Technology

Solventum Reports Second Quarter 2026 Financial Results

Published

2 hours ago

August 5, 2026

Reported sales increased 2.2%; organic sales increased 9.5%Announces intent to separate its Health Information Systems business segmentIncreases full-year 2026 guidance for organic sales growth, adjusted EPS and free cash flow

EAGAN, Minn., Aug. 5, 2026 /PRNewswire/ — Solventum (NYSE: SOLV) today reported financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Highlights

Sales of $2.2 billion, increased 2.2% on a reported basis; an increase of 9.5% on an organic basisGAAP diluted earnings per share of $0.53; adjusted diluted earnings per share of $2.55, a 50.9% increaseOperating cash flow of $227 million; free cash flow of $144 million

“The Solventum team delivered another quarter of strong execution with results ahead of our expectations while continuing to advance our transformation,” said Bryan Hanson, chief executive officer of Solventum. “We remain on track to achieve our long-term objectives as we build a more focused, dedicated MedTech company, well-positioned to create long-term shareholder value.”

Second Quarter and First Six Months 2026 Financial Results

Three months ended June 30,

Six Months Ended June 30,

(Dollars in millions, except per share amounts)

2026

2025

Year-over-year
change

2026

2025

Year over year
change

Net sales

$ 2,209

$ 2,161

2.2 %

$ 4,216

$ 4,231

(0.4) %

Selling, general and administrative
expenses

$ 927

$ 772

20.1 %

$ 1,754

$ 1,541

13.8 %

Research and development
expenses

$ 178

$ 189

(5.8) %

$ 367

$ 381

(3.7) %

Operating income margin

8.2 %

9.9 %

(170) bps

6.2 %

8.7 %

(250) bps

Adjusted operating income margin1

28.4 %

21.9 %

650 bps

24.2 %

20.8 %

340 bps

Net income

$ 92

$ 90

2.2 %

$ 105

$ 227

(53.7) %

Diluted earnings per
share

$ 0.53

$ 0.51

3.9 %

$ 0.60

$ 1.30

(53.8) %

Adjusted diluted earnings per share1

$ 2.55

$ 1.69

50.9 %

$ 4.02

$ 3.03

32.7 %

Net cash provided by (used in)
operating activities

$ 227

$ 169

34.3 %

$ 38

$ 198

(80.8) %

Free cash flow1

$ 144

$ 59

144.1 %

$ (129)

$ (21)

(514.3) %

Represents non-GAAP financial measure; see the “Non-GAAP Financial Measures” section for applicable information.

Discussion of Second Quarter Results
All comparisons are to the prior year period unless otherwise noted

Organic sales growth of +9.5% in the quarter reflects strong performance across all reportable segments, primarily driven by volume and product mix and including the expected benefit of advance orders placed ahead of ERP cutovers.GAAP and adjusted gross margin both increased, driven by IEEPA tariff refund.GAAP selling, general and administrative expenses increased primarily due to higher costs associated with separation activities and net legal costs. Adjusted SG&A as a percent of sales was 26.0%, a decrease of 130 bps vs. prior year.GAAP operating income margin decreased, primarily driven by net legal costs, separation and restructuring costs. Adjusted operating income margin increased primarily due to a combination of IEEPA tariff refund and ERP-timing benefit.Operating cash flow for the quarter was $227 million and free cash flow was $144 million, ahead of expectations driven by timing of tax payments and insurance proceeds.

Other Business and Operational Highlights

Announced the intent to separate its Health Information Systems business segment as part of the portfolio optimization phase of its transformation strategy. The proposed separation is expected to strengthen Solventum’s focus as a dedicated MedTech company while enabling both businesses to pursue distinct growth and innovation priorities.The Solventum Foundation announced a $350,000 grant to America’s ToothFairy to expand access to oral health screenings, dental education and fluoride treatment for more than 100,000 children and caregivers in underserved communities over the next year.For the second year in a row, named a Best Company to Work For by U.S. News & World Report in the categories of ‘Health Care and Research’ and ‘Midwest.’

Segment and Total Company Net Sales for Second Quarter and First Six Months*

Three months ended June 30,

Increase/(Decrease)

(Dollars in millions)

2026

2025

Reported
growth

Currency
impact

Constant
currency2

Other3

Organic
growth

Advanced Wound Care

$ 537

$ 467

14.9 %

1.0 %

13.9 %

6.8 %

7.1 %

Infection Prevention and
Surgical Solutions

836

750

11.3

1.2

10.1

—

10.1

MedSurg

1,372

1,218

12.7

1.1

11.6

2.7

8.9

Dental Solutions

396

338

17.0

1.8

15.2

—

15.2

Health Information Systems

354

339

4.4

0.2

4.2

(1.2)

5.4

Total reportable segment
net sales

2,122

1,895

Purification and Filtration

—

189

All Other4

11.8

1.2

10.6

—

10.6

Total Company

$ 2,209

$ 2,161

2.2 %

1.0 %

1.2 %

(8.3) %

9.5 %

Six months ended June 30,

Increase/(Decrease)

(Dollars in millions)

2026

2025

Reported
growth

Currency
impact

Constant
currency2

Other3

Organic
growth

Advanced Wound Care

$ 1,034

$ 915

12.9 %

1.7 %

11.2 %

6.6 %

4.6 %

Infection Prevention and
Surgical Solutions

1,573

1,460

7.7

2.2

5.5

—

5.5

MedSurg

2,607

2,375

9.7

2.0

7.7

2.6

5.1

Dental Solutions

750

667

12.5

3.1

9.4

—

9.4

Health Information Systems

696

667

4.3

0.5

3.8

(1.3)

5.1

Total reportable segment
net sales

4,053

3,709

Purification and Filtration

—

369

All Other4

163

153

6.4

1.7

4.7

—

4.7

Total Company

$ 4,216

$ 4,231

(0.4) %

1.8 %

(2.2) %

(8.0) %

5.8 %

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum. “NM” reflects results considered not meaningful due to sale of the Purification and Filtration business in September 2025.

Constant currency represents the change in net sales absent the impact on sales from foreign currency translation.

Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Acquisitions include sales from the December 2025 acquisition of Acera. Divestitures primarily represents lost sales from the Company’s Purification and Filtration business that was sold in September 2025.

All Other includes the Drinking Water business, which was previously reported within Purification and Filtration, and sales related to product supplied to 3M and other supply agreements related to legacy 3M business and assumed by the Company at Spin-Off.

Full-Year 2026 Guidance
Solventum is updating its full year 2026 guidance as follows:

Increased organic sales growth range to +2.5% to +3.0% (+3.5% to +4.0% excluding ~100 bps of SKU exit impact); from prior range of +2.0% to +3.0%Increased adjusted EPS range to $7.10 to $7.20; from the upper end of prior range of $6.40 to $6.60Increased free cash flow to be in the range of $200 million to $300 million; from prior estimate of ~$200M

Organic sales, adjusted diluted EPS and free cash flow amounts included in Solventum’s full-year guidance are non-GAAP financial measures. Solventum does not provide reconciliations of the forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items, such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items.

See the “Non-GAAP Financial Measures” section for explanations of our non-GAAP financial measures.

Earnings Conference Call
Solventum will host a conference call today, August 5, at 4:30 p.m. Eastern Time to discuss its second quarter financial results and fiscal year 2026 outlook. The conference call can be accessed via audio webcast at investors.solventum.com or by dialing (800) 715-9871 within the U.S. or +1 (646) 307-1963 for international callers, using the conference ID 6342275.

