From The Motley Fool · Motley Fool Transcribing · · 1m 50s
3M Q3 2026 Earnings Boost
3M reports 12% EPS growth with data center expansion.
In brief
3M reports 12% EPS growth with data center expansion. 3M achieved $2.50 adjusted EPS, 3.3% organic sales growth, and 26.2% operating margin in Q3 2026. Originally reported by The Motley Fool.
Q3 2026 Results
3M reported adjusted earnings per share of $2.50, a 12% year-over-year increase.
Organic Sales Growth
3.3% organic sales growth led by 7% increase in Safety & Industrial segment.
Operating Margin
26.2% operating margin expanded 110 basis points year over year.
Shareholder Returns
$600 million returned to shareholders including $400 million in dividends and $200 million in share repurchases.
New Product Launches
87 products launched in Q3, a 24% increase from previous year.
Amazon Warrant Agreement
Warrant for up to 3.2 million shares tied to $6 billion in data center sales over 7 years.
EBO Revenue
EBO revenue approximately $40 million in 2026, projected to double in 2027.
Oil Inflation Impact
$185 million oil inflation impact, up from $150 million to $175 million estimate.
Gross Margin Expansion
230 basis points year-over-year gross margin expansion driven by procurement savings.
Manufacturing Footprint
16 manufacturing sites closed year to date with plans for 10 additional closures.
China Sales Performance
China sales down high single digits due to weak consumer electronics demand.
U.S. and Canada Sales
U.S. and Canada sales up 7% year over year, highest growth since pandemic.
Electrical Markets Growth
Electrical markets grew double digits driven by data center market penetration.
Five-Year New Product Sales
Five-year new product sales up 34% to nearly $3 billion, resulting in mid-teens vitality.
Reporting Basis Change
Exclusion of intangible asset amortization added 40 basis points to operating margin.
Price Execution
1.5% price execution for the year with target above 2% in second half.
What matters most
3M achieved $2.50 adjusted EPS, 3.3% organic sales growth, and 26.2% operating margin in Q3 2026.
