3M (MMM) Q3 2026 earnings summary

Executive summary

• Q3 adjusted sales were $6.584B, up 3.3% organically; adjusted operating margin rose 110 bps to 26.2% and adjusted EPS increased 12% to $2.50.

• GAAP sales rose 1.0% to $6.584B, with reported organic sales growth of 0.2%; GAAP EPS was $2.63, up 70%.

• Safety & Industrial led growth; strength in industrial, safety, semiconductors and data centers partly offset weaker consumer electronics and auto demand.

• FY 2026 adjusted EPS guidance increased to $9.10–$9.15; organic sales growth is expected above 3.5%.

Financial highlights

• Q3 adjusted sales were $6.584B, up 4.2% on a total sales-change basis and 3.3% organically; adjusted operating income rose 8.8% to $1.726B.

• Q3 GAAP operating income was $1.558B versus $1.447B a year earlier; GAAP operating margin was 23.7%, up 1.5 points.

• Q3 adjusted free cash flow was $1.197B; YTD adjusted free cash flow was $3.086B, with working-capital and sales-linearity effects weighing on quarterly cash flow.

• YTD adjusted sales were $19.087B, up 3.3% organically; adjusted EPS was $7.11 and adjusted operating income was $4.816B, up 7.0%.

• 9M operating cash flow was $2.0B, up $1.3B YoY, primarily reflecting lower net PFAS environmental and CAE settlement payments after insurance recoveries.

Outlook and guidance

• FY 2026 adjusted organic sales growth is expected above 3.5%; adjusted total sales growth guidance is above 4.5%.

• Adjusted EPS guidance rose to $9.10–$9.15; adjusted operating cash flow is expected at ~$5.9B and adjusted free cash flow at ~$4.8B.

• Guidance incorporates ~$185M of oil inflation, expected to be fully offset by pricing; volume, productivity, lower share count and interest expense also support the outlook.

• FY 2026 capital spending is expected at ~$1.0B, focused on growth, productivity and sustainability investments.

• The 2027 adjusted operating margin commitment is ~25.4% on the updated basis, including a 40-bps benefit from the amortization reporting change.