NEW YORK, Jan 20, 2026, 7:19 PM EST — After-hours
- 3M shares dropped roughly 7% in after-hours trading following a 2026 profit forecast that came in slightly under expectations.
- Management noted patchy demand and new tariff worries, despite better margins and a quarterly earnings beat.
- Investors are eyeing consumer-related divisions and looking for any updates on tariff schedules before Feb. 1.
Shares of 3M (MMM) dropped roughly 7% to about $156 in after-hours trading Tuesday, as the industrial giant’s profit forecast for 2026 fell just short of Wall Street’s estimates. This weighed on sentiment despite a modest beat in fourth-quarter results.
This reaction is crucial as 3M aims to persuade investors that cost reductions and product adjustments will sustain earnings growth despite uneven end-demand. Even a slight miss in guidance, by just a penny, reignites questions about how much of the margin improvement is truly “repeatable” versus driven by easy comparisons.
U.S. stocks tumbled sharply Tuesday amid jitters over fresh tariff threats linked to Greenland, sending shockwaves through industrial supply chains and pricing.
3M reported adjusted earnings of $1.83 per share for the fourth quarter, beating forecasts of $1.80. Adjusted revenue came in at $6.02 billion, slightly surpassing estimates. However, sales in its consumer segment dropped 1.2% year-over-year, reflecting softer retail demand.
In the earnings release, Chief Executive William Brown said 2025 “reshap[ed] our operating model” and claimed that “innovation and commercial execution” position the company to outperform once more in 2026. Source
3M projected adjusted earnings for 2026 in the range of $8.50 to $8.70 per share, with the midpoint just a cent shy of the $8.61 analyst consensus, based on LSEG data. The company aims to reach an operating margin of 25% by the close of 2027; this margin measures operating profit relative to sales.
During the earnings call, Brown noted that the “existing 20 cents impact” from tariffs is already factored into the 2026 forecast range. He also warned that if President Donald Trump follows through on his latest tariff threats targeting parts of Europe, 3M could face a $30 million to $40 million hit this year.
Near-term challenges look unexciting: roofing granules and some segments of the auto aftermarket should remain weak early next year, Brown noted. CFO Anurag Maheshwari sought to calm investors, saying he anticipates “the macro in 2026 to be a little bit better.”
A recent filing revealed 3M submitted its earnings and 2026 outlook in a Form 8-K, including the earnings release. The quarter’s results factored in “special items” like litigation expenses and PFAS-related charges, underscoring how legacy issues continue to impact reported profits. Source
That said, the downside risks are clear. Should tariff threats materialize into actual orders, or if U.S. consumers continue to pull back, 3M could face a tough choice: protect volumes by cutting prices or safeguard margins through stricter cost controls.
On Wednesday, traders will be eyeing if the stock can stabilize following the widespread selloff — and if tariff news continues to overshadow earnings in driving the tape.
The next key date is Feb. 1, when Trump has indicated new tariffs could hit goods from several European countries, followed by a potential increase on June 1. This schedule is now baked into 3M’s 2026 forecasts, and investors will be watching closely to see how solid that timing really is.
