Shares of 3M (MMM) surged approximately 10% on Tuesday after the industrial conglomerate delivered second-quarter results that handily beat Wall Street expectations and lifted its full-year profit forecast, citing pricing actions, cost controls and resilient demand across key segments.
The Maplewood, Minnesota-based company reported adjusted earnings of $2.40 per share for the quarter, comfortably ahead of the analyst consensus of $2.24–$2.25. Revenue rose 2.4% year-over-year to $6.5 billion, topping the $6.4 billion estimate. A year earlier, 3M posted EPS of $2.16 on revenue of $6.2 billion.
Organic sales growth accelerated to 5.4%, a significant jump from 1.2% in the first quarter. Adjusted operating margin improved to 24.9%, up 40 basis points from a year ago, while operating cash flow reached $1.0 billion and adjusted free cash flow hit $1.3 billion. The Safety and Industrial division led with more than 8% sales growth, powered by electrical products, adhesives, abrasives and a return to growth in roofing granules. The Transportation and Electronics segment saw nearly 6% sales growth, with strength in semiconductor and data center markets offsetting weak automotive demand.
CEO William Brown called it “a strong quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth.”
3M raised its full-year 2026 adjusted EPS guidance to a range of $8.80 to $8.95, up from the prior $8.50–$8.70 and above the $8.74 consensus. The company now expects adjusted total sales growth of more than 4.5% and organic sales growth above 3.5%, while maintaining its 24.9% operating margin outlook. Management noted that higher prices are expected to fully offset oil-driven inflation, which it now estimates will cost $150–$175 million, up from an earlier $125 million projection.
Analysts reacted positively. JPMorgan lifted its December 2026 price target to $180 from $178, citing improving growth momentum and expanding AI and data-center demand. Bernstein SocGen Group raised its target to $140 from $131 while keeping an Underperform rating, although the stock had already moved past that level. 3M shares, which had been down about 1% year-to-date heading into the report, jumped to $175 in midday trading.
