Post-it maker 3M Company (NYSE:MMM) stock climbed Wednesday after the industrial giant beat fourth-quarter earnings estimates.
On Tuesday, the company reported fourth-quarter 2025 adjusted sales of $6.023 billion, which came slightly above the consensus estimate of $6.012 billion.
Adjusted earnings per share rose 9% Y/Y to $1.83, topping the Street estimate of $1.80.
3M sees 2026 adjusted EPS outlook of $8.50-$8.70 (versus consensus of $8.61) and adjusted sales outlook of about $25.250 billion, versus street view of $25.040 billion.
Following the results, Bank of America Securities analyst Andrew Obin raised the company’s EPS estimates, while maintaining a Buy rating and a $200 price forecast.
Analyst Views
The analyst writes that organic revenue growth outside the Consumer segment exceeded estimates, while Consumer underperformed due to a weaker-than-expected holiday season.
Safety & Industrial drove the outperformance, benefiting from a stabilizing industrial channel and self-help initiatives, while Transportation and Electronics showed solid organic growth but slightly lagged on operations, notes the analyst.
Obin says that 3 M’s guidance projects top-line growth above consensus for fiscal 2026, despite a conservative macro outlook, with margin expansion expectations included in the guidance range.
Contrary to some market skepticism around slowing margin growth, the analyst sees improving growth prospects, especially in Safety & Industrial, while strategic adjustments in Transportation & Electronics could broaden the total addressable market.
Cost-cutting and operational efficiency efforts remain on track, supporting potential upside to margins as macro conditions improve, adds the analyst.
Consequently, Obin raised EPS estimates to $8.70 (from $8.60) for 2026 and $9.18 (from $9.06) for 2027. The analyst sees EPS estimates of $9.79 for 2028.
MMM Price Action: 3M shares were up 0.76% at $157.30 at the time of publication on Wednesday, according to Benzinga Pro data.
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