Solventum Corporation (SOLV) AI Stock Analysis
SOLV AI stock analysis summary
AI ResearchSolventum Corporation (SOLV) operates across Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The company posted FY2025 revenue of $8.32B with net income of $1.56B, reflecting low single-digit revenue expansion alongside a 5-year revenue CAGR of 2.7%. Its valuation multiples, such as a trailing P/E of 10.5x, trade at a discount to sector peers, while net debt stands at $4.88B.
- Market cap
- $14.61B
- Revenue (TTM)
- $8.31B
- P/E
- 10.5x fwd 13.1x
- 1Y return
- 20.1% S&P 500 16.8%
- Avg. target
- $94.69 10.4% vs last close
Bull case
- Solventum trades at an EV/EBITDA multiple of 8.1x and a trailing P/E of 10.5x, well below the S&P 500 Healthcare median levels of 15.7x and 28.9x.
- The company delivered an EPS track record with 4 beats over the last 4 quarters and an analyst mean price target of $94.69.
- Return on equity remains robust at 34.0% for the trailing twelve months, alongside FY2025 net income of $1.56B.
Bear case
- Free cash flow turned negative at -$10.0M in FY2025 as operating cash flow declined to $369.0M.
- The balance sheet carries total debt of $5.29B against cash and short-term investments of $403.0M as of June 30, 2026.
- Top-line growth has been muted, with a 5-year revenue CAGR of 2.7% and FY2024 revenue growth of 0.7% followed by 0.9% in FY2025.
What Solventum does
Solventum Corporation develops, manufactures, and commercializes healthcare solutions through four operating segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. Medsurg provides advanced wound care, I.V. site management, sterilization assurance, temperature management devices, surgical supplies, stethoscopes, and medical electrodes. Dental Solutions offers dental and orthodontic products, including brackets, aligners, restorative cements, and bonding agents. Health Information Systems delivers software for computer-assisted physician documentation, coding automation, classification methodologies, speech recognition, and data visualization. The Purification and Filtration segment provides filters, purifiers, cartridges, and membranes.
Growth and profitability
Revenue increased from $8.17B in FY2021 to $8.32B in FY2025, representing a 5-year revenue CAGR of 2.7%. Gross margin contracted from 60.2% in FY2021 to 53.5% in FY2025, while operating margin expanded to 26.2% in FY2025 after dropping to 12.6% in FY2024. Net income rebounded to $1.56B in FY2025 from $479.0M in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 2.2% year-over-year, and quarterly earnings rose 3.9%. TTM revenue stood at $8.31B with a profit margin of 17.3% and EPS of $8.17.
Balance sheet and cash flow
As of June 30, 2026, Solventum held $403.0M in cash and short-term investments against total debt of $5.29B, resulting in net debt of $4.88B. Shareholders' equity was $4.80B, giving a debt-to-equity ratio of 1.10 and a current ratio of 1.02. Operating cash flow dropped from $1.19B in FY2024 to $369.0M in FY2025. With capital expenditures of $379.0M in FY2025, free cash flow was -$10.0M.
Valuation and performance
SOLV trades at a trailing P/E of 10.5x and a forward P/E of 13.1x, below the median of its S&P 500 Healthcare peers of 28.9x and 16.6x, respectively. Its enterprise value to EBITDA ratio is 8.1x, compared to the peer median of 15.7x, and its price-to-sales ratio is 1.8x versus 3.4x for peers. Over the past year, SOLV generated a return of 20.1%, outperforming the SPY return of 16.8%.
What analysts expect
Wall Street coverage consists of 7 Strong Buy, 1 Buy, 5 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target is $94.69, which is 10.4% above the last close of $85.81. Analysts estimate FY2026 EPS of $7.14 on revenue of $8.23B, and FY2027 EPS of $7.25 on revenue of $8.52B. Solventum has beaten EPS estimates in each of the last 4 quarters, with its next earnings release scheduled for November 5, 2026.
Key risks and what to watch
- Total debt of $5.29B results in a debt-to-equity ratio of 1.10 and net debt of $4.88B.
- Gross margins have experienced continuous compression, declining from 60.2% in FY2021 to 53.5% in FY2025.
- Free cash flow fell from $805.0M in FY2024 to -$10.0M in FY2025, which may constrain internal capital allocation.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SOLV AI stock analysis
This page is an AI-written research summary of Solventum Corporation (SOLV). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SOLV income statement, SOLV balance sheet, SOLV key metrics, SOLV analyst forecast, SOLV chart. See the SOLV stock overview for the latest quote and news.
SOLV AI stock analysis FAQ
What segments does Solventum Corporation operate?
Solventum operates through four business segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration.
Does Solventum pay a dividend?
Solventum does not currently report a dividend payment.
What is Solventum's debt profile?
As of June 30, 2026, Solventum carried $5.29B in total debt and $403.0M in cash and short-term investments, resulting in net debt of $4.88B and a debt-to-equity ratio of 1.10.
What are analysts expecting for Solventum's earnings?
For the fiscal year ending December 31, 2026, analysts estimate EPS of $7.14 on revenue of $8.23B, followed by EPS of $7.25 on revenue of $8.52B for the next fiscal year.