Solventum (SOLV)
NYSEHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04
$91.69-0.81%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04
QuarterlyIQ Insights · SOLV
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within health care on a research-validated quality screen. As of 2026-09-04.
The screen ranks SOLV against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Health Care names rated strong grew net income 53% of the time over the next year (vs 41% for the rest of the cohort, n=9986).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Pursue separation of Health Information Systems to sharpen Solventum's focus on MedTech and enable targeted investment and growth.
Newly stated in 2026-Q2. Management announced the intent to separate the Health Information Systems business, which generated $1.4 billion in annual sales as of 2025, to sharpen focus on MedTech and enable targeted investment. This is a new strategic priority with no prior quarters stating it.
“Solventum announced its intention to pursue a separation of its Health Information Systems business as part of the company's ongoing portfolio optimization strategy.”
Maintain organic sales growth target of 2.0% to 3.0% for full year 2026, excluding SKU exit impact.
Stated in 5 of last 5 quarters. Organic sales growth was +2.1% in 2026-Q1 and management reaffirmed guidance of +2.0% to +3.0% for 2026 in multiple quarters. The trajectory is delivering consistent growth aligned with the stated target.
“Affirms full-year 2026 organic sales growth guidance of +2.0% to +3.0%; +3.0% to +4.0% excluding ~100 bps of SKU exit impact.”
Maintain adjusted earnings per share guidance in the range of $6.40 to $6.60 for full year 2026.
Stated in 5 of last 5 quarters. Adjusted EPS guidance increased from $5.98-$6.08 in 2025-Q3 to $6.40-$6.60 in 2025-Q4 and reaffirmed for 2026. The trajectory shows management maintaining or raising EPS guidance consistent with prior statements.
Target free cash flow generation of approximately $200 million for full year 2026.
Stated in 5 of last 5 quarters. Free cash flow guidance for 2026 was initially ~$200M and increased to $200M-$300M in 2026-Q2. However, free cash flow was negative $(273) million in 2026-Q1 due to separation activities, indicating limited progress so far this year.
Implement multi-year 'Transform for the Future' program to reshape cost structure and generate $500 million annual savings.
Stated in 2 of last 6 quarters. The 'Transform for the Future' initiative was launched in 2025-Q3 to generate $500 million in annual cost savings. In 2026-Q1, costs related to this initiative contributed to increased expenses, indicating early-stage execution with limited cost savings realized so far.
Over the trailing year it converted 1.26x of net income into operating cash flow. Historically, Health Care names rated neutral grew net income 54% of the time over the next year (vs 43% for the rest of the cohort, n=3313).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
10 material management or governance events in the past 24 months, led by executive changes. Historically, Health Care names rated neutral grew net income 53% of the time over the next year (vs 49% for the rest of the cohort, n=5275).
Not investment advice. As of 2026-09-04.
“Organic sales growth of +2.1% in the quarter reflects strong performance across all reportable segments.”
“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.”
“Expects full year organic sales growth to be at the high end of +2.0% to +3.0% range.”
“Increases full year organic sales growth outlook to +2.0% to +3.0%.”
“Increased adjusted EPS range to $7.10 to $7.20; from the upper end of prior range of $6.40 to $6.60.”
“Affirms full-year 2026 adjusted EPS guidance toward the high end of $6.40 to $6.60 range.”
“Adjusted EPS of $6.40 to $6.60 for 2026 guidance.”
“Increases full year adjusted earnings per share outlook to $5.98 to $6.08.”
“Increases full year earnings per share outlook to $5.80 to $5.95.”
“Increased free cash flow to be in the range of $200 million to $300 million; from prior estimate of ~$200M.”
“Free cash flow of ~$200M.”
“Free cash flow of ~$200M.”
“Revised free cash flow to a range of $150M to $250M to reflect the impact of Purification and Filtration divestiture costs.”
“Free cash flow in the range of $450 million to $550 million; no change.”
“Costs increased due to 'Transform for the Future' initiative and separation activities.”
“Announces 4-year 'Transform for the Future' initiative to generate $500 million in annual cost savings.”