3M Company MMM continues to benefit from strength in its Transportation and Electronics business segment, supported by growth in semiconductors, aerospace, data centers, advanced materials and commercial branding. The segment’s revenues increased 0.4% year over year to $1.999 billion in the third quarter of 2026, while organic sales grew 0.5%.
The results were driven by strong demand in the semiconductor, aerospace and data center markets. Commercial branding also delivered mid-single-digit growth, reflecting continued strength in the business. Advanced materials contributed positively to the segment’s organic growth as well. These gains helped offset weakness in other key end markets.
The segment’s performance reflects MMM’s continued focus on differentiated product innovation, commercial excellence and growth investments. The company launched 87 new products during the quarter, up 24% year over year, while its efforts to strengthen its technology pipeline and improve operational productivity continued to support business performance.
However, weakness in consumer electronics and automotive markets remains a concern. Consumer electronics continued to face industry-wide memory shortages, while softness in the automotive market weighed on segment growth. Additionally, the segment’s operating income margin declined to 23.4% from 24.3% in the year-ago quarter, reflecting continued growth investments and cost dis-synergies following the exit from PFAS manufacturing.
Despite these challenges, increasing demand for semiconductors and data centers, along with continued strength in aerospace, advanced materials and commercial branding, provides growth opportunities for the segment. However, persistent softness in consumer electronics and automotive markets, along with ongoing investment-related costs, may weigh on its near-term profitability.
Segmental Snapshot of MMM’s Peers
Among 3M’s major peers, Emerson Electric Co. EMR is witnessing solid momentum in the power and life sciences markets, within the Control Systems & Software group under the Software & Systems segment. Sales from Emerson’s Software & Systems segment increased 11% year over year to $1.64 billion in the third quarter of fiscal 2026.
Its another peer, ITT Inc.’s ITT Connect and Control Technologies segment is benefiting from growth in connector solutions and aerospace and defense demand. Also, the acquisition of kSARIA augurs well for ITT’s segment. Revenues from ITT’s unit’s organic revenues increased 17.3% year over year in the second quarter of 2026, while organic orders surged 59%, aided by defense and connector strength.
The Zacks Rundown for MMM
Shares of 3M have gained 6.5% in the past year against the industry’s decline of 24.4%.
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From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 18.28X, above the industry’s average of 15.32X. MMM carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s 2026 earnings has increased over the past 60 days.
Image Source: Zacks Investment Research
MMM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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