Core Insights - Solventum (SOLV) reported Q3 2025 adjusted EPS of $1.50, exceeding the Zacks Consensus Estimate of $1.43 by 4.9%, but down 8.5% year over year [1][7] - Revenues reached $2.1 billion, a 0.7% increase from the previous year, with organic sales growth of 2.7%, driven by strong performance in Dental Solutions and Health Information Systems [2][7] - The company raised its 2025 EPS outlook to $5.98-$6.08, anticipating organic sales growth at the higher end of 2-3% [12][7] Revenue Details - Total revenues were $2.1 billion, up 0.7% year over year, and beat the Zacks Consensus Estimate by 0.3% [2] - Organic sales growth was primarily driven by strong performance in Dental Solutions and Health Information Systems [2] Segmental Performance - **MedSurg**: Revenues totaled $1.21 billion, up 2.1% reportedly and 1.1% organically year over year, driven by NPWT growth and new product launches [4] - **Dental Solutions**: Revenues reached $340 million, an 8.4% increase year over year, driven by core restoratives and fluoride treatment adoption [5] - **Health Information Systems**: Revenues amounted to $345 million, up 5.9% reportedly and 5.6% organically, supported by revenue cycle management adoption [8] - **Purification and Filtration**: Revenues were $128 million, down 28.7% year over year, reflecting the divestment of this segment [8] Margin Analysis - Adjusted gross profit was $1.17 billion, down 1.9% year over year, with an adjusted gross margin of 55.8%, down approximately 150 bps [9] - Adjusted operating income totaled $431 million, down 9.3% year over year, with an adjusted operating margin of 20.6%, down approximately 220 bps [10] Financial Position - Solventum ended Q3 with cash and investments of $1.64 billion, a significant increase from $492 million in the previous quarter [11] - Total assets decreased to $13.97 billion from $15.07 billion in the previous quarter [11] - Cumulative net cash from operating activities was $274 million, down from $966 million in the year-ago period [11] 2025 Guidance - The company raised its sales guidance for 2025, expecting organic sales growth at the higher end of 2-3% [12] - Adjusted EPS is now projected to be in the range of $5.98-$6.08, up from the previous estimate of $5.88-$6.03 [12] Strategic Initiatives - Solventum is focused on operational discipline, supply-chain optimization, and cost-saving initiatives to offset inflationary pressures [14] - Progress on separation from 3M is ahead of schedule, enhancing operational control and service levels [15] - The successful divestment of the Purification and Filtration business has strengthened the balance sheet and provided flexibility for future growth [14]

Core Insights - Solventum (SOLV) reported $2.1 billion in revenue for Q3 2025, a year-over-year increase of 0.7%, with an EPS of $1.50 compared to $1.64 a year ago, indicating a slight decline in earnings per share [1] - The revenue exceeded the Zacks Consensus Estimate of $2.09 billion by 0.33%, and the EPS surpassed the consensus estimate of $1.43 by 4.9% [1] Financial Performance Metrics - Net Sales in MedSurg reached $1.21 billion, slightly above the $1.2 billion estimate, reflecting a 2% year-over-year increase [4] - Net Sales in Purification and Filtration were reported at $128 million, significantly below the estimated $213.86 million, marking a 46.2% decline year-over-year [4] - Net Sales in Health Information Systems totaled $345 million, exceeding the estimate of $337.47 million, with a 5.8% increase from the previous year [4] - Net Sales in Dental Solutions amounted to $340 million, surpassing the $318.05 million estimate, representing an 8.6% year-over-year growth [4] Operating Income Analysis - Operating Income for MedSurg was $203 million, slightly below the estimated $207.5 million [4] - Operating Income in Purification and Filtration was reported at $26 million, below the $29.51 million estimate [4] - Operating Income for Health Information Systems reached $134 million, exceeding the estimate of $106.94 million [4] - Operating Income in Dental Solutions was $87 million, surpassing the estimated $71.27 million [4] Stock Performance - Solventum's shares have returned -6.5% over the past month, contrasting with the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Insights - Solventum (SOLV) reported quarterly earnings of $1.5 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, but down from $1.64 per share a year ago, representing an earnings surprise of +4.90% [1] - The company achieved revenues of $2.1 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.33% and showing a slight increase from $2.08 billion year-over-year [2] - Solventum has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The future performance of Solventum's stock will largely depend on management's commentary during the earnings call and the sustainability of its immediate price movement based on the latest earnings numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $2.05 billion, while for the current fiscal year, the estimate is $5.95 on revenues of $8.29 billion [7] Industry Context - The Medical Services industry, to which Solventum belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Financial Data and Key Metrics Changes - In Q3 2025, sales reached $2.1 billion, reflecting a 2.7% increase on an organic basis and a 0.7% increase on a