3M Co. recently released its latest 10-Q report. The company describes itself as a diversified technology and manufacturing business with operations in the Americas, Asia Pacific, Europe, the Middle East and Africa, and other international markets. It reports through three segments: Safety and Industrial, Transportation and Electronics, and Consumer, and sells through wholesalers, retailers, distributors, dealers, e-commerce, and direct channels.
In Item 2, Management’s Discussion and Analysis, 3M said third-quarter 2026 net sales were $6.584 billion, up 1.0% from a year earlier, while adjusted sales rose 4.2%; for the first nine months, net sales were $19.114 billion, up 1.6%, with adjusted sales up 4.5%. Organic sales were up 0.2% in the quarter and 0.4% year to date, with the company pointing to strength in industrial, safety, semiconductor and data center businesses, plus the July 2026 acquisition of Madison Fire and Safety, partly offset by weakness in consumer electronics and auto and the impact of manufactured PFAS products special items. Operating income margin was 23.7% under GAAP in the quarter and 20.6% for the first nine months, compared with 22.2% and 20.4% a year earlier; adjusted operating margin was 26.2% in the quarter and 25.2% year to date.
Earnings per diluted share were $2.63 in the quarter, up 70% from a year earlier on a GAAP basis, and $5.63 for the first nine months, up 14%. Adjusted EPS was $2.50 in the quarter, up 12%, and $7.11 year to date, also up 12%. The company said the quarter’s GAAP EPS benefited from special items, including a favorable change in the value of its investment in Solventum, while the nine-month comparison was affected by a headwind from that same investment.
By geography, third-quarter sales were $3.787 billion in the Americas, $1.715 billion in Asia Pacific, and $1.082 billion in EMEA. The Americas posted 5.7% total sales growth in the quarter, while Asia Pacific fell 6.5% and EMEA declined 1.7%. For the first nine months, sales were $10.456 billion in the Americas, $5.368 billion in Asia Pacific, and $3.290 billion in EMEA, with total sales growth of 1.8%, 0.6%, and 2.6%, respectively.
Cost of sales was 57.7% of net sales in the third quarter, down from 58.2% a year earlier, while SG&A rose to 14.0% from 12.5%. For the first nine months, cost of sales increased to 58.6% from 58.0%, and SG&A fell to 14.2% from 16.1%. 3M said the quarterly cost-of-sales improvement reflected procurement savings, manufacturing and logistics productivity, and pricing actions, partly offset by PFAS exit-related costs and material inflation. The company also reported $46 million of stock compensation expense in the quarter and $36 million of defined benefit pension and postretirement expense.
In Safety and Industrial, sales reached $3.182 billion in the quarter, up 9.1%, with organic growth of 7.0%; operating income was $960 million, up 21.2%, and the margin rose to 30.1% from 27.1%. For the first nine months, sales were $9.203 billion, up 8.0%, and operating income was $2.642 billion, up 15.9%, with margin at 28.7%. 3M said growth came from electrical markets, fire safety, industrial adhesives and tapes, personal safety, automotive aftermarket, abrasives and industrial specialties.
Transportation and Electronics posted quarterly sales of $1.999 billion, up 0.4%, with operating income of $468 million, down 3.4%, and margin at 23.4% versus 24.3% a year earlier. For the first nine months, sales were $5.913 billion, up 2.8%, and operating income was $1.371 billion, up 1.2%. The company said semiconductor, aerospace, data center, advanced materials, and commercial branding were the main growth areas, while auto and consumer electronics remained weak.
Consumer sales were $1.307 billion in the quarter, down 0.4%, and $3.685 billion for the first nine months, down 0.6%. Segment operating income was $300 million in the quarter, up 2.9%, and $770 million year to date, down 1.3%. 3M said the segment was pressured by softer consumer demand, with sales essentially flat to slightly lower across the period. The market has reacted to these announcements by moving the company's shares -1.66% to a price of $162.01. For the full picture, make sure to review 3M CO's 10-Q report.
