MMM US S&P 500DJIARussell 1000 Earnings call
3M (MMM) · Q2 2026 results and valuation
Share price: $188.88 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 21 Jul 2026 and 21 Apr 2026
Net income up 42.9% on the previous quarter, guidance raised. Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+42.9%
Net income vs Q1 2026
Guidance raised
Net income 933.0M vs 653.0M
Revenue +7.8%
Against the same quarter last year (Q2 2025) it is +29.0%, so it is not just seasonal.
2 · How management spoke
Very upbeat
More upbeat than 96% of company calls
Answers to analysts: typical, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
3M raised its annual guidance for sales, EPS, and free cash flow following strong performance in the first half of the year.
Valuation
Is 3M undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −1.6% growth a year (3-year revenue growth), the model's fair value is $5.82 a share — the stock trades 3143% above it. Today's price assumes 26.4% growth a year.
Current price
$188.88
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+26.4% for 10 yrs
Fair value / share
$5.82
Buy below
$4.37
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Turning to slide seven, 3M exceeded expectations across all financial metrics in the quarter, delivered mid-single-digit organic growth.
Source quote
“Turning to slide seven, we exceeded expectations across all financial metrics in the quarter, delivered mid-single-digit organic growth, margin expansion... Starting with top line.”
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Guidance ↑
The company raised its annual guidance for sales, EPS, and free cash flow following strong performance in the first half of the year.
Source quote
“Given our strong first half performance, we're raising our guidance for the year for sales, EPS, and free cash flow.”
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Guidance
The company expects margins on new products to raise the overall margin threshold over time.
Source quote
“Look, in a nutshell, look, we expect and we do see that margins on new products over time raise the overall margin threshold.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Turning to slide seven, we exceeded expectations across all financial metrics in the quarter, delivered mid-single-digit organic growth, margin expansion, double-digit earnings growth, and robust free cash flow, all reflecting...”
“China grew double digits with strength in industrial adhesives, safety, and auto films as we executed on our key account and local NPI strategies, leading to share gains.”
“Commercial excellence initiatives continue to drive results through improved sales force effectiveness and stronger account execution, supported by AI-enabled tools that enhance planning, prioritize opportunities, and accelerate productivity.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 6.50B | 6.03B | +7.8% | 6.34B | +2.5% |
| Gross profit | 2.68B | 2.46B | +9.2% | 2.70B | −0.6% |
| Operating income | 984.0M | 1.40B | −29.6% | 1.14B | −13.7% |
| Net income | 933.0M | 653.0M | +42.9% | 723.0M | +29.0% |
| EPS | 1.78 | 1.23 | +44.7% | 1.34 | +32.8% |
| P/E today 29.0 | 28.8 | 28.0 | +0.8 | 21.1 | +7.7 |
Topics
Most discussed now
- When you look at just the quarter, 3M is a little bit better than it had expected.
- New As 3M looks to the back end of the year, it does see the innovation engine contributing even more in...
- A lot of the things 3M has laid out in the past around sales force...
- Cash flow was robust at $1.3 billion, or 107% conversion, as 3M benefited from strong earnings and working capital management,...
- Coming into the quarter, 3M had expected sales conversion from the Q1 order strength to accelerate revenue growth to over...
Faded since Q1 2026
- Fading Operating income from the 3 business groups was up $85 million with 60 basis points of margin expansion driven by...
- Fading Driven by strong volume and broad-based
- Fading Orders grew slightly more than 10%, with SIBG and TEBG growing mid-teens, driven by industrial, safety, data center, semiconductor...
- Fading Notably, 3M saw significant strength in orders this quarter driven by progress on commercial excellence and NPI.
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Material agreement; Agreement terminated; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K