reported basis [19] - Gross margins were 55.8%, a sequential reduction of 20 basis points, primarily due to tariff headwinds [22] - Earnings per share (EPS) was reported at $1.50, exceeding expectations, driven by sales outperformance and lower net interest expense [24] Business Line Data and Key Metrics Changes - The Med-Surg segment generated $1.2 billion in sales, up 1.1% organically, with advanced wound care growing 2.7% [20] - Dental Solutions sales were $340 million, a 6.5% organic increase, attributed to back-order improvements and new product launches [21] - Health Information Systems (HIS) segment sales reached $345 million, a 5.6% organic increase, driven by strong performance in management solutions and revenue cycle management software [22] Market Data and Key Metrics Changes - The company experienced stronger-than-expected sales growth in dental and HIS markets, with volume being the main growth driver [19] - The impact of foreign exchange contributed a 110 basis point benefit to reported growth, while the intra-quarter sale of the purification and filtration business had a 310 basis point impact [19] Company Strategy and Development Direction - The company is executing a three-phase transformation plan, focusing on commercial restructuring, innovation revitalization, and portfolio optimization [5][9] - The "Transform for the Future" initiative aims to reshape the cost structure and improve operational efficiency while driving innovation [8] - The company is targeting tuck-in acquisitions valued under $1 billion to build scale in attractive markets [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff pressures and improve margins through programmatic savings and restructuring initiatives [31][75] - The long-range plan (LRP) revenue growth targets are being achieved faster than expected, with a goal of 4-5% growth by 2028 [27][31] - The company anticipates a step down in separation costs in 2026 and 2027 as it completes its separation from 3M [25] Other Important Information - The company has successfully reduced debt by $2.7 billion following the sale of the purification and filtration business, improving its balance sheet [24][29] - Free cash flow guidance has been updated to $150-$250 million due to the divestiture, with expectations for strong cash generation moving forward [28][70] Q&A Session Summary Question: Was the Transform for the Future program initiated early on or a response to tariffs? - Management indicated that the program was always contemplated but was initiated once the company was ready post-restructuring and separation activities [35][36] Question: What is the expected cadence of the $500 million cost for the Transform for the Future program? - The $500 million cost is planned over the next four years, dictated by various projects [44] Question: What factors should be considered for fourth-quarter growth guidance? - Management noted that the fourth quarter will absorb remaining first-half volume benefits, with expectations for growth to align with previous quarters [47] Question: Were there geographic trends in the dental portfolio? - Management reported no significant geographic differences, attributing momentum to new product launches globally [50] Question: Was there any tariff-related price uplift in dental results? - Management stated that pricing remained in line with typical expectations, with no extraordinary pricing benefits observed [54] Question: How quickly can portfolio optimization occur? - Management expressed confidence in the operating cash generated and indicated that they are actively looking for tuck-in acquisitions [67][77]

Financial Data and Key Metrics Changes - Third quarter 2025 sales reached $2.1 billion, representing a 2.7% increase on an organic basis compared to the prior year and a 0.7% increase on a reported basis [19] - Gross margins were 55.8% of sales, reflecting a 20 basis point sequential reduction primarily due to tariff headwinds [22] - Earnings per share (EPS) was reported at $1.50, exceeding expectations driven by sales outperformance and stronger gross margins [24] Business Line Data and Key Metrics Changes - The MedSurg segment generated $1.2 billion in sales, an increase of 1.1% on an organic basis, with advanced wound care growing by 2.7% [19][20] - Dental solutions sales were $340 million, up 6.5% on an organic basis, driven by back-order improvements and new product launches [21] - Health Information Systems (HIS) segment sales reached $345 million, a 5.6% organic increase, supported by strong performance in revenue cycle management solutions [22] Market Data and Key Metrics Changes - Foreign exchange contributed a 110 basis point benefit to reported growth, while the intra-quarter sale of the Purification & filtration business had a 310 basis point impact on reported growth [19] - The company noted that volume continues to be the main driver of growth, with pricing remaining stable within the expected range of ± 1% [19] Company Strategy and Development Direction - The company is executing a three-phase transformation plan, focusing on commercial restructuring, innovation revitalization, and portfolio optimization [5][9] - The "Transform for the Future" initiative aims to reshape the cost structure and improve operational efficiency while driving innovation [8][29] - The company is positioned to pursue