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MMM Q3 Earnings Top Estimates on Industrial Strength, Outlook Raised
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Key Takeaways
3M's Q3 adjusted earnings rose 12% year over year to $2.50 per share, beating estimates by 4.2%.
Adjusted operating margin expanded 110 basis points to 26.2%, driven by improved efficiency.
3M raised its 2026 adjusted EPS outlook to $9.10-$9.15, with revenue growth projected above 4.5%.
3M Company (MMM - Free Report) posted third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues met the same.
3M delivered adjusted earnings of $2.50 per share, which surpassed the Zacks Consensus Estimate of $2.40 by 4.2%. The bottom line increased 12% year over year.
The company reported net revenues (on a GAAP basis) of $6.6 billion in the quarter. The metric increased 1% year over year. Organic sales increased 0.2%. Foreign currency translation had an adverse impact of 0.1% while acquisitions/divestitures had a positive impact of 0.9%.
MMM’s adjusted net revenues of $6.6 billion were in line with the consensus estimate of $6.6 billion and grew 4.2% year over year. On an adjusted basis, organic revenues increased 3.3% year over year. The results benefited from strength in general industrial, safety, semiconductor and data center end markets.
Region-wise, adjusted organic sales in Latin America rose 7.7% year over year, while other Asia adjusted organic sales increased 1.3%. Adjusted organic sales in China declined 7.3% year over year. Adjusted organic sales from businesses in Europe, the Middle East and Africa grew 1%.
3M’s Q3 Segmental Results
Revenues from Safety and Industrial totaled $3.18 billion, up 9.1% year over year, driven by strength in electrical markets, personal safety, industrial adhesives, abrasives and industrial specialties. Organic revenues increased 7%, while acquisitions had a favorable impact of 3.1%. Foreign currency translation had a positive impact of 0.2%, while divestitures had an adverse impact of 1.2%.
Revenues from Transportation & Electronics totaled $2 billion, reflecting a year-over-year increase of 0.4%. The results were supported by strength across semiconductor, aerospace and data center markets, partially offset by weakness in consumer electronics and automotive markets. The segment’s organic sales increased 0.5%. Foreign currency translation had an adverse impact of 0.1% on revenues.
Revenues from the Consumer segment decreased 0.4% year over year to $1.31 billion. Organic sales declined 0.2%, while movements in foreign currencies had a negative impact of 0.2%. The segment’s performance was affected by continued retailer inventory reductions in the United States and Canada, along with softness in home improvement and packaging businesses.
3M’s cost of sales increased 0.2% year over year to $3.80 billion. Selling, general and administrative expenses increased 12.3% to $921 million. Research, development and related expenses increased 2.4% year over year to $304 million.
In the third quarter, 3M reported an operating income of $1.56 billion, up 7.7% from the year-ago period. The operating margin expanded to 23.7% from 22.2%, supported by improved operational efficiency and productivity gains.
MMM’s adjusted operating income increased 8.9% year over year to $1.73 billion. The adjusted operating margin was 26.2% compared with 25.1% in the year-ago quarter, reflecting an expansion of 110 basis points.
3M’s Balance Sheet & Cash Flow
Exiting the third quarter of 2026, 3M had cash and cash equivalents of $4.84 billion compared with $5.24 billion at the end of December 2025. Long-term debt was $12.56 billion compared with $10.93 billion at the end of December 2025.
3M generated net cash of $486 million in operating activities, down 72.3% from $1.76 billion in the year-ago quarter. Capital used for purchasing property, plant and equipment increased 17.4% to $256 million.
Adjusted free cash flow at the end of the quarter was $1.20 billion, down 8.6% year over year.
In the first nine months of 2026, 3M rewarded its shareholders with dividend payouts of $1.2 billion and gross share repurchases totaling $3.2 billion.
MMM’s 2026 Guidance
For 2026, MMM expects adjusted earnings to be in the range of $9.10-$9.15 per share compared with $8.95-$9.10 projected earlier. The midpoint of the guided range is about $9.125, which reflects an increase from adjusted earnings of $8.20 per share reported in 2025.
Adjusted total revenue growth is projected to be above 4.5%, driven by adjusted organic sales growth of more than 3.5%. The company expects adjusted operating cash flow of approximately $5.9 billion, with adjusted free cash flow of approximately $4.8 billion.
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MMM Q3 Earnings Top Estimates on Industrial Strength, Outlook Raised
Key Takeaways
3M Company (MMM - Free Report) posted third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues met the same.
