TLDR
- 3M reported Q1 adjusted EPS of $2.14, beating Wall Street’s $1.98 estimate
- Revenue came in at $6.03 billion, with adjusted sales up 3.9% year over year
- Full-year 2026 EPS guidance reiterated at $8.50–$8.70
- Stock initially fell over 1% premarket before recovering to trade up 1.6%
- JPMorgan flags weak consumer electronics demand and oil-based input inflation as headwinds
3M had a solid start to 2026, posting Q1 numbers that cleared the bar Wall Street had set — and then some.
3M Q1 EPS USD 1.23 || 3M Q1 ADJUSTED SALES USD 6,000 MILLION VS ESTIMATE USD 6,008 MILLION || Q1 ADJUSTED EPS USD 2.14 VS ESTIMATE USD 1.98 || Q1 ORGANIC GROWTH 1.2% || Q1 SALES USD 6,000 MILLION || CO: REITERATES FULL-YEAR 2026 GUIDANCE
— First Squawk (@FirstSquawk) April 21, 2026
Adjusted EPS came in at $2.14, well ahead of the $1.98 analysts expected. GAAP revenue was $6.03 billion, up 1.3% from a year ago. Adjusted sales grew 3.9% year over year.
The stock swung around on the news. It was down more than 1% before markets opened, then turned positive and was up 1.6% at $153.80 by midmorning. The broader market was modestly higher, with the S&P 500 up 0.1% and the Dow up 0.6%.
CEO William Brown called it “a good start to the year.” He said the company remains confident in hitting its full-year targets despite a volatile environment.
Management kept its 2026 EPS guidance unchanged at $8.50 to $8.70. Wall Street’s consensus sits at $8.65, right in the middle of that range.
3M also returned $2.4 billion to shareholders through dividends and buybacks in the quarter. Operating cash flow was $574 million, with adjusted free cash flow of $541 million.
Segment Breakdown
The Safety and Industrial segment led the way, pulling in $2.93 billion in sales with organic growth of 3.2%. Transportation and Electronics came in at $1.85 billion, roughly flat organically. Consumer was the soft spot at $1.13 billion, with slightly negative organic sales.
Geographically, China stood out with 4.4% organic growth. Europe, Middle East and Africa got a boost from currency translation gains. The Americas saw organic sales decline.
Operating margin held up. GAAP operating margin was 23.2%, up 230 basis points year over year. Adjusted operating margin was 23.8%, up 30 basis points.
Headwinds Still in the Picture
JPMorgan analyst Chigusa Katoku flagged a couple of risks heading into the rest of the year. She pointed to weak consumer electronics demand, projecting smartphone and PC shipments down 11% and 9% respectively in 2026. That’s a meaningful concern — supplying consumer electronics is a roughly $2 billion business for 3M.
Oil-based input costs are another watch item, with inflation in those materials potentially squeezing margins.
Katoku rates MMM a Hold with a $182 price target. The average analyst price target is around $178, about 17% above current levels.
The stock didn’t exactly pop on Q4 numbers back in January. It dropped 7% that day, closing at $156.12. It entered this week at $154.44, still slightly below that post-earnings level.
Over the past 12 months, 3M is up about 19%. The stock currently trades at roughly 18 times estimated 2026 earnings.
Comparable sales grew 1.3% year over year in Q1. For context, that same metric grew 2.1% for full-year 2025, up from 1.2% in 2024. The company is forecasting 3% comparable sales growth for this year.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
