Solventum Corp Q1 FY2026 earnings call

Brian thanks the global team for their work. They delivered first quarter results ahead of plan. Organic sales growth and EPS both exceeded our plan. Strong performance across all segments. Transformation journey is working. We've rebuilt our commercial engine. Transform for the Future program is a multi - year $500 million savings program. Portfolio optimization is ongoing with progress in skew rationalization, P&F divestiture, and Acera acquisition

MedSurge is the largest business. We continue to see strong underlying performance in our growth driver areas. Negative pressure wound therapy was led by ongoing demand for traditional and single - use therapy, continued expansion of our back peel - in - place dressing, and, of course, our specialized sales force. With Acera, it opens the door to the fast - growth acute care synthetic tissue space. In our infection prevention and surgical solutions business, Tegaderm CHG remains a consistent performer as our team successfully upsell this important clinical solution, and we're encouraged by the adoption of the recent attest sterilization product launches as well. Our dental solution segment delivered 354 million in sales, an increase of 3.4 percent on an organic basis. Growth was driven by innovation as well as separation - related timing benefits. Core restoratives led overall performance. Our health information systems had another strong result with 342 million in sales, an increase of 4.7% on an organic basis, driven by strength across revenue cycle management and performance management solutions, offset by expected double - digit declines in clinician productivity solutions

Maintain our full year organic sales growth and free cash flow guidance as provided on our fourth quarter call. Following the better than expected start to the year, we now estimate that our earnings per share will be toward the high end of our initial $6.40 to $6.60 range. We also estimate over 100 million of sales timing benefit in Q2 that we expect will reverse in 2026, mostly in Q3

None explicitly discussed in detail in the provided transcript

Q: Brett Fishman asks about ERP event phasing and segment impact.

A: Wade explains over 100 million sales benefit in Q2 for IPSS and dental, offset in second half.

Q: David Roman asks about volume vs mix and share repurchase.

A: Volume is major growth driver, share repurchase is balanced with M&A.

Q: Ryan Zimmerman asks about Asia ERP cutover impact.

A: Successful Asia Pacific ERP cutover, 70 basis points from order pull forward.

Q: Travis Speed asks about portfolio optimization value.

A: Looking to unlock shareholder value, Acera is a good example.

Q: Rick White asks about Q2 EPS.

A: Q2 should see improvement in EPS due to higher sales and margins.

Q: Steven Veliket asks about HIS segment autonomous coding mix.

A: Progress in autonomous coding, expecting close to 50% of customers to move to it.

Q: David Roman asks about Q2 guidance and 2026 growth.

A: Don't change Q2 models, 2026 growth expected to improve