Outpacing The Mixed Environment

Research evidence excerpt

Outpacing The Mixed Environment

USA | Diversified Industrials

3M EquityJuneResearch29, 2026

TARGET | ESTIMATE CHANGEOutpacing The Mixed Environment

The macro environment remains choppy, and while there are some signs RATING HOLD

of macro improvement, with credit likely tightening, a broad-based demand PRICE $164.01^

rebound is likely delayed until 2H27-2028 at the earliest. In the meantime, PRICE TARGET | % TO PT $175.00 ($170.00) | +7%

improved customer service and innovation are likely to support 3% organic 52W HIGH-LOW $177.41 - $139.34

sales growth in 2026 and a 4% advance in 2027. Mix improvements and FLOAT (%) | ADV MM (USD) 97.8% | 662.89

productivity gains should bolster margin, more than offsetting inflation. MARKET CAP $87.4B

TICKER MMM

Macro Mixed: While there are some signs of macro improvement (IP Manufacturing and PMI ^Prior trading day's closing price unless otherwise noted.

are both above 50), given the geopolitical gyrations and potential for tighter credit conditions in Price: current price

2H26, a demand-driven broad-based rebound seems unlikely until the middle of next year at the

earliest. Secular tailwinds will likely continue to be offset by pockets of cyclical weakness. Strength

in semiconductors, data centers, and A&D demand likely will likely continue to be partially offset FY (Dec) CHANGE TO JEFe JEF vs CONS

by pockets of weakness in consumer electronics, automotive OEM, and elements of the consumer 2026 2027 2026 2027

end market. REV NM NM NM NM

EPS <1% +1% NM +1%

Self Help Likely The Key To Near-Term Growth: Despite the uneven environment, organic growth

likely increases >3% in 2026 and accelerates to 4% growth in 2027 with 75% of that growth 2026 ($) Q1A Q2 Q3 Q4 FY

from increased volumes.