3M (MMM) Stock Near 52-Week High: 2025 Earnings, Dividend Reset and 2026

Updated: December 7, 2025

3M Company’s stock is closing out 2025 in far better shape than it started. After a multi‑year slog of litigation headlines, a healthcare spin-off and tariff worries, shares of 3M (NYSE: MMM) are now trading close to their 52‑week high and around Wall Street’s average price targets. ^[1]

For investors trying to decide whether there is still upside left in MMM, the story now hinges on three things: margin expansion, how “clean” the legal overhang really is, and whether 3M can turn modest growth into durable earnings power.

MMM stock today: price, performance and valuation

As of the close on December 5, 2025, 3M shares traded at about $167.5 in regular hours and a touch lower in extended trading. ^[2]

Just a couple of days earlier, the stock set a new 12‑month high around $174.69, according to MarketBeat, after a steady rally through 2025. ^[3] A Forbes comparison with Honeywell noted that 3M’s stock has climbed roughly 30–35% year to date, helped by improving operations and a more coherent strategic story. ^[4]

At current levels:

The stock trades on roughly 21× 2025 earnings, using the midpoint of management’s adjusted EPS guidance (about $8 per share). ^[5]
The dividend yield is about 1.7%, based on an annualized payout of $2.92 per share and the current price. ^[6]

That valuation is no longer “distressed turnaround” territory. It’s closer to what investors pay for solid, mature industrials with steady – but not spectacular – growth.

2025 earnings: margins are finally moving the right way

The core reason MMM has rerated higher in 2025 is simple: margins are expanding again, even while revenue growth remains modest.

Second quarter 2025

In Q2 2025, 3M reported: ^[7]

GAAP sales of $6.3 billion, up 1.4% year‑on‑year
Adjusted operating margin of 24.5%, up almost three percentage points
Adjusted EPS of $2.16, up 12% versus a year earlier

GAAP earnings were dragged down by large legal payments, but the underlying business showed improving profitability. Operating cash flow was negative due to roughly $2.2 billion of after‑tax payments tied mainly to PFAS and Combat Arms Earplug settlements, yet adjusted free cash flow was about $1.3 billion, highlighting the cash‑generating capacity of the ongoing operations. ^[8]

Third quarter 2025

Momentum continued in Q3 2025. 3M’s latest earnings release reported: ^[9]

Sales of $6.5 billion, up 3.5% year‑on‑year
Organic sales up 2.6% (3.2% on an adjusted basis)
GAAP operating margin of 22.2%, with adjusted operating margin at 24.7%
Adjusted EPS of $2.19, up 10% year‑on‑year

Management responded by raising full‑year 2025 guidance, now expecting: ^[10]

Adjusted EPS of $7.95–$8.05
Adjusted operating margin expansion of 180–200 basis points
Adjusted sales growth above 2%

External commentary has echoed the internal optimism. A November analysis from The Successful Investor highlighted that 3M’s restructuring program is about 90% complete, with cost savings and efficiency gains helping offset the hit from new tariffs. ^[11]

Put simply, 2025 has been the first full year in a while where investors can talk about 3M’s business performance rather than just its legal and balance sheet problems.

Strategy reset: Solventum spin‑off, transformation program and tariffs

The current 3M is not the same conglomerate it was a few years ago.

Healthcare spin-off – Solventum

On April 1, 2024, 3M completed the spin‑off of its healthcare business into Solventum Corporation (NYSE: SOLV). Existing shareholders received one Solventum share for every four 3M shares, and 3M retained a 19.9% stake, which it plans to monetize within five years. ^[12]

The spin-off removed a capital‑intensive but attractive growth segment from 3M’s portfolio. Solventum has since reported its own results, including modest Q3 2025 growth and a revised full‑year EPS outlook of roughly $6.00 per share, alongside a four‑year “Transform for the Future” initiative. ^[13] For 3M shareholders, Solventum matters now mainly via the residual equity stake and occasional mark‑to‑market adjustments in earnings.

