3M tops Q3 adjusted EPS estimates, raises guidance

By Reuters News


Overview

  • US diversified industrials firm's Q3 adjusted sales up 4.2% yr/yr, slightly missing analysts' expectations

  • Adjusted EPS for Q3 rose 12% yr/yr, beating analyst expectations

  • Company raised 2026 adjusted EPS guidance, citing productivity gains and technology pipeline


Outlook

  • 3M raises 2026 adjusted EPS guidance to $9.10-$9.15

  • Company expects 2026 adjusted total sales growth of over 4.5%

  • 3M forecasts 2026 adjusted operating cash flow of about $5.9 bln and free cash flow of $4.8 bln


Result Drivers

  • PRODUCTIVITY IMPROVEMENTS - Co said margin expansion and earnings growth were driven by improved productivity through structural transformation

  • TECHNOLOGY PIPELINE - Co cited a stronger pipeline of differentiated technologies as supporting performance and outlook

  • GOVERNMENT CONTRACTS - Co said it expanded work with US and international government customers in Q3, including defense, health care, and emergency response awards


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

$6.60 bln

Q3 Adjusted Sales

Slight Miss*

$6.60 bln

$6.61 bln (12 Analysts)

Q3 Adjusted EPS

Beat

$2.50

$2.38 (14 Analysts)

Q3 EPS

$2.63

Q3 Adjusted Organic Sales Growth

3.30%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the consumer goods conglomerates peer group is "buy"

  • Wall Street's median 12-month price target for 3M Company is $187.00, about 15.4% above its October 19 closing price of $162.01

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 20 - Northrop lifts 2026 profit forecast on strong defense demand, record backlog

  • Oct 20 - GM's core profit rises 22% on strength of pickup-truck business


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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