3M delivered adjusted earnings of $2.50 per share, which surpassed the Zacks Consensus Estimate of $2.40 by 4.2%. The bottom line increased 12% year over year.
The company reported net revenues (on a GAAP basis) of $6.6 billion in the quarter. The metric increased 1% year over year. Organic sales increased 0.2%. Foreign currency translation had an adverse impact of 0.1% while acquisitions/divestitures had a positive impact of 0.9%.
MMM’s adjusted net revenues of $6.6 billion were in line with the consensus estimate of $6.6 billion and grew 4.2% year over year. On an adjusted basis, organic revenues increased 3.3% year over year. The results benefited from strength in general industrial, safety, semiconductor and data center end markets.
Region-wise, adjusted organic sales in Latin America rose 7.7% year over year, while other Asia adjusted organic sales increased 1.3%. Adjusted organic sales in China declined 7.3% year over year. Adjusted organic sales from businesses in Europe, the Middle East and Africa grew 1%.
3M’s Q3 Segmental Results
Revenues from Safety and Industrial totaled $3.18 billion, up 9.1% year over year, driven by strength in electrical markets, personal safety, industrial adhesives, abrasives and industrial specialties. Organic revenues increased 7%, while acquisitions had a favorable impact of 3.1%. Foreign currency translation had a positive impact of 0.2%, while divestitures had an adverse impact of 1.2%.
Revenues from Transportation & Electronics totaled $2 billion, reflecting a year-over-year increase of 0.4%. The results were supported by strength across semiconductor, aerospace and data center markets, partially offset by weakness in consumer electronics and automotive markets. The segment’s organic sales increased 0.5%. Foreign currency translation had an adverse impact of 0.1% on revenues.
Revenues from the Consumer segment decreased 0.4% year over year to $1.31 billion. Organic sales declined 0.2%, while movements in foreign currencies had a negative impact of 0.2%. The segment’s performance was affected by continued retailer inventory reductions in the United States and Canada, along with softness in home improvement and packaging businesses.
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 0.2% year over year to $3.80 billion. Selling, general and administrative expenses increased 12.3% to $921 million. Research, development and related expenses increased 2.4% year over year to $304 million.
In the third quarter, 3M reported an operating income of $1.56 billion, up 7.7% from the year-ago period. The operating margin expanded to 23.7% from 22.2%, supported by improved operational efficiency and productivity gains.
MMM’s adjusted operating income increased 8.9% year over year to $1.73 billion. The adjusted operating margin was 26.2% compared with 25.1% in the year-ago quarter, reflecting an expansion of 110 basis points.
3M’s Balance Sheet & Cash Flow
Exiting the third quarter of 2026, 3M had cash and cash equivalents of $4.84 billion compared with $5.24 billion at the end of December 2025. Long-term debt was $12.56 billion compared with $10.93 billion at the end of December 2025.
3M generated net cash of $486 million in operating activities, down 72.3% from $1.76 billion in the year-ago quarter. Capital used for purchasing property, plant and equipment increased 17.4% to $256 million.
Adjusted free cash flow at the end of the quarter was $1.20 billion, down 8.6% year over year.
In the first nine months of 2026, 3M rewarded its shareholders with dividend payouts of $1.2 billion and gross share repurchases totaling $3.2 billion.
MMM’s 2026 Guidance
For 2026, MMM expects adjusted earnings to be in the range of $9.10-$9.15 per share compared with $8.95-$9.10 projected earlier. The midpoint of the guided range is about $9.125, which reflects an increase from adjusted earnings of $8.20 per share reported in 2025.
Adjusted total revenue growth is projected to be above 4.5%, driven by adjusted organic sales growth of more than 3.5%. The company expects adjusted operating cash flow of approximately $5.9 billion, with adjusted free cash flow of approximately $4.8 billion.
MMM’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks are discussed below.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 7.4%.
The Zacks Consensus Estimate for ITT’s 2026 earnings has increased 0.6% in the past 60 days.
GPGI, Inc. (GPGI - Free Report) currently carries a Zacks Rank #2. GPGI delivered a trailing four-quarter average earnings surprise of 23.8%.
In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has remained steady.
IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank of 2. 3M delivered a trailing four-quarter average earnings surprise of 7.7%.
In the past 60 days, the consensus estimate for IEX’s 2026 earnings has increased a penny.