MMM

3M just reported a much better Q3 2026 profit story than the share price reaction suggests. The stock ticked up about 2% to roughly US$174.74 into and through the release, a calm move for a company that just printed adjusted operating margin above 26% and Basic EPS above US$2.60. What moved under the surface was earnings power. Net income from ongoing operations hit about US$1.4b, helped by stronger margins in its industrial and safety franchises. Short term traders treated it as a routine beat. The fundamentals point to a more significant margin reset that long term holders are likely to focus on. Love 3M's thick Q3 margins but concerned the stock barely reacted to the earnings power behind them? Check out the 33 high quality undervalued stocks for companies pairing resilient profitability with balance sheets that the market may be underpricing. - Revenue (Q3 2026 vs. Q3 2025): US$6,584m vs. US$6,517m (up about 1%) - Net Income from Ongoing Operations (Q3 2026 vs. Q3 2025): US$1,373m vs. US$834m (up about 65%) - Basic EPS (Q3 2026 vs. Q3 2025): US$2.65 vs. US$1.56 (up about 70%) - Adjusted Operating Margin (Q3 2026 vs. Q3 2025): 26.2% vs. 25.1% (up about 110 bps) Earnings only tell part of the story, because valuation focused investors care just as much about the cash actually coming through the door. Looking at 3M's cash flows alone, the stock could be a clear 29% undervalued. "3M's reworked R&D model, with a plan to lift annual launches to more than 350 in 2026 and over 1,000 by 2027 and to raise the five year vitality index toward 20%, creates room for a higher share of sales from newer products, which can support revenue growth and mix driven margin expansion." 3M is starting to put hard numbers behind that ambition. Q3 organic sales grew 3.3% with general industrial and safety leading, while data center and semiconductor demand was strong enough to offset a mid teens decline in consumer electronics. Adjusted operating margin reached 26.2%, helped by supply chain productivity and better product mix. Partnerships with AWS, Microsoft Azure and GSEO around Expanded Beam Optics show the data center thesis moving from slideware to commercial orders, even if the full vitality uplift is still ahead. That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for. Bearish views argue that 3M's legal and environmental issues will quietly rebuild the cost base and cap profitability over time. "New environmental actions, including New York's wide ranging PFAS lawsuit seeking cleanup funding, damages, and penalties, sit on top of other environmental and safety cases such as the Watson Grinding judgment. Together these matters point to a longer and more expensive liability tail than many models assume, which could divert cash away from reinvestment and affect future earnings." The latest quarter does not yet show that drag. Free cash flow of about US$1.2b and 26.2% adjusted operating margin arrive alongside higher EPS guidance, so the liability thesis remains more about future cash calls than current P&L strain. 3M reports strong earnings while its share price reaction remains limited. The real opportunity is hunting for stocks that could be undervalued before the market closes the gap. - Company 1 - 46% below our estimate - uses a recent regional bank acquisition to add low cost deposits and extend an asset sensitive loan book. - Company 2 - 50% below our estimate - shifts its model toward recurring fee income while folding in acquired operations to capture partnership driven cost and revenue synergies. - Company 3 - 24% below our estimate - expands coconut based beverage volumes in branded and private label channels while working to prevent higher input costs from eroding profitability targets. Three companies from the same screener. Open all 33 potentially undervalued companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MMM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- 3M reported third quarter 2026 sales of US$6.58b and GAAP EPS of US$2.63, raised full year adjusted earnings guidance to US$9.10 to US$9.15 per share, and highlighted growing demand in industrial, data center and optical connectivity businesses. - The expanded collaboration with Amazon Web Services around 3M's Expanded Beam Optical platform ties earnings momentum directly to data center and AI infrastructure build out, shifting more of the business mix toward higher complexity connectivity solutions. - This raises the question of how 3M's upgraded earnings outlook, together with the AWS optical collaboration, could reshape its investment narrative. Sprint ahead of the 3M AI-infrastructure story by scanning a curated set of 55 AI infrastructure stocks that could also be plugged into the same buildout theme. To own 3M, you need to believe the company can turn its broad industrial base into steadier earnings through higher margin products and tighter operations. The Q3 beat and higher 2026 EPS guidance suggest that pricing discipline, cost work and product mix are currently supporting that story. In the near term, the key swing factor remains execution on restructuring and productivity, while managing debt and legal liabilities so cash generation is not diluted. The biggest risk still sits with unpredictable PFAS and safety related payouts, together with any stall in organic demand that would expose fixed costs. The AWS optical deal and data center momentum help the near term narrative, although they do not remove those overhangs. Product quality issues, such as the recent laminator recall, also need careful handling so they do not offset progress in higher complexity businesses. The expanded collaboration with Amazon Web Services around 3M's Expanded Beam Optical platform is the announcement that most directly links to the current AI infrastructure theme. AWS plans to deploy and scale EBO across its data center footprint, which ties 3M's optical portfolio more tightly to hyperscale spending plans and creates a clear operational growth vector inside the broader group. That partnership, including planned co investment and capacity expansion, works alongside the Genius Electronic Optical collaboration to support adoption of EBO and related interconnect products. For investors, the catalyst is whether these agreements translate into sustained orders that are large enough to matter against a roughly US$25.2b revenue base. The execution risk is concentrated in manufacturing scale, supply chain reliability and maintaining product reliability at higher volumes. 