A replay of the webcast, along with the earnings press release, slides highlighting the results and supplemental financial disclosures, will also be available at the same link on the Investor Relations section of the Company’s website.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 that are subject to risks and uncertainties. Solventum intends the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Forward-looking statements include all statements that are not historical facts, but instead represent only Solventum’s beliefs regarding future goals, plans and expectations about its prospects for the future and other events, many of which, by their nature, are inherently uncertain and outside of Solventum’s control. Forward-looking statements include those containing such words as “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “outlook,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,” “would,” or other words of similar meaning in connection with any discussion of future operating or financial performance, business plans or prospects, Solventum’s review of strategic alternatives for its health information systems business, or the potential benefits of any such strategic alternatives or transaction.

Among the factors that could cause actual results to differ materially from those described in our forward-looking statements are the following: (1) whether Solventum will be able to identify or develop any strategic alternatives for Solventum’s health information systems business; (2) Solventum’s ability to execute on material aspects of any strategic alternatives that are identified and pursued; (3) whether Solventum can actually achieve the potential benefits of any strategic alternatives; (4) the occurrence of any event, change or other circumstances that could give rise to the abandonment of the review of strategic alternatives or pursuit of a different structure or strategic alternative; (5) uncertainties as to the timing of the review of strategic alternatives; (6) the effects of, and changes in, worldwide economic, political, regulatory, international, trade and geopolitical conditions, natural disasters, war, public health crises and other events beyond Solventum’s control; (7) operational execution risks; (8) damage to Solventum’s reputation or its brands; (9) risks from acquisitions, strategic alliances, divestitures and other strategic events; (10) Solventum’s business dealings involving third-party partners in various markets; (11) Solventum’s ability to access the capital and credit markets and changes in Solventum’s credit ratings; (12) exposure to interest rate and currency risks; (13) the highly competitive environment in which Solventum operates and consolidation in the healthcare industry; (14) reduction in customers’ research budgets or government funding; (15) the timing and market acceptance of Solventum’s new product and service offerings; (16) ongoing working relationships with certain key healthcare professionals; (17) changes in reimbursement practices of governments or private payers or other cost containment measures; (18) Solventum’s ability to obtain components or raw materials supplied by third parties and other manufacturing and related supply chain difficulties, interruptions and disruptive factors; (19) legal and regulatory proceedings and legal compliance risks (including third-party risks) with regards to antitrust, FCPA and other anti-bribery laws, environmental laws, anti-kickback and false claims laws, privacy laws, product liability claims, tax laws, and other laws and regulations in the United States and other countries in which Solventum operates; (20) potential liabilities related to per-and polyfluoroalkyl substances, collectively known as “PFAS”; (21) risks related to the highly regulated environment in which Solventum operates; (22) risks associated with product liability claims; (23) climate change and measures to address climate change; (24) security breaches and other disruptions to information technology infrastructure; (25) artificial intelligence risks; (26) Solventum’s failure to obtain, maintain, protect or effectively enforce its intellectual property rights; (27) pension and postretirement obligation liabilities; (28) Solventum’s separation from 3M and performance as a standalone company, including the tax-free nature of the spin and its ability to execute on its short- and long-range plans and capital allocation strategies; and (29) restructuring programs, and other risks and uncertainties described in Solventum’s filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

The above list is not exhaustive or necessarily set forth in the order of importance. Forward-looking statements are based on certain assumptions and expectations of future events and trends, and actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. A further description of these factors is located under “Cautionary Note Concerning Forward-Looking Statements” and “Risk Factors” in Solventum’s periodic reports on file with the U.S. Securities & Exchange Commission. Solventum assumes no obligation to update any forward-looking statements discussed herein as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S. GAAP, Solventum also provides non-GAAP measures that we use, and plan to continue using, when monitoring and evaluating operating performance and measuring cash available to invest in our business. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP financial measures are supplemental measures of our performance and our liquidity that we believe help investors understand our underlying business performance and Solventum uses these measures as an indication of the strength of Solventum and its ability to generate cash.

Solventum calculates forward-looking non-GAAP financial measures, including organic sales growth, adjusted gross margin, adjusted operating income, adjusted operating income margin, adjusted effective tax rate, adjusted diluted earnings per share and free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. Solventum does not provide reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items. The timing and amounts of these items are uncertain and could have a material impact on Solventum’s results in accordance with GAAP.

The Q2 2026 financial statements and financial information, including reconciliations of non-GAAP financial measures, are available on Solventum’s website: investors.solventum.com.

About Solventum
At Solventum, we enable better, smarter, safer healthcare to improve lives. As a new company with a long legacy of creating breakthrough solutions for our customers’ toughest challenges, we pioneer game-changing innovations at the intersection of health, material and data science that change patients’ lives for the better — while empowering healthcare professionals to perform at their best. See how at Solventum.com.

Solventum Investor Contact:
investors@solventum.com

Solventum Media Contact:
news@solventum.com

Solventum Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME*
(Dollars in millions, except per-share data)
(Unaudited)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Net sales of product

$ 1,698

$ 1,668

$ 3,211

$ 3,265

Net sales of software and rentals

511

493

1,005

966

Total net sales

2,209

2,161

4,216

4,231

Cost of product

807

865

1,603

1,700

Cost of software and rentals

116

121

231

242

Gross profit

1,286

1,175

2,382

2,289

Selling, general and administrative expenses

927

772

1,754

1,541

Research and development expenses

178

189

367

381

Operating income

181

214

262

367

Interest expense, net

103

125

207

Other expense (income), net

Income before income taxes

108

103

123

141

Provision for (benefit from) income taxes

(86)

Net income

$ 92

$ 90

$ 105

$ 227

Earnings per share:

Basic earnings per share

$ 0.53

$ 0.52

$ 0.60

$ 1.31

Diluted earnings per share

0.53

0.51

0.60

1.30

Weighted-average number of shares outstanding:

Basic

172.7

174.1

173.5

173.9

Diluted

173.3

175.2

174.4

175.0

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

Solventum Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS*
(Dollars in millions, except per-share data)
(Unaudited)

June 30,

December 31,

2026

2025

Assets

Current assets

Cash and cash equivalents

$ 403

$ 878

Accounts receivable — net of allowances of $82 and $87

1,310

1,034

Due from related parties

122

150

Inventories

Finished goods

573

636

Work in process

218

201

Raw materials and supplies

249

229

Total inventories

1,040

1,066

Other current assets

865

731

Total current assets

3,741

3,859

Property, plant and equipment — net

1,565

1,326

Goodwill

5,626

5,704

Intangible assets — net

2,408

2,592

Other assets

904

814

Total assets

$ 14,243

$ 14,294

Liabilities

Current liabilities

Short-term borrowings and current portion of long-term debt

$ 506

$ —

Accounts payable

701

687

Due to related parties

331

435

Unearned revenue

596

621

Other current liabilities

1,528

1,393

Total current liabilities

3,663

3,136

Long-term debt

4,573

5,035

Pension and postretirement benefits

358

363

Deferred income taxes

157

164

Finance leases

207

—

Other liabilities

486

547

Total liabilities

$ 9,443

$ 9,245

Equity

Common stock, par value $0.01 per share, 750,000,000 shares authorized

$ 2

Shares – June 30, 2026: issued: 174,889,899; outstanding: 170,113,551

Shares – December 31, 2025: issued and outstanding: 173,490,864

Additional paid-in capital

3,919

3,876

Retained earnings

1,902

1,797

Treasury stock, at cost

(355)

—

Shares – June 30, 2026: 4,776,348

Shares – December 31, 2025: —

Accumulated other comprehensive income (loss)

(669)

(625)

Total equity

4,800

5,049

Total liabilities and equity

$ 14,243

$ 14,294

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

Solventum Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS*
(Dollars in millions)
(Unaudited)

