Healthcare solutions provider Solventum (NYSE:SOLV) reported Q3 CY2025 results topping the market’s revenue expectations , but sales were flat year on year at $2.10 billion. Its non-GAAP profit of $1.50 per share was 4.7% above analysts’ consensus estimates.
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Revenue: $2.10 billion vs analyst estimates of $2.07 billion (flat year on year, 1.3% beat)
Adjusted EPS: $1.50 vs analyst estimates of $1.43 (4.7% beat)
Management raised its full-year Adjusted EPS guidance to $5.96 at the midpoint, a 7.3% increase
Operating Margin: 80.6%, up from 13.2% in the same quarter last year
Free Cash Flow was -$22 million, down from $76 million in the same quarter last year
Organic Revenue rose 2.7% year on year vs analyst estimates of flat growth (178.6 basis point beat)
Market Capitalization: $11.74 billion
“Our solid third quarter results and increased full-year 2025 guidance demonstrate we are delivering on our commitments and clearly progressing towards achieving our long-range plan,” said Bryan Hanson, chief executive officer of Solventum.
Founded in 1985, Solventum (NYSE:SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.
A company’s top-line performance is one signal of its overall business quality. Strong growth can indicate it’s riding a successful new product or emerging trend. Solventum’s annualized revenue growth rate of 1.4% over the last two years was tepid for a healthcare business.
Solventum also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Solventum’s organic revenue averaged 1.9% year-on-year growth. Because this number aligns with its two-year revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results.
This quarter, Solventum’s $2.10 billion of revenue was flat year on year but beat Wall Street’s estimates by 1.3%.
Looking ahead, sell-side analysts expect revenue to decline by 5.7% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds.
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