Key Takeaways:
- Adjusted EPS of $2.40 beat estimates, up 11% year over year.
- Organic sales grew 5.4% to $6.5 billion in the second quarter.
- Full-year adjusted EPS guidance raised to $8.80-$8.95 from $8.50-$8.70.
Quay lại
3M jumps 6% after Q2 earnings beat and raised 2026 guidance
3M reported Q2 adjusted EPS of $2.40, beating consensus, and raised its full-year guidance, sending shares up 6% in pre-market trading.
"We delivered a strong second quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth," William Brown, 3M Chairman and CEO, said.
Adjusted organic sales rose 5.4% year over year to $6.5 billion, while adjusted operating margin expanded 40 basis points to 24.9%. Adjusted free cash flow reached $1.3 billion in the quarter. On a GAAP basis, EPS came in at $1.78, up 33% from $1.34 a year earlier, while GAAP operating margin contracted to 15.1% from 18%, reflecting charges related to business divestitures, litigation costs and transformation expenses.
The results mark the second straight quarter of accelerating growth for the industrial conglomerate as it executes a turnaround under Brown. The company now expects full-year adjusted EPS of $8.80 to $8.95, up from its prior range of $8.50 to $8.70, with adjusted total sales growth of more than 4.5% and adjusted operating margin expansion of 70 to 80 basis points.
3M returned $1.4 billion to shareholders through dividends and share repurchases during the quarter. Operating cash flow totaled $1.0 billion.
The company also highlighted several strategic wins during the quarter, including a partnership with Microsoft to deploy 3M's Expanded Beam Optics technology in AI data centers, a long-term agreement with Airbus to supply insulation for the A220 aircraft, and a multi-year deal as the official material science partner for the Cadillac Formula 1 Team. 3M also launched Ask 3M, an AI-powered digital assistant built on AWS that gives customers self-service access to technical expertise.
The guidance raise signals management expects continued momentum from its industrial and electronics end markets. Investors will watch the Q3 earnings call for further detail on segment-level margins and the pace of AI-related revenue contributions from the Microsoft partnership.
This article is for informational purposes only and does not constitute investment advice.
