--- canonical_url: https://www.stockexpertai.com/earnings/solv last_updated: 2026-05-09T16:08:23.040Z --- # Solventum Corporation (SOLV) Q1 FY2027 Earnings Preview > This content was automatically generated with FMP live data + Q1 FY2026 earnings call transcript. Generated: 2026-05-09T16:08:22.495Z. Educational tool, not investment advice. --- ## Quick Summary | Field | Value | Source | |---|---|---| | Price | $73.38 (▲ 2.41%) | fmp:quote | | Market Cap | $12.7B | fmp:profile | | 52w range | $62.38 – $88.20 | fmp:quote | | Earnings | Thu 6 Aug | fmp:earnings-history | | EPS estimate | $1.93 (+14% YoY) | fmp:earnings-estimate | | Revenue estimate | $2.2B | fmp:earnings-estimate | | Beat streak | 8/4 | fmp:earnings-history | | Rating | A (overall 4/5) | fmp:ratings | | Analyst median target | $93 (+26.1% upside) | fmp:price-target-consensus | | MoonshotScore | 37/100 | derived | | Council | 5/6 bullish | derived | | Munger verdict | Undervalued | derived | ## Solventum Corporation — Q1 FY2027 Expectations Q1 consensus: revenue $2.2B^{[FMP est]}, EPS $1.93^{[FMP est]}. 8 consecutive quarters of beat^{[FMP earnings]}. ## Quick Take **Score:** A · **Stance:** BUY · **Council:** 5/6 · **Moonshot:** 37 = MoonshotScore 37^{[9-pillar formula]} + Council 5/6^{[6-lens rule]}. Form 4: 0 transactions^{[FMP Form 4]}. ## Watchlist (3 metrics) ### 1. ERP Cutover Impact The company anticipates over $100 million of sales timing benefit in Q2 due to the upcoming ERP cutover in the U.S., with most of it expected to reverse in Q3. > "We estimate over $100 million of sales timing benefit in Q2 that we expect will reverse in 2026, mostly in Q3." > — Wayde McMillan, CFO, Investor Focus · Q1 FY2026 ### 2. Transform For The Future The company's Transform for the Future program is a multiyear $500 million savings program aimed at freeing up resources to invest for the long term by streamlining systems, increasing automation, and optimizing its global footprint. > "As a reminder, our Transform for the Future program is a multiyear $500 million savings program. It is our way of proactively reshaping our operating structure while freeing up resources to invest for the long term." > — Bryan Hanson, CEO, Investor Focus · Q1 FY2026 ### 3. Acera Acquisition The acquisition of Acera is a proof point of the company's growth strategy, providing entry into the fast-growth acute care synthetic tissue space and fitting perfectly into its existing advanced wound care infrastructure. > "With Acera, it opens the door to the fast-growth acute care synthetic tissue space and really slots perfectly into our advanced wound care infrastructure." > — Bryan Hanson, CEO, Investor Focus · Q1 FY2026 ## MoonshotScore Pillars | Pillar | Score | Level | Evidence | |---|---|---|---| | Revenue Growth | 0.0 | weak | Q1 vs Q2: growth negative (-7.1%, contraction) | | Gross Margin | 5.0 | medium | Q1: high margin (54.7%) | | Operating Leverage | 0.0 | weak | op margin weak (4.0%, under pressure) | | Cash Runway | 3.0 | weak | FCF negative ($-0.3B, external financing needed) | | R&D Intensity | 7.0 | strong | balanced R&D investment (8.9%) | | Price Momentum | 7.0 | strong | RSI 66.7 positive momentum, 50d above | | News Sentiment | 4.0 | medium | mixed (43% buy) | **Formula:** sum(pillar.score) / (count * 10) * 100. Each pillar deterministic from FMP. Source maps in pillar.formula. ## Council (7-Lens) | Name | Stance | Context | |---|---|---| | Ray Dalio | bull | macro · target upside +26.1% | | Ken Griffin | bull | flow · 50d MA above | | Jim Simons | neutral | quant · RSI 67 | | Klarman | bull | value · target upside +26.1% | | Buffett | bull | quality · ROE score 5/5 | | Munger | bull | valuation · target upside +26.1% | **Formula:** Each lens uses deterministic rule on bundle data. Logged in member.contextTr. ## Munger Lens - **Verdict:** Undervalued - **Financial