Affirms full-year 2026 organic sales growth and free cash flow guidance; estimates adjusted EPS will be toward the high end of existing range
EAGAN, Minn., May 5, 2026 /PRNewswire/ -- Solventum (NYSE:SOLV) today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
Sales of $2.0 billion decreased (3.0)% on a reported basis; an increase of 2.1% on an organic basis
GAAP diluted earnings per share of $0.07; adjusted diluted earnings per share of $1.48, a 10.6% increase
Operating cash flow of $(189) million; free cash flow of $(273) million
Delivered first quarter results ahead of expectations, reflecting strong execution and underlying commercial momentum.
"Solventum delivered first quarter results ahead of expectations, reflecting strong execution and underlying commercial momentum," said Bryan Hanson, chief executive officer of Solventum. "The work we're doing to transform the company is reinforcing our confidence in the full year and accelerating progress toward our long-range plan."
First Quarter 2026 Financial Results
Three months ended March 31,
(Dollars in millions, except per share amounts)
2026
2025
Year-over-year change
Net sales
$ 2,007
$ 2,070
(3.0) %
Selling, general and administrative expenses
$ 827
$ 769
7.5 %
Research and development expenses
$ 189
$ 193
(2.1) %
Operating income margin
4.0 %
7.3 %
(330) bps
Adjusted operating income margin1
19.5 %
19.7 %
(20) bps
Net income
$ 13
$ 137
(90.5) %
Diluted earnings per share
$ 0.07
$ 0.78
(91.0) %
Adjusted diluted earnings per share1
$ 1.48
$ 1.34
10.6 %
Net cash provided by (used in) operating activities
$ (189)
$ 29
(751.7) %
Free cash flow1
$ (273)
$ (80)
(241.3) %
1 Represents non-GAAP financial measure; see the "Non-GAAP Financial Measures" section for applicable information.
Discussion of First Quarter ResultsAll comparisons are to the prior year period unless otherwise noted
Organic sales growth of +2.1% in the quarter reflects strong performance across all reportable segments, primarily driven by volume and product mix.
GAAP and adjusted gross margin both increased by 80 bps due to programmatic savings, portfolio moves, sales leverage and mix, partially offset by tariffs and inflation headwinds.
Selling, general and administrative expenses increased primarily due to higher costs associated with separation activities and Transform for the Future, partially offset by restructuring benefits.
GAAP operating income margin decreased driven by separation and restructuring costs while adjusted operating income margin decreased primarily due to tariffs and inflation, partially offset by operational improvements.
Operating cash flow for the quarter was $(189) million and free cash flow was $(273) million, driven by separation activities, transition agreement exit payments and normal seasonality.
Other Business and Operational Highlights
Celebrated the grand opening of a new 250,000 square foot flagship R&D center of excellence in Eagan, Minnesota, featuring modern workspaces, a pilot factory and a dedicated quality lab to fuel a steady pipeline of healthcare innovation.
Completed a manufacturing expansion in Brookings, South Dakota, adding 200,000 square feet, 16 shipping docks and an 8,000-pallet warehouse to strengthen production capacity and speed innovations from lab to clinicians.
Segment and Total Company Net Sales for First Quarter*
Three months ended March 31,
Increase/(Decrease)
(Dollars in millions)
2026
2025
Reported growth
Currencyimpact
Constant currency2
Other3
Organic growth
Advanced Wound Care
$ 497
$ 448
10.9 %
2.6 %
8.3 %
6.2 %
2.1 %
Infection Prevention and Surgical Solutions
737
710
3.9
3.3
0.6
—
0.6
MedSurg
1,234
1,157
6.6
3.0
3.6
2.4
1.2
Dental Solutions
354
328
7.9
4.5
3.4
—
3.4
Health Information Systems
342
329
4.1
0.7
3.4
(1.3)
4.7
Total reportable segment net sales
1,931
1,814
Purification and Filtration
—
180
NM
NM
NM
NM
NM
All Other4
76
76
0.9
2.3
(1.4)
—
(1.4)
Total Company
$ 2,007
$ 2,070
(3.0) %
2.7 %
(5.7) %
(7.8) %
2.1 %
*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 GuidanceSolventum is affirming its full year 2026 guidance:
Organic sales growth of +2.0% to +3.0%; +3.0% to +4.0% excluding ~100 bps of SKU exit impact
Adjusted EPS estimated to be toward the high end of existing $6.40 to $6.60 guidance range
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.
See the "Non-GAAP Financial Measures" section for explanations of our non-GAAP financial measures.
Earnings Conference CallSolventum will host a conference call today, May 5, at 4:30 p.m. Eastern Time to discuss its first 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 StatementsThis 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 or by using future dates in connection with the discussion of, among other things, statements expressing general views about future operating or financial results, operating or financial performance, trends, events or developments that we expect or anticipate will occur in the future, anticipated cost savings, the launch and acceptance of new products and changes in the global economic environment. It is possible that Solventum's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements, including from risks and uncertainties related to, among others: competition and disruption in the healthcare industry; global economic, political and geopolitical conditions; changes in trade and tariff policies; changes in legislation or practices related to reimbursement, regulatory requirements and approvals; the development, manufacturing, marketing and sale of healthcare products; supply chain and operational execution; acquisitions, divestitures and other strategic transactions; 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; artificial intelligence, information technology and cybersecurity risks; restructuring programs, 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. Solventum's management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. Solventum undertakes no obligation to update any forward‑looking statements or other information in this press release as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Financial MeasuresIn 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 Q1 2026 financial statements and financial information, including reconciliations of non-GAAP financial measures, are available on Solventum's website: investors.solventum.com.
About SolventumAt 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 March 31,
2026
2025
Net sales of product
$ 1,513
$ 1,597
Net sales of software and rentals
493
473
Total net sales
2,007
2,070
Cost of product
796
835
Cost of software and rentals
115
121
Gross profit
1,097
1,114
Selling, general and administrative expenses
827
769
Research and development expenses
189
193
Operating income
81
152
Interest expense, net
62
104
Other expense (income), net
4
11
Income before income taxes
16
38
Provision for (benefit from) income taxes
3
(99)
Net income
$ 13
$ 137
Earnings per share:
Basic earnings per share
$ 0.07
$ 0.79
Diluted earnings per share
0.07
0.78
Weighted-average number of shares outstanding:
Basic
