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Sep 30
Solventum Q3 2025 Earnings Report
Solventum posted modest revenue growth and a significant net income surge in Q3 2025, driven by a gain on the sale of a business.
Key Takeaways
Solventum reported Q3 2025 revenue of $2.096 billion and a net income of $1.266 billion. Despite slightly higher sales and strong results in segments like Dental and Health Information Systems, adjusted EPS declined. A one-time gain from the sale of the Purification and Filtration business significantly boosted GAAP earnings.
Revenue rose to $2.096 billion, a 0.7% increase from Q3 2024.
GAAP EPS surged to $7.22, boosted by a $1.5 billion gain on a business sale.
Adjusted EPS was $1.50, down from $1.64 in the prior year.
Free cash flow turned negative at -$22 million due to lower operating cash flow and increased capex.
Solventum
Solventum
Solventum Revenue by Segment
Revenue by Segment
MedSurg Revenue
CapyFin.comDental Solutions Revenue
CapyFin.comHealth Info Systems Revenue
CapyFin.comAdvanced Wound Care Revenue
CapyFin.comInfection & Surgical Revenue
CapyFin.comPurification & Filtration Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Solventum raised full-year 2025 guidance, expecting organic sales growth at the high end of 2.0–3.0% and adjusted EPS between $5.98–$6.08.
Positive Outlook
- Adjusted EPS guidance increased to $5.98–$6.08.
- Organic sales expected to reach high end of +2.0% to +3.0% range.
- Cost savings from 'Transform for the Future' initiative expected to total $500M annually.
- Strong performance in Dental and Health Information Systems segments.
- Improved operational focus post-Purification & Filtration divestiture.
Challenges Ahead
- Free cash flow reduced to $150M–$250M from prior outlook.
- Adjusted EPS still reflects pressure from higher costs.
- Gross margin impacted by tariffs and spin-off-related costs.
- Ongoing increase in SG&A and R&D expenses.
- Purification & Filtration divestiture may reduce future sales base.
Revenue & Expenses
Visualization of income flow from segment revenue to net income