Solventum (SOLV)
NYSEHealth CareMedical Instruments & SuppliesSnapshot 2026-07-08
$76.28-2.13%
Close 2026-07-07 · 1-day change
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Track SOLV free→Solventum aims for steady sales growth of 2% to 3% in 2026. Adjusted EPS is guided between $6.40 and $6.60, showing solid profit growth. The company targets about $200 million in free cash flow for 2026. Its valuation is cheap compared to peers with a P/E of 12.2 versus 28.4 for the sector.
AI disruption fears and litigation risks could hurt earnings. Free cash flow was negative $273 million in Q1, far from the $200 million target. Revenue fell 3% year-over-year in Q1, and guidance was cut. These issues may pressure profit margins and growth.
The price is about 13% below our fair value near $88, reflecting modest 2% revenue growth expected by analysts. Our fair value is slightly below the Street median of $92, indicating the market prices in moderate growth but also some risks.
Breaks if: adjusted EPS falls below $6.40 in FY26
Solventum aims to maintain its adjusted EPS within the range of $6.40 to $6.60 for 2026.
Standing thesis, reviewed periodically — not a price target or advice.
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Stated in 3 of last 3 quarters. Adjusted diluted EPS increased 10.6% in 2026-Q1, indicating progress towards the high end of the $6.40 to $6.60 range. The trajectory is delivering on the EPS target.
“Estimates adjusted EPS will be toward the high end of existing $6.40 to $6.60 guidance range.”
“Adjusted EPS of $6.40 to $6.60.”
“Increases full year adjusted earnings per share outlook to $5.98 to $6.08.”
Breaks if: free cash flow remains negative or below $100 million in FY26
Solventum aims to achieve approximately $200 million in free cash flow for the full year 2026.
Stated in 3 of last 3 quarters. Free cash flow was $(273) million in 2026-Q1, indicating a significant gap from the $200M target. The trajectory shows limited progress towards achieving the 2026 free cash flow goal.
“Free cash flow of ~$200M.”
“Free cash flow of ~$200M.”
“Revised free cash flow to a range of $150M to $250M.”
Breaks if: organic sales growth falls below 2.0% in FY26
Solventum aims for organic sales growth of 2.0% to 3.0% for the full year 2026.
Stated in 3 of last 3 quarters. Organic sales increased 2.1% in 2026-Q1, aligning with the guidance range. The trajectory shows delivering progress towards the 2026 target.
“Solventum is affirming its full year 2026 guidance: Organic sales growth of +2.0% to +3.0%.”
“Introduces full-year 2026 organic sales growth, adjusted EPS and free cash flow guidance.”
“Expects full year organic sales growth to be at the high end of +2.0% to +3.0% range.”