0000066740-26-000175
SEC filingRevenue was $6.0B (1.3%) Gross Profit was $2.5B (-80.8%) Operating Income was $1.4B (12.1%) Net Income was $653.0M (-41.5%)
Business segment operating income margins decreased year-over-year, reflecting tariffs, continued growth investments, and cost dis-synergies from the exit of PFAS manufacturing, partially offset by benefits from productivity. This dynamic is consistent with management’s commentary on the structural impact of the Solventum spin-off and the ongoing transition away from PFAS-related operations.
Revenue for Q1 2026 was $6.0B, an increase of 1.3% compared to $6.0B in Q1 2025. This growth reflects organic strength in electrical, abrasives, and aerospace markets, partially offset by weakness in consumer electronics and automotive end markets. The modest expansion underscores resilience in core industrial demand despite macroeconomic headwinds and supply chain normalization.
Gross profit was $2.5B, down slightly from $2.5B in the prior-year quarter, resulting in a gross margin of 40.7%. The marginal decline in gross profit — and corresponding compression in margin — reflects cost dis-synergies associated with the exit of PFAS manufacturing and ongoing tariff impacts, partially mitigated by productivity initiatives and favorable foreign currency movements.
Operating income increased 12.1% to $1.4B, yielding an operating margin of 23.2%. This improvement reflects broad-based productivity gains and favorable foreign currency impacts, which more than offset the drag from tariffs, PFAS-related cost dis-synergies, and growth investments. Management has emphasized that these operational levers remain central to sustaining margin performance amid structural portfolio changes.
Net income was $653.0M, down 41.5% from $1.1B in Q1 2025; diluted EPS was $1.23, down 39.7% from $2.04. These declines are fully reflected in the GAAP financial statements and align with the broader context of Solventum valuation adjustments and PFAS-related matters, including litigation, regulatory scrutiny, and environmental remediation obligations.
Net cash provided by operating activities was $574M, a substantial improvement from a $79M outflow in Q1 2025. Capital expenditures were $225M, resulting in free cash flow of $349.0M. The company continues to execute against its $1.1B annual capital spending plan, prioritizing growth, productivity, and sustainability investments — consistent with long-term strategic objectives outlined in management commentary.