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Q4 EPS misses at $1.57 vs $1.75; 2026 organic growth guided +2%-3%; $1B buyback to begin

Solventum's Q4 EPS of $1.57 missed the $1.75 forecast and the stock fell 1.66% aftermarket, as gross margin declined 230bps sequentially to 53.5% due to logistics costs. For 2026, the company guides organic sales growth of +2.0%-3.0%, adjusted EPS of $6.40-$6.60, and free cash flow of ~$200M, with operating margin expansion to 21-21.5%. The $1B share repurchase authorization from November 2025 is expected to begin in 2026, and UBS raised its price target to $82 from $79 on March 2.