SOLV · 10-Q · 2026Q3 · Full report

Operating Margin Drivers

Solventum Corp · 2026-11-05 · Importance 62 · Surprise 46

Total operating income was $68 million in the third quarter of 2026, down 96.0% from the prior-year quarter, and $327 million for the first nine months, down 84.0%. The comparison reflects the $1.5 billion gain on the Purification and Filtration business sale recorded in the third quarter and first nine months of 2025. Third-quarter segment operating income decreased 4.4% in MedSurg and 27.0% in Dental Solutions, while Health Information Systems increased 11.1%. Nine-month segment operating income increased 14.6% in MedSurg, 7.4% in Dental Solutions and 17.0% in Health Information Systems; the MedSurg improvement was primarily driven by IEEPA tariff refund receivables and cost savings.

Key facts

• Health Information Systems business segment operating income margin increased year over year, driven by price, favorable mix, and savings from Transform for the Future. source
• MedSurg third-quarter operating income margin decreased slightly year over year due to ERP order timing, higher business investments and compensation, partly offset by lower tariff costs and Transform for the Future savings. source
• MedSurg's first-nine-month operating income margin increased year over year, primarily because of recognized IEEPA tariff-refund receivables; savings programs largely offset inflation, tariffs and incremental investments. source
• Dental Solutions' third-quarter operating income margin decreased year over year, primarily due to ERP-related order timing; programmatic savings largely offset inflation and tariffs. source
• Dental Solutions' first-nine-month operating income margin increased year over year due to price and portfolio-mix benefits; programmatic savings and Transform for the Future partly offset inflation and incremental investments. source