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Strength in Transportation & Electronics Unit Drives 3M: A Sign of More Upside?
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Key Takeaways
3M's Transportation & Electronics revenues rose 6.2% to $2.07 billion in the second quarter.
Semiconductor, data center and aerospace markets grew in double digits in the first six months.
3M expects 2026 adjusted organic sales growth above 3.5% and adjusted EPS of $8.80-$8.95.
3M Company (MMM - Free Report) is benefiting from persistent strength in the Transportation and Electronics segment. Strong performance across semiconductor, data center, aerospace and commercial branding markets, supported by solid demand for products and broader sales coverage, is augmenting the segment.
In second-quarter 2026, Transportation & Electronics segment’s revenues reached $2.07 billion, up 6.2% from the prior-year period. Organic revenues for the segment rose 5.9% year over year in the quarter. Foreign currency translation contributed a favorable 0.5% impact on revenues, while divestiture had an adverse impact of 0.2%. The segment’s second-quarter operating income increased 5% year over year to $503 million.
In the first six months of the year, 3M’s semiconductor, data center and aerospace markets grew in double digits, while commercial branding increased in the mid-single digits. However, continued softness in auto and consumer electronics markets has been a concern for the segment.
Driven by strength across the majority of its businesses, 3M provided an upbeat outlook for 2026. The company currently expects total adjusted organic sales to increase more than 3.5% year over year, while adjusted earnings are projected to range between $8.80 and $8.95 per share. The midpoint of the guided range is about $8.875, which reflects an increase from earnings of $8.06 per share reported in 2025.
Segmental Performance of MMM’s Peers in Q2
Emerson Electric Co. (EMR - Free Report) is witnessing solid momentum in the power and life sciences markets, within the Control Systems & Software group under the Software & Systems segment. Sales from Emerson’s Software & Systems segment increased 11% year over year to $1.64 billion in the third quarter of fiscal 2026.
Honeywell International Inc. (HON - Free Report) is experiencing softness in the Process Automation and Technology segment. In second-quarter 2026, the segment’s organic revenues decreased 1% on a year-over-year basis. This decline was attributable to a 6% drop in organic sales in Honeywell’s aftermarket business owing to lower refining catalyst shipments. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions hurt Honeywell’s results.
The Zacks Rundown for MMM
Image Source: Zacks Investment Research
Shares of 3M have gained 11.2% in the past six months against the industry’s decline of 21.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 17.7X, above the industry average of 14.9X. MMM carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 2.6% and 4.2%, respectively, in the past 60 days.
View the Zacks #1 Rank List
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Strength in Transportation & Electronics Unit Drives 3M: A Sign of More Upside?
Key Takeaways
3M Company (MMM - Free Report) is benefiting from persistent strength in the Transportation and Electronics segment. Strong performance across semiconductor, data center, aerospace and commercial branding markets, supported by solid demand for products and broader sales coverage, is augmenting the segment.
In second-quarter 2026, Transportation & Electronics segment’s revenues reached $2.07 billion, up 6.2% from the prior-year period. Organic revenues for the segment rose 5.9% year over year in the quarter. Foreign currency translation contributed a favorable 0.5% impact on revenues, while divestiture had an adverse impact of 0.2%. The segment’s second-quarter operating income increased 5% year over year to $503 million.
In the first six months of the year, 3M’s semiconductor, data center and aerospace markets grew in double digits, while commercial branding increased in the mid-single digits. However, continued softness in auto and consumer electronics markets has been a concern for the segment.
Driven by strength across the majority of its businesses, 3M provided an upbeat outlook for 2026. The company currently expects total adjusted organic sales to increase more than 3.5% year over year, while adjusted earnings are projected to range between $8.80 and $8.95 per share. The midpoint of the guided range is about $8.875, which reflects an increase from earnings of $8.06 per share reported in 2025.
Segmental Performance of MMM’s Peers in Q2
Emerson Electric Co. (EMR - Free Report) is witnessing solid momentum in the power and life sciences markets, within the Control Systems & Software group under the Software & Systems segment. Sales from Emerson’s Software & Systems segment increased 11% year over year to $1.64 billion in the third quarter of fiscal 2026.
Honeywell International Inc. (HON - Free Report) is experiencing softness in the Process Automation and Technology segment. In second-quarter 2026, the segment’s organic revenues decreased 1% on a year-over-year basis. This decline was attributable to a 6% drop in organic sales in Honeywell’s aftermarket business owing to lower refining catalyst shipments. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions hurt Honeywell’s results.
The Zacks Rundown for MMM
Image Source: Zacks Investment Research
Shares of 3M have gained 11.2% in the past six months against the industry’s decline of 21.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 17.7X, above the industry average of 14.9X. MMM carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 2.6% and 4.2%, respectively, in the past 60 days.
MMM stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.