AI Takeaway
MMM delivered 2.5% revenue growth to $6.5B and 29.0% growth in net income to $933M in Q2 FY2026, but GAAP operating margin fell to 15.1% amid higher cost of sales and divestiture-related losses. Source: 10-Q Item 2 MD&A, pp.43-48.
Revenue
$6.5B
++2.46% YoY
EPS (Basic)
$1.79
++32.59% YoY
Operating Income
$984M
-13.68% YoY
Filed · Source: SEC EDGAR 10-Q filing
3M (MMM) reported Q2 FY2026 revenue of $6.5B, up 2.5% year over year. The company posted net income of $933M, up 29.0% from a year earlier, with diluted EPS of $1.78.
Q2 FY2026 net sales were $6.5B, up 2.4% year over year, including 2.3% organic growth. Management attributed growth to industrial, safety, semiconductor, and data-center markets, partly offset by weakness in consumer and consumer-electronics markets and the year-over-year effect of the manufactured-PFAS-products special item.
Source: 10-Q Item 2 MD&A, p.43
GAAP operating income margin was 15.1%, down 2.9 percentage points year over year, primarily reflecting higher losses on business divestitures and transformation costs. Adjusted operating margin was 24.9%, up 0.4 percentage points, with growth, productivity, and favorable foreign exchange partly offsetting tariffs, PFAS-exit cost dis-synergies, and growth investments.
Source: 10-Q Item 2 MD&A, pp.43, 47-48
Safety and Industrial sales rose 8.2% to $3.091B, with 8.2% organic growth, while segment operating income increased 16.4% to $859M and margin rose to 27.8% from 25.8%. Management cited electrical markets, abrasives, industrial adhesives and tapes, personal safety, and roofing granules as growth areas.
Source: 10-Q Item 2 MD&A, p.45
Consumer sales declined 1.8% to $1.247B, with organic sales down 2.1%, as lower U.S. retailer inventory levels more than offset positive point-of-sale trends and share gains. Segment operating income fell 6.4% to $252M and segment margin declined to 20.1% from 21.1%.
Source: 10-Q Item 2 MD&A, p.46
Year-to-date operating cash flow was $1.6B, improving by $2.6B year over year, primarily because of lower PFAS environmental and Combat Arms Earplugs settlement payments, including insurance recoveries. Cash, cash equivalents, and marketable securities declined to $3.3B from $5.9B at December 31, 2025, primarily due to $3.0B of treasury-stock purchases, $1.0B of CAE and PFAS-related payments, and $0.8B of dividends.
Source: 10-Q Item 2 MD&A, pp.49-50
Long-term debt was $10.904B while stockholders' equity was $2.952B, producing debt-to-equity of 10.8x. This capital structure can make the company more sensitive to borrowing costs, refinancing needs, or declines in earnings and equity; this is an inference from the reported balance-sheet data rather than a stated Item 1A risk.
Source: 10-Q Balance Sheet (XBRL)
Current liabilities increased 45.7% year over year to $11.379B, while current assets were $14.112B, resulting in a current ratio of 1.24x. The company has positive working-capital coverage, but the limited cushion means further increases in near-term obligations could pressure liquidity; this is an inference from reported financial data.
Source: 10-Q Balance Sheet (XBRL)
Year-to-date operating cash flow improved to $1.560B from an outflow of $1.033B in the prior-year period. The size of the swing indicates that operating cash generation can be materially affected by timing of cash payments and recoveries; this is an inference from reported cash-flow data.
Source: 10-Q Cash Flow Statement (XBRL)
Revenue increased 2.5% to $6.500B, but cost of revenue increased faster, by 4.7% to $3.817B, and operating income declined 13.7% to $984M. The divergence indicates that cost growth can pressure operating profitability if revenue growth does not accelerate; this is an inference from reported income-statement data.
Source: 10-Q Income Statement (XBRL)
Reported EPS of $2.40 versus the $2.27 analyst consensus — a +5.8% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.5B | $6.34B | +2.46% |
Cost of Revenue | $3.82B | $3.65B | +4.69% |
Operating Income | $984M | $1.14B | -13.68% |
Net Income | $933M | $723M | +29.05% |
EPS (Basic) | $1.79 | $1.35 | +32.59% |
EPS (Diluted) | $1.78 | $1.34 | +32.84% |
SG&A Expense | $1.06B | $1.27B | -16.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $34.92B | $37.99B | -8.07% |
Current Assets | $14.11B | $13.43B | +5.10% |
Total Liabilities | $31.92B | $33.64B | -5.11% |
Current Liabilities | $11.38B | $7.81B | +45.74% |
Stockholders' Equity | $2.95B | $4.29B | -31.19% |
Long-Term Debt | $10.9B | $12.48B | -12.61% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $1.56B | $-1.03B | +251.02% |
Investing Cash FlowYTD | $-423M | $1.29B | -132.79% |
Financing Cash FlowYTD | $-3.46B | $-2.19B | -57.83% |
Share BuybacksYTD | $2.99B | $2.23B | +34.40% |
D&AYTD | $661M | $580M | +13.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 15.1% | 18.0% | -2.83% |
Net Margin | 14.4% | — | — |
ROE | 31.6% | — | — |
ROA | 2.7% | — | — |
Current Ratio | $1.24 | — | — |
Debt to Equity | $10.813 | — | — |
Expected release date, analyst estimates & what to watch
3M delivered modest 1.3% revenue growth to $6.03B in Q1 2026, with operating income surging 12.1% to $1.40B, but net income fell 41.5% to $653M, likely due to elevated below-the-line charges, while the company returned $2.0B to shareholders via buybacks.
MMM (3M) delivered modest 1.5% revenue growth to $24.9B in FY2025, but net income fell 22.1% to $3.25B as higher costs and elevated liabilities weighed on profitability, while operating cash flow surged 26.8% and the company aggressively returned capital via $3.25B in share buybacks.
Other companies in Industrial Conglomerates
3M reported Q2 FY2026 revenue of $6.500B, up 2.5% year over year. Organic sales grew 2.3%, led by industrial, safety, semiconductor, and data-center demand, while Consumer sales fell 1.8%. Source: 10-Q Item 2 MD&A, pp.43, 45-46.
GAAP operating margin declined to 15.1% from 18.0% in the prior-year quarter. Management cited higher losses on business divestitures and transformation costs, while higher cost of sales also reflected tariff impacts, rising oil prices, and PFAS-exit cost dis-synergies. Source: 10-Q Item 2 MD&A, pp.43-44, 48.
Net income rose 29.0% to $933M and diluted EPS rose 32.8% to $1.78, despite a 13.7% decline in operating income to $984M. Adjusted diluted EPS increased 11% to $2.40, showing that special items had a meaningful effect on reported GAAP results. Source: 10-Q Income Statement (XBRL); 10-Q Item 2 MD&A, p.48.
The provided filing does not include analyst consensus estimates, so whether 3M beat or missed estimates cannot be determined from this report. The company reported GAAP diluted EPS of $1.78 and adjusted diluted EPS of $2.40 for Q2 FY2026. Source: 10-Q Item 2 MD&A, p.48.
MMM generated $1.560B of year-to-date operating cash flow and had a 1.24x current ratio, but it also reported $10.904B of long-term debt, $2.952B of equity, and 10.8x debt-to-equity. Cash, cash equivalents, and marketable securities totaled $3.3B at June 30, 2026, down from $5.9B at December 31, 2025. Source: 10-Q Balance Sheet and Cash Flow Statement (XBRL); 10-Q Item 2 MD&A, pp.49-50.