3M (MMM) · Industrials
3M Q2 2026 earnings: summary, key numbers & outlook
Results filed 21 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Q2 GAAP sales of $6.5 billion, up 2.4%; operating margin of 15.1%, down 290 bps; EPS of $1.78, up 33%, all YoY
3M's second-quarter GAAP sales were $6.5 billion, up 2.4%, with GAAP EPS of $1.78, up 33%. Excluding exited PFAS products, adjusted organic sales grew 5.4% and adjusted operating margin reached 24.9%, up 40 bps. Adjusted EPS was $2.40, up 11%. Safety and Industrial led with 8.2% organic growth, while Consumer fell 2.1%. 3M returned $1.4 billion to shareholders.
Management raised full-year adjusted EPS guidance to $8.80 to $8.95 from $8.50 to $8.70, and expects adjusted operating cash flow of $5.8 to $6.0 billion. The tension is the gap between GAAP and adjusted results: GAAP operating margin fell to 15.1% on divestiture losses, litigation and PFAS exit costs, and transformation costs. Consumer weakness and the guidance excluding the Madison Fire & Rescue acquisition are other watch points.
Key numbers
- GAAP net sales · GAAP
- $6.5 billion
- Net income attributable to 3M · GAAP
- $933.0M
- GAAP diluted EPS · GAAP
- $1.78
- Adjusted EPS · non-GAAP
- $2.40
- GAAP operating income · GAAP
- $984.0M
- GAAP operating margin · GAAP
- 15.1%
- Adjusted operating margin · non-GAAP
- 24.9%
- Operating cash flow · GAAP
- $1.0 billion
up 2.4% year-on-year
up from $723 million a year ago
up 33% from a year ago
up 11% YoY
down from $1,140 million a year ago
down 290 bps
up 40 bps YoY
| Segment or metric | Value | Change |
|---|---|---|
| Safety and Industrial net sales | $3.1B | organic sales up 8.2% |
| Transportation and Electronics net sales | $2.1B | organic sales up 5.9% |
| Consumer net sales | $1.2B | organic sales down 2.1% |
| Safety and Industrial operating income | $859.0M | up from $738 million a year ago |
| Transportation and Electronics operating income | $503.0M | up from $479 million a year ago |
| Consumer operating income | $252.0M | down from $268 million a year ago |
| Adjusted organic sales growth, China | 11.7% |
Where each number comes from
- GAAP net sales: “Q2 GAAP sales of $6.5 billion, up 2.4%; operating margin of 15.1%, down 290 bps; EPS of $1.78, up 33%, all YoY”
- Net income attributable to 3M: “Net income attributable to 3M | $933 | $723 | $1,586 | $1,839”
- GAAP diluted EPS: “Q2 GAAP sales of $6.5 billion, up 2.4%; operating margin of 15.1%, down 290 bps; EPS of $1.78, up 33%, all YoY”
- Adjusted EPS: “Adjusted operating margin of 24.9%, up 40 bps YoY ◦Adjusted EPS of $2.40, up 11% YoY”
- GAAP operating income: “Operating income | 984 | 1,140 | 2,381 | 2,386 Other expense (income), net | (136) | 217 | 383 | 78”
- GAAP operating margin: “Q2 GAAP sales of $6.5 billion, up 2.4%; operating margin of 15.1%, down 290 bps; EPS of $1.78, up 33%, all YoY”
- Adjusted operating margin: “Adjusted sales of $6.5 billion with organic growth of 5.4% YoY ◦Adjusted operating margin of 24.9%, up 40 bps YoY”
- Operating cash flow: “Q2 operating cash flow of $1.0 billion with adjusted free cash flow of $1.3 billion”
- Safety and Industrial net sales: “Total Safety and Industrial business segment | 3,091 | 2,857 | 6,021 | 5,602”
- Transportation and Electronics net sales: “Total Transportation and Electronics business segment | 2,066 | 1,944 | 3,914 | 3,760”
- Consumer net sales: “Total Consumer business segment | 1,247 | 1,270 | 2,378 | 2,394”
- Safety and Industrial operating income: “Safety and Industrial | $859 | $738 | $1,635 | $1,437”
- Transportation and Electronics operating income: “Transportation and Electronics | 503 | 479 | 902 | 869”
- Consumer operating income: “Consumer | 252 | 268 | 469 | 487 Total reportable business segments”
- Adjusted organic sales growth, China: “Adjusted China (non-GAAP measures)4 | 11.7% | (0.5)% | 5.2% | 16.4% Other Asia”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $6.5B | +2.5% | +7.8% |
| Operating income | $984.0M | −13.7% | −29.6% |
| Net income | $933.0M | +29.0% | +42.9% |
| Diluted EPS | $1.78 | +32.8% | +44.7% |
| Free cash flow | $763.0M | — | +118.6% |
| Operating margin | 15.1% | −2.9 pts | −8.1 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Adjusted total sales growth | full-year 2026 | >4.5 percent |
| Adjusted organic sales growth | full-year 2026 | >3.5 percent |
| Adjusted operating income margin expansion | full-year 2026 | 70 bps to 80 bps |
| Adjusted EPS | full-year 2026 | $8.80 to $8.95 |
| Adjusted operating cash flow | full-year 2026 | $5.8 to $6.0 billion |
| Adjusted effective tax rate | full-year 2026 | ~20% |
| Purchase of property, plant and equipment | full-year 2026 | ~$1.1 |
| Adjusted free cash flow | full-year 2026 | $4.7 to $4.9 |
Key takeaways
Adjusted growth far outpaced GAAP growth
Adjusted organic sales grew 5.4% YoY versus 2.3% GAAP organic growth, as exited manufactured PFAS products depressed reported sales. Adjusted sales were $6.5 billion, up 5.5%.
