3M (MMM) Is Up 10.4% After Raising Full-Year Guidance on Strong Q3 Performance – What's Changed

• 3M reported strong third-quarter 2025 results, with sales rising to US$6.52 billion and earnings per share from continuing operations at US$1.55, leading the company to raise its full-year guidance for both earnings and organic sales growth.
• The company's operational improvements, successful new product launches, and continued focus on innovation under CEO Bill Brown have reinforced market confidence in 3M's turnaround prospects and long-term strategy.
• We'll examine how 3M's increased full-year guidance and operational progress impact its investment narrative and future growth outlook.

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3M Investment Narrative Recap

To be a 3M shareholder today, I believe in the company’s renewed focus on innovation, operational excellence, and disciplined portfolio management as key drivers of a long-term turnaround. The latest earnings beat and raised guidance offer clear support for the commercial momentum needed to fuel near-term optimism, but material risks tied to unresolved PFAS litigation and legacy environmental liabilities remain unaddressed at this stage and could still reshape the risk-reward picture.

Of the recent announcements, 3M’s $470 million share buyback this quarter is most relevant, as it signals continuing shareholder returns alongside incremental operational progress. While buybacks reinforce confidence in cash generation and management’s commitment to value creation, the core catalyst for stronger sentiment remains the company’s ability to drive sustainable organic sales growth and higher margins after years of inconsistent performance.

However, despite this positive momentum, investors should not overlook the ongoing legal liabilities from PFAS cases that continue to...

Read the full narrative on 3M (it's free!)

3M’s outlook anticipates $26.1 billion in revenue and $4.7 billion in earnings by 2028. This is based on a 2.0% annual revenue growth rate and a $0.8 billion earnings increase from the current $3.9 billion.

Uncover how 3M's forecasts yield a $167.81 fair value, in line with its current price.

Exploring Other Perspectives

Six community members of Simply Wall St estimate 3M’s fair value from US$142.36 up to US$192.75. While optimism is reinforced by recent improvements in operational efficiency, opinions differ widely so be sure to explore all views.

Explore 6 other fair value estimates on 3M - why the stock might be worth as much as 14% more than the current price!

Build Your Own 3M Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your 3M research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free 3M research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate 3M's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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