Transformation and restructuring

3M is in the middle of a multi‑year transformation program aimed at redesigning its manufacturing footprint, distribution and business processes. In its latest 10‑Q, the company detailed new restructuring actions approved in Q3 2025, with associated pre‑tax charges of about $12 million in the quarter and larger cumulative charges over 2024–2025 as around a thousand positions were affected. ^[14]

These actions are intended to lock in higher structural margins rather than deliver a one‑off boost. Early evidence from Q2 and Q3 suggests they are working.

Tariff impact now looks manageable

Tariffs were an additional curveball in 2025. Earlier in the year, 3M warned that new trade measures could shave up to $0.40 per share off 2025 earnings, or roughly $110–$220 million, but reaffirmed a robust EPS outlook at the time. ^[15]

As U.S.–China trade tensions eased mid‑year and a new tariff framework emerged, 3M raised its full‑year profit forecast, saying the tariff hit would likely be closer to $0.10 per share rather than its earlier, larger estimate. ^[16] The ability to reset production and supply chains across its global footprint has become one of 3M’s under‑appreciated strengths.

Legal overhang: PFAS and earplug cases are shrinking but not free

The biggest cloud over 3M in recent years has been litigation related to PFAS (“forever chemicals”) and Combat Arms Earplugs (CAE).

PFAS settlements

3M has already agreed to tens of billions of dollars in PFAS‑related settlements with water systems and other claimants in the U.S. ^[17] In 2024–2025, the company added state‑level settlements, including a deal worth up to $450 million with New Jersey to resolve a 2019 PFAS contamination lawsuit. ^[18]

These agreements are spread over many years, but they still represent a significant ongoing cash drain. 3M’s own earnings releases clearly flag PFAS liabilities and related settlements as key risk factors for future results. ^[19]

Combat Arms earplug litigation

The CAE earplug multidistrict litigation (MDL 2885) was once the largest federal MDL in U.S. history. A global settlement announced in 2023 – reportedly about $6 billion – has gradually worked its way through the system. Recent updates from legal trackers show virtually all of the 391,000+ cases in the MDL are now closed, with 0 cases listed as pending as of late 2025. ^[20]

3M tweaked the settlement structure in early 2025, deciding to pay an extra $1 billion in cash instead of stock as part of the agreement. ^[21] The company’s Q2 2025 cash flow statement reflected this, with the bulk of its negative GAAP operating cash tied to litigation payments. ^[22]

The good news for shareholders: these cases are moving from “unknown liability” to “scheduled payments.” The bad news: they will still consume cash for years, limiting how aggressive 3M can be with dividends and buybacks.

Dividend reset: from cut to cautious growth

3M was long considered a classic dividend stalwart, so its decision to cut the dividend in 2024 alongside the Solventum spin-off was a shock for income investors.

Following the spin-off, the quarterly dividend was reduced by about 53.6% with the June 2024 payment, resetting the annual rate to $2.80 per share. ^[23]
In March 2025, 3M resumed growth with a 4.3% dividend increase, taking the annual rate to $2.92. ^[24]
The board has since declared quarterly dividends of $0.73 per share for both the third and fourth quarters of 2025, payable in September and December respectively. ^[25]

At today’s share price, that places 3M squarely in moderate‑yield territory (~1.7%), much lower than during its high‑yield, high‑risk phase. The reset reflects a deliberate choice: prioritize balance sheet repair, legal payouts and restructuring over aggressively courting income investors.

What Wall Street is forecasting for MMM stock

Analyst opinion on MMM has turned noticeably more positive through 2025, though expectations remain measured.