tuck-in M&A opportunities valued under $1 billion in established markets [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff pressures and achieve margin targets despite current challenges [31] - The company is progressing towards its long-range plan goal of 4%-5% growth faster than expected, with continued sales and margin improvement anticipated in 2026 [27][72] - Management highlighted the importance of innovation and commercial infrastructure in driving future growth [50][54] Other Important Information - The company completed the sale of the Purification & filtration business, resulting in a significant debt reduction and improved cash position [24][29] - Free cash flow guidance was updated to $150 million-$250 million due to the divestiture, with expectations for strong cash generation moving forward [28][70] Q&A Session Summary Question: Was the Transform for the Future program initiated early on or a response to tariffs? - Management indicated that the program was always contemplated but was initiated once the company was ready, following restructuring and separation activities [35][36] Question: What is the expected cadence of the $500 million cost for the Transform for the Future program? - The company has not provided specific details on the cadence of the spend, which will depend on various projects [44] Question: How should the market view the guidance for the remainder of the year, particularly in dental? - Management noted that Q4 growth would be impacted by absorbing first-half volume benefits but expected performance to align with previous quarters [47] Question: Were there geographic trends in the dental portfolio? - Management reported no significant regional differences, attributing momentum to new product launches globally [50] Question: Is there visibility on sustaining the underlying growth in dental? - Management expressed confidence in sustaining and potentially improving growth in the dental segment due to strong commercial infrastructure and innovation [54] Question: Why is the tariff impact range still wide? - Management stated that the dynamic environment necessitated maintaining a broader range for tariff impact estimates [55] Question: What are the potential areas of interest for future acquisitions? - The company is actively looking for tuck-in acquisitions under $1 billion in value, focusing on areas where they already operate [76]

Financial Data and Key Metrics Changes - Third quarter 2025 sales reached $2.1 billion, reflecting a 2.7% increase on an organic basis and a 0.7% increase on a reported basis [18] - Gross margins were 55.8% of sales, a 20 basis point sequential reduction, primarily due to tariff headwinds [20] - Earnings per share (EPS) was reported at $1.50, exceeding expectations, driven by sales outperformance and lower net interest expense [22] Business Line Data and Key Metrics Changes - The Med-Surg segment generated $1.2 billion in sales, a 1.1% organic increase, with advanced wound care growing by 2.7% [19] - Dental Solutions segment sales were $340 million, up 6.5% organically, driven by back-order improvements and new product launches [20] - Health Information Systems (HIS) segment sales reached $345 million, a 5.6% organic increase, supported by strong performance in revenue cycle management solutions [20] Market Data and Key Metrics Changes - Stronger-than-expected sales growth was noted in dental and HIS markets, with volume being the main driver of growth [18][20] - The company experienced a 110 basis point benefit from foreign exchange in reported growth [18] Company Strategy and Development Direction - The company is executing a three-phase transformation plan, focusing on commercial restructuring, innovation revitalization, and portfolio optimization [4][8] - The "Transform for the Future" initiative aims to reshape the cost structure and improve operational efficiency while driving innovation [6][27] - The company is targeting tuck-in acquisitions valued under $1 billion to build scale in attractive markets [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff headwinds and achieve long-range plan revenue growth targets faster than expected [4][30] - The company anticipates continued sales and margin improvement in 2026, despite expected tariff pressures [25][71] Other Important Information - The company completed a significant debt reduction of $2.7 billion following the sale of the purification and filtration business, improving its balance sheet [22][28] - Free cash flow guidance was updated to $150-$250 million due to the P&F divestiture, with expectations of $450-$550 million excluding the divestiture impact [26][65] Q&A Session Summary Question: Was the Transform for the Future program initiated early on or a response to tariffs? - Management indicated that the program was always contemplated but was initiated after completing necessary restructuring and separation activities [34] Question: What is the expected cadence of the $500 million cost for the Transform for the Future program? - The $500 million cost is planned over the next four years, with specifics on the cadence not yet provided [43] Question: What factors might affect the fourth quarter growth guidance? - Management noted that the fourth quarter guidance includes absorbing the remaining first-half volume benefits, particularly in infection prevention and surgical solutions [45] Question: Were there geographic trends in the dental portfolio performance? - Management reported no significant geographic differences, attributing momentum to new product launches and a specialized sales organization [49] Question: Was there any tariff-related price uplift in the dental results? - Management stated that pricing remained in line with typical expectations and did not see extraordinary pricing benefits from tariffs [53] Question: How should investors think about margin expansion in 2026? - Management expects continued improvement in margins, but tariffs may exert pressure, which is being addressed through savings initiatives [71]

