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3M Raises Full-Year Forecast After Q2 Beat, Stock Rises

Stronger sales, wider margins and customer wins in AI data centers plus aerospace signal that the company's multi-year turnaround is gaining traction.

Overview

  • 3M reported second-quarter adjusted EPS of $2.40 and revenue of $6.5 billion, both above Wall Street estimates.
  • Organic sales accelerated to 5.4% year over year, up from about 1.2% in Q1, reflecting broader demand across businesses.
  • Adjusted operating margin rose to 24.9% and the company generated $1.0 billion in operating cash flow with $1.3 billion in adjusted free cash flow.
  • The company raised its 2026 adjusted EPS guidance to $8.80–$8.95 and guided full-year sales to roughly $25.4 billion, a move that sent the stock up about 6% in premarket trading on Tuesday.
  • 3M highlighted strategic customer wins — including Microsoft for Expanded Beam Optics, a long-term agreement with Airbus and headset use on NASA’s Artemis II — underscoring a push into higher-growth tech and aerospace markets while legacy legal and remediation issues remain an outside overhang.