgets or government funding; (15) the timing and market acceptance of Solventum's new product and service offerings; (16) ongoing working relationships with certain key healthcare professionals; (17) changes in reimbursement practices of governments or private payers or other cost containment measures; (18) 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; (19) legal and regulatory proceedings and legal compliance risks (including third-party risks) with regards to antitrust, FCPA and other anti-bribery laws, environmental laws, anti-kickback and false claims laws, privacy laws, product liability claims, tax laws, and other laws and regulations in the United States and other countries in which Solventum operates; (20) potential liabilities related to per-and polyfluoroalkyl substances, collectively known as "PFAS"; (21) risks related to the highly regulated environment in which Solventum operates; (22) risks associated with product liability claims; (23) climate change and measures to address climate change; (24) security breaches and other disruptions to information technology infrastructure; (25) artificial intelligence risks; (26) Solventum's failure to obtain, maintain, protect or effectively enforce its intellectual property rights; (27) pension and postretirement obligation liabilities; (28) Solventum's separation from 3M and performance as a standalone company, including the tax-free nature of the spin and its ability to execute on its short- and long-range plans and capital allocation strategies; (29) restructuring programs, and (30) our ability to successfully deploy our new ERP system and any disruption to our business as a result of such deployment, and other risks and uncertainties described in Solventum's filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

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 Concerning Forward-Looking Statements" and "Risk Factors" in Solventum's periodic reports on file with the U.S. Securities & Exchange Commission. Solventum assumes no obligation to update any forward-looking statements discussed herein as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. GAAP, Solventum also provides non-GAAP measures that we use, and plan to continue using, when monitoring and evaluating operating performance and measuring cash available to invest in our business. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP financial measures are supplemental measures of our performance and our liquidity that we believe help investors understand our underlying business performance and Solventum uses these measures as an indication of the strength of Solventum and its ability to generate cash.

Solventum calculates forward-looking non-GAAP financial measures, including organic sales growth, adjusted gross margin, 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 most directly comparable GAAP measures 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 Q3 2026 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 CONDENSED CONSOLIDATED STATEMENTS OF INCOME* (Dollars in millions, except per-share data) (Unaudited)
		Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Net sales of product		$      1,431		$      1,594		$      4,642		$      4,859
Net sales of software and rentals		518		502		1,522		1,468
Total net sales		1,949		2,096		6,165		6,327
Cost of product		771		847		2,373		2,547
Cost of software and rentals		116		114		347		356
Gross profit		1,062		1,135		3,444		3,424
Selling, general and administrative expenses		813		780		2,567		2,321
Research and development expenses		181		183		548		564
Gain on sale of business		—		(1,518)		—		(1,518)
Operating income		68		1,690		329		2,057
Interest expense, net		68		89		194		296
Loss on debt extinguishment, net		—		82		—		82
Other expense (income), net		10		5		23		24
Income (loss) before income taxes		(11)		1,514		112		1,655
Provision for (benefit from) income taxes		1		248		19		162
Net income (loss)		$          (12)		$      1,266		$           93		$      1,493
Earnings per share:
Basic earnings per share		$       (0.07)		$        7.26		$        0.54		$        8.58
Diluted earnings per share		(0.07)		7.22		0.54		8.53
Weighted-average number of shares outstanding:
Basic		170.8		174.3		172.6		174.0
Diluted		170.8		175.4		173.6		175.1
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum

 