Consensus ratings and 12‑month targets

Across a range of data providers, the picture looks like this:

MarketBeat tracks 11 analysts with a “Moderate Buy” consensus rating: 8 Buys, 2 Holds, 1 Sell. The average 12‑month price target is $176.10, implying about 5% upside from the recent $167.5 share price, with a range from $130 to $197. ^[26]
ValueInvesting.io compiles 24 analyst forecasts with an average target of about $174.60, or roughly 4% upside, and a target range from around $111 to $209. It characterizes the overall recommendation as BUY. ^[27]
Another aggregator (StocksGuide) reports an average target near $183–184 for 2026, about 8–10% above the current price, with 15 Buy, 8 Hold and 1 Sell recommendations across roughly two dozen analysts. ^[28]

In early December, Barclays reiterated an Overweight rating and cited an average one‑year target of $174 across the analysts it tracks, only slightly above the then‑current price (~$173). Fintel data also points to a price‑target range between about $111 and $209, with a put/call ratio around 0.6, suggesting a modestly bullish options backdrop. ^[29]

Overall, most brokers now see low‑ to mid‑single‑digit upside over the next year, with a wide range of outcomes depending on how margins and macro conditions evolve.

Longer‑term models: limited upside or modest downside

Longer‑dated forecasts are even more restrained:

A TIKR.com review of analyst targets through 2027 notes that the average target price is actually slightly below today’s level, around $163, implying roughly 2% downside, with a target range of about $101 to $188 and a median near $171. Their valuation model, using a 14× forward P/E and consensus estimates, suggests a 2027 fair value closer to $143, or mid‑single‑digit annualized negative returns from current prices. ^[30]
Quantitative site PandaForecast estimates a near‑term fair value around $171.68 for December 7, 2025, with relatively modest expected volatility. ^[31]

These models assume low‑single‑digit revenue growth – roughly 3% annually – and operating margins in the mid‑20s, consistent with 3M’s own guidance and recent trend. ^[32]

The common thread: analysts largely agree that the big “turnaround trade” has already happened. Future returns are likely to track earnings growth and capital returns fairly closely, rather than coming from a huge rerating.

Key risks and catalysts for MMM in 2026–2027

Going into 2026, the MMM investment case revolves around a few clear swing factors.

Upside catalysts

Successful execution of the transformation program, locking in structurally higher margins and free cash flow. Evidence so far from Q2 and Q3 suggests this is on track. ^[33]
Further monetization of the 19.9% Solventum stake, which could be used to pay down debt or fund additional buybacks if market conditions are favorable. ^[34]
Tariff and supply‑chain relief, if global trade tensions continue to cool, could mean less pressure on input costs than feared. ^[35]
Continued margin expansion in high‑value electronics, safety and automotive applications, which have been key drivers of recent organic sales growth. ^[36]

Downside risks

Litigation and regulatory risk around PFAS remains substantial, especially if new scientific findings or regulations emerge. State‑level cases like the New Jersey settlement are reminders that the legal chapter is not fully closed. ^[37]
Macroeconomic sensitivity: 3M sells into cyclical end‑markets including industrial production, electronics, autos and construction. A global slowdown could quickly erode the margin progress booked in 2025. ^[38]
Execution risk: restructuring can go off‑script. If transformation costs rise, or if divestitures and portfolio pruning reduce scale advantages, returns might fall short of today’s optimistic guidance. ^[39]

Bottom line: where MMM stands now

As of early December 2025, 3M looks less like a broken conglomerate and more like a re‑risked industrial compounder:

The balance sheet is healing, litigation is becoming more predictable, and margins are trending higher. ^[40]
The dividend has been reset to a lower but more sustainable level and is back to growing, albeit slowly. ^[41]
Most analysts see modest upside over the next 12 months, with price targets clustered not far above the current share price and risk skewed more to execution and macro than to existential legal outcomes. ^[42]

For investors, MMM at current levels is increasingly a quality‑and‑income story with moderate growth rather than a deep‑value legal special situation. Returns from here are likely to depend on whether 3M can deliver on its 2025–2027 commitment to steady EPS growth, disciplined capital allocation and continued de‑risking.