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MMM Q3 Earnings on Deck: How to Approach the Stock Now?
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Key Takeaways
3M is expected to report Q3 revenue of $6.60 billion and EPS of $2.41 on Oct. 20.
Safety, Industrial, transportation and aerospace growth, plus restructuring, may support results.
Consumer weakness and higher R&D costs pose challenges, while shares trade at an industry premium.
3M Company (MMM - Free Report) is scheduled to release third-quarter 2026 results on Oct. 20, before market open.
The Zacks Consensus Estimate for MMM’s third-quarter revenues is pegged at $6.60 billion, indicating growth of 4.5% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $2.41 per share, which increased by a penny in the past 60 days. The figure indicates growth of 10.1% from the year-ago quarter's figure.
3M’s Earnings Surprise History
The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 4.1% on average. In the last reported quarter, its earnings of $2.40 per share beat the consensus estimate of $2.27 by 5.7%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for MMM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: MMM has an Earnings ESP of -0.58% as the Zacks Consensus Estimate is pegged at $2.41 per share, higher than the Most Accurate Estimate of $2.39. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
3M’s Safety and Industrial segment’s results are expected to perform well, driven by strength across personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for electrical infrastructure products, including medium-voltage cable accessories and insulation tapes, is likely to have been a tailwind as well. The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $3.12 billion, indicating approximately a 6.8% increase from the year-ago number.
Solid momentum in the transportation and aerospace markets is likely to have supported 3M‘s Transportation and Electronics segment’s performance. Also, strength in semiconductors, data centers, aerospace and defense, and commercial branding, supported by new product introductions and expanded sales coverage, is proving beneficial for the segment as well. The Zacks Consensus Estimate for revenues from the segment is pegged at $497 million.
3M has undertaken structural reorganization actions that include streamlining its geographic footprint, simplifying the supply chain and optimizing manufacturing operations. These actions are expected to have supported margins in the to-be-reported quarter.
However, persistent weakness in the packaging and expression and home improvement businesses is likely to have marred the Consumer segment’s performance in the third quarter. The Zacks Consensus Estimate for revenues from the Consumer segment is pegged at $1.31 billion, indicating a decrease of 0.5% year over year.
MMM’s performance has been negatively impacted by high costs and expenses. The company’s solid investments in research and development (R&D) are expected to have pushed up its operating expenses.
Price Performance
MMM’s shares have risen 9.2% in the past six months compared with the S&P 500 composite’s growth of 9.2% and the industry’s decline of 23.5%. Among its peers, Griffon Corporation (GFF - Free Report) and Carlisle Companies Incorporated (CSL - Free Report) shares have gained 9.8% and declined 6%, respectively, over the same time frame.
Six-Month Price Performance
Image Source: Zacks Investment Research
Stock Valuation
MMM has a forward 12-month price-to-earnings ratio of 17.06X, which is above the industry average of 14.45X. In comparison with 3M’s valuation, its peers Griffon and Carlisle are trading cheaper. Griffon and Carlisle are trading at 14.83X and 13.85X, respectively.
Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research
Investment Thesis
3M is positioned to benefit from continued strength in its Safety and Industrial and Transportation and Electronics segments, supported by new product launches and a favorable 2026 outlook. Ongoing restructuring efforts are expected to enhance operational efficiency. However, persistent weakness in the Consumer segment and elevated operating costs and R&D expenses could weigh on profitability and limit near-term growth.
Should You Buy MMM Now?
Strength in the Safety and Industrial and Transportation and Electronics segments, along with ongoing cost-control initiatives, are likely to support 3M’s third-quarter 2026 results. However, weakness in the Consumer segment and high operating costs and expenses remain near-term challenges.
MMM’s valuation above the industry average warrants a cautious approach for existing investors. Potential investors may consider waiting for the earnings report and clearer signs of sustained growth before investing in the stock.
View the Zacks #1 Rank List
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MMM Q3 Earnings on Deck: How to Approach the Stock Now?
Key Takeaways
3M Company (MMM - Free Report) is scheduled to release third-quarter 2026 results on Oct. 20, before market open.
The Zacks Consensus Estimate for MMM’s third-quarter revenues is pegged at $6.60 billion, indicating growth of 4.5% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $2.41 per share, which increased by a penny in the past 60 days. The figure indicates growth of 10.1% from the year-ago quarter's figure.
3M’s Earnings Surprise History
The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 4.1% on average. In the last reported quarter, its earnings of $2.40 per share beat the consensus estimate of $2.27 by 5.7%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for MMM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: MMM has an Earnings ESP of -0.58% as the Zacks Consensus Estimate is pegged at $2.41 per share, higher than the Most Accurate Estimate of $2.39. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: 3M presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
3M Company Price and EPS Surprise
3M Company price-eps-surprise | 3M Company Quote
Factors to Note Ahead of MMM’s Q3 Results
3M’s Safety and Industrial segment’s results are expected to perform well, driven by strength across personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for electrical infrastructure products, including medium-voltage cable accessories and insulation tapes, is likely to have been a tailwind as well. The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $3.12 billion, indicating approximately a 6.8% increase from the year-ago number.
Solid momentum in the transportation and aerospace markets is likely to have supported 3M‘s Transportation and Electronics segment’s performance. Also, strength in semiconductors, data centers, aerospace and defense, and commercial branding, supported by new product introductions and expanded sales coverage, is proving beneficial for the segment as well. The Zacks Consensus Estimate for revenues from the segment is pegged at $497 million.
3M has undertaken structural reorganization actions that include streamlining its geographic footprint, simplifying the supply chain and optimizing manufacturing operations. These actions are expected to have supported margins in the to-be-reported quarter.
However, persistent weakness in the packaging and expression and home improvement businesses is likely to have marred the Consumer segment’s performance in the third quarter. The Zacks Consensus Estimate for revenues from the Consumer segment is pegged at $1.31 billion, indicating a decrease of 0.5% year over year.
MMM’s performance has been negatively impacted by high costs and expenses. The company’s solid investments in research and development (R&D) are expected to have pushed up its operating expenses.
Price Performance
MMM’s shares have risen 9.2% in the past six months compared with the S&P 500 composite’s growth of 9.2% and the industry’s decline of 23.5%. Among its peers, Griffon Corporation (GFF - Free Report) and Carlisle Companies Incorporated (CSL - Free Report) shares have gained 9.8% and declined 6%, respectively, over the same time frame.
Six-Month Price Performance
Image Source: Zacks Investment Research
Stock Valuation
MMM has a forward 12-month price-to-earnings ratio of 17.06X, which is above the industry average of 14.45X. In comparison with 3M’s valuation, its peers Griffon and Carlisle are trading cheaper. Griffon and Carlisle are trading at 14.83X and 13.85X, respectively.
Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research
Investment Thesis
3M is positioned to benefit from continued strength in its Safety and Industrial and Transportation and Electronics segments, supported by new product launches and a favorable 2026 outlook. Ongoing restructuring efforts are expected to enhance operational efficiency. However, persistent weakness in the Consumer segment and elevated operating costs and R&D expenses could weigh on profitability and limit near-term growth.
Should You Buy MMM Now?
Strength in the Safety and Industrial and Transportation and Electronics segments, along with ongoing cost-control initiatives, are likely to support 3M’s third-quarter 2026 results. However, weakness in the Consumer segment and high operating costs and expenses remain near-term challenges.
MMM’s valuation above the industry average warrants a cautious approach for existing investors. Potential investors may consider waiting for the earnings report and clearer signs of sustained growth before investing in the stock.