Solventum Q4 EPS $1.57, Organic Sales +3.5%, FCF Drops 64% to $33M
Solventum posted Q4 2025 adjusted diluted EPS of $1.57 on 3.5% organic sales growth despite a 3.7% revenue decline to $2.0 billion due to a Purification and Filtration divestiture, while GAAP EPS was $0.36. Free cash flow fell to $33 million from $92 million, weighed by spin-off transformation costs.
1. Q4 Financial Results
Solventum reported Q4 2025 revenue of $2.0 billion, down 3.7% following the divestiture of its Purification and Filtration business. Adjusted diluted EPS reached $1.57 while GAAP diluted EPS was $0.36, driven by debt reduction and operational efficiencies offsetting tariff headwinds.
2. Segment Performance and Cash Flow
The MedSurg segment led with 6.2% sales growth, Dental Solutions rose 8.6% and Health Information Systems increased 3.7%. Free cash flow declined to $33 million from $92 million, reflecting spin-off transformation costs as the company became standalone.
3. Full-Year 2026 Guidance
Solventum projects organic sales growth of 2.0% to 3.0% for 2026, including a 100-basis-point drag from strategic SKU exits. Management expects adjusted EPS of $6.40 to $6.60 and a rebound in free cash flow to approximately $200 million.