Solventum to Post Q4 Earnings: What's in Store for the Stock?

Solventum SOLV is scheduled to release fourth-quarter 2025 results on Feb. 26, after market close. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 4.90%. SOLV delivered a trailing four-quarter average earnings surprise of 10.42%.

Solventum Q4 Estimates

Currently, the Zacks Consensus Estimate for revenues is pegged at $1.96 billion. The consensus mark for earnings is pinned at $1.50 per share.

Solventum is set to report fourth-quarter and full-year 2025 results with solid underlying momentum, following a third quarter that reflected improving commercial execution, portfolio streamlining and early benefits from cost initiatives. While the growth is likely to have been driven by rising volume, tariffs may hurt fourth-quarter results. On its third-quarter earnings call, management raised full-year guidance to the high end of its 2-3% organic growth range and lifted EPS outlook from $5.88-$6.03 to $5.98-$6.08.

Solventum Corporation Price and EPS Surprise

Solventum Corporation price-eps-surprise | Solventum Corporation Quote

Segmental Overview

MedSurg, Solventum’s largest segment, delivered 1.1% organic growth in the third quarter, with Advanced Wound Care up 2.7%, led by negative pressure wound therapy and double-digit exit growth for single-use Prevena. Momentum in Prevena and V.A.C. Peel and Place, coupled with commercial specialization, likely continued to support fourth-quarter performance.

However, Infection Prevention and Surgical Solutions were flat in the third quarter, reflecting the reversal of first-half order timing benefits. Management indicated the remaining volume giveback would be absorbed in the fourth quarter, suggesting reported growth may appear modest despite stable underlying demand. Improvement in sterilization assurance and IV site management — particularly Tegaderm antimicrobial solutions — might have partially offset growth.

Dental Solutions was a standout in the third quarter, with 6.5% organic growth, though normalized growth was 2-3%, aided by backorder recovery and easier comparisons. New product launches, including the redesigned Clarity brand and Solventum Filtek Composite Warmer, alongside strong demand for ClinPro Clear and Filtek Easy Match, drove the quarterly performance.

For the fourth-quarter results, sustainability of the normalized 2-3% growth trajectory will be in focus, particularly as backorder benefits taper. Management expressed confidence in improved service levels and a strengthened commercial model, suggesting continued mid-single-digit growth if innovation cadence remained robust during the quarter.

The Health Information Systems (“HIS”) posted 5.6% organic growth in the third quarter, fueled by revenue cycle management (RCM) software and favorable consulting milestones. Expansion of autonomous coding and international installations of 360 Encompass position the segment for continued strength. The fourth-quarter numbers are expected to align with first-half trends, with RCM offsetting declines in clinician productivity solutions.

The sale of the Purification & Filtration business in September boosted the company’s cash position by $4 billion. The company is using the cash to reduce debt while also pursuing tuck-in mergers and acquisitions to strengthen its portfolio.

In November, SOLV acquired Acera Surgical, expanding its MedSrug portfolio with fast-growing synthetic tissue matrices technology. Investors are likely to focus on new M&A plans during the fourth-quarter earnings call. Along with the sale of Purification & Filtration business, the SKU rationalization program should have boosted the company’s efficiency and strategic focus.

Gross margin in the third quarter was 55.8%, down sequentially due to a 130-basis-point tariff impact. While the fourth-quarter performance might have faced a greater tariff headwind, management’s newly announced “Transform for the Future” initiative — targeting $500 million in annual savings over four years — along with ongoing supply chain efficiencies, should have supported margin resilience.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Solventum this time around. 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. This is not the case here, as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for Baxter.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Solventum currently has a Zacks Rank #3.

Stocks Worth a Look

Here are some medical product stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.

The Cooper Companies COO has an Earnings ESP of +0.24% and a Zacks Rank #2 at present. The company is set to release first-quarter fiscal 2026 results on March 5.

COO’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.41%. According to the Zacks Consensus Estimate, COO’s first-quarter EPS is expected to improve 11.9% from the year-ago reported figure.

STAAR Surgical STAA has an Earnings ESP of +7.15% and a Zacks Rank #3 at present. The company is expected to release fourth-quarter 2025 results soon.

STAA’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average negative surprise being 586.27%. The Zacks Consensus Estimate for STAA’s fourth-quarter EPS implies a gain of 132% from the year-ago reported figure.

McKesson MCK has an Earnings ESP of +1.93% and a Zacks Rank #2 at present.

MCK’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.60%. The Zacks Consensus Estimate for MCK’s fourth-quarter fiscal 2026 EPS indicates a rise of 12.3% from the year-ago reported figure.

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

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