3M (NYSE:MMM) Posts Earnings Results, Beats Expectations By $0.03 EPS

3M (NYSE:MMM) issued its quarterly earnings results on Tuesday. The conglomerate reported $1.83 earnings per share for the quarter, topping analysts’ consensus estimates of $1.80 by $0.03, Zacks reports. 3M had a net margin of 13.70% and a return on equity of 98.47%. The company had revenue of $6 billion for the quarter, compared to the consensus estimate of $6.03 billion. During the same period in the previous year, the firm earned $1.68 EPS. The firm’s quarterly revenue was up 1.5% on a year-over-year basis. 3M updated its FY 2026 guidance to 8.50-8.700 EPS.

Here are the key takeaways from 3M’s conference call:

• 3M finished 2025 with strong financials — organic sales +2.1% (Q4 +2.2%), full-year adjusted operating margin 23.4%, adjusted EPS $8.06, and free cash flow conversion >100%, and 2026 guidance targets ~3% organic growth and EPS of $8.50–$8.70.
• Commercial excellence and innovation drove outperformance: the company launched 284 new products in 2025 (up 68% y/y), saw five‑year product sales up 23%, closed ~$50M of annualized cross‑sell wins, and plans 350 launches in 2026.
• Operational improvements are translating to better service and margins — OTIF above 90%, OEE ~63% (up ~300 bps), cost of poor quality down to 6% with a 2026 target of 5.4%, and ~$550–$600M of productivity gains driving margin expansion.
• Headwinds remain: PFAS stranded costs, tariffs (existing carryover and potential new tariffs with preliminary estimates of incremental impact), elevated transformation and growth investments (~$225M incremental in 2026), and consumer/roofing and some auto weakness that weighed on Q4.
• Capital return and portfolio actions: 3M returned $4.8B in 2025 (dividends + buybacks), remains committed to its multi‑year capital plan and expects ~$2.5B gross repurchases in 2026 while pursuing footprint and portfolio transformation to lift long‑term margins.

3M Stock Performance

Shares of MMM opened at $156.32 on Wednesday. 3M has a 52-week low of $121.98 and a 52-week high of $174.69. The stock’s 50-day simple moving average is $165.87 and its 200 day simple moving average is $159.65. The company has a debt-to-equity ratio of 2.54, a quick ratio of 1.40 and a current ratio of 1.84. The stock has a market capitalization of $83.04 billion, a price-to-earnings ratio of 24.97, a price-to-earnings-growth ratio of 2.34 and a beta of 1.09.

3M Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 12th. Investors of record on Friday, November 14th were paid a dividend of $0.73 per share. This represents a $2.92 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Friday, November 14th. 3M’s payout ratio is presently 46.65%.

Analyst Upgrades and Downgrades

MMM has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft cut shares of 3M from a “buy” rating to a “hold” rating and dropped their target price for the company from $199.00 to $178.00 in a research note on Monday, December 8th. Citigroup increased their price objective on 3M from $160.00 to $169.00 and gave the company a “neutral” rating in a report on Thursday, October 9th. Morgan Stanley set a $160.00 target price on 3M and gave the company an “equal weight” rating in a research note on Tuesday, October 21st. Barclays upped their price target on 3M from $180.00 to $190.00 and gave the company an “overweight” rating in a research report on Thursday, December 4th. Finally, Wolfe Research decreased their price objective on 3M from $197.00 to $196.00 and set an “outperform” rating for the company in a report on Thursday, January 15th. Six equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, 3M currently has a consensus rating of “Hold” and an average target price of $175.80.

Insider Activity

In related news, EVP Mark W. Murphy sold 19,061 shares of the company’s stock in a transaction that occurred on Wednesday, October 29th. The shares were sold at an average price of $166.55, for a total transaction of $3,174,609.55. Following the sale, the executive vice president owned 6,594 shares of the company’s stock, valued at approximately $1,098,230.70. This represents a 74.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Zoe L. Dickson sold 13,826 shares of the firm’s stock in a transaction on Thursday, November 13th. The shares were sold at an average price of $169.78, for a total transaction of $2,347,378.28. Following the completion of the transaction, the executive vice president directly owned 6,162 shares of the company’s stock, valued at approximately $1,046,184.36. The trade was a 69.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 46,516 shares of company stock worth $7,836,465. Company insiders own 0.48% of the company’s stock.

