3M (NYSE:MMM) Issues Earnings Results

3M (NYSE:MMM) posted its quarterly earnings results on Tuesday. The conglomerate reported $1.83 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.03, Zacks reports. The business had revenue of $6 billion for the quarter, compared to the consensus estimate of $6.03 billion. 3M had a return on equity of 98.47% and a net margin of 13.70%.The company’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.68 EPS. 3M updated its FY 2026 guidance to 8.50-8.700 EPS.

Here are the key takeaways from 3M’s conference call:

• 3M finished 2025 with strong financials — organic sales +2.1% (Q4 +2.2%), full-year adjusted operating margin 23.4%, adjusted EPS $8.06, and free cash flow conversion >100%, and 2026 guidance targets ~3% organic growth and EPS of $8.50–$8.70.
• Commercial excellence and innovation drove outperformance: the company launched 284 new products in 2025 (up 68% y/y), saw five‑year product sales up 23%, closed ~$50M of annualized cross‑sell wins, and plans 350 launches in 2026.
• Operational improvements are translating to better service and margins — OTIF above 90%, OEE ~63% (up ~300 bps), cost of poor quality down to 6% with a 2026 target of 5.4%, and ~$550–$600M of productivity gains driving margin expansion.
• Headwinds remain: PFAS stranded costs, tariffs (existing carryover and potential new tariffs with preliminary estimates of incremental impact), elevated transformation and growth investments (~$225M incremental in 2026), and consumer/roofing and some auto weakness that weighed on Q4.
• Capital return and portfolio actions: 3M returned $4.8B in 2025 (dividends + buybacks), remains committed to its multi‑year capital plan and expects ~$2.5B gross repurchases in 2026 while pursuing footprint and portfolio transformation to lift long‑term margins.

3M Price Performance

Shares of MMM stock traded down $11.48 during trading hours on Tuesday, hitting $156.32. The company’s stock had a trading volume of 11,779,319 shares, compared to its average volume of 3,731,305. The company has a current ratio of 1.84, a quick ratio of 1.40 and a debt-to-equity ratio of 2.54. The business has a fifty day moving average of $166.12 and a 200-day moving average of $159.62. 3M has a twelve month low of $121.98 and a twelve month high of $174.69. The stock has a market cap of $83.04 billion, a price-to-earnings ratio of 24.97, a P/E/G ratio of 2.34 and a beta of 1.09.

3M Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, December 12th. Stockholders of record on Friday, November 14th were paid a dividend of $0.73 per share. This represents a $2.92 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Friday, November 14th. 3M’s payout ratio is 46.65%.

Key Stories Impacting 3M

Here are the key news stories impacting 3M this week:

• Positive Sentiment: Adjusted EPS beat and margin improvement — 3M posted adjusted EPS of $1.83 (above the $1.80 street estimate) and reported a significant improvement in adjusted operating margins and year‑over‑year adjusted EPS growth, signalling better profitability execution. 3M’s Q4 Earnings Top Estimates
• Positive Sentiment: Strong cash flow and capital returns — Q4 adjusted free cash flow (~$1.3B) and active buybacks (about $900M in the quarter) support share repurchases and dividend restoration over time. 3M Reports Fourth-Quarter and Full-Year 2025 Results
• Positive Sentiment: CEO endorsement and long‑term view — Public praise from commentators (e.g., Jim Cramer) and bullish long‑term commentary highlight confidence in management’s turnaround plan. Jim Cramer on 3M’s CEO
• Neutral Sentiment: 2026 guidance roughly in line but lacks excitement — FY2026 EPS guidance of $8.50–8.70 (midpoint ~8.60) and revenue guidance near $25.3B sit close to consensus, giving the market little upside catalyst. Company Guidance (press materials)
• Neutral Sentiment: Mixed segment and regional performance — Industrial/Industrial-adjacent businesses showed strength while Transportation and Consumer lagged; this unevenness makes near‑term organic growth uneven. Segment Divergence Detail
• Negative Sentiment: Revenue slight miss and investor disappointment — Reported revenue was a touch below some estimates (and GAAP sales/operating margin dynamics showed pressure), prompting a selloff as investors focused on the modest growth trajectory and lack of new catalysts. 3M tops Q4 estimates but 2026 outlook sends shares lower
• Negative Sentiment: Market reaction — Analysts and market commentary flagged the guidance as underwhelming relative to expectations, which drove high‑volume selling despite the EPS beat. Expect near‑term volatility as investors digest segment-level details and guidance cadence. 3M Stock Sinks as Profit Forecast Disappoints

