FINWIRES · TerminalLIVE
FINWIRES

3M Lifts 2026 Earnings Outlook Following Second-Quarter Beat

By
3M Lifts 2026 Earnings Outlook Following Second-Quarter Beat

3M (MMM) raised its full-year earnings outlook on Tuesday as the industrial conglomerate reported second-quarter results above Wall Street's estimates.

The company now anticipates adjusted earnings between $8.80 and $8.95 per share for 2026, up from its previous guidance of $8.50 to $8.70. The consensus on FactSet is for non-GAAP EPS of $8.74. Adjusted sales are pegged to grow by more than 4.5%, compared with the prior projections for a 4% increase.

The stock soared 9.8% in Tuesday trade, taking its year-to-date gain to 9%.

"The increase in earnings versus the prior guidance is coming from stronger sales growth, productivity gains and our capital deployment strategy," Chief Financial Officer Anurag Maheshwari said during an earnings call, according to a FactSet transcript.

3M now expects oil inflation of $150 million to $175 million, up from its prior projections of $125 million, according to Maheshwari. The company aims to fully offset the impact through pricing actions it implemented in the second quarter, the CFO added.

Oil prices have rallied this month as the US and Iran resumed fighting.

3M posted adjusted EPS of $2.40 for the June quarter, up from $2.16 the year before, topping the Street's view for $2.25. Adjusted sales improved 5.5% to $6.5 billion, ahead of the average analyst estimate on FactSet of $6.4 billion.

"We delivered a strong second quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth, reflecting the progress we're making on our strategic priorities," Chief Executive William Brown said in the earnings release.

Revenue in the safety and industrial segment rose to $3.09 billion in the second quarter from $2.86 billion in the prior-year period, while transportation and electronics increased to $2.07 billion from $1.94 billion. Consumer sales decreased to $1.25 billion from $1.27 billion.

Price: $175.50, Change: $+16.39, Percent Change: +10.30%

Related Articles

New Zealand Inflation Rises in June Quarter Amid Oil Shock
US Markets

New Zealand Inflation Rises in June Quarter Amid Oil Shock

New Zealand's annual consumer inflation rose slightly above the Reserve Bank of New Zealand's forecast in the June quarter, as the global oil shock continued to weigh on consumers.Annual consumer inflation increased 4.1% in the June quarter, above the central bank's forecast of 3.9% and up from the 3.1% increase recorded in the March quarter.According to Prices and Deflators spokesperson Nicola Growden, higher petrol prices accounted for almost a quarter of the 4.1% annual increase, with petrol prices rising more than 20% during the quarter.Diesel prices also climbed about 48% during the quarter and, together with petrol, accounted for almost two-thirds of the 1.5% quarterly increase in inflation.Westpac said the uptick was in line with its expectations and forecast headline inflation would remain above 3% through the latter part of the year, raising the prospect of further interest rate hikes at upcoming RBNZ meetings in September and December.ANZ said the inflation data was unlikely to shift the central bank from its current policy stance, as it continues to expect 25-basis-point rate hikes at the September and October meetings.The RBNZ, which targets annual inflation within a 1% to 3% range, raised interest rates by 25 basis points earlier this month but said the 2.5% cash rate remained stimulatory and that it intends to continue withdrawing monetary stimulus.

^NZ50
EU Fines AliExpress 550 Million Euros Over Sales of Illegal Products on Platform
US Markets