Institutional Investors Weigh In On 3M

A number of institutional investors and hedge funds have recently made changes to their positions in MMM. Walter & Keenan Wealth Management LLC IN ADV grew its stake in shares of 3M by 1.0% during the third quarter. Walter & Keenan Wealth Management LLC IN ADV now owns 6,045 shares of the conglomerate’s stock valued at $938,000 after purchasing an additional 61 shares during the last quarter. Triumph Capital Management boosted its position in 3M by 6.8% in the 3rd quarter. Triumph Capital Management now owns 1,565 shares of the conglomerate’s stock valued at $243,000 after buying an additional 100 shares during the last quarter. Morse Asset Management Inc raised its position in shares of 3M by 1.8% during the second quarter. Morse Asset Management Inc now owns 10,301 shares of the conglomerate’s stock worth $1,568,000 after acquiring an additional 185 shares during the last quarter. Bison Wealth LLC raised its position in shares of 3M by 10.2% during the fourth quarter. Bison Wealth LLC now owns 2,751 shares of the conglomerate’s stock worth $355,000 after acquiring an additional 255 shares during the last quarter. Finally, Kelleher Financial Advisors boosted its holdings in 3M by 12.6% in the third quarter. Kelleher Financial Advisors now owns 2,683 shares of the conglomerate’s stock valued at $416,000 after acquiring an additional 300 shares during the last quarter. Hedge funds and other institutional investors own 65.25% of the company’s stock.

Key Headlines Impacting 3M

Here are the key news stories impacting 3M this week:

• Positive Sentiment: Adjusted EPS beat and margins improved — 3M reported adjusted EPS of $1.83 (vs. $1.80 consensus) and showed a sizable improvement in adjusted operating margin and strong operating cash flow/free cash flow. 3M Reports Fourth-Quarter and Full-Year 2025 Results
• Positive Sentiment: Capital returns and buybacks are intact — management generated ~ $1.3B free cash flow in Q4 and repurchased shares, supporting dividends and continued buybacks that reduce share count and underpin long‑term value. 3M Company page / MarketBeat
• Positive Sentiment: CEO credibility noted by commentators — some market voices (e.g., Jim Cramer coverage) welcomed CEO Bill Brown’s execution on turnaround steps, which may support investor confidence over time. Jim Cramer on 3M’s CEO
• Neutral Sentiment: Guidance is mixed — 2026 guidance calls for EPS of $8.50–$8.70 (midpoint ~ $8.60) and revenue around $25.3B; revenue guidance modestly exceeded consensus while EPS guidance sits essentially in line, producing no clear catalyst. 3M (MMM) Reports Q4 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: Top-line growth uneven by segment and region — Industrial showed strength while Transportation and Consumer lagged; organic growth returned but is modest, implying selective exposure to cyclical recovery. 3M Q4 earnings recap
• Negative Sentiment: Market reaction: investors sold into the report — despite the EPS beat, the revenue miss and a conservative/uneventful outlook prompted a sizable intraday decline as traders sought clearer upside. 3M tops Q4 estimates but 2026 outlook sends shares lower
• Negative Sentiment: Perception of underwhelming profit guidance — several outlets highlight that management’s profit roadmap didn’t excite the market, convincing some investors to trim exposure until clearer acceleration appears. 3M Earnings Beat Wall Street Expectations. The Stock Drops Anyway.

3M Company Profile

3M Company, originally founded in 1902 as the Minnesota Mining and Manufacturing Company, is a diversified global technology and manufacturing firm headquartered in St. Paul, Minnesota. Over its history the company has expanded from mineral mining into a broad portfolio of industrial, safety, healthcare and consumer products, building a reputation for applied science and product innovation across many end markets.

3M’s businesses span a wide range of product categories including adhesives and tapes, abrasives, filtration and separation technologies, personal protective equipment such as respirators, medical and dental products, industrial and automotive solutions, and a suite of consumer brands (for example, well-known office and home products).