Solventum Corporation CONDENSED CONSOLIDATED BALANCE SHEETS* (Dollars in millions, except per-share data) (Unaudited)
		September 30,		December 31,
		2026		2025
Assets
Current assets
Cash and cash equivalents		$           451		$          878
Accounts receivable — net of allowances of $86 and $87		1,364		1,034
Due from related parties		27		150
Inventories
Finished goods		613		636
Work in process		235		201
Raw materials and supplies		254		229
Total inventories		1,102		1,066
Other current assets		750		731
Total current assets		3,692		3,859
Property, plant and equipment — net		1,593		1,326
Goodwill		5,616		5,704
Intangible assets — net		2,317		2,592
Other assets		946		814
Total assets		$      14,165		$      14,294
Liabilities
Current liabilities
Short-term borrowings and current portion of long-term debt		$           507		$             —
Accounts payable		808		687
Due to related parties		152		435
Unearned revenue		596		621
Other current liabilities		1,511		1,393
Total current liabilities		3,575		3,136
Long-term debt		4,561		5,035
Pension and postretirement benefits		355		363
Deferred income taxes		154		164
Finance leases		206		—
Other liabilities		508		547
Total liabilities		$        9,360		$        9,245
Equity
Common stock, par value $0.01 per share, 750,000,000 shares authorized		$               2		$               2
Shares - September 30, 2026: issued: 175,303,750; outstanding: 169,956,897
Shares - December 31, 2025: issued and outstanding: 173,490,864
Additional paid-in capital		3,982		3,876
Retained earnings		1,891		1,797
Treasury stock, at cost		(403)		—
Shares - September 30, 2026: 5,346,853
Shares - December 31, 2025: —
Accumulated other comprehensive income (loss)		(667)		(625)
Total equity		4,805		5,049
Total liabilities and equity		$      14,165		$      14,294
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum

 

Solventum Corporation CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS* (Dollars in millions) (Unaudited)
		Nine months ended September 30,
		2026		2025
Cash flows from operating activities
Net income		$            93		$        1,493
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization		404		372
Pension and postretirement benefit expense		40		49
Stock-based compensation expense		131		124
Gain on sale of business		—		(1,518)
Purification and Filtration Transaction costs		—		(86)
Deferred income taxes		(139)		(47)
Changes in assets and liabilities
Accounts receivable		(340)		36
Due from related parties		123		37
Inventories		(42)		(134)
Accounts payable		111		74
Due to related parties		(300)		18
Accrued compensation		(58)		(9)
All other operating activities — net		192		(135)
Net cash provided by operating activities		215		274
Cash flows from investing activities
Purchases of property, plant and equipment		(247)		(316)
Proceeds from sale of business		—		3,870
Other — net		3		(12)
Net cash (used in) provided by investing activities		(244)		3,542
Cash flows from financing activities
Repayment of debt		—		(2,970)
Proceeds from debt, net of issuance costs		46		—
Net transfers from (to) 3M		2		(21)
Purchases of treasury stock		(403)		—
Other — net		(46)		49
Net cash used in financing activities		(401)		(2,942)
Effect of exchange rate changes on cash and cash equivalents		1		6
Net (decrease) increase in cash and cash equivalents		(428)		880
Cash and cash equivalents at beginning of period		878		762
Cash and cash equivalents at end of period		$          451		$        1,642
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum

Solventum Corporation
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 IV 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 our drinking water filtration 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 September 30, 2026						Three months ended September 30, 2025
(Dollars in millions)		Net sales		Operating income		Operating margin %		Net sales		Operating income		Operating margin %
Advanced Wound Care		$        528						$        485
Infection Prevention and Surgical Solutions		683						722
MedSurg		1,211		$       194		16.0 %		1,206		$        203		16.8 %
Dental Solutions		317		64		20.1		340		87		25.7
Health Information Systems		356		149		41.7		345		134		38.8
Total reportable segment net sales and operating income		1,884		406				1,891		424
Purification and Filtration		—		—		NM		128		26		20.1
All Other		64		10		16.0		77		12		15.6
Amortization expense				(90)						(77)
Corporate and unallocated				(259)						1,305
Total Company		$     1,949		$         68		3.5 %		$     2,096		$     1,690		80.6 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum
BUSINESS SEGMENT INFORMATION AND DISAGGREGATED NET SALES*
		Nine months ended September 30, 2026						Nine months ended September 30, 2025
(Dollars in millions)		Net sales		Operating income		Operating margin %		Net sales		Operating income		Operating margin %
Advanced Wound Care		$     1,561						$     1,400
Infection Prevention and Surgical Solutions		2,256						2,182
MedSurg		3,818		$       710		18.6 %		3,581		619		17.3 %
Dental Solutions		1,067		281		26.4		1,006		262		26.1
Health Information Systems		1,052		424		40.3		1,012		363		35.8
Total reportable segment net sales and operating income		5,937		1,416				5,600		1,244
Purification and Filtration		—		—		NM		497		96		19.3
All Other		227		41		17.8		230		31		13.5
Amortization expense				(271)						(235)
Corporate and unallocated				(856)						921
Total Company		$     6,165		$       329		5.3 %		$     6,327		2,057		32.5 %
*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 U.S. GAAP, the Company uses non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. These include (1) adjusted gross margin, adjusted operating income and adjusted operating income margin, (2) adjusted diluted earnings per share, and (3) free cash flow. Management believes that these non-GAAP financial measures are useful in evaluating current performance and focusing management on our underlying operational results.