Six months ended June 30,

2026

2025

Cash flows from operating activities

Net income

$ 105

$ 227

Adjustments to reconcile net income to net cash provided by (used in) operating activities

Depreciation and amortization

268

251

Pension and postretirement benefit expense

Stock-based compensation expense

Deferred income taxes

(88)

(177)

Changes in assets and liabilities

Accounts receivable

(286)

(15)

Due from related parties

Inventories

(77)

Accounts payable

Due to related parties

(117)

(6)

Accrued compensation

(101)

(47)

All other operating activities — net

(100)

Net cash provided by operating activities

198

Cash flows from investing activities

Purchases of property, plant and equipment

(167)

(219)

Other — net

(5)

Net cash used in investing activities

(164)

(224)

Cash flows from financing activities

Repayment of debt

—

(200)

Proceeds from debt, net of issuance costs

—

Net transfers from (to) 3M

(30)

Purchases of treasury stock

(355)

—

Other — net

(44)

(19)

Net cash used in financing activities

(350)

(249)

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

(475)

(268)

Cash and cash equivalents at beginning of period

878

762

Less: Cash and cash equivalents within held for sale

—

(2)

Cash and cash equivalents at end of period

$ 403

$ 492

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

Solventum Corporation
BUSINESS SEGMENTS – (CONTINUED)*
(Unaudited)

The Company’s operating activities are primarily managed through three segments: MedSurg, Dental Solutions, and Health Information Systems.

MedSurg provides:Advanced wound care products such as negative pressure wound therapy, advanced wound dressings, advanced skin care, and synthetic tissue matrices; andInfection prevention and surgical solutions products, such as I.V. site management, sterilization assurance, temperature management, surgical supplies, medical tapes and wraps, stethoscopes, medical electrodes, and medical technologies Original Equipment Manufacturer (“OEM”).Dental Solutions provides dental and orthodontic products, including brackets, aligners, restorative cements, and bonding agents that span the “life of the tooth,” including products designed for preventative dental care, direct and indirect restoration, and broad orthodontic needs.

Health Information Systems provides healthcare systems with software solutions — including computer-assisted physician documentation, direct-to-bill and coding automation, classification methodologies, speech recognition, and data visualization platforms — that are designed to eliminate revenue cycle waste, create more time for patient care, and support value-based care.

Purification and Filtration consists of filters and membranes for biopharmaceutical and medical technologies, as well as microelectronics and food and beverage that were reported prior to the sale of the business in September 2025.

All Other primarily consists of our drinking water filtration business that was retained after the sale of the Purification and Filtration Business. All Other also includes sales and cost of sales related to our agreements to supply 3M and other supply agreements assumed by the Company at Spin-Off related to legacy 3M businesses, which were historically included within Corporate and Unallocated.

BUSINESS SEGMENT INFORMATION AND DISAGGREGATED NET SALES*

Three months ended June 30, 2026

Three months ended June 30, 2025

(Dollars in millions)

Net sales

Operating
income

Operating
margin %

Net sales

Operating
income

Operating
margin %

Advanced Wound Care

$ 537

$ 467

Infection Prevention and Surgical
Solutions

836

750

MedSurg

1,372

$ 355

25.8 %

1,218

$ 210

17.3 %

Dental Solutions

396

131

33.0

338

28.5

Health Information Systems

354

145

41.0

339

120

35.5

Total reportable segment net
sales and operating income

2,122

631

1,895

426

Purification and Filtration

—

189

23.1

All Other

21.4

10.3

Amortization expense

(90)

(78)

Corporate and unallocated

(378)

(185)

Total Company

$ 2,209

$ 181

8.2 %

$ 2,161

$ 214

9.9 %

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

BUSINESS SEGMENT INFORMATION AND DISAGGREGATED NET SALES*

Six Months Ended
June 30, 2026

Six Months Ended
June 30, 2025

(Dollars in millions)

Net Sales

Operating
Income

Operating
Margin %

Net Sales

Operating
Income

Operating
Margin %

Advanced Wound Care

$ 1,034

$ 915

Infection Prevention and Surgical
Solutions

1,573

1,460

MedSurg

2,607

$ 516

19.8 %

2,375

416

17.5 %

Dental Solutions

750

218

29.0

667

175

26.2

Health Information Systems

696

276

39.6

667

229

34.3

Total reportable segment net
sales and operating income

4,053

1,009

3,709

820

Purification and Filtration

—

369

19.2

All Other

163

18.6

153

12.7

Amortization Expense

(181)

(159)

Corporate and Unallocated

(597)

(384)

Total Company

$ 4,216

$ 262

6.2 %

$ 4,231

367

8.7 %

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(Unaudited)

In addition to reporting financial results in accordance with U.S. GAAP, the Company uses non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. These include (1) adjusted gross margin, adjusted operating income and adjusted operating income margin, (2) adjusted diluted earnings per share, and (3) free cash flow. Management believes that these non-GAAP financial measures are useful in evaluating current performance and focusing management on our underlying operational results.

There are limitations to the use of the non-GAAP financial measures presented in this information statement. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. Management cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP.

The tables below reconcile our non-GAAP financial measures to the nearest financial measure that is in accordance with U.S. GAAP for the periods presented.

Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Income Margin and Adjusted Earnings Per Share (Non-GAAP measures)

Adjusted gross margin, adjusted operating income and adjusted operating income margin are not defined under U.S. GAAP. Therefore, they should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted gross margin as gross margin excluding the effects of restructuring costs, Spin-Off and separation-related costs, separation-related impacts due to the sale of the Purification and Filtration business, and acquisition-related costs. Solventum defines adjusted operating income as operating income excluding the effects of amortization, restructuring costs, Spin-Off and separation-related costs, certain litigation-related costs, separation-related impacts due to the sale of the Purification and Filtration business, acquisition-related costs and costs related to the planned separation of the Health Information Systems business. Adjusted operating income margin is adjusted operating income divided by the U.S GAAP measure total net sales for the same period. The Company believes adjusted gross margin, adjusted operating income and adjusted operating income margin provide investors with visibility into the Company’s unleveraged, pre-tax operating results and reflects underlying financial performance. However, adjusted gross margin and adjusted operating income should not be construed as inferring that the Company’s future results will be unaffected by the items for which the measure adjusts.

Adjusted diluted earnings per share is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted diluted earnings per share as net income excluding the after-tax effects of amortization, restructuring costs, Spin-Off and separation-related costs, certain litigation-related costs, separation-related impacts due to the sale of the Purification and Filtration business, acquisition-related costs and costs related to the planned separation of the Health Information Systems business. The Company believes adjusted earnings per share provides investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how the Company evaluates the business. However, adjusted earnings per share should not be construed as inferring that the Company’s future results will be unaffected by the items for which the measure adjusts.

Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)

Three months ended June 30, 2026

(Dollars in millions, except per
share amounts)

Net sales

Cost of
sales5

Gross
margin %

Operating
expenses6

Operating
income

Operating
income
margin %

Non-operating
expense
(income), net7

Income
before
income
taxes

Net income
attributable
to Solventum

Diluted
EPS

Effective
tax rate

GAAP

$ 2,209

$ 923

58.2 %

$ 1,105

$ 181

8.2 %

$ 73

$ 108

$ 92

$ 0.53

14.4 %

Non-GAAP adjustments:

Amortization of acquisition-
related intangible assets

—

(90)

4.1

—

0.44

Restructuring costs (a)

—

(9)

0.4

(33)

1.9

—

0.18

3M spin-off and separation-
related costs (b)

—

(33)

1.5

(112)

145

6.6

—

145

114

0.65

Certain litigation-related
costs (c)

—

(157)

157

7.1

—

157

119

0.69

Purification and Filtration
separation-related (d)

—

(8)

(0.4)

—

(8)

(6)

(0.04)

Acquisition-related costs(e)

—

(15)

0.7

—

0.07

Planned separation of
Health Information Systems-
related (f)

—

(6)

0.3

—

0.03

Non-GAAP

$ 2,209

$ 881

60.1 %

$ 701

$ 627

28.4 %

$ 73

$ 554

$ 442

$ 2.55

20.2 %

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

Three months ended June 30, 2025

(Dollars in millions, except per
share amounts)

Net sales

Cost of
sales5

Gross
margin %

Operating
expenses6

Operating
income

Operating
income
margin %

Non-operating
expense
(income), net7

Income
before
income
taxes

Net income
attributable
to Solventum

Diluted
EPS

Effective
tax rate

GAAP

$ 2,161

$ 986

54.4 %

$ 961

$ 214

9.9 %

$ 111

$ 103

$ 90

$ 0.51

12.5 %

Non-GAAP adjustments:

Amortization of acquisition-
related intangible assets

—

(78)

3.6

—

0.38

Restructuring costs (a)

—

(1)

0.1

(7)

0.5

—

0.03

3M spin-off and separation-
related costs (b)

—

(33)

1.5

(117)

150

6.9

—

150

115

0.66

Certain litigation-related
costs (c)

—

(8)

0.4

—

0.03

Purification and Filtration
separation-related (d)

—

(15)

0.7

—

0.07

Non-GAAP

$ 2,161

$ 952

56.0 %

$ 736

$ 474

21.9 %

$ 111

$ 362

$ 296

$ 1.69

18.3 %

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

(a)

2026 restructuring costs primarily related to the Company’s Transform for the Future program. Includes employee termination costs of $11 million and other costs of $31 million, which includes third-party consulting, asset write-downs and compensation for employees dedicated to the program. 2025 restructuring costs primarily relate to the Company’s Solventum Way program. Includes employee termination costs of $9 million and other costs of $(1) million.

(b)

Consists of costs specifically incurred in connection with the Company’s separation from 3M.

(c)

Consists of charges and recoveries related to certain litigation matters.

(d)

2026 activity consists of the profit mark-up from transition support services. 2025 activity consists of costs related to and tax impacts from the separation of the Company’s Purification and Filtration business, including legal, finance and tax advisory.

(e)

Integration costs related to the acquisition of Acera Surgical, including amortization of inventory step-up.

(f)

Costs related to the planned separation of the Company’s Health Information Systems business.

Cost of sales is the combination of cost of product and cost of software and rentals line items from the Condensed Consolidated Statements of Income and represents the total Company’s cost of sales.

Operating expenses is the combination of selling, general and administrative expenses and research and development expenses from the Condensed Consolidated Statements of Income and represents the total Company’s other operating expenses.

Non-operating expense (income), net is the combination of interest expense, net, and other expense (income), net line items from the Condensed Consolidated Statements of Income and represents the total Company’s non-operating expense.

Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)

Six months ended June 30, 2026

(Dollars in millions, except per share amounts)

Net sales

Cost
of Sales5

Gross
Margin %

Operating
Expenses6

Operating
Income

Operating
Income
Margin %

Non-Operating
Expense
(Income), net7

Income
Before
Income
Taxes

Net Income
Attributable to
Solventum

Diluted
EPS

Effective
Tax Rate

GAAP

$ 4,216

$ 1,833

56.5 %

$ 2,121

$ 262

6.2 %

$ 138

$ 123

$ 105

$ 0.60

15.0 %

Non-GAAP Adjustments:

Amortization of acquisition-
related intangible assets

—

(181)

181

4.3

—

181

152

0.87

Restructuring costs (a)

—

(10)

0.2

(73)

2.0

—

0.36

3M spin-off and separation-
related costs (b)

—

(64)

1.5

(244)

308

7.3

—

308

241

1.38

Certain litigation-related
costs (c)

—

(171)

171

4.0

—

171

129

0.74

Purification and Filtration
separation-related (d)

—

(12)

(0.3)

—

(12)

(9)

(0.05)

Acquisition-related costs(e)

—

(4)

0.1

(17)

0.5

—

0.09

Planned separation of
Health Information Systems-related (f)

—

(6)

0.1

—

0.02

Non-GAAP

$ 4,216

$ 1,755

58.4 %

$ 1,441

$ 1,019

24.2 %

$ 138

$ 881

$ 702

$ 4.02

20.3 %

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

Six months ended June 30, 2025

(Dollars in millions, except per share amounts)

Net sales

Cost of
Sales5

Gross
Margin %

Operating
Expenses6

Operating
Income

Operating
Income
Margin %

Non-Operating
Expense
(Income), net7

Income
Before
Income
Taxes

Net Income
Attributable to
Solventum

Diluted
EPS

Effective
Tax Rate

GAAP

$ 4,231

$ 1,942

54.1 %

$ 1,922

$ 367

8.7 %

$ 226

$ 141

$ 227

$ 1.30

(61.0) %

Non-GAAP Adjustments:

Amortization of acquisition-
related intangible assets

—

(159)

159

3.7

—

159

135

0.77

Restructuring costs (a)

—

(11)

0.3

(15)

0.6

—

0.11

3M spin-off and separation-
related costs (b)

—

(60)

1.4

(210)

272

6.4

—

272

209

1.20

Certain litigation-related
costs (c)

—

(27)

0.6

—

0.11

Purification and Filtration
separation-related (d)

—

(31)

0.7

—

(80)

(0.46)

Non-GAAP

$ 4,231

$ 1,871

55.8 %

$ 1,480

$ 881

20.8 %

$ 226

$ 655

$ 530

$ 3.03

19.0 %

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

(a)

2026 restructuring costs primarily relate to the Company’s Transform for the Future program. Includes employee termination costs of $16 million and other costs of $66 million, which includes third-party consulting, asset write-downs and compensation for employees dedicated to the program. 2025 restructuring costs primarily related to the Company’s Solventum Way program. Includes employee termination costs of $23 million and other costs of $3 million.

(b)

Consists of costs specifically incurred in connection with the Company’s separation from 3M.

(c)

Consists of charges and recoveries related to certain litigation matters.

(d)

(e)

Integration costs related to the acquisition of Acera Surgical, including amortization of inventory step-up.

(f)

Costs related to the planned separation of the Company’s Health Information Systems business.

Cost of sales is the combination of cost of product and cost of software and rentals line items from the Consolidated Statements of Income and represents the total Company’s cost of sales.

Operating expenses is the combination of selling, general and administrative expenses and research and development expenses from the Consolidated Statements of Income and represents the total Company’s other operating expenses.

Non-operating expense (income), net is the combination of interest expense, net, loss on debt extinguishment, net, and other expense (income), net line items from the Consolidated Statements of Income and represents the total Company’s non-operating expense.

Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)

Free Cash Flow (non-GAAP measure):

Free cash flow is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. The Company defines free cash flow as net cash provided by (used in) operating activities less purchases of property, plant and equipment. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company believes free cash flow is meaningful to investors as it is a useful measure of liquidity and the Company uses this measure as an indication of the strength of the Company and its ability to generate cash. Free cash flow varies across quarters throughout the year. Below find a recap of free cash flow.

