Industrial conglomerate 3M Co (NYSE:MMM) reported fourth-quarter earnings and revenue above analysts’ expectations on Tuesday, but its shares fell more than 7% as investors digested modest guidance for fiscal 2026.
3M posted adjusted earnings per share of $1.83, exceeding the $1.80 consensus and up 9% from a year earlier. Revenue rose 2.1% to $6.1 billion, surpassing the $6.01 billion expected. Adjusted operating margin widened to 21.1%, up 140 basis points year-on-year.
The company generated $1.6 billion in operating cash flow, with $1.3 billion in adjusted free cash flow.
For 2026, 3M anticipates adjusted total sales growth of roughly 4%, with organic growth near 3%, and expects operating margin expansion of 70 to 80 basis points. Adjusted EPS is projected at $8.50 to $8.70, slightly below the consensus of $8.61. Adjusted operating cash flow is forecast at $5.6–$5.8 billion, with full free cash flow conversion.
“2025 was an important year for 3M as we build a strong foundation that is reshaping our operating model and driving sustainable value creation,” said William Brown, 3M’s CEO. “Our accelerated pace of innovation and commercial execution positions us to outperform the macro environment again in 2026.”
Brown also highlighted the company’s performance last year, noting “growth above macro, strong margin expansion, double-digit earnings growth, and solid cash conversion.”
Despite the earnings beat, 3M shares dropped 7.3% in early trading, reflecting investor caution over the company’s moderate outlook for 2026 amid ongoing macroeconomic uncertainties.