3M Co (NYSE:MMM) shares rose about 9% in early trade on Tuesday after the industrial conglomerate reported second-quarter adjusted earnings and revenue above Wall Street expectations and increased its full-year 2026 earnings guidance.
The company reported adjusted earnings per share of $2.40 for the quarter, ahead of the consensus estimate of $2.24 and up 11% from a year earlier.
Revenue totaled $6.5 billion, exceeding expectations of about $6.4 billion, with adjusted organic sales growth of 5.4% year over year.
On a GAAP basis, net sales increased 2.4% from the prior year, while operating margin declined to 15.1% from 18%. GAAP earnings per share rose to $1.78 from $1.34 a year earlier.
Adjusted operating income margin improved 40 basis points year over year to 24.9%.
"We delivered a strong second quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth, reflecting the progress we're making on our strategic priorities and building a higher-performing company," 3M CEO William Brown said in a statement.
"As a result of our strong first-half performance and continued momentum, we are increasing our full-year guidance and remain confident in our ability to create long-term value for shareholders," Brown added.
Looking ahead, 3M raised its full-year 2026 adjusted earnings per share guidance to a range of $8.80 to $8.95, up from its previous forecast of $8.50 to $8.70.
The company continues to expect adjusted total sales growth of more than 4.5%, reflecting adjusted organic sales growth of more than 3.5%, and projects adjusted operating income margin expansion of 70 to 80 basis points.
It also reaffirmed expectations for adjusted operating cash flow of $5.8 billion to $6 billion and adjusted free cash flow conversion of more than 100%.