Wall Street Analysts Forecast Growth

MMM has been the subject of a number of analyst reports. Morgan Stanley set a $160.00 price objective on shares of 3M and gave the stock an “equal weight” rating in a research report on Tuesday, October 21st. Deutsche Bank Aktiengesellschaft lowered shares of 3M from a “buy” rating to a “hold” rating and dropped their target price for the stock from $199.00 to $178.00 in a report on Monday, December 8th. JPMorgan Chase & Co. restated a “neutral” rating and issued a $182.00 price target on shares of 3M in a research report on Friday. Wells Fargo & Company lifted their target price on shares of 3M from $176.00 to $183.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 22nd. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of 3M in a research note on Wednesday, October 8th. Six investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $175.80.

Insider Activity at 3M

In other news, EVP Zoe L. Dickson sold 13,826 shares of the company’s stock in a transaction on Thursday, November 13th. The stock was sold at an average price of $169.78, for a total value of $2,347,378.28. Following the sale, the executive vice president directly owned 6,162 shares in the company, valued at $1,046,184.36. This represents a 69.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Mark W. Murphy sold 19,061 shares of 3M stock in a transaction dated Wednesday, October 29th. The stock was sold at an average price of $166.55, for a total transaction of $3,174,609.55. Following the sale, the executive vice president owned 6,594 shares of the company’s stock, valued at approximately $1,098,230.70. This trade represents a 74.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 46,516 shares of company stock valued at $7,836,465 over the last 90 days. Insiders own 0.48% of the company’s stock.

Institutional Investors Weigh In On 3M

Hedge funds have recently modified their holdings of the stock. Integrated Wealth Concepts LLC lifted its holdings in shares of 3M by 11.2% during the 3rd quarter. Integrated Wealth Concepts LLC now owns 35,915 shares of the conglomerate’s stock valued at $5,573,000 after acquiring an additional 3,604 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S boosted its position in shares of 3M by 11.4% in the second quarter. BI Asset Management Fondsmaeglerselskab A S now owns 21,606 shares of the conglomerate’s stock worth $3,289,000 after buying an additional 2,203 shares during the period. NewEdge Advisors LLC grew its stake in shares of 3M by 4.5% in the third quarter. NewEdge Advisors LLC now owns 50,066 shares of the conglomerate’s stock valued at $7,769,000 after buying an additional 2,153 shares in the last quarter. Brighton Jones LLC raised its holdings in shares of 3M by 26.6% during the 4th quarter. Brighton Jones LLC now owns 8,898 shares of the conglomerate’s stock valued at $1,149,000 after buying an additional 1,872 shares during the period. Finally, FWL Investment Management LLC boosted its holdings in 3M by 1,705.0% in the 3rd quarter. FWL Investment Management LLC now owns 1,805 shares of the conglomerate’s stock worth $280,000 after acquiring an additional 1,705 shares during the period. 65.25% of the stock is owned by institutional investors and hedge funds.

About 3M

3M Company, originally founded in 1902 as the Minnesota Mining and Manufacturing Company, is a diversified global technology and manufacturing firm headquartered in St. Paul, Minnesota. Over its history the company has expanded from mineral mining into a broad portfolio of industrial, safety, healthcare and consumer products, building a reputation for applied science and product innovation across many end markets.

3M’s businesses span a wide range of product categories including adhesives and tapes, abrasives, filtration and separation technologies, personal protective equipment such as respirators, medical and dental products, industrial and automotive solutions, and a suite of consumer brands (for example, well-known office and home products).