3M’s adjusted EPS of $2.40 and revenue growth of 6.83% surpass estimates, prompting a raised full-year outlook and new price target.
3M reported Q2 2026 adjusted earnings per share of $2.40, beating expectations, while revenue grew 6.83%, driven by 90% organic growth in its Safety and Industrial segment. CEO William Brown raised full-year guidance, citing margin expansion and strong China performance at 8.2% growth.
The company’s adjusted free cash flow reached $859 million, with a 16.4% conversion rate. Prior to earnings, 3M was flat year-to-date, but the report lifted sentiment, with operating income climbing to 0.34% in its largest segment. Partnerships with Microsoft on AI data center optics and Airbus on insulation add growth potential.
Analysts set a new 12-month price target of $186.85, a 10.07% upside from the current $175.14, reflecting confidence in the margin expansion story despite risks like PFAS litigation and tariff uncertainty.