Analyst Consensus ?
ConsensusBuy11 ratings
Bullish872.7%
Neutral218.2%
Bearish19.1%
Solventum Corporation · SOLV · FY2026 Q1 · Calendar Q2 2026
Solventum Q1 2026 Beats Estimates as Margin Expansion and 3M Separation Progress
Solventum's first-quarter FY2026 results beat consensus on both lines, with EPS of $1.48 (vs. $1.35 estimated) and revenue of $2.01 billion (vs. $1.97 billion estimated). The beat was underpinned by approximately 4% normalized organic growth, 80 basis points of operating margin expansion, and early contribution from the Acera acquisition. Management maintained full-year guidance and signaled EPS would trend toward the high end of the $6.40-$6.60 range. The 3M separation is advancing with 50% of transition service agreements extinguished and ERP migrations underway, though timing is expected to shift over $100 million of sales into Q2 with a reverse effect in Q3. The stock has drifted approximately 16% higher since the report, suggesting the market is rewarding the operational progress and capital return.
Reported After market closeNYSEHealthcare
$15.04B market cap
100quality score
Company context
Snapshot as of publicationSolventum Corporation, established in 2023 and headquartered in Saint Paul, Minnesota, operates as a healthcare entity dedicated to pioneering, producing, and commercializing diverse solutions that address critical needs for both customers and patients. The company's business activities are organized into four principal segments. The Medsurg division furnishes various products and services, including sophisticated wound care items, intravenous (I.V.) site management tools, sterilization assurance systems, temperature regulation devices, surgical instruments, stethoscopes, and medical electrodes.…
Earnings scorecard
Reported versus consensus
Reported EPS
$1.48
Consensus $1
EPS surprise
+9.6%
Reported versus consensus
Reported revenue
$2.01B
Consensus $1.97B
Revenue surprise
+2.0%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$86.82Previous close
$43Low
$82.28Average
$103High
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Jul 31, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| UBS | Buy | Neutral | Upgrade | Jul 28, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | May 6, 2026 |
| Stifel | Buy | Buy | Maintain | May 6, 2026 |
| Keybanc | Overweight | Overweight | Maintain | May 6, 2026 |
| BTIG | Buy | Buy | Maintain | May 6, 2026 |
| Piper Sandler | Overweight | Overweight | Maintain | Apr 17, 2026 |
| Mizuho | Outperform | Neutral | Upgrade | Jan 20, 2026 |
| Morgan Stanley | Overweight | Equal Weight | Upgrade | Jul 15, 2025 |
| Argus Research | Buy | Hold | Upgrade | Jul 1, 2025 |
| Goldman Sachs | Sell | Sell | Maintain | Mar 3, 2025 |
| B of A Securities | Neutral | Neutral | Maintain | Feb 26, 2025 |
Named analyst price targets
Upside is calculated against the persisted previous close $86.82. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| UBS | Analyst unavailable | $95 | $80.47 | +9.4% | Jul 28, 2026 |
| BTIG | Analyst unavailable | $91 | $76.7 | +4.8% | Jul 13, 2026 |
| BMO Capital | Analyst unavailable | $81 | $75.18 | -6.7% | Jul 8, 2026 |
| Jefferies | Analyst unavailable | $43 | $74.95 | -50.5% | Jun 1, 2026 |
| Wedbush | Michael Piccolo | $94 | $74.42 | +8.3% | May 15, 2026 |
| UBS | Kevin Caliendo | $78 | $71.36 | -10.2% | May 6, 2026 |
| Stifel Nicolaus | Analyst unavailable | $90 | $69.04 | +3.7% | May 6, 2026 |
| KeyBanc | Brett Fishbin | $93 | $69.04 | +7.1% | May 6, 2026 |
| KeyBanc | Brett Fishbin | $92 | $68.52 | +6.0% | Apr 27, 2026 |
| Piper Sandler | Analyst unavailable | $92 | $68.88 | +6.0% | Apr 17, 2026 |
| KeyBanc | Brett Fishbin | $97 | $78.91 | +11.7% | Jan 26, 2026 |
| Mizuho Securities | Analyst unavailable | $100 | $79.48 | +15.2% | Jan 20, 2026 |
| Stifel Nicolaus | Analyst unavailable | $105 | $83.16 | +20.9% | Jan 7, 2026 |
| BTIG | Ryan Zimmerman | $100 | $85.56 | +15.2% | Dec 2, 2025 |
