Solventum (SOLV) presented its latest strategy at the Wells Fargo 21st Annual Healthcare Conference on September 9, 2026. CEO Bryan Hanson and CFO Wayde McMillan said the company will concentrate on its MedSurg and Dental businesses, which together account for more than 80% of revenue, while the Healthcare Information Services (HIS) segment remains under 20%.
The firm raised its full‑year 2026 organic‑growth guidance to 2.5%‑3%, up from the prior 2%‑3% range, implying roughly 3.7% growth on a normalized basis. MedSurg posted second‑quarter organic growth of about 1.9% (adjusted for a 700‑basis‑point ERP cut‑over benefit) versus 1.2% in Q1, and is expected to expand 3.5%‑4% in the second half on an ex‑SKU basis. Dental reported Q2 organic growth of 4.8% (excluding a 10‑basis‑point ERP benefit), up from 3.4% in Q1, though back‑order recovery of 6% last year will make the second‑half comps tougher.
Operating‑margin guidance for 2026 now targets the high end of the range at about 23%, which CFO McMillan said would hit the low end of the company’s long‑range plan (LRP) of 23%‑25% two years early. The LRP for 2028 calls for 4%‑5% organic growth for the remaining businesses (RemainCo) and a 10% or better EPS compound annual growth rate over three years. Management estimates the HIS separation could dilute full‑year margin by roughly 400 basis points, with a net impact of 300‑350 basis points after accounting for $30‑$40 million of stranded costs.
SKU rationalisation is projected to add 10‑20 basis points to margins in 2026, with some carry‑over into 2027. A second‑quarter tariff refund neutralised tariff effects for the full year, meaning EPS growth would still be near double‑digit even without the refund.
Solventum plans to launch almost 20 new products through the first quarter of 2028, including the PREVENA RESTOR ARTHRO•FORM dressing and the Acera platform with its Restrata component, which is used in about 60% of negative‑pressure wound‑therapy cases. The acute‑care tissue‑matrix market tied to Acera exceeds $1 billion and is growing at double‑digit rates; the broader negative‑pressure wound‑therapy market expands in the mid‑single‑digit range, with only about 10% of eligible patients currently treated.
The company will hold an Investor Day in March 2027 to present a new long‑range plan that excludes HIS, and a Q4 earnings call in February 2027 will provide detailed 2027 guidance. Street consensus projects 2027 sales of $8.6 billion (≈3.9% organic growth) and EPS of $7.28 (≈2% YoY, or roughly 9% underlying after tariff adjustments). The stock traded near its 52‑week high of $94.16, with a six‑month return of 31.36%, and was priced around $87.45 at the time of the briefing.
