3M (NYSE:MMM) Trading Up 10.2% Following Strong Earnings

Key Points

• 3M shares jumped 10.2% after the company reported stronger-than-expected quarterly results, hitting as high as $174.51 in intraday trading.
• The company posted adjusted EPS of $2.40 on revenue of $6.50 billion, both above analyst forecasts, with revenue up 2.5% year over year and organic sales growth of 5.4%.
• 3M raised its FY 2026 EPS guidance to $8.80-$8.95 from $8.50-$8.70, though it also noted a year-over-year decline in GAAP operating margin.

3M Company (NYSE:MMM - Get Free Report)'s stock price shot up 10.2% during trading on Tuesday following a better than expected earnings announcement. The company traded as high as $174.51 and last traded at $175.32. 2,255,895 shares traded hands during trading, a decline of 42% from the average daily volume of 3,913,072 shares. The stock had previously closed at $159.11.

The conglomerate reported $2.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.27 by $0.13. 3M had a net margin of 11.14% and a return on equity of 104.75%. The company had revenue of $6.50 billion for the quarter, compared to analyst estimates of $6.40 billion. During the same period in the prior year, the business earned $2.16 EPS. The firm's quarterly revenue was up 2.5% on a year-over-year basis. 3M has set its FY 2026 guidance at 8.800-8.950 EPS.

3M Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Friday, May 22nd were paid a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend was Friday, May 22nd. 3M's payout ratio is presently 60.12%.

3M News Summary

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

• Positive Sentiment: 3M beat Q2 expectations, posting adjusted EPS of $2.40 versus $2.27 expected and revenue of $6.5 billion versus $6.4 billion expected, which suggests stronger-than-expected demand and execution. 3M Reports Second-Quarter 2026 Results; Increases Full-Year Guidance
• Positive Sentiment: The company increased FY 2026 adjusted EPS guidance to $8.80 to $8.95 from $8.50 to $8.70, signaling management confidence in continued earnings growth. 3M Reports Second-Quarter 2026 Results; Increases Full-Year Guidance
• Positive Sentiment: Revenue grew 2.5% year over year, while adjusted sales were up 5.4% organically, indicating improving underlying business trends. 3M Press Release
• Neutral Sentiment: 3M also guided FY 2026 revenue to $23.2 billion-$25.4 billion, which brackets the Street estimate and points to a broadly in-line top-line outlook. 3M Reports Second-Quarter 2026 Results; Increases Full-Year Guidance
• Neutral Sentiment: Broader market futures were also firmer this morning, helping support sentiment for cyclical and industrial names like 3M. 5 Things to Know Before the Stock Market Opens on Tuesday
• Negative Sentiment: Operating margin in the quarter declined year over year on a GAAP basis, which could temper enthusiasm if investors focus on profitability quality rather than adjusted results. 3M Reports Second-Quarter 2026 Results; Increases Full-Year Guidance

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. JPMorgan Chase & Co. upgraded 3M from a "neutral" rating to an "overweight" rating and lifted their price objective for the company from $178.00 to $180.00 in a research note on Friday. HSBC raised their target price on shares of 3M from $175.00 to $185.00 and gave the company a "buy" rating in a report on Wednesday, April 22nd. Weiss Ratings cut shares of 3M from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, June 1st. Sanford C. Bernstein started coverage on shares of 3M in a research report on Tuesday, June 9th. They issued an "underperform" rating and a $131.00 price objective on the stock. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on shares of 3M from $181.00 to $171.00 and set a "hold" rating for the company in a research report on Wednesday, April 22nd. Seven research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, 3M has a consensus rating of "Hold" and an average price target of $169.43.

Hedge Funds Weigh In On 3M

Several hedge funds have recently added to or reduced their stakes in the stock. Allied Investment Advisors LLC lifted its position in shares of 3M by 4.1% during the 2nd quarter. Allied Investment Advisors LLC now owns 90,579 shares of the conglomerate's stock worth $14,666,000 after buying an additional 3,581 shares during the last quarter. West Paces Advisors Inc. acquired a new stake in 3M during the 2nd quarter worth $49,000. Wealth Group Ltd lifted its position in 3M by 50.8% in the second quarter. Wealth Group Ltd now owns 7,077 shares of the conglomerate's stock valued at $1,146,000 after acquiring an additional 2,383 shares during the last quarter. Valeo Financial Advisors LLC lifted its position in 3M by 11.6% in the second quarter. Valeo Financial Advisors LLC now owns 7,815 shares of the conglomerate's stock valued at $1,265,000 after acquiring an additional 814 shares during the last quarter. Finally, GAMMA Investing LLC boosted its stake in 3M by 3.7% in the second quarter. GAMMA Investing LLC now owns 18,770 shares of the conglomerate's stock valued at $3,039,000 after acquiring an additional 661 shares in the last quarter. 65.25% of the stock is currently owned by hedge funds and other institutional investors.

3M Stock Up 9.8%

The firm's 50 day simple moving average is $156.43 and its 200-day simple moving average is $156.09. The company has a market cap of $91.11 billion, a price-to-earnings ratio of 33.87, a P/E/G ratio of 2.25 and a beta of 1.02. The company has a debt-to-equity ratio of 3.29, a current ratio of 1.59 and a quick ratio of 1.19.

About 3M

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).

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