3M CO (MMM) Earnings History

3M CO - Q1 2026 EarningsMissed

Filed at: Apr 21, 2026, 6:34 AM EDT|Read from source

EXECUTIVE SUMMARY

3M reported a mixed first quarter with GAAP sales up slightly but organic sales down, while adjusted EPS showed strong year-over-year growth driven by special item adjustments and margin expansion. The company reiterated its full-year guidance, signaling confidence in its strategic transformation and operational improvements despite a volatile environment.

POSITIVE HIGHLIGHTS

  • •

    Adjusted EPS of $2.14, up 14% year-on-year, demonstrating strong performance excluding special items.

    positive
  • •

    Adjusted operating income margin of 23.8%, an increase of 30 basis points year-on-year, indicating improved profitability.

    positive
  • •

    Reiterated full-year 2026 guidance for adjusted total sales growth of ~4% and adjusted EPS of $8.50 to $8.70.

    positive
  • •

    Adjusted free cash flow of $0.5 billion and reiterated full-year adjusted free cash flow conversion of >100%.

    positive

CONCERNS & RISKS

  • •

    GAAP EPS of $1.23, down 40% year-on-year, significantly impacted by special items including litigation and Solventum ownership changes.

    negative
  • •

    GAAP sales of $6.0 billion, up only 1.3% year-on-year, with organic sales down 1.4% year-on-year, indicating underlying business weakness.

    negative
  • •

    Significant negative impact from special items totaling $0.91 per share, including $0.45 from litigation and $0.67 from Solventum ownership changes.

    negative
  • •

    Corporate operating income was $5 million, a significant decrease from $50 million in the prior year, driven by increased special item costs.

    attention
  • •

    Inventories increased to $3,690 million from $3,661 million at the end of the prior year, outpacing adjusted organic sales growth.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$6.03B
+1.3%
Prior year: $5.95B
Net Income
Quarterly
$659.00M
N/A
EPS (Diluted)
Quarterly
$1.23
-39.7%
Prior year: $2.04
Operating Income
Quarterly
$1.40B
N/A
EPS (Basic)
Quarterly
$1.23
-40.0%
Prior year: $2.05

MARGIN ANALYSIS

Operating Margin
Current Quarter
23.2%
Prior Year
20.9%
YoY Change
+230 bps
Net Margin
Current Quarter
10.8%
Prior Year
18.7%
YoY Change
-791 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q1 2026 2026

VISUAL OVERVIEW

|
Safety and Industrial
0.0%
N/A
Transportation and Electronics
0.0%
N/A
CC: -0.3%
Consumer
0.0%
N/A
CC: -1.3%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
Safety and Industrial
N/A————
Transportation and Electronics
N/A———-0.3%
Consumer
N/A———-1.3%
Total Revenue$0.00M——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT GUIDANCE

FY2026

adjusted total sales growth
$4.0M
"~4 percent"
adjusted organic sales growth
$3.0M
"~3 percent"
adjusted operating income margin expansion
70.0%—80.0%
Mid-point: 75.0%
"70 bps to 80 bps"
adjusted EPS
$8.50—$8.70
Mid-point: $8.60
"$8.50 to $8.70"
adjusted operating cash flow
5,600,000,000—5,800,000,000
Mid-point: 5,700,000,000
"$5.6 to $5.8 billion"
adjusted free cash flow conversion
">100 percent"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

EARNINGS CALL —

Call date
2026-04-21
Tone
N/A
Hedge density
N/A
Deflection rate
N/A

SPECIAL ITEMS & ADJUSTMENTS

Q1 2026
Net costs (benefit) from significant litigation
Includes impacts of changes in accrued liabilities, legal costs, and insurance recoveries.
$170M
$0.04 per share
Q1 2026
Loss on business divestitures
+$7M
$0.01 per share
Q1 2026
Manufactured PFAS products
Relates to sales and income (loss) and associated activity regarding manufactured PFAS products that 3M exited by the end of 2025.
+$126M
$0.18 per share
Q1 2026
(Increase) decrease in value of Solventum ownership
Relates to the change in value of 3M's retained ownership interest in Solventum common stock.
+$356M
$0.67 per share
Q1 2026
Transformation costs
Net costs associated with 3M's transformation program.
+$66M
$0.09 per share
Q1 2025
Net costs (benefit) from significant litigation
Includes impacts of changes in accrued liabilities, legal costs, and insurance recoveries.
+$74M
$0.41 per share
Q1 2025
Manufactured PFAS products
Relates to sales and income (loss) and associated activity regarding manufactured PFAS products that 3M exited by the end of 2025.
+$38M
$0.06 per share
Q1 2025
(Increase) decrease in value of Solventum ownership
Relates to the change in value of 3M's retained ownership interest in Solventum common stock.
$343M
$0.63 per share
Total Impact
+$154M$0.75 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

We are executing on 3M’s value creation framework to build a stronger company.

— 3M CO, Q1 2026 2026 Earnings Call

Our focus remains on improving execution of the fundamentals and transforming the company by simplifying and standardizing our processes and footprint and reshaping the portfolio.

— 3M CO, Q1 2026 2026 Earnings Call

Together, these actions will drive structurally higher growth and stronger margin performance, while improving enterprise resilience and predictability.

— 3M CO, Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Adjusted Organic Sales Change Pct
1.2
%
Adjusted Sales Change Pct
3.9
%
Organic Sales Change Pct
-1.4
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

Related Research

Research

PFAS Forever Chemicals: What 736 SEC Filings Reveal

Analysis

$135M in Prior-Period Catch-Ups Inflated Natera's 36% Revenue Growth

Analysis

3M Reports Two Different Companies in One Filing — Here's Why