3M saw its sales climb to $6.1 billion in the fourth quarter of 2025, but a lower-than-expected profit projection for 2026 sparked a drop in its stock price Tuesday.
The Minnesota industrial giant said that net sales rose by 2.1% compared to the final quarter of 2024, including a 0.6% increase in its organic sales. Sales for the full year came in at $24.9 billion, a 1.5% increase over 2024.
The company posted a decline in its Q4 operating margin and earnings per share, although officials noted that both measures were up year-over-year on an adjusted basis.
“Our accelerated pace of innovation and commercial execution positions us to outperform the macro environment again in 2026,” 3M CEO Bill Brown said in a statement.
In the earnings call, however, Reuters reported that Brown said he expects that environment to hinder 3M’s automotive aftermarket and roofing granules sectors, while weak demand and retail softness resulted in a year-over-year Q4 sales dip in its consumer division. The company could also see an impact of $30 million to $40 million this year if President Donald Trump follows through on new tariff threats tied to his pursuit of Greenland.
3M expects its 2026 sales to be up by about 4% and its full-year adjusted operating margin to be up between 70 and 80 basis points. Adjusted earnings are projected to be between $8.50 and $8.70 per share.