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 U.S. GAAP nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. Management cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP.

The tables below reconcile our non-GAAP financial measures to the nearest financial measure that is in accordance with U.S. GAAP for the periods presented.

Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Income Margin and Adjusted Earnings Per Share (Non-GAAP measures)

Adjusted gross margin, adjusted operating income and adjusted operating income margin are not defined under U.S. GAAP. Therefore, they should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted gross margin as gross margin excluding the effects of restructuring costs, Spin-Off and separation-related costs, and acquisition and divestiture-related costs. Solventum defines adjusted operating income as operating income excluding the effects of amortization, restructuring costs, Spin-Off and separation-related costs, certain litigation-related costs, and acquisition and divestiture-related activities. Adjusted operating income margin is adjusted operating income divided by the U.S GAAP measure total net sales for the same period. The Company believes adjusted gross margin, adjusted operating income and adjusted operating income margin provide investors with visibility into the Company's unleveraged, pre-tax operating results and reflects underlying financial performance. However, adjusted gross margin and adjusted operating income should not be construed as inferring that the Company's future results will be unaffected by the items for which the measure adjusts.

Adjusted diluted earnings per share is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted diluted earnings per share as net income excluding the after-tax effects of amortization, restructuring costs, Spin-Off and separation-related costs, certain litigation-related costs, acquisition and divestiture-related activities, and loss on debt extinguishment, net. The Company believes adjusted earnings per share provides investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how the Company evaluates the business. However, adjusted earnings per share should not be construed as inferring that the Company's future results will be unaffected by the items for which the measure adjusts.

Solventum Corporation SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP MEASURES – (CONTINUED)* (Unaudited)
		Three months ended September 30, 2026
(Dollars in millions, except per share amounts)		GAAP		Amortization of acquisition- related intangible assets		Restructuring costs (a)		3M spin-off and separation- related costs (b)		Certain litigation- related costs (c)		Acquisition and divestiture- related (d,e)		Non-GAAP
Net sales		$      1,949		—		—		—		—		—		$      1,949
Cost of sales (5)		$         887		—		(11)		(38)		—		1		$         837
Gross margin %		54.5 %		— %		0.6 %		2.0 %		— %		— %		57.1 %
Selling, general and administrative expenses		$         813		(42)		(37)		(115)		(7)		(17)		$         595
Research and development expenses		$         181		(48)		(1)		(3)		—		—		$         130
Operating expenses (6)		$         994		(90)		(38)		(118)		(7)		(17)		$         725
Operating Income		$           68		90		50		157		7		16		$         387
Operating income margin %		3.5 %		4.6 %		2.5 %		8.0 %		0.4 %		0.8 %		19.9 %
Non-operating expense (income), net (7)		$           79		—		—		—		—		—		$           79
Income (loss) before income taxes		$          (11)		90		50		157		7		16		$         309
Net income (loss) attributable to Solventum		$          (12)		75		38		129		5		13		$         249
Diluted EPS		$       (0.07)		0.44		0.22		0.75		0.03		0.08		$        1.45
Effective tax rate		(6.5) %												19.3 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum

 

