3M shares drop despite Q4 beat, upbeat outlook

20th Jan 2026 13:05

(Sharecast News) - 3M shares were trading lower on Tuesday despite the American industrial conglomerate beating forecasts with its fourth-quarter earnings, as investors shrugged off a brighter outlook for the coming year.

The company, best known for its Scotch Tape but operating in a number of fields, from adhesives and protective equipment to optical films and insulation, reported a 20% year-on-year drop in earnings per share to $1.07 over the final three months of 2025.

However, adjusted EPS came in at $1.83, up from $1.68 the year before and ahead of the $1.80 consensus forecast, helped by an increase in adjusted operating profit margins to 21.1% from 19.7%.

Net sales over the fourth quarter rose 2.1% to $6.10bn, beating the $6.01bn market estimate, with organic sales up 0.6%. On an adjusted basis, net sales were 3.7% higher.

"2025 was an important year for 3M as we build a strong foundation that is reshaping our operating model and driving sustainable value creation," said chair and chief executive William Brown.

Looking ahead, Brown painted a confident outlook, with the company pointing to 4.0% adjusted net sales growth in 2026 from the $24.3bn of net sales recorded in 2025 as a whole, which was a 2.7% increase from 2024.

"Our accelerated pace of innovation and commercial execution positions us to outperform the macro environment again in 2026. Our continued operating rigour supports further margin expansion and earnings growth, putting us on a clear path to meet or exceed the 2027 financial commitments we outlined at our Investor Day last year."

By 1349 GMT, 3M futures were down nearly 5% at $159.65, pulling back sharply after a near-5% gain so far this year.