Solventum Raises 2026 Guidance After Organic Sales Rebound

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter organic sales rose 9.5% as the company lifted full-year organic growth, adjusted EPS and free-cash-flow targets.

Solventum (SOLV) reported second-quarter organic sales growth of 9.5%, a sharp step-up from 2.1% in the first quarter, and raised its full-year 2026 outlook for organic sales, adjusted earnings and free cash flow.

The medical-technologies company reported sales of $2.2 billion, up 2.2% from a year earlier, reversing a 3.0% reported decline in the prior quarter. Organic growth had been 3.5% in the fourth quarter of 2025. The second-quarter organic increase reflected performance across all reportable segments, primarily volume and product mix, and included the expected benefit of advance orders placed ahead of ERP cutovers.

Adjusted diluted earnings per share were $2.55, up 50.9% from a year earlier, after a 10.6% year-over-year increase in the first quarter. GAAP diluted earnings were $0.53 a share. Adjusted operating income margin expanded to 28.4% from 21.9% a year earlier, after 19.5% in the first quarter; an IEEPA tariff refund and an ERP-timing benefit contributed. GAAP operating income margin was 8.2%, down from 9.9% a year earlier, primarily due to net legal costs, separation and restructuring costs. GAAP and adjusted gross margin both increased, driven by the IEEPA tariff refund.

MedSurg net sales were $1.37 billion, up 12.7% reported and 8.9% organic. Dental Solutions sales were $396 million, up 17.0% reported and 15.2% organic. Health Information Systems sales were $354 million, up 4.4% reported and 5.4% organic. Advanced Wound Care sales were $537 million and Infection Prevention and Surgical Solutions sales were $836 million. All Other sales were $87 million.

The company announced its intent to separate the Health Information Systems segment as part of the portfolio-optimization phase of its transformation strategy. The proposed separation is expected to strengthen Solventum’s focus as a dedicated MedTech company while enabling both businesses to pursue distinct growth and innovation priorities. Health Information Systems generated $145 million of operating income in the quarter, a 41.0% operating margin.

Free cash flow was $144 million, after a $273 million outflow in the first quarter. Operating cash flow was $227 million. The cash results were ahead of expectations, driven by the timing of tax payments and insurance proceeds. Selling, general and administrative expenses were $927 million, primarily due to higher costs associated with separation activities and net legal costs. Adjusted SG&A as a percent of sales was 26.0%.

Chief executive Bryan Hanson said the team delivered another quarter of strong execution, with results ahead of expectations while continuing to advance the transformation. He said the company remains on track to achieve long-term objectives as it builds a more focused MedTech company.

Solventum increased its full-year 2026 organic sales growth range to +2.5% to +3.0%, or +3.5% to +4.0% excluding about 100 basis points of SKU-exit impact, from a prior range of +2.0% to +3.0%. It raised the adjusted EPS range to $7.10 to $7.20 from the upper end of the prior $6.40 to $6.60 range, and raised free cash flow to $200 million to $300 million from a prior estimate of about $200 million.

Cash and cash equivalents were $403 million at June 30, 2026. Short-term borrowings and the current portion of long-term debt were $506 million; long-term debt was $4.57 billion. The Solventum Foundation announced a $350,000 grant to America’s ToothFairy to expand oral-health screenings, dental education and fluoride treatment for more than 100,000 children and caregivers in underserved communities over the next year.

The company hosts an earnings conference call on August 5 to discuss second-quarter results and the fiscal 2026 outlook.