Q2 Beats By $0.15. Innovation And Productivity Amplify Better Markets

Research evidence excerpt

Q2 Beats By $0.15. Innovation And Productivity Amplify Better Markets

USA | Diversified Industrials

3M EquityJulyResearch21, 2026

TARGET | ESTIMATE CHANGEQ2 Beats By $0.15. Innovation And Productivity

RATING HOLDAmplify Better Markets

PRICE $170.76^

Q2 EPS was $0.25 above our estimate and $0.15 above consensus. Given the

H1 results, the 2026 EPS outlook is increased 3% at the midpoint to $8.80- PRICE TARGET | % TO PT $191.00 ($175.00) | +12%

$8.95. The demand environment remains mixed, but new products will help 52W HIGH-LOW $177.41 - $139.34

sales outpace macro trends. Productivity and asset optimization initiatives are FLOAT (%) | ADV MM (USD) 99.8% | 617.85

ongoing, and will likely support a 190bps YoY EBIT margin expansion in 2H26 MARKET CAP $89.2B

and a 50bps expansion in 2027. Price hikes will likely offset the uptick in input TICKER MMM ^Prior trading day's closing price unless otherwise

costs. noted. Price: current price

Q2 Review: Q2 EPS was $0.25 above our estimate: +$0.13 in Safety & Industrial; +$0.08 in

Transportation & Electronics; -$0.04 in Consumer; -$0.01 in corporate expense; +$0.04 in Interest FY (Dec) CHANGE TO JEFe JEF vs CONS

Expense/Other Income; +$0.02 in taxes; in-line minority interest; and +$0.03 in share count. 2026 2027 2026 2027

REV +2% +2% +2% +2%

Outpacing the Macro: The macro environment remains choppy with industrial markets such as EPS +2% +2% +2% +2%

adhesives, abrasives, electrical products, aerospace, semiconductors, data centers, and safety

trending higher, but consumer electronics, automotive OEM, auto aftermarket, and consumer still 2026 ($) Q1A Q2A Q3 Q4 FY

weak. Regardless, sales will likely grow ~4% organically in 2026 and 2027 with cross-selling,

EPS 2.14 2.40 2.39 1.97 8.90