$SOLV · Solventum Corp
Solventum's Q3 FY2026 10-Q shows total net sales of $1.949B, down 7.0% YoY from $2.096B. Gross margin was 54.5% and operating margin 3.5%. Net income swung to a $(12)M loss (GAAP EPS $(0.07)) versus $1,266M profit a year ago, when results included a $1,518M gain on the Purification and Filtration business sale. Nine-month net income fell to $93M from $1,493M. The company is executing a four-year restructuring program expected to generate ~$500M in annual cost savings, with $182M incurred to date.
- Q3 revenue fell 7.0% YoY to $1.949B from $2.096B.
- Net loss of $(12)M vs $1,266M profit a year ago; GAAP EPS $(0.07).
- Prior-year quarter included a $1,518M gain on sale of the Purification and Filtration business.
- Restructuring program targets ~$500M annual savings; $182M incurred since inception.
- Nine-month operating cash flow fell to $215M from $274M.
Extended-hours trading shows SOLV at $83.50, down 4.22% vs the $87.18 regular close, indicating a negative reaction to the revenue decline and swing to a loss.
Solventum's core business shrank 7% and swung to a loss absent the prior year's divestiture gain, testing the restructuring program's ability to restore profitability.
The 7% revenue decline contrasts with the prior-year quarter's divestiture-boosted results, reflecting a post-spin-off healthcare company still normalizing its portfolio.
Restructuring charges ($50M in Q3, $130M nine-month) pressure near-term margins; total pretax program costs are expected to reach ~$500M. Revenue declines across product sales signal demand softness.