(Dollars in millions)

Three months ended June 30,

Six months ended June 30,

Major GAAP cash flow categories

2026

2025

2026

2025

Net cash provided by operating activities

227

169

198

Net cash used in investing activities

(87)

(110)

(164)

(224)

Net cash used in financing activities

(300)

(110)

(350)

(249)

Free cash flow (non-GAAP measure)

Net cash provided by operating activities

227

169

198

Purchases of property, plant and equipment

(83)

(110)

(167)

(219)

Free cash flow

144

(129)

(21)

Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

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SOURCE Solventum

Technology

Cboe Global Markets Reports Trading Volume for July 2026

Published

52 minutes ago

August 5, 2026

CHICAGO, Aug. 5, 2026 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), a leading global markets operator and pioneer in equity and index derivatives, today reported July trading volume statistics across its global business lines.

The data sheet “Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report” contains an overview of certain July trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.

Average Daily Trading Volume (ADV) by Month

Year-To-Date

Jul

2026

Jul

2025

%
Chg

Jun
2026

%
Chg

Jul

2026

Jul

2025

%
Chg

Multi-listed options (contracts, k)

15,687

12,215

28.4 %

16,630

-5.7 %

14,938

12,886

15.9 %

Index options (contracts, k)

5,990

4,469

34.0 %

6,347

-5.6 %

6,145

4,688

31.1 %

Futures (contracts, k)1

207

178

16.1 %

242

-14.5 %

246

226

8.7 %

U.S. Equities – On-Exchange (matched shares, mn)

1,569

1,790

-12.4 %

2,185

-28.2 %

1,875

1,785

5.0 %

U.S. Equities – Off-Exchange (matched shares, mn)

208

141

47.4 %

250

-17.0 %

238

113

110.0 %

Canadian Equities (matched shares, k)

144,124

150,096

-4.0 %

182,398

-21.0 %

192,208

154,298

24.6 %

European Equities (€, mn)

14,024

12,490

12.3 %

14,950

-6.2 %

16,008

13,560

18.1 %

Australian Equities (AUD, mn)

989

870

13.7 %

1,165

-15.1 %

1,128

884

27.5 %

Global FX ($, mn)

61,071

48,514

25.9 %

64,267

-5.0 %

64,767

53,135

21.9 %

Cboe Clear Europe Cleared Trades (k)

147,855

122,973

20.2 %

144,356

2.4 %

1,005,054

935,981

7.4 %

Cboe Clear Europe Net Settlements (k)

1,442

1,236

16.6 %

1,419

1.6 %

9,337

7,726

20.9 %

1 In the second quarter of 2025, Digital futures products were transitioned to Cboe Futures Exchange. Futures metrics prior to the second quarter of 2025 exclude Digital futures products.

July 2026 Trading Volume Highlights

U.S. Options

Cboe’s mini-SPX (XSP) options set a monthly ADV record of 238 thousand contracts, including a record monthly zero-days-to-expiry (0DTE) ADV of 138 thousand contracts.0DTE trading in July grew to a record high 66.2% of total S&P 500 (SPX) options volume.Total trading during Cboe’s Global Trading Hours (GTH) session (8:15 p.m. to 9:25 a.m. ET) set a monthly ADV record of 224 thousand contracts, including record SPX options GTH ADV of 197 thousand contracts.

Cboe Clear Europe

Cboe Clear Europe surpassed 1 billion cleared client cash equity trades year-to-date through July 31.

About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE) is a leading global markets operator with a long history of innovation in equity and index derivatives. Since launching the world’s first listed options exchange in 1973, Cboe has pioneered landmark products, including the introduction of S&P 500® index options and the creation of the VIX® Index, the world’s leading gauge of market volatility, reshaping how investors manage risk and access opportunity. Today, Cboe operates derivatives, equities, and FX markets, providing trading, clearing, and investment solutions for customers worldwide. To learn more, visit www.cboe.com.

Cboe Media Contacts

Cboe Analyst Contact

Angela Tu

Tim Cave

Kenneth Hill, CFA

+1-646-856-8734

+44 (0) 7593-506-719

+1-312-786-7559

atu@cboe.com

tcave@cboe.com

khill@cboe.com

CBOE-V

Cboe®, Cboe Global Markets®, Cboe Clear®, Cboe Futures Exchange®, CFE®, Cboe Volatility Index®, VIX®, and XSP® are registered trademarks of Cboe Exchange, Inc. or its affiliates. Standard & Poor’s®, S&P®, SPX®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services, LLC, and have been licensed for use by Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners.

Any products that have the S&P Index or Indexes as their underlying interest are not sponsored, endorsed, sold or promoted by Standard & Poor’s or Cboe and neither Standard & Poor’s nor Cboe make any representations or recommendations concerning the advisability of investing in products that have S&P indexes as their underlying interests. All other trademarks and service marks are the property of their respective owners.

Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with S&P. Investors should undertake their own due diligence regarding their securities, futures, and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein.

Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.

Cboe Global Markets, Inc. and its affiliates make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by recipients of the products and services described herein, or as to the ability of the indices referenced in this press release to track the performance of their respective securities, generally, or the performance of the indices referenced in this press release or any subset of their respective securities, and shall not in any way be liable for any inaccuracies, errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the third-party indices referenced in this press release and shall not in any way be liable for any inaccuracies or errors in any of the indices referenced in this press release.

There are important risks associated with transacting in any of the Cboe Company products discussed here. Before engaging in any transactions in those products, it is important for market participants to carefully review the disclosures and disclaimers contained at: https://www.cboe.com/us_disclaimers/.

Options involve risk and are not suitable for all market participants. Prior to buying or selling an option, a person should review the Characteristics and Risks of Standardized Options (ODD), which is required to be provided to all such persons. Copies of the ODD are available from your broker or from The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606.

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SOURCE Cboe Global Markets, Inc.

Technology

Cisco Schedules Conference Call for Q4 Fiscal Year 2026 Financial Results

Published

52 minutes ago

August 5, 2026

SAN JOSE, Calif., Aug. 5, 2026 /PRNewswire/ — Cisco (NASDAQ: CSCO) has scheduled a conference call for Wednesday, Aug 12, 2026, at 1:30 PM (PT); 4:30 PM (ET) to announce its fourth quarter fiscal year 2026 financial results for the period ending Saturday, July 25, 2026.

Financial results will be released over PR Newswire via US National and European Financial distribution, after the close of the market on Wednesday, Aug 12, 2026. Cisco’s quarterly earnings press release will be posted at https://newsroom.cisco.com.

Date:
Wednesday, Aug 12, 2026

Time:
1:30 PM (PT); 4:30 PM (ET)

To Listen via Telephone:
888-848-6507
212-519-0847 (for International Callers)

To Listen via the Internet:
We are pleased to offer a live and replay audio broadcast of the conference call with corresponding slides at https://investor.cisco.com.

The conference call will also be livestreamed on YouTube, LinkedIn, & X.

Replay:
A telephone playback of the Q4 FY2026 conference call is scheduled to be available beginning at 4:00 PM (PT) on Aug 12, 2026, through 10:00 PM (PT) Aug 18, 2026. The replay will be accessible by calling 800-839-2232 (International callers: 203-369-3662). The call runs 24 hours/day, including weekends. An archived version of the webcast will be available on Cisco’s Investor Relations website at https://investor.cisco.com.

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

Investor Relations Contact:

Press Contact:

Sami Badri

Britt Stagnaro

Cisco

sambadri@cisco.com

media_pr@external.cisco.com

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SOURCE Cisco Systems, Inc.

Technology

Cognex Reports Second Quarter 2026 Results

Published

52 minutes ago

August 5, 2026

NATICK, Mass., Aug. 5, 2026 /PRNewswire/ — Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today reported financial results for the second quarter ended July 5, 2026.

