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Jun 30, 2025
Solventum Q2 2025 Earnings Report
Solventum reported moderate revenue and earnings growth in Q2 2025, with expansion across all segments and a raised full-year outlook.
Key Takeaways
In Q2 2025, Solventum achieved higher sales and maintained profitability despite margin pressures from higher operating costs and lower gross margins. The company saw positive organic sales growth in all segments, particularly MedSurg and Health Information Systems, and raised its full-year revenue and earnings guidance.
Revenue grew 3.9% to $2.16 billion, with 2.8% organic growth.
GAAP EPS was $0.51; non-GAAP EPS was $1.69.
Net income rose slightly to $90 million.
Full-year organic sales growth and EPS guidance were raised.
Revenue by Segment
Forward Guidance
Solventum raised its full-year 2025 guidance for both revenue and EPS, reflecting strong underlying performance across all segments.
Positive Outlook
- Increased full-year organic sales growth range to +2.0% to +3.0%
- Raised adjusted EPS outlook to $5.80-$5.95
- All segments delivered positive organic growth
- Momentum in MedSurg and Health Information Systems
- Retention of Drinking Water Filtration business post P&F divestiture
Challenges Ahead
- Lower gross margins impacting operating income
- Higher operating expenses from public company stand-up costs
- Impact of 3M supply agreement mark-up on margins
- Free cash flow declined significantly versus prior year
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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