Revenue growth has shifted into negative territory with a 3.0% year-over-year decline in 2026Q1, while operating margins have contracted sharply to 4.0% from 19.9% in 2023Q4.
| Sales/Revenue | 8.26B | 8.32B | 8.25B | 8.2B | 8.13B | 8.17B |
| Revenue Growth % | -0.55% | 0.86% | 0.7% | 0.82% | -0.5% | - |
| Cost of Goods Sold | 3.83B | 3.87B | 3.66B | 3.5B | 3.44B | 3.25B |
| COGS % of Revenue | - | 46.53% | 44.35% | 42.75% | 42.25% | 39.75% |
| Gross Profit | 4.43B | 4.45B | 4.59B | 4.69B | 4.7B | 4.92B |
| Gross Margin % | 53.67% | 53.47% | 55.65% | 57.25% | 57.75% | 60.25% |
| Gross Profit Growth % | - | -3.09% | -2.13% | -0.04% | -4.63% | - |
| Operating Expenses | 2.32B | 2.27B | 3.56B | 3B | 3B | 3.04B |
| OpEx % of Revenue | - | 27.27% | 43.09% | 36.61% | 36.93% | 37.25% |
| Selling, General & Admin | 3.14B | 3.08B | 2.78B | 2.24B | 2.23B | 2.28B |
| SG&A % of Revenue | - | 37% | 33.7% | 27.36% | 27.49% | 27.88% |
| Research & Development | 737M | 739M | 775M | 758M | 767M | 766M |
| R&D % of Revenue | - | 8.88% | 9.39% | 9.25% | 9.43% | 9.37% |
| Other Operating Expenses | 0 | -1.55B | 0 | 0 | 0 | 0 |
| Operating Income | 2.11B | 2.18B | 1.04B | 1.69B | 1.69B | 1.88B |
| Operating Margin % | 25.54% | 26.2% | 12.55% | 20.64% | 20.82% | 23% |
| Operating Income Growth % | - | 110.52% | -38.77% | -0.06% | -9.9% | - |
| EBITDA | 2.87B | 2.67B | 1.59B | 2.25B | 2.27B | 2.48B |
| EBITDA Margin % | 34.71% | 32.07% | 19.28% | 27.49% | 27.93% | 30.3% |
| EBITDA Growth % | 112.13% | 67.82% | -29.38% | -0.79% | -8.28% | - |
| D&A (Non-Cash Add-back) | 758M | 489M | 555M | 561M | 578M | 597M |
| EBIT | 2B | 2.06B | 972M | 1.67B | 1.69B | 1.88B |
| Net Interest Income | -305M | -347M | -367M | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 305M | 347M | 367M | 0 | 0 | 0 |
| Other Income/Expense | -419M | -468M | -431M | -25M | -1M | 3M |
| Pretax Income | 1.69B | 1.71B | 605M | 1.67B | 1.69B | 1.88B |
| Pretax Margin % | 20.47% | 20.58% | 7.33% | 20.34% | 20.81% | 23.03% |
| Income Tax | 259M | 157M | 127M | 321M | 349M | 422M |
| Effective Tax Rate % | 15.32% | 9.17% | 20.99% | 19.26% | 20.63% | 22.42% |
| Net Income | 1.43B | 1.56B | 479M | 1.35B | 1.34B | 1.46B |
| Net Margin % | 17.33% | 18.69% | 5.8% | 16.42% | 16.52% | 17.87% |
| Net Income Growth % | 277.84% | 224.84% | -64.41% | 0.22% | -8.01% | - |
| Net Income (Continuing) | 1.43B | 1.56B | 478M | 1.35B | 1.34B | 1.46B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.16 | 8.88 | 2.76 | 7.79 | 7.79 | 8.47 |
| EPS Growth % | 276.5% | 221.74% | -64.59% | 0.04% | -8.03% | - |
| EPS (Basic) | - | 8.94 | 2.77 | 7.79 | 7.79 | 8.47 |
| Diluted Shares Outstanding | 175.5M | 175.3M | 173.7M | 172.71M | 172.47M | 172.47M |
| Basic Shares Outstanding | 174.2M | 174.1M | 173.2M | 172.71M | 172.47M | 172.47M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Stagnant Revenue Growth
As indicated by the most recent quarterly financial data, Solventum's revenue growth has shifted into negative territory, with a 3.0% year-over-year decline in 2026Q1, highlighting significant challenges in maintaining top-line momentum following its separation from the parent organization's broader distribution network.
The transition from a high-growth division to an independent entity appears to have exposed underlying weaknesses in core market demand. Investors should monitor whether this contraction reflects a structural loss of competitive positioning or merely the expected friction of establishing independent sales channels.
According to reported income statements, Solventum's operating margin has experienced a sharp contraction, falling from 19.9% in 2023Q4 to a mere 4.0% in 2026Q1, suggesting that the company is struggling to absorb the full burden of standalone corporate overhead costs.
The erosion of operating profitability indicates that the company's current cost structure is not yet optimized for its independent scale. This trend warrants further investigation into whether these expenses are temporary separation costs or a permanent shift in the firm's cost-to-serve profile.
Based on the provided financial figures, SG&A expenses have trended upward relative to revenue, rising from $562 million in 2023Q4 to $827 million in 2026Q1, which significantly outpaces the company's ability to generate incremental gross profit during the same period.
The inability to maintain SG&A discipline suggests that the company is facing substantial dis-synergies as it builds out its own administrative and operational infrastructure. This rising cost base may continue to suppress net income until management can achieve greater economies of scale.
As reported in financial statements, Solventum's net income has exhibited extreme volatility, ranging from a high of $1.3 billion in 2025Q3 to a low of $13 million in 2026Q1, largely driven by non-operating items and inconsistent tax or accounting adjustments.
The wide swings in reported net income make it difficult for investors to gauge the true earnings power of the business. Analysts should focus on normalized operating income to strip away the noise created by one-time separation events and non-recurring accounting impacts.
Quick answers to the most common questions about buying SOLV stock.
For fiscal year 2025, Solventum Corporation (SOLV) reported total revenue of $8.32B. This represents a 1.9% increase compared to $8.17B in 2021.
Solventum Corporation (SOLV) is profitable, generating $1.56B in net income for the fiscal year ending 2025 with a net profit margin of 18.7%.
Solventum Corporation (SOLV) reported an operating income of $2.18B, resulting in an operating profit margin of 26.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Solventum Corporation (SOLV) generated $4.45B in gross profit for the year, representing a gross profit margin of 53.5%. This demonstrates the company's core pricing power and production efficiency.