On its third-quarter 2026 earnings call on Oct. 20, 2026, 3M reported expanding profit margins and raised full-year earnings guidance as orders accelerated. The company issued Amazon warrants for up to 3.2 million shares, tied to $6 billion in cumulative sales of optical connectivity and data center products over seven years. Five-year new product sales are up 34% year to date to nearly $3 billion, and new product vitality has risen to the mid-teens from 11% in 2024. 3M increased prices to fully offset rising raw material and oil costs, and it remains confident in organic growth above 3.5% this year.
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- 3M Q3 Earnings Call Highlights
3M reported third-quarter 2026 organic sales growth of 3.3%, an adjusted operating margin of 26.2%, adjusted EPS of $2.50 (up 12% year over year) and free cash flow of $1.2 billion. Orders grew at a high-single-digit rate and backlog rose by a high-teens percentage, led by industrials, safety and data centers. The company raised its full-year adjusted EPS forecast to $9.10–$9.15, and expects about $4.8 billion in free cash flow and organic growth of more than 3.5%. It also issued Amazon a warrant for up to 3.2 million shares tied to data-center sales milestones of $6 billion over seven years, and expects data-center revenue of about $700 million in 2026. China sales fell by a high-single-digit percentage, mainly on weak consumer electronics demand, while U.S. and Canada sales grew about 7%.
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3M shares rose about 5.1% by 11:15 a.m. ET after the company expanded its commercial relationship with Amazon to deploy and scale its optical connectivity and other data center products, and raised 2026 guidance for the third straight quarter. Under the deal, 3M issued Amazon a warrant to buy up to 3.2 million 3M shares, tied to reaching $6 billion in cumulative sales of those products over seven years and other milestones. Adjusted EPS rose 12% year over year, and full-year 2026 adjusted EPS guidance was lifted to $9.10 to $9.15, up from a Q2 midpoint of $8.88 and a Q1 midpoint of $8.60, with the Madison Fire & Rescue acquisition also contributing. The article links the move to 3M's broader push into AI infrastructure, including a 4.7% ownership stake in Genius Electronic Optical, a manufacturing partner for its fiber connector technology.
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3M shares rose 6% to $171.91 after the company reported third-quarter results above expectations and expanded its relationship with Amazon on optical connectivity and other data center products. Adjusted earnings per share were $2.50, above the $2.39 consensus cited in one analysis, while revenue of about $6.6 billion was broadly in line; adjusted organic sales grew 3.3%, while GAAP sales rose 1% year over year. 3M raised its full-year adjusted EPS guidance to $9.10–$9.15, but the update incorporates a new reporting basis, so comparisons with earlier figures require care. Under the agreement, 3M issued an Amazon subsidiary a seven-year warrant for up to about 3.16 million shares at $164.89; about 85% vests with Amazon's purchases, fully once cumulative payments reach $6 billion, while the remaining 15% depends on separate milestones.
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3M shares rose about 4.4% to around $169 in pre-market trading after the company gave Amazon a warrant for up to 3,162,015 shares at $164.89 each over seven years, tied to Amazon's data center purchases. Shares vest as Amazon pays for optical connectivity and other data center products, fully at $6 billion in cumulative payments, though nothing in the filing commits Amazon to buy. Spread evenly over seven years, that is about $857 million a year, roughly 3.4% of 3M's trailing revenue of $25.18 billion and 1.4 times the about $600 million 3M expects from data center work in 2026. Under US accounting rules the warrant reduces revenue, and 3M has not disclosed its fair value. Adjusted EPS of $2.50 beat the $2.39 consensus, but the article says the beat is smaller once the exclusion of intangible amortization is considered, and guidance rose to $9.10 to $9.15.
- 3M Shares Rise 4.5% Premarket Following Expanded Amazon Agreement and Taiwan Investment Plan
3M (NYSE: MMM) shares rose 4.5% in premarket trading on Tuesday after the company announced an expanded commercial relationship with an Amazon subsidiary and plans to acquire about 4.7% of Taiwan-based Genius Electronic Optical Co. (GSEO) through a private placement; financial terms of that investment were not disclosed. Under the expanded agreement announced late Monday, 3M issued Amazon a seven-year warrant to buy up to 3.16 million common shares at $164.89 per share, a potential value of more than $521 million if fully exercised. About 85% of the warrant shares vest based on Amazon's cumulative qualifying purchases of optical interconnect and other data centre products from 3M, with full vesting once those payments reach $6 billion. The GSEO investment relates to 3M's Expanded Beam Optical solutions used in data centre connectivity.
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