3M Company’s MMM Safety and Industrial segment remains a key growth driver, supported by broad-based demand across its major end markets. The segment continues to benefit from strength in industrial adhesives and tapes, electrical, industrial specialties and personal safety end markets. In the second quarter of 2026, sales of industrial adhesives and tapes increased 13% year over year, while personal safety sales rose 9.4%. Electrical and industrial specialties also delivered solid growth, with sales advancing 12% and 10.9%, respectively, during the quarter.
Stable demand for electrical infrastructure products, including medium-voltage cable accessories and insulation tapes, further supported performance. New product launches, along with rising demand for industrial adhesives and electronics bonding solutions, also bode well for the segment. Organic sales increased 8.2% year over year in the second quarter of 2026. The operating income margin expanded year over year, supported by higher sales and productivity gains. However, the improvement was partly offset by tariff-related impacts and continued investments to support long-term growth.
Supported by strength across its businesses, 3M provided an upbeat outlook for 2026. The company expects total adjusted organic sales to increase more than 3.5% year over year, while adjusted earnings are projected to range between $8.80 and $8.95 per share. At the midpoint of $8.875, the earnings outlook represents an improvement from the $8.06 per share reported in 2025.
Segmental Performance of MMM’s Peers in Q2
Among 3M’s major peers, Honeywell Technologies HON is witnessing softness in the Process Automation and Technology segment. In second-quarter 2026, the segment’s organic revenues decreased 1% on a year-over-year basis. This decline was attributable to a 6% drop in organic sales in the aftermarket business owing to lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions hurt Honeywell’s results.
Another peer of MMM, Carlisle Companies Incorporated CSL, is experiencing strength in its Construction Materials segment. Revenues from Carlisle’s Construction Materials segment increased 7.8% year over year to $1.18 billion in the second quarter of 2026. Organic revenues rose 7.7%, driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction.
The Zacks Rundown for MMM
Shares of 3M have gained 1.2% in the year-to-date period against the industry’s decline of 18.1%.
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From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 16.84X, above the industry average of 14.39X. MMM carries a Value Score of C.
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The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 0.6% and 0.9%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
MMM stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).