We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3M raised its 2026 adjusted EPS outlook and expects revenue growth above 4.5% with free cash flow over 100%.
3M Company (MMM - Free Report) reported second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
3M delivered adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.27 by 5.7%. The bottom line increased 11% year over year.
The company reported net revenues (on a GAAP basis) of $6.5 billion in the quarter. The metric increased 2.4% year over year. Organic sales increased 2.3%. Foreign currency translation had a positive impact of 0.7% while acquisitions/divestitures had a negative impact of 0.6%.
MMM’s adjusted net revenues of $6.5 billion topped the consensus estimate of $6.4 billion and grew 5.5%. On an adjusted basis, organic revenues increased 5.4% year over year. The results were supported by strength in general industrial, safety and electronics end markets.
Region-wise, adjusted organic sales in the Latin Americas rose 5.4% year over year, other Asia adjusted organic sales increased 2.9% and China adjusted organic sales increased 9.2%. Adjusted organic sales from businesses in Europe, the Middle East and Africa grew 2.3%.
3M’s Q2 Segmental Results
Revenues from Safety and Industrial totaled $3.09 billion, up 8.2% year over year, driven by strength in industrial specialties, adhesives, abrasives and electrical markets. The Zacks Consensus Estimate for the segment’s revenues was pegged at $3.02 billion. While organic revenues increased 8.2% and foreign currency translation had a 1.3% favorable impact, divestitures had an adverse impact of 1.3%.
Revenues from Transportation & Electronics totaled $2.07 billion, reflecting a year-over-year increase of 6.2%. The results were driven by strength across semiconductor, aerospace and data center markets. The consensus estimate for the segment’s revenues was pegged at $2.01 billion. The segment’s organic sales increased 5.9%. Foreign currency translation had a 0.5% favorable impact, while divestiture had an adverse impact of 0.2% on revenues.
Revenues from the Consumer segment decreased 1.8% year over year to $1.25 billion. The consensus estimate for the segment’s revenues was pegged at $1.29 billion. Organic sales decreased 2.1% while movements in foreign currencies had a positive impact of 0.3%.
3M’s cost of sales increased 4.7% year over year to $3.82 billion. Selling, general and administrative expenses decreased 16.3% to $1.06 billion. Research, development and related expenses increased 4.9% year over year to $302 million.
In the second quarter, 3M reported an operating income of $984 million, down 13.7% from the year-ago period. The operating margin contracted to 15.1% from 18%, due to higher operating expenses.
MMM’s adjusted operating income increased 7.2% year over year to $1.62 billion. The adjusted operating margin was 24.9% compared with 24.5% in the year-ago quarter.
3M’s Balance Sheet & Cash Flow
Exiting the second quarter of 2026, 3M had cash and cash equivalents of $2.96 billion compared with $5.24 billion at the end of December 2025. Long-term debt was $10.90 billion at the end of the quarter compared with $10.93 billion at the end of December 2025.
3M generated net cash of $986 million in operating activities against $954 million cash used in the year-ago quarter. Capital used for purchasing property, plant and equipment increased 7.2% to $223 million.
Adjusted free cash flow at the end of the quarter was $1.35 billion, up 5% year over year. Adjusted free cash flow conversion was 107% in the quarter.
In the first six months of 2026, 3M rewarded its shareholders with dividend payouts of $0.8 billion and share repurchases totaled $3 billion.
MMM’s 2026 Guidance
For 2026, MMM expects adjusted earnings to be in the range of $8.80-$8.95 per share compared with $8.50-$8.70 projected earlier. The midpoint of the guided range is about $8.875, which reflects an increase from earnings of $8.06 per share reported in 2025.
Adjusted total revenue growth is projected to be above 4.5%. The company expects the adjusted free cash flow conversion rate to be more than 100%, with adjusted operating cash flow of $5.8-$6.0 billion.
Zacks Rank & Other Key Picks
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:
Duluth’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 107.5%. In the past 60 days, the Zacks Consensus Estimate for DLTH’s fiscal 2027 bottom line has increased 45.8%.
Grupo Cibest S.A. (CIB - Free Report) presently sports a Zacks Rank of 1. Grupo Cibest’s earnings surpassed the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 0.3%. In the past 60 days, the Zacks Consensus Estimate for CIB’s 2026 earnings has increased 2.9%.
Vince Holding (VNCE - Free Report) currently carries a Zacks Rank of 2. Vince Holding’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 635.7%. In the past 60 days, the Zacks Consensus Estimate for VNCE’s fiscal 2027 earnings has increased 59.5%.
