Investing.com -- 3M on Tuesday reported better-than-expected third-quarter earnings, and its full-year guidance also came in above consensus estimates.

The company posted earnings per share of $2.50, above the $2.39 analysts expected. Revenue was $6.6 billion, roughly in line with the $6.61 billion consensus, with organic growth of 3.3%. Adjusted operating margin was 26.2%, compared with an estimate of 25.2%.

"We delivered another quarter of strong results, including solid sales growth, continued margin expansion, double-digit EPS growth, and robust free cash flow," said William Brown, 3M Chairman and CEO. "Improving productivity through structural transformation and a stronger pipeline of differentiated technologies reinforce our confidence in the full-year outlook and long-term growth and margin potential."

For 2026, 3M sees earnings per share of $9.10 to $9.15, above the $8.93 consensus. It expects adjusted total sales growth of more than 4.5%, including adjusted organic growth of more than 3.5%. Adjusted operating cash flow is expected to be about $5.9 billion, and adjusted free cash flow about $4.8 billion.

3M shares rose in premarket trading, though the gains came before the company’s earnings release. The move followed 3M’s announcement that it is expanding its commercial relationship with Amazon and issuing the retailer a warrant to buy its stock, worth more than $521 million.

The warrant gives an Amazon subsidiary the right to buy up to 3.16 million 3M shares at $164.89 each over seven years. About 85% of the shares vest as Amazon buys 3M’s optical connectivity and other data-center products, with full vesting at $6 billion in purchases. The remaining 15% vests once milestone-based conditions are met.

Original Article