Solventum Corporation (SOLV) Stock Forecast & Price Target

Solventum is attractive because its post-spin simplification is unlocking a cleaner, higher-quality healthcare platform: HIS separation is expected to take 12-18 months, the company has exited nearly ~70% of ~200 TSAs, and management is prioritizing shareholder value through divestitures, debt paydown, and focused execution. Core businesses are showing real operating leverage, with 2Q revenue of $2,209M and organic growth of 9.5%, while MedSurg, Dental, and HIS each benefit from differentiated products, sticky customer relationships, and large underpenetrated markets, including ~80% RCM share and only ~10% NPWT penetration. The outlook is further supported by a modeled 9% CAGR in adjusted EPS, expected FCF inflection in 4Q26, and margin expansion toward the 23% to 25% range as transformation costs roll off and mix improves.

Solventum is likely to face pressure from its lower-growth profile, as medsurg now contributes about 64% of revenue while dental solutions and health information systems each contribute 18%, leaving the company dependent on a few businesses for momentum. Near-term fundamentals are also burdened by slower margin improvement, higher interest expense if rates stay elevated, heavier competition, and execution risk around HIS separation, while FY25 FCF was essentially flat and FY26 guidance still reflects only $200 million to $300 million of FCF and $7.10 to $7.20 of adjusted EPS. Although separation costs should ease after 3Q26 and FCF is expected to inflect in 4Q26, that benefit appears back-end loaded and the stock’s appeal is constrained by a materially lower growth profile than peers.