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.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/19/2026 | 262.45 |
| Change that session | +4.98% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- 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%.
- Why 3M Stock Jumped Today
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.
- 3M Jumps On Expanded Amazon Data Center Deal; Earnings On Tap
- 3M Stock Jumps on Amazon Warrant: What the $6 Billion Really Means
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.
- MMM Stock Jumps Overnight: Amazon Could Own A Piece Of 3M If It Spends $6B On Its Data Center Products
According to an SEC filing, 3M granted an Amazon subsidiary a warrant to acquire up to about 3.16 million shares over seven years at $164.89 per share, and 3M stock rose 5.5% overnight. Most of the shares (85%) vest when Amazon's cumulative payments for optical connectivity and other data center products reach $6 billion, while the remaining 15% tie to event-based milestones the filing does not detail. Microsoft said in July it would use 3M's Expanded Beam Optical (EBO) technology in its Azure AI data centers, reflecting growing networking needs as AI expands. On Monday, 3M also announced a partnership with Taiwan-based Genius Electronic Optical Co. (GSEO) and a planned share purchase giving it an approximately 4.7% stake, with closing expected in the fourth quarter.
Related markets
Latest news
- When Interest Rates Move, These 7 Income Stocks React Very Differently
The 10-year Treasury yield is now over 5%, near its highest level in a quarter century, up from about 4% before the war with Iran began. Mortgage REITs AGNC (yield near 17%) and Annaly (over 16%) are among the most rate-sensitive because they borrow short-term to fund long-term investments, and both shares have fallen sharply. Coca-Cola (about 2.3%) is far less sensitive, with mostly long-term fixed-rate debt and pricing power, and its shares have risen more than 30% this year. Energy Transfer (about 6.7%) and Enterprise Products Partners (about 6.1%) have mixed sensitivity, partly offset by higher oil and gas prices. Realty Income (5.9%) and VICI Properties (about 7.9%) are less rate-sensitive than mortgage REITs, and Realty Income mitigates its impact through private capital partnerships.
- Why Klaviyo Stock Rallied Today
Klaviyo (KVYO) shares jumped Tuesday morning, rising as much as 11.8% in early trading and 11.6% at 1:13 p.m. ET. The rally followed Salesforce's agreement to acquire rival Braze (BRZE) for $47.50 per share in cash, a deal valuing Braze at $5.66 billion and representing a 58% premium to Monday's close. The article argues investors see the premium as validation of Klaviyo's approach, even though Braze targets mobile apps while Klaviyo serves e-commerce direct-to-consumer marketing. Under Salesforce, Braze may shift toward enterprise customers, reducing overlap and possibly making Klaviyo a takeover target, and the article notes Klaviyo trades at 23 times forward earnings.
- Not Micron. Not Sandisk. This Storage Stock Is Riding the Same AI Infrastructure Wave.
The article argues that Western Digital (WDC), which makes high-capacity hard disk drives for cloud computing companies, is an important but less-noticed part of AI infrastructure alongside Micron and Sandisk. A May customer survey found 87% of respondents prioritized expanding storage capacity and lowering total ownership costs, and 70% of those who knew their storage mix said hard drives made up more than half of their capacity. Western Digital has a roadmap for drives above 100 terabytes, and a 40-terabyte drive is undergoing customer qualification. For fiscal Q4, revenue was $3.75 billion, up 44% year over year; GAAP net income of $3.19 billion included a $2.05 billion gain tied to Sandisk, while adjusted net income was $1.38 billion, up 130%. The stock is up 105% so far this year.
- Profile of a Port Tycoon Newly Appearing at Eximbank: Invests Over VND 700 Billion in GEX and VIX Shares, Borrows VND 2,800 Billion from Eximbank, Acquires Real Estate Firm with Many Projects Partnering with GELEX
Viconship (VSC) appears for the first time on the list of shareholders holding at least 1% of Eximbank (EIB), with over 18.7 million shares, or 1.01%. As of June 30, 2026, the company held GEX and VIX shares with a cost of nearly 716 billion VND and a fair value of about 790 billion VND, while its Q2 report showed no EIB shares. Viconship also owed Eximbank roughly 2,856 billion VND in long-term loans, with initial interest rates of 7–10% per year, and owed VIX 322 billion VND in short-term borrowings. Its board approved a deposit agreement to acquire 100% of the capital of Viconship Industrial Infrastructure and Real Estate Co., Ltd (BDSV) for no more than 1,100 billion VND, and BDSV had previously co-invested with the GELEX ecosystem in infrastructure companies.
- Amid the wave of rate cuts, how are banks attracting deposits?
At the State Bank of Vietnam's request, Governor Pham Duc An met 46 commercial banks on Oct. 19 and asked them to cut deposit rates by at least 0.5% per year for terms of 6 months or longer. As of the afternoon of Oct. 20, 16 banks had announced cuts, mostly for terms of 6 months and above, typically 0.5% per year and up to 0.7%. Rates for deposits under 6 months changed little due to the 4.75% per year ceiling. Still, banks were competing hard for deposits, and one employee offered 9.6% per year for a 6-month term before the cut took effect. Listed 12-month rates at most banks have fallen below 7% per year, though how much loan rates fall depends on funding costs and other factors.
- South Korean firm debut plunge adds to investor concerns about AI spending
Shares of South Korea's Elice Group fell 32% on their debut, the worst first-day performance in South Korea for a company raising over US$100 million in an IPO, according to Dealogic. The stock closed at 60,500 won, below its 90,500-won IPO price, and its slide helped drag the benchmark KOSPI down 3.73% to its lowest close since April 7. Investors are increasingly doubting AI spending, competition and profitability, and several AI infrastructure deals have been delayed, including Firmus's IPO and SB Energy's US share sale. Elice's first-half revenue tripled to 34 billion won, and it swung to a 10 billion won operating profit from a 3.5 billion won loss a year earlier.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.