Second-Quarter Financial and Operating Highlights

Achieved record quarterly revenue of $291 million, driven by broad-based strength across most major end markets; second-quarter revenue increased 17% year over year, or 16% on a constant-currency basis.Operating margin was 29.4%; delivered an Adjusted EBITDA margin of 32.2%, up 1,150 basis points year over year, marking the eighth consecutive quarter of margin expansion.Net income per diluted share was $0.43; generated Adjusted diluted earnings per share of $0.45, up 80% year over year, representing the eighth consecutive quarter of growth.Issued full-year 2026 guidance anticipating strong double-digit revenue growth and significant year-over-year expansion in profitability.Announced the general availability of OneVision™, with hundreds of customers using the platform to accelerate configuration and deployment of AI-powered vision applications.

“Q2 was another strong quarter for Cognex and further evidence that our strategy is driving results,” said Matt Moschner, President and CEO. “We delivered exceptional performance, highlighted by record revenue, strong margin expansion, and significant earnings growth, which we believe reflects both a more favorable demand environment and focused execution across the business. We continue to make meaningful progress against our strategic objectives to extend our leadership in AI-enabled machine vision, deliver the leading customer experience in the industry, and double our customer base.”

Mr. Moschner continued, “We believe that diversification is central to the next chapter of Cognex’s growth. We are focused on broadening our reach across customers, channels, adjacencies and end markets, while prioritizing the automation challenges where we expect our technology can create the most value. We believe this strategy will position Cognex to shape the future of AI-enabled machine vision and deliver more sustainable and profitable growth over time.”

Dennis Fehr, CFO, added, “We believe that our Q2 performance underscores the strength of our profitable growth strategy and the strong leverage in our financial model. We are continuing to transform our operating model to drive higher productivity, support sustainable margin expansion, and strengthen our ability to scale efficiently over time. We believe that this disciplined approach will enable us to support Cognex’s long-term growth objectives while reinforcing our commitment to creating shareholder value.”

Financial Performance Highlights for the Second Quarter
(Dollars in millions, except per share amounts)

Three-months ended

July 05, 2026

June 29, 2025

Y/Y Change

Revenue

$291

$249

+17 %

Operating Income

$86

$43

+100 %

% of Revenue

29.4 %

17.4 %

+1,200 bps

Adjusted EBITDA1

$94

$52

81 %

% of Revenue

32.2 %

20.7 %

+1,150 bps

Net Income per Diluted Share

$0.43

$0.24

+79 %

Adjusted EPS (Diluted)1

$0.45

$0.25

+80 %

1Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release.

Revenue was $291 million, compared with $249 million in the second quarter of 2025, an increase of 17%. Excluding the impact of foreign currency exchange (FX), revenue increased 16% compared to the prior year, driven by broad-based strength across most major end markets.Gross margin was 70.6% compared to 67.4% in the second quarter of 2025. Adjusted gross margin was 71.5% compared to 68.0% in the second quarter of 2025, an increase of 350 basis points. The year-over-year increase was primarily driven by favorable mix and volume. Tariff refunds were not a material contributor to the strong gross margin performance.Operating expenses were $120 million compared to $124 million in the second quarter of 2025, a decrease of 3%. Adjusted operating expenses were $119 million compared to $123 million in the second quarter of 2025, a decrease of 3%. On a constant-currency basis, Adjusted operating expenses decreased 5% year over year, primarily driven by disciplined cost management.Operating income was $86 million compared to $43 million in the second quarter of 2025, an increase of 100%. Operating margin was 29.4% compared to 17.4% in the second quarter of 2025, an increase of 1,200 basis points. Adjusted operating margin was 30.7% compared to 18.7% in the second quarter of 2025, an increase of 1,200 basis points.Adjusted EBITDA was $94 million compared to $52 million in the second quarter of 2025, an increase of 81%. Adjusted EBITDA margin was 32.2% compared to 20.7% in the second quarter of 2025, an increase of 1,150 basis points. The year-over-year expansion was driven by revenue growth and favorable mix.Net income of $73 million compared to $41 million in the second quarter of 2025, an increase of 78%. Adjusted net income of $76 million compared to $43 million in the second quarter of 2025, an increase of 77%.Net income per diluted share was $0.43 compared to $0.24 in the second quarter of 2025, an increase of 79%. Adjusted diluted earnings per share were $0.45 compared to $0.25 in the second quarter of 2025, an increase of 80%.

Balance Sheet and Cash Flow Highlights

As of July 5, 2026, Cognex’s financial position remained strong, with $755 million in cash and investments and no debt.During the second quarter, Cognex generated $69 million of cash from operating activities compared to $43 million in the second quarter of 2025, an increase of 60%.During the second quarter, Cognex generated Free Cash Flow (FCF) of $68 million compared to $40 million in the second quarter of 2025, an increase of 70%. Second quarter FCF conversion rate was 93% of net income and 89% of Adjusted net income. Trailing twelve-month FCF conversion rate was 153% of net income and 114% of Adjusted net income.Cognex paid $14 million in dividends to shareholders in the second quarter.

Dividend

On August 5, 2026, Cognex’s Board of Directors declared a quarterly cash dividend of $0.085 per share. The dividend is payable on September 3, 2026, to all shareholders of record at the close of business on August 20, 2026.

Guidance

Cognex issued third-quarter and full-year 2026 guidance; details are summarized in the tables below.

Table 1: Third-Quarter 2026 Guidance

(Dollars in millions, except per
share amounts)

Q3 2026
Guidance

Q3 2025
Results

Q3 2025
Results
ex CP*

Y/Y
Change**

Y/Y Change**
ex CP*

Revenue

$300 – $320

$277

$264

+12 %

+17 %

Adj. EBITDA Margin1

32% – 35%

24.9 %

22.1 %

+860 bps

+1,140 bps

Adj. EPS (diluted)1

$0.50 – $0.54

$0.33

$0.28

+58 %

+86 %

Table 2: Full-Year 2026 Guidance

(Dollars in millions, except per
share amounts)

2026
Guidance

2025
Results

2025 Results
ex CP*

Y/Y
Change**

Y/Y Change**
ex CP*

Revenue

$1,130 – $1,150

$994

$982

+15 %

+16 %

Adj. EBITDA Margin1

29% – 31%

21.5 %

20.7 %

+850 bps

+930 bps

Adj. EPS (diluted)1

$1.64 – $1.68

$1.02

$0.97

+63 %

+71 %

* Excluding the one-time benefit from the commercial partnership with a medical lab automation channel partner (the “CP”).

** At the midpoint of guidance.

1Cognex has provided the forward-looking non-GAAP measures of adjusted EBITDA margin, and adjusted earnings per share (diluted), but cannot, without unreasonable effort, forecast such items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as reorganization charges, acquisition and integration charges, and amortization of acquisition-related intangible assets, all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of Cognex’s control. Additionally, these items are outside of Cognex’s normal business operations and not used by management to assess Cognex’s operating results. Cognex believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, Cognex believes that the probable significance of such information is low. Information with respect to special items for certain historical periods is included in the section entitled “Reconciliation of Selected Items From GAAP to Non-GAAP”. In Q3 2025 the GAAP operating margin was 20.9% and GAAP earnings per share (diluted) were $0.10, and in full-year 2025, the GAAP operating margin was 16.3% and GAAP earnings per share (diluted) were $0.68.

Analyst Conference Call and Simultaneous Webcast

Cognex will host a conference call on August 6, 2026, at 8:30 a.m. Eastern Daylight Time (EDT). The telephone number is (877) 704-4573 or (201) 389-0911 if outside the United States.A real-time audio broadcast of the conference call or an archived recording, together with a slide presentation, will be accessible on the Events & Presentations page of the Cognex Investor website: www.cognex.com/investor.

