Solventum Q2 sales, adjusted EPS beat estimates; FY outlook lifted
SOLV•Drivers of the quarter
Solventum said increases in GAAP and adjusted gross margin were driven by an IEEPA tariff refund.
The company also said advance orders placed ahead of ERP cutovers contributed to sales and adjusted operating income margin.
Guidance lifted for 2026
The company raised its full-year outlook for organic sales growth, adjusted EPS and free cash flow.
- 2026 organic sales growth outlook raised to 2.5%-3.0%
- 2026 adjusted EPS guidance lifted to $7.10-$7.20
- 2026 free cash flow now seen at $200 mln-$300 mln
Business separation update
Solventum said it will separate its Health Information Systems business segment.
Quarterly results beat estimates
Solventum said second-quarter sales and adjusted earnings per share beat analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 sales | Beat | $2.21 bln | $2.16 bln (11 Analysts) |
| Q2 Adjusted EPS | Beat | $2.55 | $1.91 (11 Analysts) |
| Q2 EPS | $0.53 | ||
| Q2 Net Income | $92 mln |
The U.S. MedTech firm said Q2 organic sales rose 9.5%, driven by strong volume and product mix across all segments.
