3M 8-K
PositiveEarningsGuidance raisedLegal / investigation
Raises FY2026 adjusted EPS guidance to $9.10–$9.15 as margins expand; $1B in litigation and PFAS-exit payments weighs on cash flow.
Filed 2026-10-20 06:35 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with higher FY2026 adjusted EPS guidance. 3M reported 1.0% sales growth and expanded operating margin; adjusted organic sales grew 3.3%, while GAAP operating cash flow was lower amid significant litigation and PFAS-related cash payments.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $6.58B, +1.0% Y/Y | $19.1B, +1.6% Y/Y |
| Adjusted sales | $6.6B, +4.2% Y/Y | $19.1B, +4.5% Y/Y |
| Operating income | $1.56B, +7.7% Y/Y | $3.94B, +2.8% Y/Y |
| Adjusted operating income (non-GAAP) | $1.73B, +8.9% Y/Y | $4.82B, +7.0% Y/Y |
| Operating margin | 23.7%, vs 22.2% | 20.6%, vs 20.4% |
| Adjusted operating margin (non-GAAP) | 26.2%, vs 25.1% | 25.2%, vs 24.7% |
| Net income attributable to 3M common shareholders | $1.37B, +64.6% Y/Y | $2.96B, +10.7% Y/Y |
| Diluted EPS | $2.63, +70% Y/Y | $5.63, +14% Y/Y |
| Adjusted EPS (non-GAAP) | $2.50, +12% Y/Y | $7.11, +12% Y/Y |
| Operating cash flow | $486M, -72.3% Y/Y | $2.05B, +183% Y/Y |
- Adjusted sales exclude manufactured PFAS products; Q3 adjusted organic sales grew 3.3%, versus 0.2% reported organic growth. Acquisitions contributed 1.4 percentage points to reported sales change.
- Adjusted free cash flow was $1.20B in Q3 vs $1.31B, and $3.09B for 9M vs $3.08B. Q3 litigation and PFAS-exit cash payments were $1B pre-tax, versus $32M of net receipts in Q3 2025.
- 3M returned $0.6B to shareholders in Q3; 9M treasury-stock purchases and dividends totaled $4.44B vs $3.87B. Shares outstanding fell to 516.7M from 530.3M at year-end 2025. Cash was $4.84B and total debt was $15.0B at 9/30/2026.
- 3M updated its non-GAAP basis to treat acquired intangible amortization as a special item; it said this did not materially affect year-on-year comparisons. The company issued Amazon a warrant for up to 3.2M shares, about 0.6% of shares outstanding, tied to $6B of cumulative qualifying sales over seven years and other milestones. 3M also plans to acquire about 4.7% of GSEO’s common shares.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Adjusted total sales growth (non-GAAP) | FY2026 | >4.5% | — | — |
| Adjusted organic sales growth (non-GAAP) | FY2026 | >3.5% | — | — |
| Adjusted EPS (non-GAAP) | FY2026 | $9.10-$9.15 | — | Raised |
| Adjusted operating income margin (non-GAAP) | FY2026 | ≈24.6% | — | — |
| Adjusted effective tax rate (non-GAAP) | FY2026 | ≈20% | — | — |
| Adjusted operating cash flow (non-GAAP) | FY2026 | ≈$5.9B | — | — |
| Adjusted free cash flow (non-GAAP) | FY2026 | ≈$4.8B | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Adjusted total sales growth (non-GAAP) | FY2026 | >4.5%; >3.5% | >4.5% | reaffirmed |
| Adjusted EPS (non-GAAP) | FY2026 | $8.80–$8.95 | $9.10-$9.15 | raised |
| Adjusted operating cash flow (non-GAAP) | FY2026 | $5.8B–$6.0B; $5.8B–$6.0B | ≈$5.9B | narrowed (raised low end, lowered high end) |
| Adjusted free cash flow (non-GAAP) | FY2026 | $4.7B–$4.9B | ≈$4.8B | narrowed (raised low end, lowered high end) |
Investor Takeaways
- Watch FY2026 adjusted EPS against the raised $9.10-$9.15 range, alongside adjusted sales growth and cash-flow targets.
- Track qualifying Amazon data-center sales against the $6B threshold over the next seven years and the related warrant milestones.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-20 14:34:35Z