3M Posts Earnings Beat and Raised Guidance, But Shares Drop 4%

3M (NYSE:MMM) shares fell over 4% intra-day today despite the industrial giant reporting second-quarter results that exceeded expectations and raising its full-year outlook.

The company posted adjusted earnings per share of $2.16, beating analyst estimates of $2.01. Revenue reached $6.3 billion, topping the $6.1 billion consensus and rising 1.4% year-over-year. Organic sales grew 1.5% on an adjusted basis, marking the third consecutive quarter of growth across all core business units.

3M’s adjusted operating margin improved significantly to 24.5%, an increase of 290 basis points from the same period last year. The margin expansion contributed to a 12% rise in adjusted earnings per share compared to the second quarter of 2024.

Building on the strong performance, 3M raised its full-year 2025 guidance. The company now expects adjusted EPS between $7.75 and $8.00, up from the prior forecast of $7.60 to $7.90. The new range exceeds the Street consensus of $7.67 and factors in the anticipated impact of tariffs. Additionally, 3M projects total adjusted sales growth of around 2.5% for the year.