3M expects 2026 organic sales growth of ~3%, accelerating from 2.1%
3M reported strong FY2025 Q4 results with organic growth of 2.2% and EPS of $1.83, beating guidance. Full-year organic sales grew 2.1% with margin expansion of 200 bps. Management guided FY2026 EPS of $8.50-$8.70 and ~3% organic growth, driven by new product launches and commercial excellence. Notable cross-company signal: Solventum transition service wind-down will reduce 3M's income by $50-75M in 2026. 3M's operational turnaround continues: OTIF above 90%, cost of quality improving, new product launches up 68% YoY.
Buzzberg read3M expects 2026 organic sales growth of ~3%, accelerating from 2.1%3M reported strong FY2025 Q4 results with organic growth of 2.2% and EPS of $1.83, beating guidance. Full-year organic sales grew 2.1% with margin expansion of 200 bps. Management guided FY2026 EPS of $8.50-$8.70 and ~3% organic growth, driven by new product launches and commercial excellence. Notable cross-company signal: Solventum transition service wind-down will reduce 3M's income by $50-75M in 2026. 3M's operational turnaround continues: OTIF above 90%, cost of quality improving, new product launches up 68% YoY.Read full analysisCollapse analysis
3M reported strong FY2025 Q4 results with organic growth of 2.2% and EPS of $1.83, beating guidance. Full-year organic sales grew 2.1% with margin expansion of 200 bps. Management guided FY2026 EPS of $8.50-$8.70 and ~3% organic growth, driven by new product launches and commercial excellence. Notable cross-company signal: Solventum transition service wind-down will reduce 3M's income by $50-75M in 2026. 3M's operational turnaround continues: OTIF above 90%, cost of quality improving, new product launches up 68% YoY.
OTIF (on-time-in-full) reached best level in decades at above 90%
Consumer business weakened in Q4 (down 2.2%) but December showed double-digit growth; mgmt expects return to growth in 2026.
AI, capex & demand read
AI
Platform & monetization
Management mentioned using AI-enabled models to optimize changeovers and improve quality, and an AI-first mentality as part of the transformation to an integrated operating company, but AI is not a major revenue driver discussed in this call.
Demand
Bookings & conversion
Consumer electronics growth in 2026 expected mid-single digits, expanding into mainstream. Management repeatedly emphasized strong execution, outperforming macro, and momentum into 2026, with forward guidance above 2025 results.
Capex
Investment and capacity
Management did not provide specific capital expenditure guidance, but discussed transformation investments to redesign manufacturing, distribution, and business processes, with a $55 million charge in Q4 and plans to increase growth and productivity investments to $225 million in 2026.
Tone · Confident
Management repeatedly emphasized strong execution, outperforming macro, and momentum into 2026, with forward guidance above 2025 results.
Supply-chain alpha
A1
3M's OTIF (on-time in-full) ended 2025 above 90%, the best in decades, and sustained for seven months, driving better customer experience and shelf-space wins.
“OTIF ended the year above 90%, 300 basis points above the prior year and the best we've achieved in decades, and we sustained that rate for seven months in a row.”
3M's new product vitality index (NPVI) ended 2025 at 13%, up ~2 points, and sales from products launched in the last five years grew 23% (exceeding high-teens target), exiting Q4 at 44%.
“Sales from products launched in the last five years were up 23% in the full year, exceeding our high teens target, and exit Q4 at 44%, giving us momentum into 2026.”
Winding down transition services agreements with Solventum will reduce 3M's corporate income by $50-75 million in 2026, indicating a decreasing dependency but also a potential headwind for 3M's other income.
“Corporate and other income will be lower by $50 to $75 million, or 20 to 30 basis points, largely from wind-down of transition services agreements related to Solventum.”
AnuragSenior Vice President & Chief Financial Officer
… million or 100 basis points, including $875 million from volume growth and net productivity across supply chain and G&A. This will be partially offset by headwinds from PFAS stranded costs and tariff impacts, as well as an increase in growth and productivity investments to $225 million. This is on top of the incremental investment over the past two years, bringing the total investment from 2024 to over half a billion dollars. Corporate and other income will be lower by $50 to $75 million, or 20 to 30 basis points, largely from wind-down of transition services agreements related to Solventum. Overall, we expect total company income to grow by $400 million at the midpoint of our 70 to 80 basis points margin expansion guide. Adjusted free cash flow conversion is expected to be greater than 100% driven by strong operating income growth and a focus on working capital management. And we plan to deploy capital effectively, including a gross share repurchase of approximately $2.5 billion in 2026. Slide 11 provides a look at earnings growth drivers, which is primarily driven by strong operations consistent with our 2025 performance. Regarding cadence, we expect the rate of sales growth …
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