3M Company (MMM) shares got a lift Wednesday after the industrial conglomerate turned in fourth-quarter results that cleared Wall Street's bar, prompting Bank of America to nudge its earnings forecasts higher.
The Post-it note maker reported fourth-quarter adjusted sales of $6.023 billion on Tuesday, edging past the consensus estimate of $6.012 billion. More impressively, adjusted earnings per share jumped 9% year-over-year to $1.83, beating the Street's $1.80 expectation.
For 2026, 3M is guiding to adjusted EPS between $8.50 and $8.70, landing roughly in line with the consensus of $8.61. Revenue guidance came in at approximately $25.250 billion, ahead of the street view of $25.040 billion.
The Analyst Take
Bank of America Securities analyst Andrew Obin maintained his Buy rating and $200 price target on 3M while raising EPS estimates following the results. The story beneath the headline numbers shows a company with pockets of real strength, even if not everything is firing on all cylinders.
Organic revenue growth outside the Consumer segment exceeded expectations, though Consumer itself stumbled due to a weaker-than-expected holiday shopping season. The real star was Safety & Industrial, which drove the earnings outperformance thanks to a stabilizing industrial channel and internal efficiency initiatives. Transportation and Electronics posted solid organic growth but lagged slightly on the operational side.
Here's what makes this interesting: Obin sees 3M's guidance projecting top-line growth above consensus for fiscal 2026, even with a conservative macro outlook baked in. The guidance range already assumes margin expansion, which matters because some market observers have grown skeptical about whether the company can keep improving margins at the same pace.
The analyst isn't buying that skepticism. He sees improving growth prospects, particularly in Safety & Industrial, while strategic moves in Transportation & Electronics could expand the company's total addressable market. Meanwhile, cost-cutting and operational efficiency efforts continue to chug along, creating potential margin upside if macroeconomic conditions improve.
Obin raised his 2026 EPS estimate to $8.70 from $8.60, bumped 2027 to $9.18 from $9.06, and penciled in $9.79 for 2028.
Price Action: 3M shares were trading up 0.76% at $157.30 at the time of publication Wednesday.
