A diversified technology company, 3M makes everything from Post-it® notes and Command™ strips to Scotch-Brite™ abrasives, Thinsulate™ insulation, and electronic display films used in cars, data centers, and homes. It began in 1902 as the Minnesota Mining and Manufacturing Company, named for a plan to mine corundum for sandpaper that never panned out. Its Post-it notes were born from a failed attempt to make a super-strong glue, when a scientist instead created a peelable adhesive.
Q2 2026 revenue rose 1.3% to $6,344M while operating income rose 12.1% from a year ago
rose 12.1% from a year ago after two quarters of cash pressure eased. rose 1.3% to $6,344M and was 42.5%, with operating income of $1,140M up 75.5% from Q1 as lower litigation payments and insurance recoveries lifted cash generation. The quarter shows the business stabilizing as settlement-driven outflows fade.
Key takeaways
rose 12.1% to $1,140M and 75.5% sequentially from $1,397M in Q1, as moved to -$954M in Q2 from -$79M a year earlier and the prior quarter's $574M, with the H1 2026 filing attributing the year-over-year swing to lower /CAE litigation payments and insurance recoveries.
rose 1.3% to $6,344M, with the MD&A stating total sales rose 2.4% to $6.5B and adjusted grew 5.4% led by Asia Pacific at 5.6% organic and industrial and electronics strength.
Section summaries
Management's Discussion and Analysis
3M Q2 2026 adjusted organic sales grew 5.4% YoY, driven by industrial and electronics strength, while GAAP EPS rose 33% on Solventum gains.
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Total sales rose 2.4% to $6.5B in Q2, with of 2.3% led by Asia Pacific (5.6% organic) and EMEA (2.3%), partially offset by Americas (0.7%).
was 42.5%, down 0.9 point from Q2 2025's 42.5% reported as 42.5% (table shows 42.5% vs 42.5% prior year, -0.9pt per table), while fell 2.9 points to 15.1% on higher losses on business divestitures and transformation costs, against up 0.4 point to 24.9%.
Safety and Industrial sales grew 8.2% with expanding to 27.8% from 25.8%, and Transportation and Electronics sales rose 6.2% on semiconductor, aerospace, and data center demand though margin dipped to 24.4% on tariffs and cost dis-synergies.
fell 41.5% to $723M and fell 39.7% to $1.34 versus Q2 2025, with the Q1 filing having flagged a $699M share-price and the retained equity stake as ongoing drivers.
Cash and equivalents were $3.7B, down 41.1% from a year earlier, and the company used $3.0B for in H1 2026.
What changed
Q2 2026 was -$954M, not the positive Q2 reading the Q1 filing flagged to watch; the H1 MD&A shows cash from operations rose $2.6B to $1.6B, settling the prior watch item on sustained recovery.
Remaining PWS and CAE settlement payments continue against the through-2036 and through-2029 schedules with $7.7B liabilities carried from the 2025 10-K, and Q2 cash outflows eased versus H1 2025's $3.1B payments.
manufacturing exit passed its end-2025 deadline; Transportation and Electronics margin dipped to 24.4% in Q2 on tariffs and cost dis-synergies rather than a clear exit-impact resolution.
Q2 2026 grew 2.3% per MD&A versus the -1.4% Q1 rate the Q1 filing flagged to watch, turning positive as consumer electronics and auto weakness persisted.
retained equity stake remained a , with Q1's $699M hit carrying into the year and the five-year divestiture deadline approaching.
What to watch
Q3 2026 and to confirm the H1 cash recovery sustains against remaining 2026 settlement payments
Remaining PWS and CAE settlement payments in H2 2026 against the through-2036 and through-2029 schedules as $7.7B liabilities remain
retained equity stake impact on as the five-year divestiture deadline approaches
Q3 2026 to see if the 2.3% Q2 rate holds as auto and consumer weakness persist
Safety and Industrial sales grew 8.2% on organic strength in electrical markets, abrasives, and adhesives, with expanding to 27.8% from 25.8%.
Transportation and Electronics sales increased 6.2% , fueled by semiconductor, aerospace, and data center demand, though margins dipped slightly to 24.4% due to tariffs and .
Consumer sales declined 1.8% as lower U.S. retailer levels offset POS gains, and fell to 20.1% from 21.1% on tariffs and .
fell 2.9pp to 15.1% due to higher losses on business divestitures and transformation costs, while adjusted operating margin improved 0.4pp to 24.9%.
rose $2.6B to $1.6B in H1 2026, driven by lower /CAE litigation payments and insurance recoveries; $3.0B was used for share repurchases.
Quantitative and Qualitative Disclosures About Market Risk
In the context of Item 3, 3M is exposed to market risk due to the risk of loss arising from adverse changes in foreign currency exchange rates, interest rates and commodity prices. Changes in those factors could impact the Company’s results of operations and financial condition.…
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In the context of Item 3, 3M is exposed to market risk due to the risk of loss arising from adverse changes in foreign currency exchange rates, interest rates and commodity prices. Changes in those factors could impact the Company’s results of operations and financial condition. For a discussion of sensitivity analysis related to these types of market risks, refer to Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, in 3M's 2025 Annual Report on Form 10-K. There have been no material changes in information that would have been provided in the context of Item 3 from the end of the preceding year until June 30, 2026.
Discussion of legal matters is incorporated by reference from Part I, Item 1, Note 15, “Commitments and Contingencies,” of this document, and should be considered an integral part of Part II, Item 1, “Legal Proceedings.”
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Discussion of legal matters is incorporated by reference from Part I, Item 1, Note 15, “Commitments and Contingencies,” of this document, and should be considered an integral part of Part II, Item 1, “Legal Proceedings.”
There have been no material changes to the risk factors described in Part I, Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December 31, 2025.
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There have been no material changes to the risk factors described in Part I, Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December 31, 2025.