# 3M (MMM) Q2 2026 earnings

Results filed 2026-07-21 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/mmm/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/66740/000006674026000242/0000066740-26-000242-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| GAAP net sales | $6.5 billion | up 2.4% year-on-year | GAAP |
| Net income attributable to 3M | $933 | up from $723 million a year ago | GAAP |
| GAAP diluted EPS | $1.78 | up 33% from a year ago | GAAP |
| Adjusted EPS | $2.40 | up 11% YoY | non-GAAP |
| GAAP operating income | $984 | down from $1,140 million a year ago | GAAP |
| GAAP operating margin | 15.1% | down 290 bps | GAAP |
| Adjusted operating margin | 24.9% | up 40 bps YoY | non-GAAP |
| Operating cash flow | $1.0 billion |  | GAAP |
| Adjusted free cash flow | $1.3 billion |  | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Safety and Industrial net sales | $3,091 | organic sales up 8.2% |
| Transportation and Electronics net sales | $2,066 | organic sales up 5.9% |
| Consumer net sales | $1,247 | organic sales down 2.1% |
| Safety and Industrial operating income | $859 | up from $738 million a year ago |
| Transportation and Electronics operating income | $503 | up from $479 million a year ago |
| Consumer operating income | $252 | down from $268 million a year ago |
| Adjusted organic sales growth, China | 11.7% |  |

## 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

1. **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%.
2. **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.
3. **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%.
4. **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.
5. **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.

## 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.