3M's narrative projects US$28.2b revenue and US$5.3b earnings by 2029. This implies 3.8% yearly revenue growth and an earnings increase of about US$2.3b from US$3.0b today. Uncover why 3M's fair value indicates a 7% potential upside to its current price that could narrow quickly. One alternate angle focuses on how concentrated 3M's data center push might be. The most cautious analysts, before this AWS announcement, were working off revenue of about US$27.6b and earnings of roughly US$5.1b by 2029. That is a meaningfully lower bar than consensus, which shows how wide opinion runs and why you may want to compare several narratives yourself. Explore 3 other 3M fair value estimates, including one that suggests it could be worth just $186.98. Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. - A great starting point for your 3M research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. - See our latest analysis for 3M. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate 3M's overall financial health at a glance. If the 3M story has sharpened your thinking about quality, risk and payout potential, it can be useful to line it up against other possibilities using the Simply Wall St Screener. - For investors who want strong balance sheets to sit at the center of their process, start with a focused list of solid balance sheet and fundamentals (25 results) that can handle tougher conditions. - If resilience matters more than excitement for your next pick, filter the universe through a 31 resilient stocks with low risk scores and compare how those profiles stack up against 3M. - When you are hunting for under followed opportunities with solid fundamentals, cast a wider net using a 21 high quality undiscovered gems that may not yet be crowded trades. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MMM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

3M (MMM) is back in focus after reporting stronger than expected third quarter earnings and lifting its full year outlook, while also expanding its collaboration with Amazon Web Services around optical connectivity for AI data centers. Recent trading shows that 3M's share price momentum has picked up, with a 7 day share price return of 6.19% and an 8.49% year to date share price return. The 3 year total shareholder return of about 157% points to a much stronger longer term payoff profile driven by earlier price gains and reinvested distributions. Scan beyond 3M and this AWS-powered AI infrastructure story to spot other industrial and data center plays showing fresh momentum in our handpicked 55 AI infrastructure stocks Bulls argue 3M now looks mispriced after the earnings beat, higher guidance and new AWS tie up. Skeptics focus on product risks and execution. As the stock resets higher, the debate centers on which side the current valuation favors. The most followed 3M narrative pegs fair value at about $186.98 a share, slightly above the recent $175.56 close, which frames the latest AWS news against a longer running margin and cash flow story. The ongoing shift from a regionally run holding-company model to a globally integrated operating company, including consolidation of factories and back-office functions, is already tied to roughly 500 basis points of operating margin expansion since 2023. It is intended to drive further structural cost takeout that can support net margins and earnings beyond 2027. See why 185 investors see 3M as 6% undervalued. Result: Fair Value of $186.98 (UNDERVALUED) Still, unresolved PFAS and safety litigation, along with pressure from inflation-linked input costs, could quickly challenge the current 3M valuation narrative. Find out about the key risks to this 3M narrative. Sentiment around 3M is clearly split, with real concerns sitting right next to genuine optimism about the upside potential. Act quickly, dig into both sides of the story, and weigh the 2 key rewards and 2 important warning signs. If 3M has sharpened your appetite for opportunities, do not stop here. Use structured screeners to spot quality setups before they move out of reach. - Target resilient balance sheets and steady fundamentals with our curated list of solid balance sheet and fundamentals (26 results) that helps you focus on financial strength first. - Pursue mispriced quality by scanning the 30 high quality undervalued stocks and zero in on stocks where market expectations and fundamentals appear out of sync. - Lock in potential income ideas by running the 6 dividend fortresses and narrow your list to companies offering higher yields with support from their numbers. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MMM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

MIAMI, Oct. 21, 2026 /PRNewswire/ -- Stock Preachers News Commentary - Tuesday's session showed how quickly market leadership can change hands. The Dow Jones Industrial Average climbed 529.85 points, or 1.02%, to 52,495.88, and the small-cap Russell 2000 rose 1.65%, while the Nasdaq Composite slipped 0.02% to 26,424.82 and the S&P 500 added 0.28% to 7,712.57. Some of the day's sharpest moves came from third-quarter reports at companies well outside the megacap technology names: a credit data company, a toy and game maker, an industrial manufacturer and a Cleveland-based bank. Active Companies from around the markets with current developments this week include: 3M Company (NYSE: MMM), Equifax Inc. (NYSE: EFX), Hasbro, Inc. (NASDAQ: HAS), KeyCorp (NYSE: KEY). Those four stocks gained between 4.47% and 11.33% on Tuesday, according to Stock Analysis data, and no two of them moved for the same reason. One paired a solid quarter with a new data center partnership. One jumped even after trimming its full-year revenue outlook. One raised its outlook on the strength of a single trading card game. And one posted record quarterly revenue. That spread is a useful reminder of how earnings season works. Index levels tell investors where the market closed, but the reaction to each individual report shows what investors were actually paying for, and with more companies reporting through the rest of the week, those reactions are worth watching one stock at a time. When a stock gaps higher on earnings, the chart is where traders look to see whether the move holds. The free Knowledge is Power guide from Stock Preachers shows how to read the news and the charts together, and it comes with The Roadmap market reports at stockpreachers.com. In other industry developments and happenings in the market this week include: 3M Company (NYSE: MMM) 3M reported third-quarter GAAP sales of $6.6 billion, up 1.0%, organic growth of 3.3% on adjusted sales of $6.6 billion, and adjusted EPS of $2.50 on a new basis, up 12% year over year, and it raised its 2026 adjusted EPS guidance to $9.10 to $9.15, incorporating that new basis. The company also entered an expanded strategic commercial relationship with a major cloud and e-commerce company to deploy and scale 3M's optical connectivity and other data center related products, and issued that company a warrant to purchase up to 3.2 million shares of 3M common stock based upon the achievement of $6 billion in cumulative sales of those products over the next seven years and other event-based milestones. 