3M Shares Rise After Strong Second-Quarter Results
3M shares moved higher after the industrial company reported second-quarter results that exceeded Wall Street expectations.
The company also raised its full-year 2026 earnings guidance, supported by stronger sales growth and improved profitability.
Earnings and Revenue Beat Forecasts
3M reported adjusted earnings of $2.40 per share for the second quarter. This was above the analyst estimate of $2.24 per share.
Quarterly revenue reached $6.5 billion, slightly ahead of the $6.4 billion market forecast.
The company also recorded organic sales growth of 5.4% compared with the same period last year.
Operating Margin Improves
3M’s adjusted operating margin increased to 24.9%. This represented an improvement of 40 basis points from the previous year.
The company generated $1 billion in operating cash flow during the quarter.
Meanwhile, adjusted free cash flow reached $1.3 billion, highlighting the company’s solid cash generation.
CEO Highlights Strategic Progress
3M Chairman and CEO William Brown described the quarter as another sign of progress in the company’s transformation.
He pointed to mid-single-digit sales growth, operating margins of around 25% and double-digit earnings growth.
According to Brown, the results reflect the company’s continued focus on its strategic priorities and its efforts to build a stronger and more efficient business.
3M Raises Full-Year Earnings Guidance
Following the better-than-expected quarter, 3M increased its full-year 2026 earnings forecast.
The company now expects adjusted earnings of between $8.80 and $8.95 per share.
Its previous guidance ranged from $8.50 to $8.70 per share. The updated forecast is also above the current analyst consensus of $8.74.
Sales Growth Outlook Strengthens
3M now expects adjusted total sales growth of more than 4.5% for the full year.
The company also forecasts adjusted organic sales growth of more than 3.5%.
At the same time, 3M maintained its adjusted operating margin forecast of 24.9%. This would represent a 40-basis-point increase from the previous year.
The improved outlook suggests that management remains confident in the company’s sales momentum, cost controls and overall business performance.