		Three months ended September 30, 2025
(Dollars in millions, except per share amounts)		GAAP		Amortization of acquisition- related intangible assets		Restructuring costs (a)		3M spin-off  and  separation- related costs (b)		Certain litigation- related costs (c)		Acquisition and  divestiture- related (d,e)		Loss on debt extinguish- ment,net, (f)		Non-GAAP
Net sales		$    2,096		—		—		—		—		—		—		$     2,096
Cost of sales (5)		$       961		—		2		(37)		—		—		—		$        926
Gross margin %		54.2 %		— %		(0.1) %		1.8 %		— %		— %		— %		55.8 %
Selling, general and administrative expenses		$       780		(41)		(4)		(120)		(2)		(18)		$        —		$        595
Research and development expenses		$       183		(36)		—		(3)		—		—		—		$        144
Operating expenses (6)		$       963		(77)		(4)		(123)		(2)		(18)		—		$        739
Operating Income		$    1,690		77		2		160		2		(1,500)		—		$        431
Operating income margin %		80.6 %		3.7 %		0.1 %		7.6 %		0.1 %		(71.6) %		— %		20.6 %
Non-operating expense (income), net (7)		$       176		—		—		—		—		—		(82)		$          94
Income before income taxes		$    1,514		77		2		160		2		(1,500)		82		$        337
Net income (loss) attributable to  Solventum		$    1,266		65		1		123		2		(1,256)		62		$        263
Diluted EPS		$      7.22		0.37		—		0.71		0.01		(7.16)		0.35		$       1.50
Effective tax rate		16.4 %														21.8 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum

	(a)	2026 restructuring costs primarily related to the Company's Transform for the Future program. Includes employee termination costs of $6 million and other costs of $44 million, which includes third-party consulting, asset write-downs and compensation for employees dedicated to the program. 2025 restructuring costs primarily relate to the Company's Solventum Way program. Includes employee termination costs of $5 million and other costs of $(3) million.
	(b)	Consists of costs specifically incurred in connection with the Company's separation from 3M.
	(c)	Consists of charges and recoveries related to certain litigation matters.
	(d)	Acquisition integration and separation related costs, including legal, finance and tax advisory services. 2026 primarily consists of integration costs related to the acquisition of Acera Surgical and costs associated with the planned separation of the Company's Health Information Systems business. 2025 consists of costs associated with the separation of the Company's Purification and Filtration business.
	(e)	Gain on sale of the Purification and Filtration business, net of applicable tax impacts.
	(f)	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 Condensed Consolidated Statements of Income and represents the total Company's cost of sales.
6	Operating expenses is the combination of selling, general and administrative expenses and research and development expenses from the Condensed Consolidated Statements of Income and represents the total Company's 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's non-operating expense.

 

Solventum Corporation SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP MEASURES – (CONTINUED)* (Unaudited)
		Nine months ended September 30, 2026
(Dollars in millions, except per share amounts)		GAAP		Amortization of acquisition- related intangible assets		Restructuring costs (a)		3M spin-off and separation- related costs (b)		Certain litigation- related costs (c)		Acquisition and divestiture- related (d,e)		Non-GAAP
Net sales		$      6,165		—		—		—		—		—		$      6,165
Cost of sales (5)		$      2,720		—		(21)		(102)		—		(4)		$      2,592
Gross margin %		55.9 %		— %		0.3 %		1.7 %		— %		0.1 %		57.9 %
Selling, general and administrative expenses		$      2,567		(126)		(107)		(356)		(178)		(27)		$      1,773
Research and development expenses		$         548		(145)		(4)		(7)		—		(1)		$         393
Operating expenses (6)		$      3,115		(271)		(111)		(363)		(178)		(27)		$      2,166
Operating Income		$         329		271		132		465		178		32		$      1,406
Operating income margin %		5.3 %		4.4 %		2.1 %		7.5 %		2.9 %		0.5 %		22.8 %
Non-operating expense (income), net (7)		$         217		—		—		—		—		—		$         217
Income before income taxes		$         112		271		132		465		178		32		$      1,189
Net income (loss) attributable to Solventum		$           93		227		101		370		135		25		$         951
Diluted EPS		$        0.54		1.31		0.58		2.13		0.78		0.14		$        5.48
Effective tax rate		17.1 %												20.0 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum

 