Health:** Strong - **Margin of Safety:** Strong - **Interest Coverage:** Adequate - **ROIC vs WACC:** Healthy **Formula:** verdict=upside>25?Undervalued:>0?Fairly Valued:Overvalued. Each lens deterministic from FMP ratings + priceTarget. ## Technical Levels - **RSI(14):** 66.7 — yükselişte nötr — overbought sınırının altında, momentum pozitif - **50d MA:** $68 — hisse %8.4 üstünde — kısa vadeli destek - **200d MA:** $74 — hisse %0.6 altında — uzun vadeli baskı - **Volume (10d):** +5% ## Past Performance (4 Quarters) | Quarter | EPS Actual | EPS Estimate | Result | Reaction | |---|---|---|---|---| | Q2 FY25 | $1.69 | $1.45 | BEAT | +2.0% | | Q3 FY25 | $1.50 | $1.43 | BEAT | +7.9% | | Q4 FY25 | $1.57 | $1.50 | BEAT | -3.6% | | Q1 FY26 | $1.48 | $1.35 | +9.6% EPS | +2.8% | Q1 (May 5, 2026): EPS $1.48 vs $1.35 est^[FMP], +9.6% beat. D+1 movement: +2.8%^{[FMP D+1]}. Decline despite beat — market reacted to guidance, not numbers. ## 3 Scenarios ### Scenario A · Beat **Q1 EPS > $1.93 + CapEx discipline** Threshold: EPS > $1.93^{[FMP est]}. Target: Break above median target $93^{[FMP target]}; high target $100^[FMP] upper bound. ### Scenario B · In-Line **EPS ≈ $1.93 + CapEx < $84.0M** Threshold: EPS ≈ $1.93^{[FMP est]}, Q1 CapEx < $84.0M^[FMP]. Target: Consolidation in the band between current $73^[FMP] and median $93^[FMP]. ### Scenario C · Miss **EPS < $1.87 or CapEx ≥ $84.0M** Threshold: EPS < $1.87^{[FMP est×0.97]}. Target: Current $73 below SMA200 $74^[FMP], if rejection continues, $63^[derived] support activates. ## Risk Notes ### Primary segment below threshold Q1: EPS $1.48 vs $1.35 beat^[FMP], stock +2.8% D+1^[FMP]. ### Backlog concentration No RPO/backlog concentration disclosed in Q1 earnings call. ### Insider trading Form 4 data is marked in the table — this page does not generate assumptions for this stock. | Executive | Action | Amount | Date | |---|---|---|---| **Net:** — (0 transactions · 0 sells · 0 buys) · Q1 FY26 ### CapEx shock Q1 CapEx $84.0M^{[FMP cashflow]}. Q1 op margin 4.0%^{[FMP op margin]} — this level in Q1 is sensitive to CapEx revision risk. ## Wall Street Consensus - **Median target:** $93 (+26.1% upside vs current $73) - **High / Low:** $100 / $78 - **Buy / Hold / Sell:** 6 / 6 / 2 - **Analyst count:** 5 (last quarter), 20 all-time ## Additional Transcript Insights ### 1. ERP_cutover_impact **Claim:** The company anticipates over $100 million of sales timing benefit in Q2 due to the upcoming ERP cutover in the U.S., with most of it expected to reverse in Q3. **Evidence (transcript):** "We estimate over $100 million of sales timing benefit in Q2 that we expect will reverse in 2026, mostly in Q3." **Numbers:** $100 million, 2026 ### 2. transform_for_the_future **Claim:** The company's Transform for the Future program is a multiyear $500 million savings program aimed at freeing up resources to invest for the long term by streamlining systems, increasing automation, and optimizing its global footprint. **Evidence (transcript):** "As a reminder, our Transform for the Future program is a multiyear $500 million savings program. It is our way of proactively reshaping our operating structure while freeing up resources to invest for the long term." **Numbers:** $500 million ### 3. acera_acquisition **Claim:** The acquisition of Acera is a proof point of the company's growth strategy, providing entry into the fast-growth acute care synthetic tissue space and fitting perfectly into its existing advanced wound care infrastructure. **Evidence (transcript):** "With Acera, it opens the door to the fast-growth acute care synthetic tissue space and really slots perfectly into our advanced wound care infrastructure." **Numbers:** — --- *Data source: FMP (live query, 2026-05-09), Q1 FY2026 earnings call transcript (Translated to EN with Gemini 2.0 Flash). Educational tool, not investment advice.*