3M shares rose 5.78% to $171.37. "We delivered another quarter of strong results, including solid sales growth, continued margin expansion, double-digit EPS growth, and robust free cash flow," said William Brown, 3M Chairman and CEO. Equifax Inc. (NYSE: EFX) Equifax reported third-quarter revenue of $1.693 billion, up 10%, with 9% local currency revenue growth, and adjusted EPS of $2.26, up 11%. U.S. Mortgage revenue grew 15%, although the company said the mortgage market weakened in the latter half of the quarter as mortgage interest rates increased substantially, and it reduced the midpoint of its 2026 revenue guidance to $6.661 billion. Its adjusted EPS guidance of $8.50 per share is a reduction of only $0.04 per share at the midpoint and well within its previous range, according to the company. The shares rose 11.33% to $176.54. "Equifax delivered a strong third quarter performance executing on our EFX2028 Strategic Priorities with reported revenue of $1.693 billion, up 10% on a reported basis, with 9% local currency revenue growth," said Mark W. Begor, Equifax Chief Executive Officer. Hasbro, Inc. (NASDAQ: HAS) Hasbro reported a 15% increase in third-quarter revenue, driven by growth in Wizards and Digital Gaming, up 31%, Consumer Products, up 4%, and Entertainment, up 9%. Magic: The Gathering revenue rose 34% and surpassed $600 million in a quarter for the first time. Adjusted operating profit was $541 million, up 52%, and adjusted net earnings were $2.90 per diluted share. Hasbro raised its 2026 outlook for total revenue growth to 7% to 9% in constant currency, from 5% to 7%, and for adjusted EBITDA to $1.575 billion to $1.625 billion, from $1.45 billion to $1.50 billion. The shares rose 11.20% to $109.52. "Inspiring a lifetime of play is our superpower, and this quarter showed what it can do," said Chris Cocks, Hasbro Chief Executive Officer. "We delivered a fourth consecutive quarter of double-digit revenue growth, and Magic: The Gathering topped $600 million in quarterly revenue for the first time." KeyCorp (NYSE: KEY) KeyCorp reported third-quarter net income of $537 million, or $0.51 per diluted common share, with diluted EPS up 24% year over year. Revenue reached a record $2.04 billion, up 8% from a year earlier and 4% from the prior quarter, net interest margin widened to 2.95%, up 20 basis points year over year, and the bank repurchased $320 million of common shares during the quarter. The shares rose 4.47% to $20.81. "Our third quarter results reflect the strength of Key's relationship-driven franchise, the disciplined execution of our strategy, and the momentum we are building across the business," said Chris Gorman, Chairman and CEO of KeyCorp. Earnings can move a stock 10% or more in a single session, in either direction. Learn to spot the setups before and after reports like these with the free Stock Preachers guide, plus The Roadmap market reports, at stockpreachers.com. Contact Information: stockpreachers.com Media Contact: [email protected] DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is not a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. This article is independent news commentary. Stock Preachers is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL has not been paid by any company mentioned in this article. MEL and its owners, operators, directors, and affiliates do not currently own any shares of the companies mentioned in this article, but reserve the right to, and will, buy and sell shares of those companies at any time without further notice. Daily price changes are from the October 19, 2026 close to the October 20, 2026 close based on Stock Analysis data. Company guidance is as stated by the companies and may change. Information is drawn from company news releases and filings, government and industry data, published reporting and third-party data believed to be reliable, but its accuracy is not guaranteed. Investing in securities carries risk, including the loss of some or all of your investment. This document is governed by the laws of Ireland. 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3M Company MMM emphasized stronger industrial demand, expanding data center opportunities and continued productivity improvements during its third-quarter 2026 earnings call. Management also raised its full-year earnings outlook while outlining expectations for further margin expansion. The discussion centered on the company's Artificial Intelligence infrastructure partnerships, improving order trends and ability to offset inflation through pricing. Executives also addressed weakness in consumer electronics and the execution requirements surrounding new optical technologies. Chief financial officer Anurag Maheshwari raised full-year adjusted earnings guidance to $9.10-$9.15 per share from $8.95-$9.10 on the updated reporting basis. 