3M Co. has recently released its latest 10-Q report. The company describes itself as a diversified global manufacturer and technology marketer operating in the Americas, Asia Pacific, Europe, the Middle East and Africa, and other international markets. Its business is organized into three segments: Safety and Industrial, Transportation and Electronics, and Consumer.
In Item 2, Management’s Discussion and Analysis, 3M says the second quarter and first six months of 2026 were marked by higher sales, but also by margin pressure from special items, tariffs, and PFAS-related costs. Net sales in the second quarter rose 2.4% to $6.5 billion, with organic sales up 2.3%; for the first half, sales increased 1.9% to $12.53 billion, while organic sales were up 0.5%.
Operating income margin was 15.1% on a GAAP basis in the second quarter and 19.0% for the first half, compared with 18.0% and 19.4% a year earlier. On an adjusted basis, margins were 24.9% in the quarter and 24.3% year to date. GAAP earnings per diluted share were $1.78 in the quarter and $3.01 for the first six months, versus adjusted EPS of $2.40 and $4.54.
By geography, second-quarter sales were $3.516 billion in the Americas, $1.870 billion in Asia Pacific, and $1.114 billion in EMEA. For the first half, those figures were $6.669 billion, $3.653 billion, and $2.208 billion, respectively.
Cost of sales rose to 58.7% of sales in the quarter from 57.5% a year earlier, and to 59.0% from 57.9% in the first half. SG&A fell to 16.4% of sales in the quarter from 19.9%, and to 14.4% from 18.0% year to date. The company also recorded a $310 million second-quarter tailwind from the change in value of its Solventum ownership, after a $389 million headwind in the first six months.
In Safety and Industrial, sales climbed to $3.091 billion in the quarter from $2.857 billion a year earlier, with organic sales up 8.2%. Segment operating income rose to $859 million from $738 million, and the margin improved to 27.8% from 25.8%.
Transportation and Electronics posted quarterly sales of $2.066 billion, up from $1.944 billion, with organic sales growth of 5.9%. Segment operating income increased to $503 million from $479 million, while the margin slipped slightly to 24.4% from 24.6%.
Consumer sales fell to $1.247 billion from $1.270 billion in the quarter, with organic sales down 2.1%. Segment operating income declined to $252 million from $268 million, and the margin narrowed to 20.1% from 21.1%. Following these announcements, the company's shares moved 7.63%, and are now trading at a price of $171.245. Check out the company's full 10-Q submission here.
