3M Company MMM reported second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
3M delivered adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.27 by 5.7%. The bottom line increased 11% year over year.
The company reported net revenues (on a GAAP basis) of $6.5 billion in the quarter. The metric increased 2.4% year over year. Organic sales increased 2.3%. Foreign currency translation had a positive impact of 0.7% while acquisitions/divestitures had a negative impact of 0.6%.
MMM’s adjusted net revenues of $6.5 billion topped the consensus estimate of $6.4 billion and grew 5.5%. On an adjusted basis, organic revenues increased 5.4% year over year. The results were supported by strength in general industrial, safety and electronics end markets.
Region-wise, adjusted organic sales in the Latin Americas rose 5.4% year over year, other Asia adjusted organic sales increased 2.9% and China adjusted organic sales increased 9.2%. Adjusted organic sales from businesses in Europe, the Middle East and Africa grew 2.3%.
3M’s Q2 Segmental Results
Revenues from Safety and Industrial totaled $3.09 billion, up 8.2% year over year, driven by strength in industrial specialties, adhesives, abrasives and electrical markets. The Zacks Consensus Estimate for the segment’s revenues was pegged at $3.02 billion. While organic revenues increased 8.2% and foreign currency translation had a 1.3% favorable impact, divestitures had an adverse impact of 1.3%.
Revenues from Transportation & Electronics totaled $2.07 billion, reflecting a year-over-year increase of 6.2%. The results were driven by strength across semiconductor, aerospace and data center markets. The consensus estimate for the segment’s revenues was pegged at $2.01 billion. The segment’s organic sales increased 5.9%. Foreign currency translation had a 0.5% favorable impact, while divestiture had an adverse impact of 0.2% on revenues.
Revenues from the Consumer segment decreased 1.8% year over year to $1.25 billion. The consensus estimate for the segment’s revenues was pegged at $1.29 billion. Organic sales decreased 2.1% while movements in foreign currencies had a positive impact of 0.3%.
3M Company Price, Consensus and EPS Surprise
3M Company price-consensus-eps-surprise-chart | 3M Company Quote
MMM’s Margin Profile
3M’s cost of sales increased 4.7% year over year to $3.82 billion. Selling, general and administrative expenses decreased 16.3% to $1.06 billion. Research, development and related expenses increased 4.9% year over year to $302 million.
In the second quarter, 3M reported an operating income of $984 million, down 13.7% from the year-ago period. The operating margin contracted to 15.1% from 18%, due to higher operating expenses.
MMM’s adjusted operating income increased 7.2% year over year to $1.62 billion. The adjusted operating margin was 24.9% compared with 24.5% in the year-ago quarter.
3M’s Balance Sheet & Cash Flow
Exiting the second quarter of 2026, 3M had cash and cash equivalents of $2.96 billion compared with $5.24 billion at the end of December 2025. Long-term debt was $10.90 billion at the end of the quarter compared with $10.93 billion at the end of December 2025.
3M generated net cash of $986 million in operating activities against $954 million cash used in the year-ago quarter. Capital used for purchasing property, plant and equipment increased 7.2% to $223 million.
Adjusted free cash flow at the end of the quarter was $1.35 billion, up 5% year over year. Adjusted free cash flow conversion was 107% in the quarter.
In the first six months of 2026, 3M rewarded its shareholders with dividend payouts of $0.8 billion and share repurchases totaled $3 billion.
MMM’s 2026 Guidance
For 2026, MMM expects adjusted earnings to be in the range of $8.80-$8.95 per share compared with $8.50-$8.70 projected earlier. The midpoint of the guided range is about $8.875, which reflects an increase from earnings of $8.06 per share reported in 2025.
Adjusted total revenue growth is projected to be above 4.5%. The company expects the adjusted free cash flow conversion rate to be more than 100%, with adjusted operating cash flow of $5.8-$6.0 billion.
Zacks Rank & Other Key Picks
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:
Duluth Holdings DLTH presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Duluth’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 107.5%. In the past 60 days, the Zacks Consensus Estimate for DLTH’s fiscal 2027 bottom line has increased 45.8%.
Grupo Cibest S.A. CIB presently sports a Zacks Rank of 1. Grupo Cibest’s earnings surpassed the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 0.3%. In the past 60 days, the Zacks Consensus Estimate for CIB’s 2026 earnings has increased 2.9%.
Vince Holding VNCE currently carries a Zacks Rank of 2. Vince Holding’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 635.7%. In the past 60 days, the Zacks Consensus Estimate for VNCE’s fiscal 2027 earnings has increased 59.5%.
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3M Company (MMM): Free Stock Analysis Report
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