3M Company price-consensus-eps-surprise-chart | 3M Company Quote Management maintained expectations for adjusted organic sales growth exceeding 3.5%, supported by fourth-quarter growth above 4%. Full-year adjusted free cash flow guidance remained approximately $4.8 billion. The outlook followed adjusted earnings of $2.50 per share, exceeding the Zacks Consensus Estimate of $2.40 by 4.20%. Revenues of $6.58 billion missed the consensus estimate of $6.61 billion by 0.40%. Chief executive officer William Brown highlighted an expanded commercial relationship with Amazon involving optical connectivity and other data center products. Under the agreement, Amazon received warrants to purchase up to 3.2 million 3M shares, tied to $6 billion in cumulative sales over seven years and other milestones. During questioning from Wolfe Research, Brown clarified that the arrangement carries no minimum volume commitments. He projected expanded beam optics revenues of approximately $40 million in 2026 and $80-$100 million in 2027. Maheshwari attributed third-quarter adjusted operating margin expansion of 110 basis points to 26.2% primarily to supply-chain productivity, procurement savings and operating improvements. He said the company expects its 2027 operating margin to exceed the updated Investor Day target of 25.4%. Volume-related incremental margins are approaching 40%. Responding to JPMorgan's questions, Maheshwari emphasized that margin improvements reflected structural operating changes rather than one-time benefits. Brown added that manufacturing consolidation should contribute more meaningfully beginning in 2028. Maheshwari reported high-single-digit order growth and high-teens backlog expansion, reflecting strength across industrial, safety, semiconductor and aerospace markets. Safety and Industrial delivered 7% organic growth, while Transportation and Electronics advanced 0.5%. Consumer sales remained flat amid retailer inventory adjustments. During Wells Fargo's questioning, Brown indicated that approximately 25% of fourth-quarter revenues were covered by backlog. He emphasized favorable order trends and easier comparisons supporting the company's year-end growth expectations. Brown discussed a manufacturing partnership with Genius Electronic Optical, accompanied by a 4.7% equity investment, to expand production capacity for expanded beam optics technology. The company also continues collaborating with Microsoft on optical connectivity deployment. Brown emphasized that manufacturing scale, industry standards and diversified supply remain essential to broader hyperscaler adoption. Beyond optical technology, 3M introduced 87 products during the quarter, up 24%. Brown expects launches to exceed 350 during 2026, supported by faster development cycles and Artificial Intelligence tools. Brown acknowledged continued pressure in consumer electronics, particularly LCD displays and Chinese device manufacturers. The segment's demand environment remains challenging entering the fourth quarter. Responding to Deutsche Bank, he highlighted opportunities involving premium devices, thermal management and foldable technology. Management expects innovation to support renewed growth in 2027. In the Consumer business, U.S. point-of-sale growth exceeded 2%, although retailer destocking constrained shipments. Brown expects modest improvement as channel inventories stabilize. Management's overall tone remained confident, emphasizing commercial execution, manufacturing productivity and innovation as the principal drivers of sustainable growth. Brown and Maheshwari maintained that pricing discipline should offset additional oil-related inflation while operational transformation supports future profitability. Execution on optical technology partnerships and recovery across weaker consumer markets remain important priorities. MMM currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Its Value Score of C, Growth Score of B and Momentum Score of F reflect relatively stronger growth characteristics alongside weaker price momentum. The stock's VGM Score of C represents a middle-range combined assessment of value, growth and momentum. Although its Growth Score is favorable, the weaker Momentum Score limits the overall profile. The Zacks Rank may change as analysts revise earnings estimates following the latest quarterly results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 3M Company (MMM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - Organic Sales Growth: 3.3% in Q3; full-year guidance of greater than 3.5%; Q4 expected just over 4%. - Adjusted Operating Margin: 26.2% in Q3, up 110 basis points year over year; three business groups up 140 basis points, partially offset by 30 basis points from corporate. - Adjusted EPS: $2.50 in Q3, up 12% year over year. - GAAP EPS: $2.63 in Q3, up 70% year over year. - Free Cash Flow: $1.2 billion in Q3; year to date $3.1 billion; full-year guidance approximately $4.8 billion. - Operating Profit: Increased $140 million, with $260 million from sales growth and productivity, partially offset by about $120 million of stranded costs and investments. - Gross Margin: Up 230 basis points year over year, driven by productivity improvements, procurement savings, higher asset utilization, and improved quality. - Capital Returns: $600 million returned in Q3 ($400 million dividends, $200 million share repurchases); year to date $4.4 billion ($1.2 billion dividends, $3.2 billion buybacks); $9.3 billion returned since start of 2025. - Safety & Industrial (SIBG): 7% organic sales growth in Q3; year-to-date sales up 6.1%; orders and backlog up double digits. - Transportation & Electronics (TBG): 0.5% sales growth in Q3; consumer electronics down mid-teens; business ex-consumer electronics grew about 5%; year-to-date sales up 2.1%. - Consumer Segment: Flat in Q3; US POS grew over 2% but US sell-in down low-single digit on retailer inventory adjustments; international grew mid-single digits. - Geographic Performance: US and Canada up approximately 7%; Latin America up high-single digits; Europe grew for second consecutive quarter; Asia positive with India up double digits; China down high-single digits. - Orders & Backlog: Orders grew high-single digits in Q3; backlog up high-teens over last year. - Oil Inflation Impact: Estimated at $185 million for the year, up from prior $150 million$175 million range; expected to be fully offset by pricing, with about 20 basis points margin rate dilution. - Full-Year Adjusted EPS Guidance: Raised to $9.10$9.15, representing 11%12% growth. - Full-Year Margin Guidance: Approximately 24.6% on the new basis. - Adjusted Tax Rate Guidance: Approximately 20% for the year. - New Product Launches: 87 launched in Q3, up 24%; on track to exceed 350 for the year; five-year new product sales up 34% year to date to nearly $3 billion. - Cross-Selling: $140 million in wins booked to date, with another $120 million in pipeline, ahead of original $100 million three-year goal. - Footprint Actions: 16 manufacturing sites and distribution centers closed year to date; action on 10 more over next 12 months. - Madison Fire & Rescue: High-single-digit pro forma growth; operating margins ahead of deal model and 3M overall. - Warning! GuruFocus has detected 4 Warning