MMM
3M’s not exactly whispering anymore
3M just posted a cleaner-than-expected second quarter: adjusted earnings of $2.40 a share on revenue of $6.50 billion, both ahead of Wall Street’s guesses. That was enough to give the stock a nice Tuesday pop — because apparently investors still enjoy a good “hey, maybe this turnaround thing is real” moment.
The good, the bad, and the memory shortage headache
The headline numbers were solid, but the story gets more interesting under the hood. Organic sales rose 5.4%, helped by new product launches, better supply-chain execution, and broad-based demand across regions.
But 3M also waved a couple of yellow flags:
- consumer electronics, automotive, and auto aftermarket remain weak
- management said PC and tablet production could fall by the high teens as memory shortages and higher memory costs hit demand
- tariff-related costs and stranded expenses shaved about $110 million off operating profit
So yes, it’s growing. No, it’s not growing in a perfectly smooth, spa-day kind of way.
Bigger products, bigger ambitions
3M also leaned into the “we’re not just fixing old problems” narrative. It launched 92 new products in the quarter and said it’s still on track to top 1,000 launches by 2027. That matters because new products are how industrial names turn boring old manufacturing into something closer to a recurring growth machine.
And the company didn’t stop there. It raised full-year 2026 adjusted EPS guidance to $8.80 to $8.95 from $8.50 to $8.70, above the consensus estimate of $8.75. That’s the kind of move that tells investors management is seeing enough strength to stop sandbagging.
Microsoft cameo, but the main plot is MMM
3M also said it partnered with Microsoft to deploy Expanded Beam Optics in Azure data centers. Nice bonus storyline, sure — but the real market mover here was the earnings beat, the guidance bump, and the signal that 3M’s operational cleanup is still working.
Big picture: 3M is looking less like a sleepy industrial relic and more like a company that’s finally getting paid for the fixes it’s been making.