3M posts a 5.7% earnings surprise as organic growth and profitability strengthen.
Stock Earnings Results
July 21, 2026
Table of Contents
July 21, 2026
3M Company (NYSE: MMM) reported second-quarter 2026 results above expectations, supported by higher sales, organic growth, stronger adjusted earnings, solid free cash flow, and increased full-year guidance.
3M is a diversified industrial and materials company that provides products across safety, industrial, electronics, transportation, consumer, healthcare-related materials, and advanced manufacturing markets.
The company reported adjusted EPS of $2.40, above estimates of $2.27, representing a 5.7% earnings surprise. Revenue came in at $6.50 billion, above estimates of $6.40 billion, with sales growth of 2.5%.
3M reported GAAP sales of $6.5 billion, up 2.4% year-over-year.
Adjusted sales were also $6.5 billion, with adjusted organic growth of 5.4%.
GAAP EPS was $1.78, up 33% from the prior-year quarter.
Adjusted EPS increased 11% year-over-year to $2.40.
GAAP operating margin was 15.1%, down 290 basis points from the prior year.
Adjusted operating margin was 24.9%, up 40 basis points year-over-year.
3M generated $1.0 billion in operating cash flow during the quarter.
Adjusted free cash flow was $1.3 billion.
The company returned $1.4 billion to shareholders through dividends and share repurchases.
The quarter showed stronger earnings quality, with organic growth, margin expansion on an adjusted basis, and continued cash generation supporting shareholder returns.
3M announced a strategic partnership with Microsoft to advance AI data center infrastructure and enterprise transformation.
Microsoft became the first announced hyperscale cloud provider to deploy 3M Expanded Beam Optics technology.
3M also signed a long-term agreement with Airbus to provide advanced insulation technologies for the A220 aircraft.
The company launched Ask 3M, an AI-powered digital assistant built with AWS, designed to help customers access technical expertise and compare products more efficiently.
3M also announced a multi-year global partnership with the Cadillac Formula 1 Team as its official material science partner.
3M increased its full-year 2026 adjusted EPS guidance to $8.80 to $8.95, up from its prior range of $8.50 to $8.70.
The company now expects adjusted total sales growth of more than 4.5%, including adjusted organic sales growth of more than 3.5%.
Adjusted operating income margin is expected to expand by 70 to 80 basis points.
3M also expects adjusted operating cash flow of $5.8 billion to $6.0 billion, contributing to more than 100% adjusted free cash flow conversion.
The updated outlook does not yet include the acquisition of Madison Fire & Rescue, which closed on July 1, 2026.
3M delivered a stronger quarter as its turnaround continued.
Sales beat expectations, adjusted EPS grew double digits, adjusted operating margin expanded, and free cash flow remained solid. The company also raised full-year guidance, showing confidence in the second half of 2026.
The key question is whether 3M can keep improving organic growth and margins while managing legal costs, PFAS-related liabilities, and transformation expenses.
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