View the Zacks #1 Rank List
Image: Bigstock
3M's Q2 Earnings Top Estimates, Safety & Industrial Sales Rise Y/Y
Key Takeaways
3M Company (MMM - Free Report) reported second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
3M delivered adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.27 by 5.7%. The bottom line increased 11% year over year.
The company reported net revenues (on a GAAP basis) of $6.5 billion in the quarter. The metric increased 2.4% year over year. Organic sales increased 2.3%. Foreign currency translation had a positive impact of 0.7% while acquisitions/divestitures had a negative impact of 0.6%.
MMM’s adjusted net revenues of $6.5 billion topped the consensus estimate of $6.4 billion and grew 5.5%. On an adjusted basis, organic revenues increased 5.4% year over year. The results were supported by strength in general industrial, safety and electronics end markets.
Region-wise, adjusted organic sales in the Latin Americas rose 5.4% year over year, other Asia adjusted organic sales increased 2.9% and China adjusted organic sales increased 9.2%. Adjusted organic sales from businesses in Europe, the Middle East and Africa grew 2.3%.
3M’s Q2 Segmental Results
Revenues from Safety and Industrial totaled $3.09 billion, up 8.2% year over year, driven by strength in industrial specialties, adhesives, abrasives and electrical markets. The Zacks Consensus Estimate for the segment’s revenues was pegged at $3.02 billion. While organic revenues increased 8.2% and foreign currency translation had a 1.3% favorable impact, divestitures had an adverse impact of 1.3%.
Revenues from Transportation & Electronics totaled $2.07 billion, reflecting a year-over-year increase of 6.2%. The results were driven by strength across semiconductor, aerospace and data center markets. The consensus estimate for the segment’s revenues was pegged at $2.01 billion. The segment’s organic sales increased 5.9%. Foreign currency translation had a 0.5% favorable impact, while divestiture had an adverse impact of 0.2% on revenues.
Revenues from the Consumer segment decreased 1.8% year over year to $1.25 billion. The consensus estimate for the segment’s revenues was pegged at $1.29 billion. Organic sales decreased 2.1% while movements in foreign currencies had a positive impact of 0.3%.
3M Company Price, Consensus and EPS Surprise
3M Company price-consensus-eps-surprise-chart | 3M Company Quote
MMM’s Margin Profile
3M’s cost of sales increased 4.7% year over year to $3.82 billion. Selling, general and administrative expenses decreased 16.3% to $1.06 billion. Research, development and related expenses increased 4.9% year over year to $302 million.
In the second quarter, 3M reported an operating income of $984 million, down 13.7% from the year-ago period. The operating margin contracted to 15.1% from 18%, due to higher operating expenses.
MMM’s adjusted operating income increased 7.2% year over year to $1.62 billion. The adjusted operating margin was 24.9% compared with 24.5% in the year-ago quarter.
3M’s Balance Sheet & Cash Flow
Exiting the second quarter of 2026, 3M had cash and cash equivalents of $2.96 billion compared with $5.24 billion at the end of December 2025. Long-term debt was $10.90 billion at the end of the quarter compared with $10.93 billion at the end of December 2025.
3M generated net cash of $986 million in operating activities against $954 million cash used in the year-ago quarter. Capital used for purchasing property, plant and equipment increased 7.2% to $223 million.
Adjusted free cash flow at the end of the quarter was $1.35 billion, up 5% year over year. Adjusted free cash flow conversion was 107% in the quarter.
In the first six months of 2026, 3M rewarded its shareholders with dividend payouts of $0.8 billion and share repurchases totaled $3 billion.
MMM’s 2026 Guidance
For 2026, MMM expects adjusted earnings to be in the range of $8.80-$8.95 per share compared with $8.50-$8.70 projected earlier. The midpoint of the guided range is about $8.875, which reflects an increase from earnings of $8.06 per share reported in 2025.
Adjusted total revenue growth is projected to be above 4.5%. The company expects the adjusted free cash flow conversion rate to be more than 100%, with adjusted operating cash flow of $5.8-$6.0 billion.
Zacks Rank & Other Key Picks
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:
Duluth Holdings (DLTH - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Duluth’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 107.5%. In the past 60 days, the Zacks Consensus Estimate for DLTH’s fiscal 2027 bottom line has increased 45.8%.
Grupo Cibest S.A. (CIB - Free Report) presently sports a Zacks Rank of 1. Grupo Cibest’s earnings surpassed the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 0.3%. In the past 60 days, the Zacks Consensus Estimate for CIB’s 2026 earnings has increased 2.9%.
Vince Holding (VNCE - Free Report) currently carries a Zacks Rank of 2. Vince Holding’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 635.7%. In the past 60 days, the Zacks Consensus Estimate for VNCE’s fiscal 2027 earnings has increased 59.5%.