Forward-Looking Statements

Certain statements made in this report, as well as oral statements made by Cognex Corporation (“Cognex”, “we”, “us”, “our”, or the “Company”) from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers can identify these forward-looking statements by our use of the words “expects,” “anticipates,” “estimates,” “potential,” “believes,” “projects,” “intends,” “plans,” “aims,” “will,” “may,” “shall,” “could,” “should,” “opportunity,” “goal,” “objective,” “target,” “milestone” and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance, financial targets, milestones and related timing expectations, the impacts of our strategic portfolio review, the impact of tariffs, customer demand and order rates and timing of related revenue, future product or revenue mix, research and development activities, sales and marketing activities including our salesforce transformation, new product offerings, innovation and product development activities, customer acceptance of our products, commercial partnerships, capital expenditures, cost management activities including expected annualized operating expense reductions, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, financial and operating models, acquisitions, and estimated tax benefits and expenses, changes in tax legislation, and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the technological obsolescence of current products, the inability to develop new products, and the inability to achieve growth through expanding and adjacent markets; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees and effectively plan for succession, while maintaining our unique corporate culture; (4) the failure to properly manage the distribution of products and services; (5) economic, political, and other risks associated with international sales and operations, including the impact of trade disputes, the imposition of tariffs, the economic climate in China, and the wars and conflicts involving Iran, Ukraine, and Israel and those that may arise in the future in the geographies where we conduct business; (6) the challenges in integrating and achieving expected results from acquired businesses; (7) uncertainty surrounding our future capital needs; (8) the inability to effectively scale our operations and salesforce to support a significantly expanded customer base in an increasing number of geographies; (9) information security breaches and other cybersecurity threats; (10) the failure to comply with laws or regulations relating to data privacy, data protection, artificial intelligence, or other automated technologies; (11) the inability to protect our proprietary technology and intellectual property; (12) the inability to manage direct and indirect disruptions to our supply chain, which could cause delays in obtaining components for our products at reasonable prices; (13) the failure to manufacture and deliver products in a timely manner; (14) the inability to obtain, or the delay in obtaining, components for our products at reasonable prices, including memory chips; (15) the inability to design and manufacture high-quality products; (16) the loss of, or curtailment of purchases by, large customers in the logistics, consumer electronics, or automotive end markets; (17) challenges in accurately forecasting our financial results due to seasonal and cyclical variations in customer purchasing patterns and economic and market volatility; (18) potential impairment charges with respect to our investments or acquired intangible assets; (19) exposure to additional tax liabilities, increases and fluctuations in our effective tax rate, and other tax matters; (20) fluctuations in foreign currency exchange rates and the use of derivative instruments; (21) unfavorable global economic conditions, including, without limitation, increases in interest rates, elevated inflation rates, and recession risks; (22) business disruptions from natural or man-made disasters, public health crises, or other events outside our control; (23) stock price volatility; (24) our involvement in time-consuming and costly litigation or activist shareholder activities; and (25) the failure to effectively transform our operating model, manage our expenses, and achieve expected cost reductions. The foregoing list should not be construed as exhaustive and we encourage readers to refer to the detailed discussion of risk factors included in Part I – Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report”), as updated by Part II – Item 1A of our Quarterly Reports on Form 10-Q as filed with the SEC. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation to subsequently revise forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such statements are made.

COGNEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)

July 5, 2026

December 31, 2025

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 302,521

$ 262,925

Current investments

101,849

74,037

Accounts receivable, net of allowance for credit losses of $726 and $728 in 2026 and
2025, respectively

216,232

146,713

Unbilled revenue

12,684

16,980

Inventories

142,839

137,889

Prepaid expenses and other current assets

73,755

58,702

Total current assets

849,880

697,246

Non-current investments

350,643

305,339

Property, plant, and equipment, net

81,452

86,015

Operating lease assets

68,543

72,310

Goodwill

381,385

386,279

Intangible assets, net

64,464

81,100

Deferred income taxes

377,830

383,272

Other assets

4,453

4,994

Total assets

$ 2,178,650

$ 2,016,555

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ 65,060

$ 50,203

Accrued expenses

80,586

91,397

Accrued income taxes

9,126

9,141

Deferred revenue and customer deposits

48,978

21,094

Operating lease liabilities

12,281

11,716

Total current liabilities

216,031

183,551

Non-current operating lease liabilities

60,196

64,870

Deferred income taxes

248,888

250,512

Reserve for income taxes

21,963

24,269

Other liabilities

2,017

1,452

Total liabilities

549,095

524,654

Shareholders’ equity:

Preferred stock, $.01 par value – Authorized: 400 shares in 2026 and 2025,
respectively; no shares issued and outstanding

—

Common stock, $.002 par value – Authorized: 300,000 shares in 2026 and 2025,
respectively; issued and outstanding: 168,217 and 166,997 shares in 2026 and 2025,
respectively

336

334

Additional paid-in capital

1,294,544

1,138,708

Retained earnings

397,135

406,355

Accumulated other comprehensive loss, net of tax

(62,460)

(53,496)

Total shareholders’ equity

1,629,555

1,491,901

Total liabilities and shareholders’ equity

$ 2,178,650

$ 2,016,555

COGNEX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)

Three-months Ended

Six-months Ended

July 5, 2026

June 29, 2025

July 5, 2026

June 29, 2025

Revenue

$ 291,263

$ 249,093

$ 559,700

$ 465,129

Cost of revenue (1)

85,490

81,217

162,988

152,930

Gross profit

205,773

167,876

396,712

312,199

Percentage of revenue

70.6 %

67.4 %

70.9 %

67.1 %

Research, development, and engineering expenses (1)

32,391

33,102

69,416

67,829

Percentage of revenue

11.1 %

13.3 %

12.4 %

14.6 %

Selling, general, and administrative expenses (1)

87,865

91,341

181,906

174,845

Percentage of revenue

30.2 %

36.7 %

32.5 %

37.6 %

Operating income

85,517

43,433

145,390

69,525

Percentage of revenue

29.4 %

17.4 %

26.0 %

14.9 %

Foreign currency gain (loss)

(862)

(1,503)

(2,207)

(3,956)

Investment income

5,091

4,040

9,927

8,030

Other income (expense)

(446)

2,092

(2,053)

2,261

Income before income tax expense

89,300

48,062

151,057

75,860

Income tax expense

16,544

7,551

26,597

11,746

Net income

$ 72,756

$ 40,511

$ 124,460

$ 64,114

Percentage of revenue

25.0 %

16.3 %

22.2 %

13.8 %

Net income per weighted-average common and common-
equivalent share:

Basic

$ 0.43

$ 0.24

$ 0.75

$ 0.38

Diluted

$ 0.43

$ 0.24

$ 0.74

$ 0.38

Weighted-average common and common-equivalent
shares outstanding:

Basic

167,346

167,886

166,921

168,568

Diluted

169,989

168,563

169,166

169,553

Cash dividends per common share

$ 0.085

$ 0.080

$ 0.170

$ 0.160

(1) Amounts include stock-based compensation expense, as follows:

Cost of revenue

$ 592

$ 537

$ 1,517

$ 1,205

Research, development, and engineering

3,388

3,443

8,482

8,139

Selling, general, and administrative

7,232

8,314

13,146

12,889

Total stock-based compensation expense

$ 11,212

$ 12,294

$ 23,145

$ 22,233

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures, including adjusted gross profit and margin, adjusted operating expense, adjusted operating income and margin, adjusted EBITDA and margin, adjusted net income, adjusted earnings per share of common stock, diluted, adjusted effective tax rate, and free cash flow and free cash flow conversion rate. Cognex defines its non-GAAP metrics as follows:

Adjusted gross profit and margin: Gross margin adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted operating expense: Operating expense adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted operating income and margin: Operating income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted EBITDA and margin: Operating income adjusted for amortization of acquisition-related intangible assets and depreciation, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted net income: Net income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs, discrete tax items, tax impact on reconciling items and one-time discrete events (such as loss on sale of business).Adjusted earnings per share of common stock, diluted: Adjusted net income divided by diluted weighted average common and common-equivalent shares.Adjusted effective tax rate: Effective tax rate adjusted for discrete tax items and the net impact of the other non-GAAP adjustments.Free cash flow: Cash provided by operating activities less cash for capital expenditures.Free cash flow conversion rate: Free cash flow divided by net income or adjusted net income, as applicable.

