Solventum’s (NYSE:SOLV) Q3: Beats On Revenue

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]