Signs with MMM. - Is MMM fairly valued? Test your thesis with our free DCF calculator. Release Date: October 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - 3M Co (NYSE:MMM) delivered Q3 organic growth of 3.3%, with operating margin up 110 basis points to 26.2% and adjusted EPS up 12% to $2.50. - 3M Co (NYSE:MMM) raised full-year 2026 earnings guidance to $9.10-$9.15, reflecting confidence in continued momentum and productivity. - New product launches increased 24% in Q3, with 87 new products, and 3M Co (NYSE:MMM) is on track to exceed its 350 target for the year, driving innovation-led growth. - 3M Co (NYSE:MMM) secured a strategic partnership with Amazon for optical connectivity and other data center products, including a warrant for up to 3.2 million shares tied to $6 billion in cumulative sales over seven years. - 3M Co (NYSE:MMM) achieved strong gross margin expansion of 230 basis points year over year, driven by productivity improvements, pricing actions, and supply chain optimization. - 3M Co (NYSE:MMM) faced continued weakness in consumer electronics, particularly LCD displays, with sales down mid-teens, impacting the Transportation & Electronics segment. - 3M Co (NYSE:MMM) experienced a high-single-digit decline in China due to weak consumer electronics demand, offsetting growth in other regions. - Oil-related inflation increased to $185 million from prior estimates, which, while offset by pricing, dilutes margin rate by about 20 basis points. - 3M Co (NYSE:MMM) continues to incur stranded costs and investments, with $150 million in stranded costs and $225 million in investments for the year, impacting profitability. - The Consumer segment remained flat in Q3, with US sell-in down low-single digits due to retailer inventory adjustments, and a meaningful turnaround is not expected to be a major growth driver. Q: Can you discuss the Amazon agreement and the warrant structure? Is it a minimum purchase commitment, and how should we frame EBO revenue expectations? A: CEO Bill Brown explained that the warrant to purchase up to 3.2 million shares (about 0.6% of 3M stock) vests upon achieving $6 billion in cumulative sales of optical connectivity and other data center products over seven years. He stressed there are no volume commitments 3M must earn the business but called it a strong validation of EBO technology and a symbolic, highly accretive strategic partnership. EBO revenue is roughly $40 million this year, expected to roughly double to $80100 million in 2027, against a total addressable market of about $2 billion by 2028. Q: Where do you see the through-cycle organic growth algorithm for 3M over the next few years? A: CEO Bill Brown pointed to the trajectory from about 1% growth in 2024 to 2% in 2025 and greater than 3.5% this year, with the second half near 4% and Q4 just over 4%. He attributed the improvement to reinvigorated innovation, commercial excellence, cross-selling, and pricing, calling it a self-help story that can deliver organic growth even in a choppy macro environment, with continued momentum into 2027. Q: Given the cost headwinds since Investor Day, how should we think about productivity and incremental margins in 2027? A: CFO Anurag Maheshwari noted that since Investor Day, 3M absorbed about $280 million of tariffs and $185 million of oil inflation on top of $300 million of stranded costs, yet still expanded margins ahead of plan. He said incrementals are now closer to 40% versus the historical 30%40% range, and combined volume growth and productivity should more than offset investments and stranded costs, giving confidence to exceed the 25.4% Investor Day margin target next year. Q: Can you size the EBO opportunity and the capacity being added, including the GSEO partnership? A: CEO Bill Brown said EBO revenue is about $40 million this year and should roughly double next year. 3M has doubled internal capacity to north of 10 million Ferrules annually, while the contract manufacturing agreement with GSEO plus a 4.7% equity stake could add multiples of that per month. He said capacity should not be the constraint; the bigger task is building ecosystem comfort and diversity of supply for hyperscalers. Q: What is driving 3M's stronger pricing execution, and how sustainable is it? A: CEO Bill Brown credited well-publicized inflation, new product introductions, better service and product availability, and a more aggressive stance on holding price. He expects full-year price slightly above 1.5%, with the back half above 2% versus 1% in the first half, fully offsetting material and oil cost inflation. Q: Can you explain the confidence in a TEBG reacceleration in Q4 despite worsening consumer electronics? A: CFO Anurag Maheshwari said TEBG backlog exiting Q3 was up double digits, providing good visibility. He cited continued strength in aerospace and defense, semiconductors and data centers, commercial excellence in commercial branding, and some auto wins, which together should drive sequential acceleration even as consumer electronics remains down mid-teens. Q: Is the margin expansion sustainable, or is there a one-time benefit? What is the outlook for gross margins? A: CFO Anurag Maheshwari said there is no one-time benefit expansion comes from cost control, supply chain productivity, a 40 basis point improvement in cost of poor quality, automation, and procurement savings. CEO Bill Brown added that gross margins have risen from the low-40s to near the mid-40s and could reach the high-40s over the next four to five years as factory consolidation and supply chain transformation mature, with stranded costs stepping up only $50 million next year. Q: How is the consumer business trending, and when will it turn positive? A: CEO Bill Brown said Consumer should turn slightly positive in Q4, with US point of sale up more than 2% but sell-in pressured by about half a week of retailer inventory destocking in Q2 and Q3. International is growing mid-single digits, and he expects stabilization in retailer inventories plus positive POS to support improvement, though consumer remains a modest growth driver given its roughly 20% of sales. Q: How large is 3M's data center exposure, and how are other data center technologies scaling beyond EBO? A: CEO Bill Brown said data center revenue will be about $700 million this year versus roughly $550 million last year, with most of it outside the data center in electrical connections. He highlighted double-digit growth in the