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Solventum Corp (SOLV) Fundamental Analysis & AI Grade 2026

SOLV NYSE Surgical & Medical Instruments & Apparatus DE CIK: 0001964738
Updated This Month • Analysis: May 7, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
75% Confidence
N/A
C
75% Conf
Pending
Analysis scheduled

📊 SOLV Key Takeaways

Revenue: $2.0B
Net Margin: 0.6%
Free Cash Flow: $-273.0M
Current Ratio: 1.07x
Debt/Equity: 0.92x
EPS: $0.07
AI Grade: C with 75% confidence
Solventum Corp (SOLV) receives a C fundamental grade with 75% confidence from our AI analysis based on SEC 10-K filings. With revenue of $2.0B, net profit margin of 0.6%, and return on equity (ROE) of 0.3%, 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 generates substantial revenue ($2.0B) with adequate gross margins (54.7%), but faces critical operational challenges with negative operating cash flow (-$189M) and profitability struggles (0.6% net margin, 0.3% ROE). The company is burning cash operationally while carrying $4.6B debt, creating financial stress that requires substantial operational improvement before fundamental recovery.

Solventum Corp Key Strengths (SOLV)

Claude
  • + Gross margin of 54.7% indicates reasonable pricing power and product quality in medical devices sector
  • + Maintains $561M cash balance and $2.0B revenue base providing operational runway
  • + Medical device sector has structurally stable demand fundamentals

SOLV Stock Risks: Solventum Corp Investment Risks

Claude
  • ! Negative operating cash flow of -$189M indicates core business model is not generating cash despite revenue
  • ! Extremely low profitability with 0.6% net margin and abysmal 0.3% ROE/0.1% ROA suggesting operational inefficiency
  • ! Deteriorating liquidity position with current ratio of 1.07x and quick ratio of 0.75x combined with $4.6B debt burden

Key Metrics to Watch

Claude
  • * Operating cash flow inflection point - must turn positive to validate business health
  • * Operating margin expansion trajectory - need 8-10%+ target to sustain leverage
  • * Revenue growth acceleration - 0.9% YoY is insufficient for debt service sustainability

Solventum Corp (SOLV) Financial Metrics & Key Ratios

Revenue
$2.0B
Net Income
$13.0M
EPS (Diluted)
$0.07
Free Cash Flow
$-273.0M
Total Assets
$14.1B
Cash Position
$561.0M

💡 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 54.7%
Operating Margin 4.0%
Net Margin 0.6%
ROE 0.3%
ROA 0.1%
FCF Margin -13.6%

SOLV vs Healthcare Sector: How Solventum Corp Compares

How Solventum Corp compares to Healthcare sector averages

Net Margin
SOLV 0.6%
vs
Sector Avg 12.0%
SOLV Sector
ROE
SOLV 0.3%
vs
Sector Avg 15.0%
SOLV Sector
Current Ratio
SOLV 1.1x
vs
Sector Avg 2.0x
SOLV Sector
Debt/Equity
SOLV 0.9x
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 shows some fundamental concerns relative to the Healthcare sector in 2026.

Return on Equity
0.3%
Sector avg: 15%
Net Profit Margin
0.6%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.92x
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
1.07x
Quick Ratio
0.75x
Debt/Equity
0.92x
Debt/Assets
64.8%
Interest Coverage
N/A
Long-term Debt
$4.6B

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
-13.6%
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
Q1 2026 $2.0B $13.0M $0.07
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
-$189.0M
Cash generated from operations
Stock Buybacks
$67.0M
Shares repurchased (TTM)
Capital Expenditures
$84.0M
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
May 27, 2026 8-K solv-20260521.htm View →
May 20, 2026 8-K solv-20260515.htm View →
May 18, 2026 4 xslF345X06/wk-form4_1779140395.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779140353.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779140330.xml View →

Frequently Asked Questions about SOLV

What is the AI rating for SOLV?

Solventum Corp (SOLV) has an AI grade of C with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SOLV's key strengths?

Claude: Gross margin of 54.7% indicates reasonable pricing power and product quality in medical devices sector. Maintains $561M cash balance and $2.0B revenue base providing operational runway.

What are the risks of investing in SOLV?

Claude: Negative operating cash flow of -$189M indicates core business model is not generating cash despite revenue. Extremely low profitability with 0.6% net margin and abysmal 0.3% ROE/0.1% ROA suggesting operational inefficiency.

What is SOLV's revenue and growth?

Solventum Corp reported revenue of $2.0B.

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 $0.07.

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 grade reflects both perspectives for balanced insights.

What is SOLV's fundamental grade?

Based on our AI fundamental analysis in May 2026, Solventum Corp has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SOLV stock overvalued or undervalued?

Valuation metrics for SOLV: ROE of 0.3% (sector avg: 15%), net margin of 0.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is SOLV's AI grade for 2026?

Our dual AI analysis gives Solventum Corp a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SOLV's free cash flow?

Solventum Corp's operating cash flow is $-189.0M, with capital expenditures of $84.0M. FCF margin is -13.6%.

How does SOLV compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin 0.6% (avg: 12%), ROE 0.3% (avg: 15%), current ratio 1.07 (avg: 2).

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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: May 7, 2026 | Data as of: 2026-03-31 | Powered by Claude AI