3M raises 2026 EPS outlook after third-quarter adjusted profit climbs 12%

3M raised its full-year profit forecast on Tuesday after third-quarter adjusted earnings rose 12% to $2.50 a share, from $2.23 a year earlier, as the industrial company kept widening its margins.

GAAP earnings jumped 70% to $2.63 a diluted share from $1.55, and net income attributable to 3M shareholders rose to $1.37 billion from $834 million, according to its earnings release filed with an 8-K. GAAP results included a 60-cent benefit from an increase in the value of 3M's Solventum ownership stake, partly offset by 19 cents of net costs for significant litigation and the PFAS exit.

Sales rose 1.0% to $6.6 billion, with organic sales up 0.2%. On an adjusted basis, which excludes manufactured PFAS products, sales grew 4.2% and organic sales 3.3%.

Outlook and margins

3M now expects 2026 adjusted EPS of $9.10 to $9.15. It also guided to adjusted total sales growth of more than 4.5%, adjusted organic growth of more than 3.5%, adjusted operating cash flow of about $5.9 billion and adjusted free cash flow of about $4.8 billion.

The update to its July 21 guidance reflects year-to-date performance, the acquisition of Madison Fire & Rescue and a change in how 3M reports adjusted results. The company now treats amortization of intangible assets as a special item for all periods. That added about 40 basis points to the quarter's adjusted operating margin and about 4 cents to adjusted EPS, without materially changing year-over-year comparisons, 3M said.

The adjusted operating margin rose 110 basis points to 26.2%, while the GAAP operating margin improved to 23.7% from 22.2%.

"We delivered another quarter of strong results, including solid sales growth, continued margin expansion, double-digit EPS growth, and robust free cash flow," Chairman and CEO William Brown said.

Safety and Industrial leads

The Safety and Industrial segment carried the quarter. Its sales rose 9.1% to $3.18 billion, including 7.0% organic growth, and operating income climbed to $960 million from $792 million. Fire Safety and Rescue sales nearly doubled to $206 million from $108 million, while Electrical Markets grew to $423 million from $373 million.

Transportation and Electronics sales edged up 0.4%, and Consumer sales slipped 0.4%.

Among recent highlights, 3M cited its expanded commercial relationship with Amazon for optical connectivity and other data center products, under which it issued Amazon a warrant to buy up to 3.2 million shares tied to $6 billion in cumulative sales over seven years and other milestones.

Cash and capital return

Operating cash flow was $0.5 billion and adjusted free cash flow was $1.2 billion. 3M returned $0.6 billion to shareholders through dividends and buybacks, and its share count fell to about 516.7 million at Sept. 30 from 530.3 million at the end of 2025.

By the numbers

• Adjusted EPS: $2.50, vs. $2.23
• GAAP EPS: $2.63, vs. $1.55
• Sales: $6.6 billion, up 1.0%
• Adjusted operating margin: 26.2%
• 2026 adjusted EPS guidance: $9.10 to $9.15
• Q3 capital returned: $0.6 billion

Sources

1. 3M Company, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release for the third quarter of 2026, filed Oct. 20, 2026, accession 0000066740-26-000308

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