electrical markets division from medium-voltage connectors, plus Nextel ceramic fibers for behind-the-meter solutions, with capacity expansion supporting a step-up in 2027 and more in 2028. Q: How is the innovation pipeline progressing, and can AI accelerate new product launches? A: CEO Bill Brown said 3M launched 87 new products in Q3, up 24%, and will exceed 350 for the year, above the 1,000-over-three-years Investor Day target. Cycle time is down about 20% with on-time launch attainment around 80%81%. He said AI is being layered onto codified patent, technical, and process data to enable virtual prototyping and further compress cycle time, accelerating launches without accelerating cost. Q: What is the Q4 seasonality and backlog picture? A: CEO Bill Brown said Q4 seasonality looks normal, with an easier comparison than Q3. Backlog entering the quarter is up about 18% year over year, with roughly 25% of revenue in backlog better than typical supporting confidence in organic growth north of 4% in Q4 and more than 3.5% for the full year. Q: Is Madison Fire & Rescue accretive, and how should we model it? A: CFO Anurag Maheshwari said Madison is EPS neutral this year and next despite growing above the company average with higher margins, because of incremental interest and noncontrolling interest For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- 3M surged 6% after beating Q3 EPS at $2.50 versus the $2.39 consensus and announcing an expanded Amazon data center partnership. - Amazon's 7-year warrant to acquire roughly 3 million 3M shares vests primarily once cumulative data center purchases reach $6 billion. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) 3M (NYSE:MMM) stock jumped 6% to $171.91 as investors weighed an expanded Amazon (NASDAQ:AMZN) data center relationship alongside better-than-expected quarterly earnings. The company also raised its full-year adjusted earnings outlook, giving investors both a near-term profitability catalyst and a longer-term infrastructure opportunity. The advance outpaced Coherent (NYSE:COHR) stock, which gained 1.33% to $235.11, while Corning (NYSE:GLW) stock was essentially flat, slipping 0.21% to $132.46. Those moves put 3M stock well ahead of the two peers today. 3M expanded its commercial relationship with Amazon to deploy and scale optical connectivity and other data center products. The agreement gives 3M a potential growth opportunity as Amazon invests in infrastructure supporting cloud computing and AI workloads. As part of the arrangement, 3M issued an Amazon subsidiary a seven-year warrant to purchase up to approximately 3.16 million 3M shares at $164.89 each. About 85% of the warrant shares vest based on Amazon's purchases of data center products, with that portion fully vesting once cumulative payments reach $6 billion. The remaining 15% depends on separate milestone conditions, making the arrangement more nuanced than an immediate $6 billion order. For 3M, the commercial upside depends on purchases materializing over time, while an eventual warrant exercise could increase the company's share count. 3M reported third-quarter adjusted earnings of $2.50 per share, exceeding the $2.39 consensus estimate cited in one earnings analysis. Revenue of approximately $6.6 billion was broadly in line with expectations, making profitability the clearer quarterly surprise. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ The company reported adjusted organic sales growth of 3.3%, while GAAP sales increased 1% year over year. Those measures use different reporting bases, so investors shouldn't confuse underlying adjusted growth with the change in reported revenue. For the full year, 3M raised adjusted earnings guidance to $9.10 to $9.15 per share, incorporating a new reporting basis. That qualification matters because investors should compare the updated outlook with historical figures prepared on a consistent basis rather than assume the entire change reflects stronger operations. Coherent stock's 1.33% gain and Corning stock's 0.21% decline provided a useful contrast with 3M stock's 6% jump. The uneven performance suggests investors were responding particularly strongly to 3M's combination of company-specific developments rather than buying every optics-related stock equally. The Industrial Select Sector SPDR ETF (NYSEARCA:XLI) rose 0.75% to $167.93, offering a broader industrial-sector comparison for 3M stock. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) gained 0.61% to $771.15. Against those benchmarks, 3M stock's advance was substantially stronger than either the industrial group or the broader market. The comparison supports viewing the earnings report and Amazon agreement as important catalysts, although a single session doesn't establish a lasting performance trend. 3M now has two developments for investors to follow: delivery against the raised earnings outlook and progress converting the Amazon relationship into sales. The company could build confidence if stronger profitability accompanies sustained demand for optical connectivity and other data center products. However, 3M's warrant structure ties much of the potential equity participation to future commercial activity rather than revenue already earned. Investors should watch for how purchases develop and whether the resulting growth justifies any eventual dilution. The takeaway is that 3M stock has both an earnings catalyst and a longer-term growth opportunity supporting the rally. Further gains may depend on execution, so investors should consider keeping their position sizes modest rather than treating the Amazon relationship as guaranteed future revenue. (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

