Revising Estimates to Reflect ERP Timing and Separation Cost Phasing

Research evidence excerpt

Revising Estimates to Reflect ERP Timing and Separation Cost Phasing

Macro Research

Special Situations

SOLVENTUM CORPORATION (SOLV) June 26, 2026

Revising Estimates to Reflect ERP Timing and Separation Rating:

Cost Phasing Peer Perform

Price:

$79.53

The Wolfe Byte Price Target:

Following intra-quarter commentary & a model refresh, we tweak our Adj. EPS NA

and FCF estimates to capture ERP timing and separation costs to reflect a more View SOLV Model

View Comp Table4Q weighted profile with stronger 4Q results. The revisions are timing-related &

don't alter our view of the business. Company Information

52-Week Range $62 - $86

Market Cap. (MM) $13,773

Model Revision. We're updating our estimates to capture the expected timing of Enterprise Value (MM) $18,684

separation-related activities and the company's ongoing ERP implementation. As Shares Out. (MM) 173.2

Avg. Value Traded (MM) $78.84

a result, we're lowering our near-term Adj. EPS and free cash flow estimates, SI% of Float 3.7%

primarily reflecting a greater impact from separation costs and implementation-

related spending than previously modeled. On the cash flow side, we now expect 90

a more pronounced 4Q inflection as TSA-related payments and other separation 85

80costs begin to moderate. Importantly, these revisions are largely driven by timing and

cost phasing considerations associated with the separation process rather than any 75

deterioration in underlying operating trends or change in our long-term view of the 70

business. 65

Quarterly Estimate Changes. We are lowering our FY2026E Adj. EPS estimate to Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26

$6.51 from $6.60, primarily reflecting a reduction in our 3Q26E Adj. EPS forecast to Source:SOLVFactSet

$1.48 from $1.57.