Solventum Q3 sales fall slightly less than expected; raises FY adj EPS outlook

Overview

• US healthcare products provider's Q3 sales fell 7% yr/yr but slightly beat analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Organic sales fell 2.8%, reflecting reversal of advance orders ahead of ERP cutover

Outlook

• Solventum expects full-year organic sales growth toward the high end of +2.5% to +3.0%

• Company raises full-year adjusted EPS guidance to $7.20-$7.30 from $7.10-$7.20

• Solventum maintains full-year free cash flow outlook at $200 mln to $300 mln

Result Drivers

• ADVANCE ORDERS REVERSAL - Co said organic sales fell due to reversal of advance orders placed ahead of ERP system cutover

• MARGIN DRIVERS - Gross margin rose due to portfolio optimization, product mix and savings programs, partly offset by inflation and tariffs

• RESTRUCTURING COSTS - Higher operating expenses were mainly due to restructuring activities

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Solventum Corporation is $100.00, about 11.9% above its November 4 closing price of $89.35

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Nov 4 - Healthcare firm Fresenius Q3 revenue rises on Kabi growth; lifts outlook

• Nov 4 - Charles River Laboratories Q3 revenue beats estimates, lifts 2026 outlook

• Nov 4 - Netherlands' Qiagen Q3 sales, adjusted EPS top outlook; suspends 2026 guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)