Solventum Corporation reported third‑quarter 2025 results on November 6, 2025, with net sales of $2.096 billion, a 0.7 % year‑over‑year increase. Net income rose to $1.266 billion, driven largely by a $3.6 billion gain from the sale of its Purification & Filtration business. GAAP diluted earnings per share climbed to $7.22, but the adjusted diluted EPS fell to $1.50, an 8.5 % decline from the $1.64 reported in Q3 2024.
GAAP operating income margin of 80.6 % is inflated by the one‑time sale gain; the adjusted operating income margin stands at 20.6 %, down from 22.8 % in Q3 2024. Adjusted gross profit margin improved to 55.8 % versus 53.8 % reported, while the adjusted operating margin also settled at 20.6 %, reflecting tighter cost control amid tariff‑related margin pressure.
Revenue growth was driven by strong performance in the Dental Solutions and Health Information Systems segments, which reported 8.4 % and 5.9 % growth respectively, with organic gains of 6.5 % and 5.6 %. The MedSurg segment posted a modest 1.1 % organic increase. The divestiture of the Purification & Filtration unit removed a legacy revenue stream, contributing to the modest 0.7 % top‑line growth.
Management raised full‑year 2025 guidance, projecting adjusted EPS of $5.98 to $6.08, up from the prior $5.88 to $6.03 range, and set organic sales growth at the high end of the 2.0 %–3.0 % band. The guidance lift reflects confidence in the “Transform for the Future” program, which is expected to deliver $500 million in annual cost savings and a $2.7 billion debt reduction from the divestiture proceeds.
Free cash flow for the quarter was negative $22 million, a swing from the $12 million positive cash flow in Q3 2024, largely due to the one‑time sale proceeds and increased capital expenditures. Tariff headwinds added approximately 130 basis points to gross margins, while public‑company stand‑up costs and growth investments increased operating expenses, contributing to the adjusted EPS miss.
CEO Bryan Hanson said, “Our solid third‑quarter results and increased full‑year 2025 guidance demonstrate we are delivering on our commitments and clearly progressing toward achieving our long‑range plan. Our underlying momentum, combined with the deliberate steps we are taking to accelerate growth and optimize our business, gives us even more confidence that we will drive long‑term sustainable growth and significant value creation.” Investors reacted negatively to the adjusted EPS miss, despite the revenue beat and guidance upgrade.
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