Solventum to Post Q3 Earnings: Is a Beat Likely for the Stock?

Solventum SOLV is scheduled to release third-quarter 2025 results on Nov. 6, after market close. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 16.55%. SOLV delivered a trailing four-quarter average earnings surprise of 13.91%.

Solventum Q3 Estimates

Currently, the Zacks Consensus Estimate for revenues is pegged at $2.09 billion. The consensus mark for earnings is pinned at $1.43 per share.

Solventum is expected to report mixed third-quarter 2025 results as temporary headwinds from order timing, ERP implementation challenges, and tariff-related cost pressures likely offset underlying business strength. Following a solid first half marked by volume-driven growth and margin gains, the third-quarter performance might have moderated, reflecting normalization in demand patterns across key segments after earlier order pull-forwards.

At the consolidated level, third-quarter revenue growth is likely to have softened sequentially from 2.8% organic growth. This would be in line with management’s earlier guidance that second-half sales would decelerate due to the reversal of advanced orders in Infection Prevention and Surgical Solutions (IP&SS).

Nonetheless, the company’s diversified portfolio and strategic focus on five core growth drivers — negative pressure wound therapy, IV site management, sterilization assurance, core restoratives, and revenue cycle management — likely provided a cushion against broader market and operational challenges.

Tariff headwinds, though reduced to an estimated $60-$80 million for the full year (from prior $80-$100 million), might have had a heavier impact in the third quarter before easing toward year-end.

Moreover, continued separation-related costs and ERP transition expenses, particularly in Europe, likely weighed on margins. Despite these factors, Solventum’s focus on pricing discipline, restructuring savings, and favorable mix likely helped sustain operating margins near the mid-20% range.

Segmental Overview

MedSurg: Moderation After a Strong First Half

The MedSurg segment, Solventum’s largest contributor, might have seen revenue normalization after strong first-half performance. The IP&SS subsegment, which benefited earlier from order timing, likely faced a temporary pullback as those orders reversed.

However, Advanced Wound Care should have shown meaningful improvement, driven by accelerating adoption of single-use negative-pressure wound systems such as Prevena and expanded rollout of Peel and Place in Europe. Continued traction in IV site management, led by Tegaderm antimicrobial solutions and early success in sterilization assurance product launches, likely supported the segment’s base.

Dental Solutions: Product Innovation Aiding Recovery

The Dental Solutions segment, which had been stabilizing after a challenging market environment, is expected to have maintained low-single-digit growth, supported by the ongoing ramp of new products like Clinpro Clear, Filtek Easy Match composites, and Clarity Precision Grip Attachments. While global dental demand remains sluggish, these product introductions and a more specialized sales structure likely helped offset pressures from soft orthodontic and impressioning material demand.

Health Information Systems (“HIS”): Software Resilience Amid Transition

The HIS segment likely maintained steady growth in the low to mid-single digits, benefiting from continued adoption of the 360 Encompass platform and its growing reputation in revenue cycle management. The strategic partnership with Ensemble Health Partners, which is implementing Solventum’s autonomous coding solution across multiple health systems, might have started contributing to incremental revenues and improving visibility for long-term growth. However, spending constraints among hospital clients might have slightly weighed on near-term demand for clinician productivity tools.

Purification & Filtration: Stable Performer Pre-Divestiture

The Purification & Filtration (P&F) segment likely remained steady ahead of its planned divestiture to Thermo Fisher Scientific. Continued demand for bioprocessing and industrial filtration products should have offset softness in membrane OEMs. Retention of the drinking-water business provides additional margin opportunity, though transaction-related costs might have modestly impacted third-quarter profitability.

Solventum Corporation Price and EPS Surprise

Solventum Corporation price-eps-surprise | Solventum Corporation Quote

Earnings Beat Likely

Our proven model predicts an earnings beat for Solventum this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.44 per share) and the Zacks Consensus Estimate ($1.43), is +0.88%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: SOLV sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Worth a Look

McKesson MCK has an Earnings ESP of +1.16% and a Zacks Rank #1 at present. The company is set to release second-quarter fiscal 2026 results on Nov. 6.

MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 1.50%. According to the Zacks Consensus Estimate, MCK’s fiscal second-quarter EPS is expected to improve 26.2% from the year-ago reported figure.

Cencora COR has an Earnings ESP of +0.31% and a Zacks Rank #3 at present. The company is slated to release fourth-quarter fiscal 2025 results on Nov. 5.

COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.19%. According to the Zacks Consensus Estimate, COR’s fiscal fourth-quarter EPS is expected to gain 13.5% from the year-ago reported figure.

Globus Medical GMED has an Earnings ESP of +1.69% and a Zacks Rank #3 at present. The company is set to release third-quarter 2025 results on Nov. 6.

GMED’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 10.82%. According to the Zacks Consensus Estimate, GMED’s third-quarter EPS is expected to decline 6% from the year-ago reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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