| UBS | Kevin Caliendo | $77 | $73 | -11.3% | Oct 1, 2025 |
| Morgan Stanley | Patrick Wood | $103 | $73.68 | +18.6% | Jul 15, 2025 |
| Mizuho Securities | Analyst unavailable | $82 | $80.16 | -5.6% | Mar 3, 2025 |
| Wells Fargo | Analyst unavailable | $75 | $79.75 | -13.6% | Feb 28, 2025 |
| Mizuho Securities | Steven Valiquette | $70 | $72.28 | -19.4% | Dec 3, 2024 |
| Stifel Nicolaus | Rick Wise | $82 | $66.29 | -5.6% | Oct 7, 2024 |
| Piper Sandler | Jason Bednar | $71 | $67.74 | -18.2% | Oct 7, 2024 |
| Morgan Stanley | Patrick Wood | $55 | $49 | -36.7% | Jul 15, 2024 |
| Goldman Sachs | David Roman | $54 | $59.72 | -37.8% | May 30, 2024 |
| Morgan Stanley | Patrick Wood | $70 | $65.52 | -19.4% | Apr 9, 2024 |
| Wells Fargo | Vik Chopra | $69 | $70.06 | -20.5% | Apr 8, 2024 |
Track every rating change on SOLV the moment it posts. Free to start.
Start freeMarket reaction
event-close to next-session close
Stock move
+2.8%
Event window
SPY move
+1.4%
Same window
Abnormal move
+1.4%
Stock minus SPY
Volume
2.2×
Versus trailing sessions
Subsequent drift
+16.1%
Up to 20 sessions
SOLVSPY benchmark
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Try FN2 freeTranscript intelligence
What changed
From Q4 FY2025 to Q1 FY2026, several developments stand out. Organic sales growth moderated from 3.5% to 2.1% reported (approximately 4% normalized for ERP timing effects), while margin expansion accelerated -- 80 bps of operating margin improvement in Q1 versus margin pressure from one-time ERP costs in Q4. The Acera acquisition moved from announcement to integration, contributing $28 million in Q1 sales. The share repurchase program shifted from authorization to execution, with 923,000 shares bought back for $67 million. TSA progress improved from a 90% exit target by end-2026 to 50% already extinguished by Q1. The Purification and Filtration divestiture was completed, simplifying the portfolio.
Guidance delta
Full-year FY2026 guidance was maintained, consistent with the prior quarter's stance. Management indicated EPS is trending toward the high end of the $6.40-$6.60 range, a refinement from the prior quarter's broader target. No changes were signaled to the 21-21.5% operating margin target or the $400-$450 million capex range established at Q4.
Key takeaways
- EPS of $1.48 beat the $1.35 estimate by 9.6%; revenue of $2.01 billion beat by 2.0%.
- Operating margin expanded 80 bps, with gross margin reaching 56.4%.
- 3M separation advanced: 50% of transition service agreements extinguished; U.S. and Canada ERP cutovers targeted for Q3 2026.
- Acera contributed $28 million in Q1 sales, marking early integration traction.
- Share repurchases began: 923,000 shares acquired for $67 million.
- ERP cutover timing is expected to shift over $100 million of sales into Q2, with a reverse impact in Q3.
Management priorities
- Complete U.S. and Canada ERP cutovers in Q3 2026.
- Finalize SKU rationalization by year-end.
- Continue Transform for the Future savings initiatives (multi-year, $500 million program).
- Pursue additional tuck-in acquisitions leveraging balance-sheet flexibility.
- Accelerate share repurchase program as valuation opportunities arise.
- Advance the pipeline of approximately 20 new product launches across MedSurg, Dental, and Health Information Systems through 2027.
Related earnings events
HealthcareHCA · FY2026 Q2 · Calendar Q3 2026HCA Q2 2026: Payer-Mix Shift Hits EBITDA, Florida Medicaid Boosts, $7B Capex UnveiledWST · FY2026 Q2 · Calendar Q3 2026West Pharmaceutical Q2 2026: EPS and Revenue Beat, Guidance Raised AgainDGX · FY2026 Q2 · Calendar Q3 2026Quest Diagnostics Beats on Volume and AI Automation, Raises Full-Year Guidance
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-31T10:32:04.129528+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T10:32:04.126778+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated . For educational purposes only; not investment advice.