MMM · Q2 FY2026
3M CO Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $6.50B | $6.25B (yr ago) | Beat |
| EPS | $1.78 | $2.07 (yr ago) | Miss |
| Free Cash Flow | $0.76B | $0.75B (yr ago) | Beat |
| Gross Margin | Not meaningful | Not meaningful (yr ago) | Miss |
| Operating Margin | 15.1% (pre-tax proxy) | 20.3% (yr ago) | Miss |
What changed
Revenue increased 4.0% year over year to $6.50B, while free cash flow edged up to $0.76B from $0.75B. The improvement did not reach earnings: EPS fell 14.0% to $1.78 and the supplied pre-tax margin proxy contracted by 5.2 percentage points to 15.1%.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise; we establish a base-case value of $162 per share. The quarter does not support a higher valuation because better revenue and cash generation were offset by materially weaker profitability.