		Nine months ended September 30, 2025
(Dollars in millions, except per share amounts)		GAAP		Amortization of acquisition- related intangible assets		Restructuring costs (a)		3M spin-off and separation- related costs (b)		Certain litigation- related costs (c)		Acquisition and divestiture- related (d,e)		Loss on debt extinguish- ment,net, (f)		Non-GAAP
Net sales		$    6,327		—		—		—		—		—		$        —		$    6,327
Cost of sales (5)		$    2,903		—		(9)		(98)		—		—		$        —		$    2,796
Gross margin %		54.1 %		— %		0.1 %		1.5 %		— %		— %		— %		55.8 %
Selling, general and administrative expenses		$    2,321		(126)		(14)		(323)		(29)		(49)		$        —		$    1,780
Research and development expenses		$       564		(110)		(5)		(11)		—		—		$        —		$       439
Operating expenses (6)		$    2,885		(235)		(19)		(335)		(29)		(49)		$        —		$    2,218
Operating Income		$    2,057		235		28		433		29		(1,469)		$        —		$    1,312
Operating income margin %		32.5 %		3.7 %		0.4 %		6.8 %		0.5 %		(23.2) %		— %		20.7 %
Non-operating expense (income), net (7)		$       402		—		—		—		—		—		$       (82)		$       320
Income before income taxes		$    1,655		235		28		433		29		(1,469)		82		$       992
Net income (loss) attributable to Solventum		$    1,493		199		21		333		22		(1,335)		62		$       794
Diluted EPS		$      8.53		1.14		0.12		1.90		0.13		(7.62)		0.35		$      4.53
Effective tax rate		9.8 %														20.0 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum

	(a)	2026 restructuring costs primarily relate to the Company's Transform for the Future program. Includes employee termination costs of $23 million and other costs of $109 million, which includes third-party consulting, asset write-downs and compensation for employees dedicated to the program. 2025 restructuring costs primarily related to the Company's Solventum Way program. Includes employee termination costs of $28 million.
	(b)	Consists of costs specifically incurred in connection with the Company's separation from 3M.
	(c)	Consists of charges and recoveries related to certain litigation matters.
	(d)	Acquisition integration and separation related costs, including legal, finance and tax advisory services. 2026 primarily consists of integration costs related to the acquisition of Acera Surgical, including amortization of inventory step-up and costs associated with the planned separation of the Company's Health Information Systems business. 2025 consists of costs associated with the separation of the Company's Purification and Filtration business.
	(e)	Gain on sale of the Purification and Filtration business, net of applicable tax impacts.
	(f)	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's 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's 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's 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 U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. The Company defines free cash flow as net cash provided by (used in) operating activities less purchases of property, plant and equipment. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company believes free cash flow is meaningful to investors as it is a useful measure of liquidity and the Company uses this measure as an indication of the strength of the Company and its ability to generate cash. Free cash flow varies across quarters throughout the year. Below find a recap of free cash flow.

(Dollars in millions)		Three months ended September 30,				Nine months ended September 30,
Major GAAP cash flow categories		2026		2025		2026		2025
Net cash provided by operating activities		$          177		$             75		$          215		$           274
Net cash used in investing activities		(80)		3,766		(244)		3,542
Net cash used in financing activities		$           (51)		$       (2,693)		$         (401)		$       (2,942)
Free cash flow (non-GAAP measure)
Net cash provided by operating activities		$          177		$             75		$          215		$           274
Purchases of property, plant and equipment		(80)		(97)		(247)		(316)
Free cash flow		$            97		$            (22)		$           (32)		$            (42)
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum

 

 

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SOURCE Solventum

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Solventum's third-quarter 2026 sales and earnings?

Solventum reported $1,949 million in sales and a $12 million net loss for the quarter ended September 30, 2026. Sales declined 7.0% year over year. Diluted loss per share was $0.07, compared with diluted earnings of $7.22 a year earlier. Adjusted diluted earnings were $1.45 per share, down 3.6%.

What is Solventum's updated full-year 2026 guidance?

Solventum expects organic sales growth toward the high end of +2.5% to +3.0% and adjusted diluted EPS of $7.20 to $7.30. The prior adjusted EPS range was $7.10 to $7.20. Free cash flow guidance remains $200 million to $300 million.

How do product exits affect Solventum's 2026 organic sales outlook?

Solventum's organic sales outlook includes approximately 100 basis points of impact from exits of individual product offerings. Excluding that impact, the company expects growth toward the high end of +3.5% to +4.0%.

Why did Solventum's third-quarter 2026 cash flow exceed expectations?

Solventum attributed cash flow exceeding expectations to an IEEPA tariff refund. Quarterly operating cash flow was $177 million, and free cash flow was $97 million.