Adjusted margin rose while GAAP margin fell
Adjusted operating margin was 24.9%, up 40 bps YoY, but GAAP operating margin was 15.1%, down 290 bps. The gap reflects special items such as loss on business divestitures and transformation costs.
Safety and Industrial drove the growth
Safety and Industrial organic sales rose 8.2% and Transportation and Electronics rose 5.9%, while Consumer fell 2.1%.
Full-year adjusted EPS guidance was raised
2026 adjusted EPS guidance increased from $8.50 - $8.70 to $8.80 - $8.95. Adjusted operating cash flow is expected at $5.8 to $6.0 billion.
Cash returns continued despite litigation payments
3M returned $1.4 billion to shareholders via dividends and share repurchases, and adjusted free cash flow was $1.3 billion. Operating cash flow was $1.0 billion.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $6.0B |
| Q1 2025 | $6.0B |
| Q2 2025 | $6.3B |
| Q3 2025 | $6.5B |
| Q4 2025 | $6.1B * |
| Q1 2026 | $6.0B |
| Q2 2026 | $6.5B |
| Q3 2026 | $6.6B |
Data
| Q4 2024 | $1.33 |
| Q1 2025 | $2.04 |
| Q2 2025 | $1.34 |
| Q3 2025 | $1.55 |
| Q1 2026 | $1.23 |
| Q2 2026 | $1.78 |
| Q3 2026 | $2.63 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 18.1% |
| Q1 2025 | 20.9% |
| Q2 2025 | 18.0% |
| Q3 2025 | 22.2% |
| Q4 2025 | 13.0% |
| Q1 2026 | 23.2% |
| Q2 2026 | 15.1% |
| Q3 2026 | 23.7% |
Data
| Q4 2024 | $1.5B |
| Q1 2025 | -$315.0M |
| Q2 2025 | -$1.2B |
| Q3 2025 | $1.5B |
| Q4 2025 | $1.3B |
| Q1 2026 | $349.0M |
| Q2 2026 | $763.0M |
| Q3 2026 | $230.0M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were 3M's second-quarter 2026 results?
GAAP sales were $6.5 billion, up 2.4%, with GAAP EPS of $1.78, up 33%. Adjusted EPS was $2.40, up 11%, and adjusted organic sales growth was 5.4%.
Did 3M change its 2026 guidance?
Yes. 3M raised adjusted EPS guidance from $8.50 - $8.70 to $8.80 - $8.95, and expects adjusted operating cash flow of $5.8 to $6.0 billion.
Why is GAAP operating margin so much lower than adjusted?
GAAP operating margin was 15.1% versus 24.9% adjusted. Special items include a $336 million loss on business divestitures, $183 million of net litigation and PFAS exit costs, and $100 million of transformation costs.
Which 3M segments grew fastest?
Safety and Industrial organic sales rose 8.2% and Transportation and Electronics rose 5.9%. Consumer organic sales fell 2.1%.
How much cash did 3M generate and return?
Operating cash flow was $1.0 billion and adjusted free cash flow was $1.3 billion. 3M returned $1.4 billion to shareholders through dividends and share repurchases.
Documents
SEC filing