Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Organic sales growth | 3.3% | Not stated |
| Adjusted operating margin | 26.2% | up 110 basis points |
| Adjusted EPS | $2.50 | up 12% |
| Free cash flow | $1.2 billion | Not stated |
| Safety and Industrial organic sales growth | 7% | Not stated |
Guidance and outlook
- Full-year organic growth of greater than 3.5%.
- Full-year adjusted EPS in the range of $9.10 to $9.15.
- Full-year adjusted tax rate of about 20%.
- Full-year free cash flow of approximately $4.8 billion.
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised full-year EPS guidance and highlighted strong order trends and successful productivity initiatives. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Pricing and Inflation
Asked: Scott Davis from Melius Research asked if pricing success is due to inflation awareness or new products.
Answer: Bill Brown explained that it is a combination of well-publicized inflation, improved service delivery, and more aggressive price execution.
Amazon Partnership
Asked: Scott Davis from Melius Research asked if the Amazon agreement includes capacity funding or take-or-pay contracts.
Answer: Bill Brown clarified that the agreement is a strategic commercial relationship for optical connectivity, with warrants vesting based on $6 billion in cumulative sales over 7 years.
Growth Outlook
Asked: Amit Mehrotra from UBS asked about the through-cycle growth algorithm.
Answer: Bill Brown described the company as a self-help story capable of organic growth in choppy macro environments, with Q4 growth expected to touch or exceed 4%.
Consumer Electronics
Asked: Nicole DeBlase from Deutsche Bank asked if the consumer electronics business could return to growth.
Answer: Bill Brown noted that while the market is pressured, 3M is performing well with premium device manufacturers and expects innovation to drive a return to growth.
What to watch before the next call
- Progress on EBO ecosystem adoption and scaling with hyperscalers.
- Integration of the Madison Fire & Rescue acquisition.
- Resolution of AFFF personal injury litigation.
