Solventum Corporation (SOLV) Stock Forecast & Price Target

Solventum is viewed favorably because the post-spin portfolio is increasingly focused on higher-quality, more differentiated healthcare franchises, with medsurg now about 64% of revenue and dental and HIS each around 18%, while purification and filtration has been sold. Management’s execution has been strong, with 2Q26 revenue of $2.209B, organic growth of 9.5%, and adj. EPS of $2.55, supported by mix-rich products, ERP cutover benefits, and a raised FY26 organic growth outlook. The case is further strengthened by clear margin levers, including sales leverage, pricing, programmatic savings, and the expected HIS separation, which should improve focus and help drive the modeled 9% CAGR in adj. EPS.

Solventum is challenged by a lower-growth profile than peers, with medsurg at roughly 64% of revenue and dental solutions and health information systems each about 18%, while downside stems from softer growth in those core segments, slower margin expansion, and heavier competition. The company also faces execution risk from the stand-alone separation, including roughly 200 TSAs, a 3Q26 peak in separation spending, and potential negative updates on HIS separation that could pressure shares. Although FY26 guidance improved to 2.5%–3.0% organic growth, $7.10–$7.20 adjusted EPS, and $200M–$300M of FCF, FY25 FCF was essentially flat and higher interest rates could keep leverage on earnings.