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Research Alert: 3m Prints Q1 Beat; Turnaround Stays On Course

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

3M reported Q1 operating EPS of $2.14 (up 14% Y/Y), beating consensus by $0.16, with organic sales rising 1.2% and operating margin expanding 30 bps to 23.8%. Performance remained mixed across segments, with Safety & Industrial leading (+100 bps margin expansion to 26.5%) while Consumer continues to underperform. We view 3M's transformation efforts positively, highlighted by Q1 acquisitions and portfolio reshaping around higher-growth verticals, with Consumer remaining a top divestiture candidate. Management reiterated 2026 guidance despite strong double-digit order growth trends that could boost upside. We believe structural operational improvements are becoming embedded, evidenced by margin gains despite $66M in transformation costs and inflationary pressures. The launch of 84 new products (up 35% Y/Y) contributed to robust order momentum. We see a long runway for earnings quality improvement as 3M executes simplification and standardization opportunities across its broad portfolio through 2026.

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