Cognex may disclose results on a constant-currency basis as one measure to evaluate its performance and compare results between periods as if the exchange rates had remained constant period-over-period.

Cognex believes these non-GAAP financial measures are helpful because they allow investors to more accurately compare results over multiple periods using the same methodology that management employs in its budgeting process, in its review of operating results, and for forecasting and planning for future periods. Cognex’s definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain non-recurring expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

Please see the section “Reconciliation of Selected Items from GAAP to Non-GAAP” below for more detailed information regarding non-GAAP financial measures herein, including the items reflected in our adjusted financial metrics and a description of these adjustments.

COGNEX CORPORATION
RECONCILIATION OF SELECTED ITEMS FROM GAAP TO NON-GAAP
Dollars in thousands, except per share amounts
(Unaudited)

Three-months Ended

Six-months Ended

July 5, 2026

June 29, 2025

July 5, 2026

June 29, 2025

Gross profit (GAAP)

$ 205,773

$ 167,876

$ 396,712

$ 312,199

Acquisition and integration costs

218

211

434

453

Amortization of acquisition-related intangible assets

1,323

1,382

2,660

2,720

Reorganization charges

921

—

1,295

Adjusted gross profit

$ 208,235

$ 169,469

$ 401,101

$ 315,458

GAAP gross margin

70.6 %

67.4 %

70.9 %

67.1 %

Adjusted gross margin

71.5 %

68.0 %

71.7 %

67.8 %

Operating expense (GAAP)

$ 120,256

$ 124,443

$ 251,322

$ 242,674

Acquisition and integration costs

(15)

(259)

(30)

(797)

Amortization of acquisition-related intangible assets

(972)

(1,296)

(2,167)

(2,586)

Reorganization charges

(335)

—

(5,090)

(1,622)

Adjusted operating expense

$ 118,934

$ 122,888

$ 244,035

$ 237,669

Operating income (GAAP)

$ 85,517

$ 43,433

$ 145,390

$ 69,525

Acquisition and integration costs

233

470

464

1,250

Amortization of acquisition-related intangible assets

2,295

2,678

4,827

5,306

Reorganization charges

1,256

—

6,385

1,708

Adjusted operating income

$ 89,301

$ 46,581

$ 157,066

$ 77,789

GAAP operating margin

29.4 %

17.4 %

26.0 %

14.9 %

Adjusted operating margin

30.7 %

18.7 %

28.1 %

16.7 %

Depreciation (adjusted for amounts included in Acquisition and
integration costs)

4,358

5,095

8,830

10,178

Adjusted EBITDA

$ 93,659

$ 51,676

$ 165,896

$ 87,967

Adjusted EBITDA margin

32.2 %

20.7 %

29.6 %

18.9 %

Net income (GAAP)

$ 72,756

$ 40,511

$ 124,460

$ 64,114

Acquisition and integration costs

233

470

464

1,250

Amortization of acquisition-related intangible assets

2,295

2,678

4,827

5,306

Reorganization charges

1,256

—

6,385

1,708

Loss on sale of business

—

1,539

—

Discrete tax (benefit) expense

450

(211)

(729)

(518)

Tax impact of reconciling items

(1,102)

(891)

(3,740)

(2,256)

Adjusted net income

$ 75,888

$ 42,557

$ 133,206

$ 69,604

Earnings per share of common stock, diluted (GAAP)

$ 0.43

$ 0.24

$ 0.74

$ 0.38

Acquisition and integration costs

0.00

0.01

Amortization of acquisition-related intangible assets

0.01

0.02

0.03

Reorganization charges

0.01

—

0.04

0.01

Loss on sale of business

—

0.01

—

Discrete tax (benefit) expense

0.00

Tax impact of reconciling items

(0.01)

(0.02)

(0.01)

Adjusted earnings per share of common stock, diluted

$ 0.45

$ 0.25

$ 0.80

$ 0.41

Effective tax rate (GAAP)

18.5 %

15.7 %

17.6 %

15.5 %

Discrete tax benefit (expense)

(0.5) %

0.4 %

0.5 %

0.7 %

Net impact of other reconciling items

0.4 %

0.7 %

0.8 %

1.1 %

Adjusted effective tax rate

18.5 %

16.9 %

18.9 %

17.3 %

Cash provided by operating activities (GAAP)

$ 69,153

$ 42,625

$ 114,246

$ 83,127

Capital expenditures

(1,532)

(2,194)

(4,289)

(4,695)

Free cash flow

$ 67,621

$ 40,431

$ 109,957

$ 78,432

Description of adjustments:

In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides various non-GAAP measures that incorporate adjustments for the impacts of special items. Adjustments incorporated in the preparation of these non-GAAP measures for the periods presented include the items described below:

Depreciation:

The company incurs expense related to its normal use of property, plant and equipment.

Acquisition and integration costs:

The Company has incurred charges related to the purchase and integration of acquired businesses. During the periods presented, these costs were primarily related to the ongoing integration of Moritex Corporation, which the company acquired in the fourth quarter of 2023.

Amortization of acquisition-related intangible assets:

The Company excludes the amortization of acquired intangible assets from non-GAAP expense and income measures. These items are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions, and include the amortization of customer relationships, completed technologies, and trademarks that originated from prior acquisitions. The largest driver of intangible asset amortization was the acquisition of Moritex Corporation.

Reorganization charges:

The Company has incurred charges related to the reorganization of its employees. During the three-month period ended July 5, 2026, these costs consisted primarily of severance and consulting fees.

Loss on sale of business:

The Company has recognized a pre-tax loss related to the divestiture of its Japan-focused trading business, which includes direct costs associated with the divestiture incurred during the six-month period ended July 5, 2026.

Discrete tax (benefit) expense and tax impact of reconciling items:

Items unrelated to current period ordinary income or (loss) that generally relate to changes in tax laws, adjustments to prior period’s actual liability determined upon filing tax returns, adjustments to previously recorded reserves for uncertain tax positions, establishments and adjustments of valuation allowances, stock based compensation, and adjustments to deferred tax positions.We estimate the tax effect of items identified in the reconciliation by applying the statutory tax rate to the pre-tax amount.

About Cognex Corporation

For over 40 years, Cognex has been making advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. Innovative technology in our vision sensors and systems solves critical manufacturing and distribution challenges, providing unparalleled performance for industries from automotive to consumer electronics to packaged goods.

Cognex makes these tools more capable and easier to deploy thanks to a longstanding focus on AI, helping factories and warehouses improve quality and maximize efficiency without needing highly technical expertise. We are headquartered near Boston, USA, with locations in over 30 countries and more than 30,000 customers worldwide. Learn more at cognex.com.

Investor Relations Contact:
Greer Aviv – Head of Investor Relations
Cognex Corporation
Greer.Aviv@cognex.com

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SOURCE Cognex Corporation