- Interested in 3M Company? Here are five stocks we like better. - Strong third-quarter performance: 3M delivered 3.3% organic sales growth, a 26.2% adjusted operating margin, $2.50 in adjusted EPS and $1.2 billion in free cash flow. Adjusted EPS rose 12% year over year, while orders grew at a high-single-digit rate and backlog increased by a high-teens percentage. - Data-center business gains momentum: 3M expects data-center revenue of about $700 million in 2026 and issued Amazon a warrant for up to 3.2 million shares tied to potential sales milestones of $6 billion over seven years. The company is expanding optical-connectivity capacity through internal production and a manufacturing agreement with GSEO. - Full-year outlook raised: 3M increased its 2026 adjusted EPS forecast to $9.10–$9.15, implying 11%–12% annual growth, while maintaining expectations for more than 3.5% organic growth. Management also expects about $4.8 billion in free cash flow and said 2027 margins could exceed its previous 25.4% target. - 3 Stocks Whose Charts May Be Signaling the Next Big Move 3M (NYSE:MMM) reported third-quarter results marked by organic sales growth, margin expansion, double-digit adjusted earnings growth and stronger order trends, while raising its full-year adjusted earnings outlook. Chairman and Chief Executive Officer Bill Brown said the company generated 3.3% organic growth in the third quarter, an adjusted operating margin of 26.2%, adjusted earnings per share of $2.50 and free cash flow of $1.2 billion. Adjusted EPS increased 12% year over year, while operating margin rose 110 basis points. → Berkshire Just Backed This Little-Known Stock—Should You Chase It? - 3M's Redemption Arc: Can Q2 Earnings Change the Narrative? The company returned $600 million to shareholders during the quarter, including $400 million in dividends and $200 million in share repurchases. Through the first nine months of 2026, 3M returned $4.4 billion to shareholders, including $3.2 billion of buybacks and $1.2 billion of dividends. Brown said 3M's performance reflected initiatives aimed at improving sales-force effectiveness, product development, pricing, productivity and supply-chain execution. The company launched 87 new products in the quarter, up 24% from a year earlier, and said it remains on track to exceed 350 launches for the full year. → These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington - Target the Red-Hot Spin-Off and Merger Space With These ETFs Year-to-date sales from products introduced within the past five years rose 34% from the prior year to nearly $3 billion, according to Brown. New-product vitality reached the mid-teens, compared with 11% in 2024. The company also reported $140 million of cross-selling wins booked to date and an additional $120 million pipeline, exceeding its original three-year goal of $100 million. Brown said pricing actions fully offset material and oil-cost pressures. → Broadcom's CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom Gross margin increased 230 basis points year over year, supported by procurement savings, improved asset utilization, lower downtime and quality improvements. Cost of poor quality improved by 40 basis points and overall equipment effectiveness improved by 20 basis points, Brown said. 3M has closed 16 manufacturing sites and distribution centers so far this year and plans action on 10 additional locations over the next 12 months. Brown said the actions should support additional gross-margin improvement beyond 2027. Chief Financial Officer Anurag Maheshwari said order trends grew at a high-single-digit rate in the third quarter, led by industrials, safety, data centers, semiconductors and aerospace. Backlog increased by a high-teens percentage from a year earlier. - Safety and Industrial: Organic sales increased 7%, with double-digit growth in electrical markets as the division expanded data-center customer penetration. Safety, industrial adhesives, abrasives and industrial specialties collectively grew at a high-single-digit rate. Auto aftermarket sales rose in the mid-single digits. - Transportation and Electronics: Sales rose 0.5%, as growth in semiconductors, aerospace, commercial branding and automotive outside consumer electronics was about 5%. Consumer electronics declined in the mid-teens, while auto was down in the mid-single digits on softer builds. - Consumer: Sales were flat, improving sequentially. U.S. point-of-sale growth exceeded 2%, though inventory reductions at several major retailers caused U.S. sell-in to decline in the low single digits. International consumer sales grew in the mid-single digits. Geographically, U.S. and Canada sales grew about 7%, while Latin America delivered high-single-digit growth. Europe expanded for a second consecutive quarter, and India posted another quarter of double-digit growth. China declined by a high-single-digit percentage, primarily due to weak consumer electronics demand. Brown highlighted 3M's Expanded Beam Optical, or EBO, technology, which uses a patented ferrule designed to enable faster installation, durability and higher-density optical connections in AI infrastructure. The company previously announced a deployment partnership with Microsoft and said it has been engaged in proof-of-concept work with five other global hyperscalers, including Amazon Web Services. 3M disclosed that it issued Amazon a warrant to purchase up to 3.2 million 3M shares, representing about 0.6% of common stock, contingent on $6 billion in cumulative sales of optical connectivity and other data-center products over seven years, along with other event-based milestones. Brown said there are no volume commitments under the arrangement and that 3M must earn the sales opportunity. Brown said EBO revenue is expected to be about $40 million in 2026 and could double, or potentially exceed that level, next year. The company has doubled internal manufacturing capacity to more than 10 million ferrules annually. It also signed a contract manufacturing agreement with Genius Electronic Optical Company, or GSEO, and acquired a 4.7% stake in the supplier. Brown said GSEO could provide manufacturing capacity at multiples of 3M's internal output per month, helping the company meet potential demand. He added that supply diversity will remain important as hyperscalers evaluate the technology. Separately, 3M said data-center revenue is expected to reach about $700 million this year, compared with roughly $550 million last year. That revenue includes electrical connections, optical connections, copper products and other products used inside and outside data centers. 3M reaffirmed expectations for organic growth of more than 3.5% for 2026 and projected organic growth of just over 4% in the fourth quarter. Management cited order momentum, backlog levels and easier comparisons in the final quarter. The company raised its adjusted EPS outlook to a range of $9.10 to $9.15, from a prior range of $8.95 to $9.10 on its updated reporting basis. The forecast implies annual adjusted earnings growth of 11% to 12%. Maheshwari said 3M now expects oil-related inflation of $185 million for the year, compared with its prior estimate of $150 million to $175 million. The company expects pricing to fully offset the higher cost, although the pass-through is expected to dilute margin rate by about 20 basis points. Full-year adjusted operating margin is projected to be about 24.6%, while free cash flow is expected to be approximately $4.8 billion and the adjusted tax rate about 20%. For 2027, 3M plans to provide formal guidance in January. Maheshwari said the company expects margin to exceed its Investor Day target of 25.4% on the updated basis, supported by volume growth, supply-chain productivity and transformation actions. 