Solventum Q3 2026: ERP headwind clears, EPS guidance lifted to $7.20 to $7.30

Solventum posted adjusted earnings per share of $1.45 for the third quarter of 2026, beating the consensus estimate of $1.34. Revenue came in at $1.95 billion, also beating expectations. The beat extended the company's streak of topping EPS estimates to five consecutive quarters.

Reported sales fell 7% year over year, a decline management had flagged well in advance. An ERP system cutover, the company's largest to date, pulled customer orders forward into Q2, creating a 630-basis-point drag on organic sales in Q3. With that transition now complete, the distortion will not repeat.

CEO Bryan Hanson said every segment contributed to results coming in ahead of expectations. Advanced Wound Care stood out, growing 8.9% on a reported basis, helped by the Acera Surgical acquisition. Health Information Systems expanded its operating margin to 41.7% from 38.8% a year earlier. Dental Solutions and Infection Prevention and Surgical Solutions both posted organic declines.

With the ERP disruption behind it, Solventum raised its full-year adjusted EPS guidance to $7.20 to $7.30, up from a prior range of $7.10 to $7.20. The company also said it expects organic sales growth toward the high end of its existing range and affirmed its full-year free cash flow outlook of $200 million to $300 million. Free cash flow for the quarter came in ahead of expectations, helped in part by an IEEPA tariff refund.

The separation from former parent 3M is now more than 90% complete, with roughly 90% of transition service agreements already exited. Management highlighted a planned strategic review of the Health Information Systems business as another catalyst, alongside the ongoing Transform for the Future restructuring program. With the ERP cutover and the 3M separation largely resolved, investors will be watching whether the cleaner operating environment translates into accelerating organic sales growth in the quarters ahead.