3M raises annual profit outlook as cost controls support margins

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3M raises profit outlook

Highlights

3M raised its full-year adjusted EPS outlook to $9.10–$9.15 from $8.80–$8.95 after posting Q3 adjusted revenue of $6.6 billion, up 4.2%.
Q3 adjusted profit reached $2.50 per share versus $2.23 last year, with shares rising 2.7% pre-market as cost discipline supported margins.
Robust U.S. industrial activity and demand for chipmaking equipment boosted the Transportation and Electronics segment, offsetting weak consumer and automotive markets.

Updated outlook and quarterly performance

As reported by Reuters, 3M said on Tuesday it now expects full-year adjusted earnings per share of $9.10 to $9.15, up from its previous forecast of $8.80 to $8.95.

The Saint Paul, Minnesota-based company reported adjusted third-quarter revenue of $6.6 billion, up 4.2%. Adjusted quarterly profit was $2.50 per share, compared with $2.23 per share a year earlier, and its shares rose 2.7% before the bell.

Under CEO William Brown, 3M is also focusing on customer service and operational execution as it works to strengthen growth and profitability. The company launched 87 new products in the third quarter and expects to exceed 350 product launches by the end of the year.

Industrial resilience offsets weaker end markets

Robust industrial activity in the U.S., along with growing sales of chipmaking machines and materials, is helping 3M offset uneven demand in some markets affected by inflationary pressure.

Demand from automotive and consumer electronics customers remains subdued, while consumer-facing businesses continue to operate in a difficult spending environment as buyers stay cautious on discretionary purchases. At the same time, higher energy costs are raising concerns about the possible effect on manufacturing activity and broader industrial demand.

Even so, growth tied to data centers and semiconductor-related markets is providing support for 3M's Transportation and Electronics business, cushioning weakness in some of its traditional end markets. The performance suggests the group is relying increasingly on higher-growth industrial and technology-linked segments to balance softer conditions elsewhere.

In our earlier analysis of the Nasdaq 100’s volatility, we highlighted how concerns over AI supply chains and higher financing costs were pressuring tech sentiment, even after a short rebound. The index remained below key moving averages, with mixed momentum signals and oversold conditions suggesting that near-term gains could be fragile while investors watched critical resistance levels.

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