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Solventum gains after Q2 revenue rise and higher guidance
Q2 revenue increased 2.2% to $2.21 billion, and the company lifted its outlook, with adjusted EPS expected to top $7.10 at the low end of the range.
Solventum stock has moved higher as the company builds momentum from its Q2 results, including improved revenue, margins, and cash flow, MarketBeat Ratings said. The company reported revenue growth of 2.2% to $2.21 billion, which it described as beating expectations by 230 basis points, with strength across all segments and organic growth of 9.5% driven by volume and product mix.
Segment performance was led by Dental Solutions, which rose 15.2%, followed by MedSurg up 8.9%, and Health Information Systems up 5.4%. Within MedSurg, Infection Prevention and Surgical Solutions increased 10.1%, while Advanced Wound Care rose 7.1%.
The quarter also featured cash flow improvements, with free cash flow up 144%, supporting debt reduction and capital returns, despite SG&A rising 20%. Adjusted earnings per MarketBeat Ratings increased 50.9%, outpacing consensus by more than 3,300 basis points, helped by factors including tariff refunds and organic strength.
Looking ahead, Solventum raised its organic revenue growth guidance by 50 basis points at the low end and narrowed the range. The company now expects adjusted EPS to top $7.10 at the low end of the range, above its prior high-end expectation of $6.60, MarketBeat Ratings said.