Solventum (NYSE: SOLV), spun off from 3M in April 2024, reported $2.1 billion in sales for the first quarter of 2025, an increase of 2.6%.
With solid revenue growth in this quarter, the company also announced yesterday evening that it is slightly bumping up its outlook for full-year organic sales.
Investors reacted by ending SOLV shares up more than 5% to $70.02 apiece by midday trading today.
The Maplewood, Minnesota–based company reported adjusted earnings per share of $1.34 for the quarter, 12¢ ahead of the consensus of Wall Street analysts, who expected EPS of $1.22 and revenue of $2.02 billion.
“During the quarter, we introduced our long-term strategic plan, and we’re focused on executing that strategy to drive sustainable growth and value creation while navigating through evolving macro trends and other short-term pressures,” said CEO Bryan Hanson.
In March, Solventum laid off 800 employees as part of a restructuring plan that is expected to save the company $120 million per year. This move was a part of its three-step transformation plan.
The second step of the plan, “enhance strategic focus,” is geared toward revenue, margin and cash flow improvement. In the third step, Solventum aims to optimize its portfolio. For example it sold its P&F business — the divestiture is expected to be completed by the end of this year — and the resulting capital could be put toward M&A opportunities.
Solventum revised its initial full-year guidance for organic sales growth by 50 bps to +1.5% to +2.5%. Its adjusted earnings per share guidance ($5.45 to $5.65) and free cash flow ($450 million to $550 million) remains unchanged.
Hanson opened the discussion on the company’s earnings call by addressing the issue of tariffs, a pressure being felt by most medical device companies. Solventum is expecting tariffs to have an impact of $80 to $100 million on profitability.
“To be clear, tariffs will be a headwind for us this year. And without them, we would be raising our EPS guidance commensurate with the underlying momentum we’re seeing in the business,” Hanson said on the call.
While Solventum is navigating a challenging environment, it reported positive performance across its four segments: dental solutions, MedSurg, health information systems and purification and filtration.
Carrie Pallardy is a freelance writer and editor based in Chicago. She has more than a decade of experience writing and reporting in the healthcare space.
