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Sep 30, 2025
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.
Revenue by Segment
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.
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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