Solventum Q4 EPS Tops by 4.7%, Revenues Up 3.7% as Margin Contracts
Solventum reported Q4 adjusted EPS of $1.57, beating estimates by 4.7% and rising 11.3% year over year on revenues of $1.99 billion, up 3.7% (3.5% organic). Adjusted gross margin contracted 270 basis points to 53.5% and shares fell 2.5% in after-hours trading.
1. Q4 Financial Results
Solventum posted adjusted EPS of $1.57 in the fourth quarter, up 11.3% year over year and 4.7% above consensus. GAAP EPS rose to $0.36 from $0.17 in the prior-year period.
2. Revenue and Segment Performance
Total revenues reached $1.99 billion, up 3.7% year over year and 3.5% on an organic basis. MedSurg sales grew 5.2% to $1.24 billion, Dental Solutions revenues rose 8.6% to $343 million, and Health Information Systems delivered $348 million, up 3.7%.
3. Margin Contraction and Cost Trends
Adjusted gross profit declined 8.3% to $1.07 billion, with gross margin contracting 270 basis points to 53.5%. SG&A expenses fell 3.2% year over year and R&D spending decreased 12.1%.
4. Guidance and Market Reaction
Management forecast 2026 organic revenue growth of 2–3% (3–4% excluding SKU exit impacts) and adjusted EPS of $6.40–$6.60. Despite the beat, shares dropped 2.5% in after-hours trading.