3M (MMM) Q2 2026 earnings summary

Executive summary

• Q2 2026 GAAP sales reached $6.5 billion, up 2.4% year-over-year, with adjusted organic growth of 5.4% and operating margin at 24.9%, up 40 bps.

• Adjusted EPS rose 11% to $2.40, GAAP EPS was $1.78 (up 33%), and free cash flow reached $1.3 billion with 107% conversion.

• $1.4 billion was returned to shareholders in Q2 via dividends and buybacks; $3.8 billion in H1.

• 92 new products launched in Q2 (up 44% YoY), with a target of 350+ for FY 2026.

• Closed acquisition of Madison Fire & Rescue (3M Sentorum) in July 2026, not yet reflected in guidance.

Financial highlights

• Q2 2026 sales: $6.5B (+5.4% organic growth); H1 2026 sales: $12.5B (+3.3% organic growth).

• Q2 adjusted operating margin: 24.9% (up 40 bps YoY); GAAP margin: 15.1%.

• Q2 adjusted EPS: $2.40 (+11%); GAAP EPS: $1.78 (+33%).

• Q2 free cash flow: $1.3B (107% conversion); H1: $1.9B (79% conversion).

• Net working capital improved, inventory days reduced, and cash flow from operations was $1.6B for H1.

Outlook and guidance

• Full-year 2026 organic growth guidance raised to above 3.5%, with adjusted EPS guidance increased to $8.80–$8.95.

• Free cash flow guidance raised to $4.7B–$4.9B, with >100% conversion.

• Adjusted total sales growth expected to exceed 4.5%, with margin expansion of 70–80 bps.

• Guidance assumes continued strength in industrial, safety, and data center, with softness in consumer segments.

• Guidance does not yet include the Madison Fire & Rescue acquisition, which will be incorporated in Q3.