Business · NEWS EXPLAINER
3M raises 2026 profit outlook as data-center demand offsets weaker consumer markets
Adjusted EPS guidance rises to $9.10–$9.15 after a $2.50 quarter. The company still faces softer automotive and consumer demand, so the outlook remains a forecast.
3M raised its 2026 adjusted earnings outlook after third-quarter adjusted EPS reached $2.50, above the $2.38 analyst estimate cited by Reuters. The company now forecasts $9.10–$9.15 a share for the year, compared with its previous $8.80–$8.95 range.
Quarterly sales were $6.6 billion on both reported and adjusted presentations. Reported sales grew 1.0%, adjusted sales grew 4.2%, and adjusted organic sales grew 3.3%. Data-center and semiconductor demand helped offset weaker automotive and consumer markets.
The adjusted EPS outlook moved to $9.10–$9.15
3M raised its 2026 adjusted earnings-per-share forecast to $9.10–$9.15 from $8.80–$8.95. The company also now expects adjusted total sales growth above 4.5% and adjusted organic sales growth above 3.5%. These are management forecasts, not completed annual results.
Third-quarter adjusted EPS reached $2.50
Adjusted earnings were $2.50 a share, up 12% from a year earlier and above the $2.38 analyst estimate cited by Reuters. GAAP earnings were $2.63 a share, up 70%; the adjusted and GAAP figures use different treatments and should not be interchanged.
Sales growth was positive on both reported and adjusted bases
3M reported third-quarter sales of $6.6 billion, up 1.0%. Adjusted sales were also $6.6 billion and rose 4.2%, while adjusted organic sales growth was 3.3%. The separate growth rates reflect adjustments and portfolio effects rather than contradictory revenue totals.
Margins improved as cost controls and pricing helped
The company reported a 23.7% GAAP operating margin and a 26.2% adjusted operating margin. Reuters said cost controls and price increases helped profitability; 3M also reported $0.5 billion of operating cash flow and $1.2 billion of adjusted free cash flow for the quarter.
Data-center strength did not remove weakness elsewhere
Reuters reported that demand tied to data centers and semiconductors helped offset weaker automotive and consumer markets. That mix supports the quarter, but it does not mean every 3M end market grew or that the raised annual forecast is guaranteed.