3M is a diversified technology and manufacturing company headquartered in St. Paul, Minnesota. Founded in 1902 as Minnesota Mining and Manufacturing Company, it developed from a mining venture into a global enterprise known for applying materials science and engineering to a broad range of industrial, commercial and consumer applications. The company develops and manufactures products including adhesives, abrasives, filtration systems, personal protective equipment, medical and dental supplies, electrical and electronic materials, automotive components, reflective materials and workplace safety solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "3M Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

3M Company MMM posted third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues met the same. 3M delivered adjusted earnings of $2.50 per share, which surpassed the Zacks Consensus Estimate of $2.40 by 4.2%. The bottom line increased 12% year over year. The company reported net revenues (on a GAAP basis) of $6.6 billion in the quarter. The metric increased 1% year over year. Organic sales increased 0.2%. Foreign currency translation had an adverse impact of 0.1% while acquisitions/divestitures had a positive impact of 0.9%. MMM's adjusted net revenues of $6.6 billion were in line with the consensus estimate of $6.6 billion and grew 4.2% year over year. On an adjusted basis, organic revenues increased 3.3% year over year. The results benefited from strength in general industrial, safety, semiconductor and data center end markets. Region-wise, adjusted organic sales in Latin America rose 7.7% year over year, while other Asia adjusted organic sales increased 1.3%. Adjusted organic sales in China declined 7.3% year over year. Adjusted organic sales from businesses in Europe, the Middle East and Africa grew 1%. Revenues from Safety and Industrial totaled $3.18 billion, up 9.1% year over year, driven by strength in electrical markets, personal safety, industrial adhesives, abrasives and industrial specialties. Organic revenues increased 7%, while acquisitions had a favorable impact of 3.1%. Foreign currency translation had a positive impact of 0.2%, while divestitures had an adverse impact of 1.2%. Revenues from Transportation & Electronics totaled $2 billion, reflecting a year-over-year increase of 0.4%. The results were supported by strength across semiconductor, aerospace and data center markets, partially offset by weakness in consumer electronics and automotive markets. The segment's organic sales increased 0.5%. Foreign currency translation had an adverse impact of 0.1% on revenues. Revenues from the Consumer segment decreased 0.4% year over year to $1.31 billion. Organic sales declined 0.2%, while movements in foreign currencies had a negative impact of 0.2%. The segment's performance was affected by continued retailer inventory reductions in the United States and Canada, along with softness in home improvement and packaging businesses. 3M Company price-consensus-eps-surprise-chart | 3M Company Quote 3M's cost of sales increased 0.2% year over year to $3.80 billion. Selling, general and administrative expenses increased 12.3% to $921 million. Research, development and related expenses increased 2.4% year over year to $304 million. In the third quarter, 3M reported an operating income of $1.56 billion, up 7.7% from the year-ago period. The operating margin expanded to 23.7% from 22.2%, supported by improved operational efficiency and productivity gains. MMM's adjusted operating income increased 8.9% year over year to $1.73 billion. The adjusted operating margin was 26.2% compared with 25.1% in the year-ago quarter, reflecting an expansion of 110 basis points. Exiting the third quarter of 2026, 3M had cash and cash equivalents of $4.84 billion compared with $5.24 billion at the end of December 2025. Long-term debt was $12.56 billion compared with $10.93 billion at the end of December 2025. 3M generated net cash of $486 million in operating activities, down 72.3% from $1.76 billion in the year-ago quarter. Capital used for purchasing property, plant and equipment increased 17.4% to $256 million. Adjusted free cash flow at the end of the quarter was $1.20 billion, down 8.6% year over year. In the first nine months of 2026, 3M rewarded its shareholders with dividend payouts of $1.2 billion and gross share repurchases totaling $3.2 billion. For 2026, MMM expects adjusted earnings to be in the range of $9.10-$9.15 per share compared with $8.95-$9.10 projected earlier. The midpoint of the guided range is about $9.125, which reflects an increase from adjusted earnings of $8.20 per share reported in 2025. Adjusted total revenue growth is projected to be above 4.5%, driven by adjusted organic sales growth of more than 3.5%. The company expects adjusted operating cash flow of approximately $5.9 billion, with adjusted free cash flow of approximately $4.8 billion. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Some better-ranked stocks are discussed below. ITT Inc. ITT presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 7.4%. The Zacks Consensus Estimate for ITT's 2026 earnings has increased 0.6% in the past 60 days. GPGI, Inc. GPGI currently carries a Zacks Rank #2. GPGI delivered a trailing four-quarter average earnings surprise of 23.8%. In the past 60 days, the Zacks Consensus Estimate for GPGI's 2026 earnings has remained steady. IDEX Corporation IEX presently carries a Zacks Rank of 2. 3M delivered a trailing four-quarter average earnings surprise of 7.7%. In the past 60 days, the consensus estimate for IEX's 2026 earnings has increased a penny. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 3M Company (MMM) : Free Stock Analysis Report ITT Inc. (ITT) : Free Stock Analysis Report IDEX Corporation (IEX) : Free Stock Analysis Report CompoSecure, Inc. (GPGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research