EU Fines AliExpress 550 Million Euros Over Sales of Illegal Products on Platform

The European Commission fined AliExpress 550 million euros for selling "illegal, unsafe or counterfeit products" on its e-commerce platform, according to a press release from the Commission on Monday.The Commission said the Alibaba Group-owned (HKG:9988) marketplace breached its obligations under the Digital Services Act (DSA) by failing to detect illegal products, enforce penalty policies for merchants selling these products, and prevent the spread of counterfeit goods.The fine marks the largest penalty issued to date under the bloc's online platform regulation. It follows the 200 million-euro fine imposed on Temu in May and the 120 million-euro fine slapped on social media platform X in December 2025.Under the EU's DSA, the maximum fine limit for violating the law is up to 6% of a group's annual global revenue.In response to anemail seeking comment, AliExpress disputed the Commission's findings, saying, "We disagree with today's decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made."The company said it has been "firmly committed to meeting our obligations and we have invested substantial resources in risk assessment and mitigation, product safety and consumer protection."AliExpress added that it has invested "substantial resources" in risk assessment and mitigation, as well as product safety and consumer protection."We are carefully reviewing the decision and considering all available options," the company added.AliExpress has until Oct. 20 to submit an action plan to the Commission.The penalty comes as the EU pushes against low-cost Chinese e-commerce imports. The bloc abolished its 150-euro duty-free threshold for small parcels on July 1, replacing it with a temporary flat 3-euro customs duty per item.The European Council noted in an earlier explainer that the number of low-value packages -- or those valued at 150 euros -- entering the EU totaled 4.6 billion in 2024, with 91% of those shipments coming from China.

HKG:9988
Update: Wall Street Falls as Traders Await Earnings, Track Middle East Developments
US Markets

Update: Wall Street Falls as Traders Await Earnings, Track Middle East Developments

(Updates with market moves at the end of the day.)Stocks on Wall Street ended Monday's choppy trade lower as markets awaited more earnings releases this week and kept an eye on developments in the Middle East.The Dow Jones Industrial Average fell 0.6% to 51,839.26, while the S&P 500 declined 0.2% to settle at 7,443.28. The Nasdaq Composite dipped 0.1% to 25,508.07. Most sectors were in the red, led by healthcare, while communication services saw the biggest gain.This week, 86 S&P 500 companies are scheduled to release their latest quarterly financial results, Oppenheimer Asset Management said in a note. Google parent Alphabet (GOOG, GOOGL) and electric vehicle maker Tesla (TSLA) -- which are two of the so-called Magnificent 7 stocks -- are slated to report Wednesday.Intel, Philip Morris International (PM), American Express (AXP), T-Mobile US (TMUS), IBM (IBM), AT&T (T) and Verizon Communications (VZ) are among other major names expected to report this week."The reporting calendar is shifting beyond the first wave of money-center banks toward large tech, industrial and consumer names," Tigress Financial said in a note Monday. "The narrative will increasingly focus on whether (artificial intelligence) platforms, cloud providers and key cyclicals can match the strong bank prints without sparking renewed worries about margins or demand."West Texas Intermediate crude oil was up 0.6% at $82.97 a barrel in Monday late-afternoon trade, while Brent rose 0.9% to $88.88.On Sunday, the US Central Command said it completed the ninth consecutive evening of strikes against Iran. The US confirmed the passing of at least three service members during recent fighting with Iran.President Donald Trump said Monday that "every time Iran kills an American soldier they will pay for that killing many times over."Iran could resume negotiations with the US based on national interests, CNBC reported, citing Tehran's foreign ministry spokesman Esmail Baghaei. US intermediaries had continued to exchange messages with Iran, Baghaei reportedly said."If this escalation goes unchecked, we could return to an environment of wide-scale attacks across the Persian Gulf," ING Bank said in a report Monday. "Vessel flows (in the Strait of Hormuz) have essentially ground to a halt."US Treasury yields were higher, with the 10-year rate up 5.5 basis points at 4.6% and the two-year rate rising 3.9 basis points to 4.21%.In company news, Magnolia Oil & Gas (MGY) agreed to acquire privately held WildFire Energy in a roughly $4.06 billion deal, including debt, that will give it a dominant position in the Giddings field in South Texas. Magnolia Oil shares slumped 6.4%.Gold edged down 0.2% to $4,010.30 per troy ounce, while silver advanced 0.5% to $56.62 per ounce.

Dow JonesNasdaq CompositeS&P 500$AXP$GOOG$GOOGL$IBM$MGY$PM$T$TMUS$TSLA$VZ