Strong quarterly performance lifts guidance
3M Co. (NYSE:MMM) delivered better-than-expected second-quarter results on Tuesday, beating Wall Street forecasts for both earnings and revenue while raising its financial outlook for the remainder of 2026.
The stronger-than-anticipated performance sent shares up 6.28% in pre-market trading.
Adjusted earnings came in at $2.40 per share, exceeding the consensus estimate of $2.24. Revenue increased 2.4% year over year to $6.5 billion, ahead of analyst expectations of $6.4 billion.
Organic sales and margins continue to improve
The industrial manufacturer reported adjusted organic sales growth of 5.4% compared with the same period last year.
Adjusted operating margin expanded by 40 basis points to 24.9%, reflecting continued progress in operational efficiency and profitability.
GAAP earnings per share rose to $1.78 from $1.34 a year earlier, representing a 33% year-over-year increase.
Company raises 2026 earnings forecast
Following the stronger quarterly performance, 3M increased its adjusted earnings per share guidance for full-year 2026 to a range of $8.80 to $8.95, up from its previous forecast of $8.50 to $8.70.
The midpoint of the updated guidance, $8.88 per share, is above the current analyst consensus estimate of $8.74.
“We delivered a strong second quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth, reflecting the progress we’re making on our strategic priorities and building a higher-performing company,” said William Brown, 3M Chairman and CEO.
Cash generation remains solid
During the quarter, 3M generated $1.0 billion in operating cash flow and reported adjusted free cash flow of $1.3 billion.
The company also returned $1.4 billion to shareholders through dividends and share repurchases.
Looking ahead, 3M expects adjusted total sales growth of more than 4.5% for the full year, including adjusted organic sales growth exceeding 3.5%.
Management also forecasts adjusted operating margin expansion of between 70 and 80 basis points and adjusted operating cash flow in the range of $5.8 billion to $6.0 billion.
3M stock price
