NEW YORK, July 21, 2026, 09:04 EDT —
Shares of 3M Company NYSE:MMM climbed nearly 6% to around $169 in premarket trade on Tuesday, after the industrial conglomerate lifted its 2026 earnings outlook and topped quarterly expectations.
The investor takeaway extends beyond the headline beat. Nearly all incremental segment profit came from Safety and Industrial.
The division accounted for 48% of sales among reportable segments, while it was responsible for 94% of the annual rise in operating profit.
The division of segments highlights the disparity.
| Q2 business segment | Sales change | Operating-profit change | Margin change |
|---|---|---|---|
| Safety and Industrial | Up 8.2% | Increase of 16.4% | Rising 196 basis points |
| Transportation and Electronics | Up 6.2% | Up 5.0% | Down 29 basis points |
| Consumer | Down 1.8% | Decreased by 6.0% | Falling 89 basis points |
3M’s unaudited segment data forms the basis for the operating-profit and margin shifts.
Safety and Industrial accounted for 94% of the reported segment profit gain, with a $121 million rise. The division’s $234 million boost in sales made up 70% of the total segment sales increase.
That level of concentration has a dual effect. It enables firmer pricing, yet also links much of the improvement to a single business.
Adjusted organic sales rose by 5.4%, compared with 1.2% in the previous quarter. Adjusted operating margin increased to 24.9%, up 40 basis points.
Adjusted earnings reached $2.40 per share, ahead of the $2.25 forecast by LSEG. Revenue increased by 2.4% to $6.50 billion, surpassing the $6.41 billion estimate.
3M raised its adjusted EPS forecast to a range of $8.80-$8.95, up from $8.50-$8.70 previously. The midpoint increased by 27.5 cents, equal to 3.2%.
The midpoint raise surpasses the consensus estimate by 12.5 cents, ahead of the 15-cent expected gain. Consensus figures point to a stronger profit outlook for the second half.
A calculated figure shows adjusted EPS for the first half at $4.54. As a result, the updated outlook suggests a range of $4.26 to $4.41 for the second half.
Chief Executive William Brown said, “As a result of our strong first-half performance and continued momentum, we are increasing our full-year guidance.” 3M Company
3M has increased its forecast for adjusted organic growth to exceed 3.5%, up from its previous estimate of around 3%. The company also lifted its adjusted operating cash flow outlook to a range of $5.8-$6.0 billion. Its target for margin expansion remains at 70-80 basis points.
3M stated that increased prices are expected to “fully offset” an inflation impact of $150-$175 million. Previously, the company had estimated this figure at $125 million. Reuters
Auto demand remained soft in Transportation and Electronics. Growth in semiconductors and data centers partly compensated. Consumer sales declined by 1.8%.
Should the premarket trend persist, the stock would near its highest level in four years. Shares started Tuesday roughly 1% lower for 2026.
Risks: The outlook hinges on Safety and Industrial maintaining its large share. Challenges include consumer softness, auto sales, inflation, and PFAS-related expenses, which could limit gains. GAAP margin stood at 15.1%, compared with an adjusted margin of 24.9%.
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