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Solventum Corp (SOLV) Stock Fundamental Analysis & AI Rating 2026

SOLV NYSE Surgical & Medical Instruments & Apparatus DE CIK: 0001964738
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2025-12-31
HOLD
70% Conf
Pending
Analysis scheduled

📊 SOLV Key Takeaways

Revenue: $8.3B
Net Margin: 18.7%
Free Cash Flow: $-10.0M
Current Ratio: 1.23x
Debt/Equity: 1.00x
EPS: $8.88
AI Rating: HOLD with 70% confidence
Solventum Corp (SOLV) receives a HOLD rating with 70% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $8.3B, net profit margin of 18.7%, and return on equity (ROE) of 30.8%, Solventum Corp demonstrates mixed fundamentals in the Healthcare sector. Below is our complete SOLV stock analysis for 2026.

Is Solventum Corp (SOLV) a Good Investment?

Claude

Solventum demonstrates exceptional profitability metrics (26.2% operating margin, 30.8% ROE) but faces critical sustainability concerns with essentially flat revenue growth (+0.9% YoY) and negative free cash flow despite $369M operating cash flow. The dramatic net income improvement appears driven by cost management rather than organic growth, while high leverage (1.0x debt-to-equity) combined with weak liquidity (0.89x quick ratio) creates financial risk.

Why Buy Solventum Corp Stock? SOLV Key Strengths

Claude
  • + Exceptional operating margin of 26.2% and net margin of 18.7% demonstrates pricing power and operational efficiency
  • + Outstanding ROE of 30.8% shows highly effective capital utilization
  • + Strong profitability recovery with net income +224.8% YoY and EPS growth +221.7%

SOLV Stock Risks: Solventum Corp Investment Risks

Claude
  • ! Revenue stagnation at +0.9% YoY raises serious concerns about market position and sustainable growth
  • ! Negative free cash flow despite positive operating cash flow indicates structurally capital-intensive operations
  • ! Quick ratio of 0.89x and current ratio of 1.23x suggest liquidity constraints; debt-to-equity of 1.0x is elevated for negative FCF company
  • ! Dramatic earnings growth on flat revenue suggests one-time items or cost-cutting rather than organic business strength

Key Metrics to Watch

Claude
  • * Revenue growth trajectory - must accelerate significantly beyond current 0.9% to justify leverage
  • * Free cash flow generation - achieving positive FCF is critical for sustainability
  • * Debt reduction and leverage metrics - must improve given current negative FCF profile

Solventum Corp (SOLV) Financial Metrics & Key Ratios

Revenue
$8.3B
Net Income
$1.6B
EPS (Diluted)
$8.88
Free Cash Flow
$-10.0M
Total Assets
$14.3B
Cash Position
$878.0M

💡 AI Analyst Insight

Solventum Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

SOLV Profit Margin, ROE & Profitability Analysis

Gross Margin 53.5%
Operating Margin 26.2%
Net Margin 18.7%
ROE 30.8%
ROA 10.9%
FCF Margin -0.1%

SOLV vs Healthcare Sector: How Solventum Corp Compares

How Solventum Corp compares to Healthcare sector averages

Net Margin
SOLV 18.7%
vs
Sector Avg 12.0%
SOLV Sector
ROE
SOLV 30.8%
vs
Sector Avg 15.0%
SOLV Sector
Current Ratio
SOLV 1.2x
vs
Sector Avg 2.0x
SOLV Sector
Debt/Equity
SOLV 1.0x
vs
Sector Avg 0.6x
SOLV Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Solventum Corp Stock Overvalued? SOLV Valuation Analysis 2026

Based on fundamental analysis, Solventum Corp appears fundamentally strong relative to the Healthcare sector in 2026.

Return on Equity
30.8%
Sector avg: 15%
Net Profit Margin
18.7%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.00x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Solventum Corp Balance Sheet: SOLV Debt, Cash & Liquidity

Current Ratio
1.23x
Quick Ratio
0.89x
Debt/Equity
1.00x
Debt/Assets
64.7%
Interest Coverage
N/A
Long-term Debt
$5.0B

SOLV Revenue & Earnings Growth: 5-Year Financial Trend

SOLV 5-year financial data: Year 2024: Revenue $8.3B, Net Income $1.3B, EPS $7.78. Year 2025: Revenue $8.3B, Net Income $1.3B, EPS $7.79.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Solventum Corp's revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $7.79 reflects profitable operations.

SOLV Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-0.1%
Free cash flow / Revenue

SOLV Quarterly Earnings & Performance

Quarterly financial performance data for Solventum Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $2.1B $122.0M $0.70
Q2 2025 $2.1B $89.0M $0.51
Q1 2025 $2.0B $137.0M $0.78
Q3 2024 $2.1B $122.0M $0.70
Q2 2024 $2.1B $89.0M $0.51
Q1 2024 $2.0B $237.0M $1.37

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Solventum Corp Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$369.0M
Cash generated from operations
Capital Expenditures
$379.0M
Investment in assets
Dividends
None
No dividend program

SOLV SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Solventum Corp (CIK: 0001964738)

📋 Recent SEC Filings

Date Form Document Action
Mar 30, 2026 4 xslF345X06/wk-form4_1774914319.xml View →
Mar 30, 2026 4 xslF345X06/wk-form4_1774914270.xml View →
Mar 30, 2026 4 xslF345X06/wk-form4_1774914220.xml View →
Mar 30, 2026 4 xslF345X06/wk-form4_1774914106.xml View →
Mar 30, 2026 4 xslF345X06/wk-form4_1774914055.xml View →

Frequently Asked Questions about SOLV

What is the AI rating for SOLV?

Solventum Corp (SOLV) has an AI rating of HOLD with 70% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SOLV's key strengths?

Claude: Exceptional operating margin of 26.2% and net margin of 18.7% demonstrates pricing power and operational efficiency. Outstanding ROE of 30.8% shows highly effective capital utilization.

What are the risks of investing in SOLV?

Claude: Revenue stagnation at +0.9% YoY raises serious concerns about market position and sustainable growth. Negative free cash flow despite positive operating cash flow indicates structurally capital-intensive operations.

What is SOLV's revenue and growth?

Solventum Corp reported revenue of $8.3B.

Does SOLV pay dividends?

Solventum Corp does not currently pay dividends.

Where can I find SOLV SEC filings?

Official SEC filings for Solventum Corp (CIK: 0001964738) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SOLV's EPS?

Solventum Corp has a diluted EPS of $8.88.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SOLV a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Solventum Corp has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SOLV stock overvalued or undervalued?

Valuation metrics for SOLV: ROE of 30.8% (sector avg: 15%), net margin of 18.7% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.

Should I buy SOLV stock in 2026?

Our dual AI analysis gives Solventum Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is SOLV's free cash flow?

Solventum Corp's operating cash flow is $369.0M, with capital expenditures of $379.0M. FCF margin is -0.1%.

How does SOLV compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin 18.7% (avg: 12%), ROE 30.8% (avg: 15%), current ratio 1.23 (avg: 2).

Why is SOLV's return on equity (ROE) so high?

Solventum Corp has a return on equity of 30.8%, significantly above the Healthcare sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 18.7% net margin.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 16, 2026 | Data as of: 2025-12-31 | Powered by Claude AI