New York, Jan 20, 2026, 13:40 EST — Regular session
- 3M shares dropped roughly 7% following a slightly weaker-than-expected adjusted profit forecast for 2026.
- The company warned of a possible extra impact from planned U.S. tariffs targeting European products.
- Investors are balancing tariff concerns with indications that 3M’s margin efforts remain steady.
3M shares dropped 7.4% to $155.30 in early afternoon Tuesday, following the company’s 2026 profit forecast that fell just short of Wall Street’s estimates.
The shortfall was small, but the timing couldn’t be worse. Traders want to see clear evidence that 3M’s turnaround can push ahead despite uneven consumer demand and the return of tariff risks into earnings forecasts.
3M forecast adjusted earnings of $8.50 to $8.70 per share for 2026, with the midpoint slightly shy of the $8.61 analysts had predicted, per LSEG data. CEO Bill Brown flagged ongoing challenges in the roofing granules and automotive aftermarket segments early next year. CFO Anurag Maheshwari, meanwhile, said he anticipates “the macro in 2026 to be a little bit better.” Brown noted the forecast already factors in a 20-cent tariff impact and warned a fresh tariff threat could cost $30 million to $40 million this year. (Reuters)
3M reported adjusted earnings of $1.83 per share for the fourth quarter, on adjusted sales hitting $6.0 billion. The adjusted operating margin climbed to 21.1%, up from 19.7% a year ago. Full-year adjusted EPS came in at $8.06, with sales totaling $24.3 billion. Organic growth, stripping out currency and deal impacts, stood at 2.1%. Brown highlighted that the company’s “accelerated pace of innovation and commercial execution” should help it outpace the broader economy again in 2026. (3M Company)
Wall Street’s key indexes slipped in late morning trading, pressured by U.S. President Donald Trump’s latest tariff threats linked to a spat over Greenland. Tariffs are set to begin Feb. 1, Reuters reported. Jeff Buchbinder, chief equity strategist at LPL Financial, said, “We think we’ll settle down and realize this is just a negotiation tool.” (Reuters)
Tariffs, essentially import taxes, can hit manufacturers like 3M quickly—whether through rising component costs or pressure on prices. Brown noted the company factored in a tariff headwind for its 2026 outlook, but the newest proposals introduce fresh uncertainty amid uneven demand.
3M’s consumer segment saw sales dip 1.2% in the October-to-December stretch. The company cited weaker retail conditions and strained discretionary spending as key factors. Softness persisted in areas linked to home improvement and high-value purchases, where volume tends to shift sharply.
There were offsets. 3M has relied on cost cutting, selective price increases, and new product launches to defend its margins. The company has also laid out longer-term goals that depend on maintaining this discipline, even if growth slows down.
Investors will keep an eye on whether this trend lasts into the first half of the year, especially if retailers and distributors start pulling back on orders. For 3M, the real question isn’t just beating one quarter’s estimates but sustaining margin growth without relying too heavily on price hikes.
Risks cut both ways. Should tariffs kick in on Feb. 1 and rise again later as warned, or if consumer demand weakens more, the earnings outlook could face pressure — particularly since litigation-related charges continue to weigh on results.
Next on the policy calendar: traders are watching to see if the tariff threat becomes actual duties on Feb. 1. They’ll also be eyeing incoming U.S. economic data for clues on demand, with 3M’s 2026 guidance now serving as the key benchmark.
