Adjusted earnings came in at $2.40 per share, exceeding the analyst consensus estimate of $2.25. Revenue increased 2.4% year over year to $6.50 billion, ahead of expectations of $6.41 billion.
Organic Growth Driven By Global Demand
Organic sales increased 5.4%, supported by strong execution, new product launches and supply chain improvements.
Growth was broad-based across regions. China delivered double-digit organic growth, while industrial businesses in the U.S. and Canada posted mid-single-digit gains. Europe returned to growth, and Asia benefited from strong momentum in India.
However, 3M said it continues to face pressure in <a href="https://aitoday7.com/samsung-fires-hundreds-of-people-from-its-us-consumer-electronics-business/" title="Samsung fires hundreds of people from its US consumer electronics business”>consumer electronics, automotive and auto aftermarket markets, as well as softer U.S. consumer spending.
Adjusted operating profit benefited from approximately $240 million in higher sales and productivity improvements. Chief Financial OfficerAnurag Maheshwari said second-quarter operating profit was reduced by roughly $110 million because of tariff-related costs and stranded expenses. The company added that it has not received any tariff refunds.
Innovation, Acquisitions And AI Partnerships
3M launched 92 new products during the quarter, up 44% from a year earlier. Product launches reached 176 in the first half, keeping the company on pace to introduce more than 350 new products in 2026.
On July 1, 3M completed its acquisition of Madison Fire and Rescue and combined the business with Scott SCBA to create a majority-owned joint venture. The transaction generated $700 million in cash proceeds. The company expects the venture to generate about $800 million in annual revenue, with high-single-digit growth and margins above the company average.
3M also partnered with Microsoft Corp.(NASDAQ:MSFT) to deploy its Expanded Beam Optics technology in Azure data centers, aiming to improve connector durability and support growing AI infrastructure demand.
The company returned $1.4 billion to shareholders during the quarter, including $400 million in dividends and $1 billion through share repurchases.
Outlook Raised
3M raised its 2026 adjusted earnings forecast to a range of $8.80 to $8.95 per share from its prior outlook of $8.50 to $8.70. The updated guidance is above the analyst consensus estimate of $8.75.
The company expects organic sales growth in the high-3% range or better in the second half of 2026 and approximately 100 basis points of year-over-year margin expansion.
3M said it remains on track to exceed 1,000 product launches by 2027 and expects new products to generate about $4 billion in sales in 2026.
MMM Price Action: 3M shares were up 7.67% at $171.32 at the time of publication on Tuesday
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