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Solventum (SOLV) Q4 2025 Adjusted Diluted EPS Reaches $1.57 on 3.5% Organic Sales Growth

Solventum Corporation (NYSE:SOLV) is one of the cheap new stocks to buy now. On February 26, Solventum reported Q4 2025 financial results that exceeded expectations, despite a reported sales decline of 3.7% to $2 billion. This decrease was driven by the divestiture of the company’s Purification and Filtration business in September 2025. However, organic sales grew by 3.5%. The company achieved GAAP diluted EPS of $0.36 and adjusted diluted EPS of $1.57, fueled by debt reduction following the recent divestiture and operational efficiencies that helped offset incremental tariff headwinds.

The MedSurg segment, Solventum’s largest, led the growth with a 6.2% reported increase in Infection Prevention and Surgical Solutions. Dental Solutions also showed strong momentum with an 8.6% reported sales increase, while Health Information Systems grew by 3.7%. However, the company’s free cash flow for the quarter was $33 million, a drop from the prior year’s $92 million, reflecting the costs associated with its transformation into a standalone entity following its spin-off from 3M.

Solventum Corporation (NYSE:SOLV) introduced its full-year 2026 guidance, projecting organic sales growth between 2.0% and 3.0%. This forecast includes an estimated 100-basis-point negative impact from strategic SKU exits as the company streamlines its portfolio. Management expects adjusted EPS to range from $6.40 to $6.60 and anticipates a significant recovery in free cash flow to ~$200 million.

Solventum Corporation (NYSE:SOLV) is a healthcare company that develops, manufactures, and commercializes a portfolio of solutions to address critical customer and patient needs in the US and internationally. It has three segments: Medsurg, Dental Solutions, and Health Information Systems.

While we acknowledge the potential of SOLV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SOLV and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Dirt Cheap Stocks to Buy Now.

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