SO

Solventum Corporation stock research

Dec 31, 2025

FY2025 Q4

Solventum (SOLV) Gross Margin — Quarter Ended Dec 31, 2025

In the current quarter, revenue was lower while cost of revenue was slightly higher compared to both the prior quarter and the same quarter last year, resulting in a lower gross profit and a weakened gross margin. The decline in gross margin reflects a combination of reduced revenue and increased cost of revenue.

Gross margin takeaway

Quarter ended Dec 31, 2025 · FY2025 Q4

In the current quarter, revenue was lower while cost of revenue was slightly higher compared to both the prior quarter and the same quarter last year, resulting in a lower gross profit and a weakened gross margin. The decline in gross margin reflects a combination of reduced revenue and increased cost of revenue.

  • The most notable observable factor in the margin movement was the decrease in revenue relative to the increase in cost of revenue.
  • Compared to the immediate prior quarter, gross margin was lower; compared to the same quarter one year ago, gross margin was also lower. Revenue and gross profit were lower in both comparisons, while cost of revenue was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

51.4%

Gross profit

$1.0B

Revenue

$2.0B

Cost of revenue

$971.0M

Quarter-over-quarter change

-2.7 pts

Year-over-year change

-2.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2025$2.1B$1.1B$956.0M53.8%
Jun 30, 2025$2.2B$1.2B$986.0M54.4%
Sep 30, 2025$2.1B$1.1B$961.0M54.2%
Dec 31, 2025$2.0B$1.0B$971.0M51.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2025

-2.7 pts

Year-over-year change

Dec 31, 2024

-2.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most notable observable factor in the margin movement was the decrease in revenue relative to the increase in cost of revenue.

Compared to the immediate prior quarter, gross margin was lower; compared to the same quarter one year ago, gross margin was also lower. Revenue and gross profit were lower in both comparisons, while cost of revenue was higher.

Monitor the trajectory of cost of revenue relative to revenue in upcoming periods.