Financial Performance - Solventum reported total company net sales of $2,096 million for the three months ended September 30, 2025, representing a 0.7% increase compared to $2,082 million in the same period of 2024[137]. - For the nine months ended September 30, 2025, total company net sales were $6,327 million, reflecting a 2.4% growth from $6,179 million in 2024[139]. - Operating income for the total company surged to $1,690 million in Q3 2025, a significant increase of 514.5% compared to $275 million in Q3 2024[140]. - The Advanced Wound Care segment achieved a 3.5% increase in sales for Q3 2025, totaling $485 million, while the Dental Solutions segment saw an 8.4% increase, reaching $340 million[137]. - The MedSurg segment reported a decline in operating income of 16.5% for Q3 2025, totaling $203 million, while the Health Information Systems segment experienced a 27.4% increase, reaching $134 million[140]. - Solventum's organic sales growth for the three months ended September 30, 2025, was 2.7%, with notable contributions from MedSurg and Health Information Systems[137]. - In the U.S. market, organic sales growth was 3.4% for Q3 2025, while international organic sales growth was 1.7%[143]. Cost and Expenses - Cost of product as a percentage of sales increased to 53.1% in Q3 2025 from 49.3% in Q3 2024, driven by higher sourcing costs and tariffs[149]. - Cost of product as a percent of sales increased in the first nine months of 2025 compared to the same period in 2024, driven by higher sourcing costs from tariffs[151]. - Cost of software and rentals as a percent of sales decreased in the third quarter of 2025 due to lower external license fees and a favorable product mix[153]. - Selling, General and Administrative (SG&A) expenses increased to 37.2% of total net sales in Q3 2025, up from 33.7% in Q3 2024, primarily due to costs associated with separating operations from 3M[155][156]. - Research and Development (R&D) expenses decreased to 8.7% of total net sales in Q3 2025, down from 9.1% in Q3 2024, attributed to lower costs from the sale of the Purification and Filtration business[158]. Business Transactions - The company completed the sale of its Purification and Filtration business for approximately $4 billion on September 1, 2025[134]. - The company reported a net gain of $1.5 billion from the sale of the Purification and Filtration business in Q3 2025[159]. - The company repaid $1.9 billion of senior notes and $770 million of outstanding principal under the senior term loan credit facility following the sale of the Purification and Filtration business[199]. Cash Flow and Financial Position - Cash and cash equivalents increased to $1,642 million as of September 30, 2025, up from $762 million at December 31, 2024, primarily due to proceeds from the sale of the Purification and Filtration business[192]. - Cash flows from operating activities were $274 million for the first nine months of 2025, a decrease from $966 million in the same period of 2024[195]. - The company entered into a commercial paper program allowing it to issue up to $2.0 billion in short-term notes[191]. - The increase in investing activities in 2025 was related to proceeds from the sale of the Purification and Filtration business[197]. Tax and Interest - Interest expense, net decreased to $89 million in Q3 2025 from $107 million in Q3 2024, due to lower debt outstanding[160]. - Effective tax rate for Q3 2025 was 16.4%, significantly lower than 26.9% in Q3 2024[163]. Segment Performance - Net sales for the MedSurg segment increased by 2.1% in Q3 2025, with a decrease in operating income margin due to higher product costs from tariffs[171]. - Dental Solutions segment reported an 8.4% increase in sales in Q3 2025, with operating income margin benefiting from higher sales volume growth[175]. - Health Information Systems segment sales increased by 5.9% in Q3 2025, with improved operating income margin driven by sales mix and lower external license fees[181]. - Net sales in the Purification and Filtration segment decreased by 28.7% in Q3 2025, with reported growth of -6.6% for the first nine months of 2025[186][187]. - Organic growth for the Purification and Filtration segment was 6.4% in Q3 2025, driven by the adoption of Solventum™360 Encompass and consulting product milestones[184]. - Business segment operating income margin increased to 20.1% in Q3 2025, up from 10.6% in Q3 2024, reflecting volume growth and a favorable sales mix[186]. Currency Impact - Foreign currency translation positively impacted sales by 3.4% in Q3 2025[194]. - The company had approximately $84 million in bank guarantees and surety bonds outstanding as of September 30, 2025[190].

