3M (3M (MMM)) shares jumped in Tuesday's premarket session after the company behind Post-it notes and Scotch tape delivered a second-quarter earnings beat and raised its full-year outlook. The numbers suggest that the turnaround plan CEO William Brown has been pushing is starting to pay off.

The company reported adjusted earnings of $2.40 per share, comfortably above the $2.25 analysts were expecting. Revenue came in at $6.50 billion, up 2.4% from a year ago and ahead of the $6.41 billion consensus. Brown said the company exceeded its own expectations, delivering mid-single-digit sales growth, operating margins around 25%, and double-digit earnings growth. He attributed the performance to progress on strategic priorities and efforts to build a higher-performing business.

“The strong first-half results and continued business momentum prompted us to raise our full-year guidance,” Brown said, adding that management remains confident in its ability to deliver long-term shareholder value.

The improved outlook is partly the result of cost-cutting measures, price increases, and sustained strength in the Safety & Industrial business, according to reports. New product launches and customer service initiatives under Brown have also helped margins, offsetting weak demand in a prolonged inflationary environment.

Sales Growth and Margins Are Moving in the Right Direction

Adjusted sales rose 5.5% from a year earlier, with organic sales up 5.4%. The company launched 92 new products during the quarter, a 44% increase from the prior year. Adjusted operating margin expanded 40 basis points to 24.9%.

Cash flow is also looking healthy. 3M generated $1.3 billion in adjusted free cash flow and returned about $1.4 billion to shareholders during the quarter.

Safety & Industrial Leads the Way

The Safety & Industrial segment posted revenue of $3.09 billion, up 8.2% year over year, with its adjusted operating margin improving to 27.8% from 25.8%. Transportation & Electronics revenue rose 6.2% to $2.07 billion, though its margin edged down slightly to 24.4% from 24.6%. The Consumer segment was the weak spot, with revenue falling 1.8% to $1.25 billion and margins declining to 20.1% from 21.1%.

Guidance Gets a Boost

3M raised its 2026 adjusted earnings forecast to a range of $8.80 to $8.95 per share, up from its prior outlook of $8.50 to $8.70. The new range sits above the Wall Street consensus of $8.75. The company also updated its full-year revenue outlook to $23.19 billion to $25.37 billion, compared with analysts' estimate of $25.15 billion.

Management expects organic sales growth of more than 3.5% and adjusted operating margin expansion of 70 to 80 basis points. The company projects adjusted operating cash flow of $5.8 billion to $6.0 billion, implying adjusted free cash flow conversion of more than 100%.

3M also reiterated its product pipeline ambitions, saying it remains on track to launch more than 350 new products in 2026 and more than 1,000 by 2027.

Shares of 3M were up 6.22% at $169.00 in premarket trading on Tuesday.