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Research Alert: Solventum: Broad-based Q1 Growth, Guidance Maintained

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

SOLV delivered Q1 adj. EPS of $1.48 (+10.6% Y/Y), beating consensus of $1.35, while reported sales declined 3.0% Y/Y to $2.0B due to the Purification and Filtration divestiture, though organic sales grew 2.1%. Segment performance was broadly supportive, with Advanced Wound Care posting 10.9% reported growth (benefiting from the December Acera acquisition) and 2.1% organic growth, Dental Solutions achieving 3.4% organic growth, Health Information Systems delivering 4.7% organic growth, and core MedSurg (61% of sales) growing 1.2% organically. Management reaffirmed full-year 2026 guidance with confidence, expecting organic sales growth of 2.0% to 3.0% and adj. EPS toward the high end of the $6.40 to $6.60 range. Adj. gross margin improved 80 bps Y/Y to 56.4%, though adj. operating margin compressed 20 bps to 19.5% as tariff and inflation pressures offset operational improvements. Operating cash flow turned negative at $(189)M vs $29M prior year, though management maintains full-year guidance of ~$200M.

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