By Al Root
3M's first-quarter earnings topped Wall Street expectations on Tuesday -- which was almost enough for investors worried about rising oil prices and the Iran war.
The manufacturing company reported adjusted first-quarter earnings per share of $2.14 on sales of $6 billion. Wall Street was looking for $1.98 and $6 billion, respectively. A year ago, the numbers were $1.88 and $5.8 billion.
Comparable sales grew 1.3% year over year. Growth has been a struggle, but it's improving. Comparable sales grew 2.1% in 2025, up from 1.2% growth in 2024. For this year, 3M expects 3% sales growth.
Management reiterated its 2026 earnings-per-share guidance range of $8.50 to $8.70. Wall Street projects $8.65.
"We had a good start to the year, and despite operating in a volatile environment, we remain confident in achieving our 2026 guidance while staying committed to our long-term strategy -- investing in growth, driving operational performance, and returning cash to shareholders," said CEO William Brown in a statement.
The stock was down more than 1% in premarket trading. But shares had recovered by midmorning, leaving them up 1.6%. Gains didn't last, though, and the stock closed down 2%, at $148.47, while the S&P 500 and Dow Jones Industrial Average both fell about 0.6%.
The stock didn't react well to the company's fourth-quarter numbers in January either. Shares dropped 7% in response to earnings, closing on Jan. 20 at $156.12. Shares entered the week down a little from that level, at $154.44.
Investors might have wanted a guidance raise this time, but that might have been too much to expect, given the headwinds. J.P. Morgan sees some weakness in consumer electronics demand, projecting smartphone and personal computer shipments falling 11% and 9%, respectively, in 2026. Supplying that industry is a $2 billion business for 3M.
What's more, inflation from oil-based inputs could also be an issue, wrote J.P. Morgan analyst Chigusa Katoku in a preview report.
She rates 3M shares Hold and has a $182 price target for the stock. The average analyst target price is about $178, up about 17% from recent levels.
Coming into the week, 3M stock was up about 19% over the past 12 months and trading for about 18 times estimated 2026 earnings.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 21, 2026 16:55 ET (20:55 GMT)
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