Solventum Corporation (SOLV)

Solventum reported second-quarter 2026 sales of $2.2 billion on 5 August, up 2.2 percent as reported and up 9.5 percent on an organic basis 1.

Organic growth leaves out currency swings and the effect of businesses bought or sold 3. Early orders flattered the quarter: customers ordered ahead of a U.S. ERP software cutover, about $85 million in MedSurg and about $35 million in Dental Solutions 2.

Adjusted earnings per share, which leaves out some costs, was $2.55, while earnings under accounting rules were $0.53 1. Gross margin rose on a refund of tariffs the Supreme Court found were not authorized 12.

The same day Solventum said it intends to separate its Health Information Systems business, which has $1.4 billion in annual sales 4. The company is targeting completion within 12 to 18 months, with no decision yet on structure 4.

Reuters reported the plan followed renewed pressure from Nelson Peltz’s Trian Fund 5.

Solventum was spun off from 3M on April 1, 2024, and describes a 70-plus year history of developing healthcare products 3. Its roots are the Health Care Business Group of 3M, led from September 2023 by Bryan Hanson 3.

In 2024 sales barely moved, at $8,254 million against $8,197 million a year earlier 3. Operating income fell 38.8 percent to $1,036 million from $1,692 million 3.

The company explained that costs rose after the spin: inventory sourced under supply agreements with 3M cost more, and building a standalone company added selling and administrative expense 3. Selling, general and administrative expense reached 33.7 percent of sales in 2024 against 28.0 percent in 2023 3.

Debt was added in 2024: the company issued senior notes in February 2024 and drew a term loan in March 2024 3. Net interest expense was $367 million in 2024 and $347 million in 2025 3.

The big event of 2025 was the sale of the Purification and Filtration business to Thermo Fisher Scientific, completed on September 1, 2025 3. The cash paid at closing was approximately $4 billion 3.

The sale produced a net gain of $1.5 billion, which lifted operating income to $2,181 million and net income to $1,556 million for 2025 3. Sales for the year were $8,325 million, up 0.9 percent 3.

Tariffs hurt 2025: new tariffs of about $55 million pushed up the cost of product 3. The company also bought Acera in December 2025 and approved a four-year cost program, Transform for the Future, in November 2025 32.

What it sells

Solventum makes and sells healthcare products and software in three reporting segments 3. MedSurg, 57.9 percent of 2025 sales, covers wound care, infection prevention and surgical supplies, including negative pressure wound therapy and intravenous site management 3.

Dental Solutions, 16.2 percent of 2025 sales, sells brackets, aligners, cements and bonding agents for dentists and orthodontists 3. Health Information Systems, 16.3 percent, sells software that codes and documents hospital care so bills are accurate 3.

The second quarter by segment

MedSurg sales were $1,372 million, up 12.7 percent, helped by volume in Tegaderm CHG intravenous site products and by negative pressure wound therapy 2. Dental Solutions sales were $396 million, up 17.0 percent 2.

Health Information Systems sales were $354 million, up 4.4 percent, on adoption of Solventum 360 Encompass; its segment operating margin was 41.0 percent 2.

People and plants

The company has about 20,000 employees, about 4,000 of them production workers, and 7 manufacturing facilities in the United States and 14 abroad 3.

Bryan Hanson has been chief executive since 2024 and earlier ran Zimmer Biomet, a medical technology company 3. Wayde McMillan is chief financial officer 3.

Neil Zieselman became chief accounting officer on August 10, 2026, replacing Mary Wilcox on her retirement 6.

Rivals and problems

In wound care the annual report names Smith & Nephew, Mölnlycke, Coloplast and Convatec; in dental it names Dentsply Sirona, Envista, Straumann and Align Technology 3. In health software it names Optum, Epic and Oracle among others 3.

Solventum agreed to indemnify 3M for uninsured liabilities from lawsuits over the Bair Hugger patient warming system 2. In the second quarter of 2026 it raised its litigation accrual to its best estimate of probable loss 2.

The umbrella, in words

Exhibit 21 to the annual report lists the subsidiaries by country 7. They include KCI Medical Canada and Solventum Germany GmbH 7.

It owns Acera Surgical, a privately held bioscience company it acquired in December 2025 3. The company's former parent 3M holds 14.8 percent of the common stock 3.

The company believes 3M plans to sell all the shares it keeps, not later than five years after the spin 3. Solventum owns 20 facilities and leases or has rights to about 250 more 3.

On August 5, 2026 Solventum raised its 2026 outlook, expecting organic sales growth of 2.5 percent to 3.0 percent 1. It expects adjusted earnings per share of $7.10 to $7.20 and free cash flow of $200 million to $300 million 1.

The company says the Health Information Systems separation could be done as an independent company, a combination with a scaled player or another transaction 4. It targets completion within 12 to 18 months and would need board and regulatory approvals 4.

Transform for the Future is expected to yield about $500 million in annual cost savings once fully in place, at pretax costs of about $500 million 2. The board authorized buying back up to $1 billion of stock in November 2025 3.

The company believes 3M plans to sell the Solventum shares it retains within five years of the spin 3. Solventum does not give reconciliations of its forward-looking non-GAAP measures to GAAP, saying it cannot predict certain items 1.

Solventum said it will provide updates as appropriate as the separation process progresses 4.