Core Insights - Solventum reported Q3 CY2025 results that exceeded market revenue expectations, with sales remaining flat year on year at $2.10 billion, and a non-GAAP profit of $1.50 per share, which was 4.7% above analysts' consensus estimates [1][7] Company Overview - Founded in 1985, Solventum (NYSE:SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services that address critical customer and therapeutic patient needs [4] Revenue Performance - Solventum's annualized revenue growth rate over the last two years was 1.4%, which is considered tepid for a healthcare business [5] - The company's organic revenue averaged 1.9% year-on-year growth over the last two years, indicating that core operations drove most of its results [6] - For Q3, Solventum's revenue of $2.10 billion was flat year on year but beat Wall Street's estimates by 1.3% [8] Financial Highlights - Revenue: $2.10 billion vs analyst estimates of $2.07 billion (flat year on year, 1.3% beat) [7] - Adjusted EPS: $1.50 vs analyst estimates of $1.43 (4.7% beat) [7] - Management raised its full-year Adjusted EPS guidance to $5.96 at the midpoint, a 7.3% increase [7] - Operating Margin: 80.6%, up from 13.2% in the same quarter last year [7] - Free Cash Flow was -$22 million, down from $76 million in the same quarter last year [7] - Organic Revenue rose 2.7% year on year vs analyst estimates of flat growth (178.6 basis point beat) [7] - Market Capitalization: $11.74 billion [7] Future Outlook - Sell-side analysts expect revenue to decline by 5.7% over the next 12 months, indicating potential demand headwinds for Solventum's products and services [8]

Financial Performance - Solventum's total sales reached $2,096 million, with a reported increase of 0.7% year-over-year and an organic increase of 2.7% year-over-year[12] - MedSurg segment net sales were $1,206 million, reflecting a reported increase of 2.1% and an organic increase of 1.1% year-over-year[13, 17] - Dental Solutions segment net sales were $340 million, with a reported increase of 8.4% and an organic increase of 6.5% year-over-year[12, 24] - Health Information Systems segment net sales were $345 million, showing a reported increase of 5.9% and an organic increase of 5.6% year-over-year[12, 29] - Purification & Filtration segment net sales were $128 million, a reported decrease of 28.7% but an organic increase of 6.4% year-over-year, representing two months of sales before divestiture[12, 34] Profitability and Cash Flow - The company's GAAP operating margin was 80.6%, while the non-GAAP operating margin was 20.6%[13] - GAAP EPS was $7.22, and non-GAAP EPS was $1.50[13] - Cash from operations was $75 million, and free cash flow was negative $22 million[13] Guidance - The company expects organic sales growth of +2.0% to +3.0%, increasing to the high-end of range, or +2.5% to +3.5% excluding ~50bps of SKU-exit impact[39] - Adjusted EPS is expected to be $5.98 to $6.08, versus a prior range of $5.88 - $6.03[39] - Free cash flow is reduced to $150 million to $250 million from $450 million to $550 million due to the Purification & Filtration divestiture impact[39] - Net interest expense is estimated to be ~$360 million, with total non-operating expense around ~$400 million[40] Strategic Actions - The company completed the sale of the Purification & Filtration segment for approximately $4 billion, generating net proceeds of approximately $3.6 billion, with $2.7 billion used for debt reduction[34]

