How the 3M Stock Turnaround Is Happening Faster Than Expected

Anushka Dutta

Sun, September 20, 2026 at 4:15 PM GMT+3 4 min read

MMM -0.55%

3M Co_ manufacturing plant-by jetcityimage via iStock

Industrial conglomerate 3M (MMM) is undergoing a swift turnaround on Wall Street, driven by stronger execution and margin expansion. The company has been under fire for years due to heavy litigation pressure. It has paid more than $10 billion in settlements to resolve claims of polluting water bodies with PFAs, or "forever chemicals." 3M has also begun settling a $6 billion payment to veterans over earplugs that caused hearing loss.

However, the company seems to be moving past that phase, as investors focus on potential growth and margin expansion. 3M CEO William Brown said the company's on-time, in-full (OTIF) deliveries have improved from the low 80% range to about 90%, with some consumer-business units consistently achieving rates in the mid-90% range.

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This has also been complemented by a flurry of product launches. Brown said 3M has planned more than 350 launches this year. New products are expected to account for 20% of sales by the end of 2027. Citing expanded beam optical technology as a promising data center opportunity, Brown said 3M expects to generate roughly $400 million in growth above its underlying markets this year. This faster-than-expected turnaround has been highly effective.

About 3M Stock

3M is a diversified manufacturing and technology company headquartered in St. Paul, Minnesota. It makes products for industries such as healthcare, transportation, electronics, construction, and consumer goods. Its products include safety equipment, medical supplies, adhesives, filters, automotive materials, packaging products, and cleaning items. The company has a market capitalization of $83.88 billion.

3M sells its products worldwide through direct sales, distributors, retailers, and online channels. The company uses its expertise in science, engineering, and manufacturing to develop practical solutions for businesses and consumers. Its operations cover research, product development, manufacturing, and global distribution across several major industries.

Over the past 52 weeks, 3M's stock has gained 3.9%, while it has gained 1.6% year-to-date. This suggests investors view the stock as a turnaround and income name, not a fast-growing company. 3M's stock reached a 52-week high of $184.90 on July 28, but is down 12% from that level. Currently, 3M is trading cheaper than its peers. Its forward-adjusted price-to-earnings (non-GAAP) ratio of 18.18x is lower than the industry average of 19.17x.

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3M Raised 2026 Outlook After Q2 Earnings

In the second quarter, 3M reported 5.5% year-over-year (YOY) growth (5.4% organic growth) in adjusted net sales to $6.50 billion, with growth across its safety & industrial and transportation & electronics segments' adjusted net sales (8.2% and 6.2%, respectively). 3M's adjusted operating income increased by 7.2% YOY to $1.62 billion. Adjusted EPS was $2.40 for the quarter, up 11.1% from the prior-year period.

Based on these results, 3M raised its 2026 financial targets. It raised its organic sales growth target from approximately 3% to more than 3.5%, and its EPS target from $8.50 to $8.70 (reflecting 5% to 8% growth) to $8.80 to $8.95 (reflecting 9% to 11% growth). For fiscal 2026, Wall Street analysts expect its EPS to grow by 11.2% YOY to $8.96, followed by a 9.2% improvement to $9.78 in fiscal 2027.

What Do Analysts Think About 3M Stock?

Wall Street analysts recently showed a mixed outlook on 3M's stock. Mizuho analysts maintained a "Neutral" rating on the stock and raised the price target from $160 to $180. Mizuho cited 3M's solid results, which exceeded buy-side expectations.

Bernstein SocGen Group raised the price target on 3M Company from $140 to $145, but maintained an "Underperform" rating on the stock. Bernstein analysts noted that 3M's product innovations lean toward Class III incremental innovations rather than Class IV and Class V products. The firm is cautious about confirming any structural improvement after just one strong quarter and still sees PFAs as a material risk.

By contrast, UBS analyst Amit Mehrotra raised the price target on 3M from $190 to $218 while maintaining a positive "Buy" rating, suggesting optimism about improved operational performance and market conditions.

3M is gaining praise on Wall Street, with analysts awarding it a consensus "Moderate Buy" rating overall. Of the 16 analysts rating the stock, eight have given it a "Strong Buy" rating, while six took a middle-of-the-road approach with a "Hold" rating, and two rated it "Strong Sell." The consensus price target of $187.81 represents a 15.5% upside from current levels. The Street-high price target of $218 implies a 34% upside.