SOLV US S&P 500Russell 1000 Earnings call
Solventum (SOLV) · Q2 2026 results and valuation
Share price: $88.62 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 5 May 2026
Net income up 607.7% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+607.7%
Net income vs Q1 2026
Outlook given
Net income 92.0M vs 13.0M
Revenue +10.1%
Against the same quarter last year (Q2 2025) it is +2.2% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
More upbeat than 63% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
SOLV accelerated its $1 billion share repurchase program during the quarter to put the balance sheet to work as part of a balanced capital allocation…
Valuation
Is Solventum undervalued?
Reverse DCF. Average free cash flow of the last three fiscal years (the last year was negative) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 0.8% growth a year (3-year revenue growth), the model's fair value is $29.79 a share — the stock trades 198% above it. Today's price assumes 10.5% growth a year.
Current price
$88.62
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.5% for 10 yrs
Fair value / share
$29.79
Buy below
$22.34
Price vs fair value
Overvalued 198%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
The company expects the Q2 $125 million advanced order sales timing benefit and $0.34 contribution to earnings per share to mostly reverse in Q3.
Source quote
“Regarding the third quarter, we expect the Q2 $125 million advanced order sales timing benefit and $0.34 contribution to earnings per share will mostly reverse in Q3.”
-
Last period
Organic sales growth and EPS both exceeded the company's plan.
Source quote
“Organic sales growth and EPS both exceeded our plan, again reflecting very strong execution across the organization and the momentum... We delivered first quarter results ahead of our plan and ahead of expectations. We saw solid performance across all segments driven by strong commercial execution and new product launches, and thanks to positive...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“So that's the opportunity that we have to be able to grow the WAMGR and obviously, also grow our overall revenue growth.”
“And as a quick reminder, our transformation has 3 phases: stabilize and separate the business, reposition it for profitable growth and optimize the portfolio.”
“In Dental, innovation is focused on our core restorative growth driver and a shift towards higher-growth aesthetics.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.21B | 2.01B | +10.1% | 2.16B | +2.2% |
| Gross profit | 1.29B | 1.10B | +17.2% | 1.18B | +9.4% |
| Operating income | 181.0M | 81.0M | +123.5% | 214.0M | −15.4% |
| Net income | 92.0M | 13.0M | +607.7% | 90.0M | +2.2% |
| EPS | 0.53 | 0.07 | +657.1% | 0.51 | +3.9% |
| P/E today 10.8 | 9.4 | 8.0 | +1.4 | 34.8 | −25.4 |
Topics
Most discussed now
- Solventum saw healthy performance across every segment, led by its specialized commercial teams and new product innovation and operating…
- Global supply chain remains a critical work stream to establish a more efficient operating model while positioning us to capture...
- Solventum's supply chain footprint remained consistent in the quarter with the majority of work focused on settling prior changes and...
- As usual, I'll begin with an update on Solventum's 3M separation progress and portfolio actions, then walk through its second...
- Solventum does have a really strong performing business and particularly now.
Faded since Q1 2026
- Fading This team's ability to drive outcomes while navigating ongoing separation efforts, ERP implementations, and acquisitions and divestitures…
- Fading Solventum also finished a strategic expansion of its manufacturing facility in South Dakota, which enhances its supply chain's flexibility…
- Fading Solventum increased its accounting depth and moved R&D from 2% to the mid-teens, significantly increasing pipeline value.
- Fading This is a key mitigation strategy to ease the number of orders and shipments in Q3 as Solventum ramps up...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Regulation FD disclosure; Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K