Financial Performance - Net sales for Q3 2025 were $2,096 million, a year-over-year increase of 0.7%, with organic sales growth of 2.7%[5] - Net income surged to $1,266 million, reflecting a remarkable increase of 937.7% compared to Q3 2024[5] - Diluted earnings per share reached $7.22, up 931.4% from $0.70 in the same quarter last year[5] - Total net sales for the three months ended September 30, 2025, were $2,096 million, a slight increase of 0.7% compared to $2,082 million in the same period of 2024[24] - Net income for the nine months ended September 30, 2025, was $1,493 million, significantly up from $448 million in the same period of 2024, representing a growth of 233.5%[30] - The diluted earnings per share for the nine months ended September 30, 2025, was $8.53, compared to $2.58 in the same period of 2024, marking an increase of 230.6%[24] - Non-GAAP adjusted diluted earnings per share for the three months ended September 30, 2025, was $1.50, compared to $1.64 in the same period of 2024[50] - Non-GAAP net income attributable to Solventum for the nine months ended September 30, 2025, was $794 million, with diluted EPS of $4.53[57] Sales and Revenue Growth - The company has increased its full-year organic sales growth guidance to the high end of the +2.0% to +3.0% range[7] - Total reportable segment net sales for the nine months ended September 30, 2025, reached $5,600 million, an increase from $5,413 million in the same period of 2024, reflecting a growth of 3.4%[41] - Net sales for the nine months ended September 30, 2025, were $6,327 million, a 2.4% increase from $6,179 million in the same period of 2024[57][58] - Advanced Wound Care segment net sales were $1,400 million for the nine months ended September 30, 2025, up from $1,369 million in 2024, indicating a growth of 2.3%[41] - Dental Solutions segment reported net sales of $1,006 million for the nine months ended September 30, 2025, with an operating income margin of 26.1%[41] - The Purification and Filtration segment generated net sales of $497 million for the nine months ended September 30, 2025, with an operating income margin of 19.3%[41] Cost and Expenses - Operating cash flow for Q3 2025 was $75 million, a decrease of 55.6% from the previous year[5] - Free cash flow was reported at ($22) million, down 128.9% year-over-year[5] - Research and development expenses decreased by 3.2% to $183 million compared to Q3 2024[5] - Operating expenses for the nine months ended September 30, 2025, totaled $2,885 million, an increase from $2,574 million in 2024[57][58] - The company reported a significant increase in costs related to restructuring and separation, impacting overall financial performance[59][60] Initiatives and Future Outlook - Solventum launched a new initiative, 'Transform for the Future', aimed at generating approximately $500 million in annual cost savings[10] - The company anticipates cumulative pretax costs related to the 'Transform for the Future' initiative will be approximately $500 million[10] - Adjusted diluted earnings per share outlook has been raised to a range of $5.98 to $6.08[14] Cash and Assets - Cash and cash equivalents increased to $1,642 million as of September 30, 2025, up from $762 million at the end of 2024[26] - Total current assets rose to $4,407 million as of September 30, 2025, compared to $3,249 million at the end of 2024, reflecting a growth of 35.5%[26] Profitability Metrics - The gross profit margin for the three months ended September 30, 2025, was 54.2%, compared to 56.0% in the same period of 2024[24] - Gross margin for the nine months ended September 30, 2025, was 54.1%, down from 56.2% in 2024[57][58] - Operating income for the three months ended September 30, 2025, was $1,690 million, a substantial increase from $275 million in the same period of 2024[24] - Operating income for the nine months ended September 30, 2025, was $2,057 million, representing an operating income margin of 32.5%[57] - Health Information Systems segment achieved an operating income margin of 35.8% for the nine months ended September 30, 2025, compared to 32.6% in the previous year[41] - The company reported a gain on the sale of business amounting to $1,518 million for the nine months ended September 30, 2025[24] - The company incurred $1,518 million in losses on the sale of business, impacting overall profitability[57]