3M Beats Q3 Profit Estimates, Raises Full-Year Outlook and Announces Amazon Data Center Warrant Deal

3M reported third-quarter 2026 adjusted earnings per share of $2.50, beating the Wall Street consensus of $2.39 by $0.11 and marking a 12% increase year over year. Revenue came in at $6.6 billion, broadly in line with estimates though slightly short by roughly $10 million. GAAP net income surged to $1.37 billion, or $2.63 per share, compared with $834 million, or $1.55 per share, a year earlier, a gain of roughly 70%. Adjusted operating margin expanded 110 basis points to 26.2%, driven by cost controls and productivity improvements, while the company returned $600 million to shareholders and launched 87 new products during the quarter.

The company raised its full-year 2026 adjusted EPS guidance to $9.10 to $9.15, up from its prior range of $8.80 to $8.95, marking the second consecutive quarter of upward revisions. Full-year adjusted sales growth is now expected to exceed 4.5%, with organic sales growth above 3.5% and adjusted operating cash flow of approximately $5.9 billion. The updated guidance incorporates a new accounting treatment that classifies intangible asset amortization as a special item, as well as the recent Madison Fire and Rescue acquisition.

The announcement that drew outsized investor attention was an expanded strategic commercial agreement with Amazon covering optical connectivity and other data center products. As part of the arrangement, 3M issued Amazon a seven-year warrant for 3.16 million shares, vesting upon Amazon reaching a $6.0 billion commercial spending milestone with 3M. The deal positions 3M as a supplier to hyperscale data center buildouts and prompted Barron's to describe the company as an AI data center play. Shares surged as much as 6% intraday, reaching $171.91, before erasing gains and turning negative, a reversal noted in real-time by market wires. China consumer electronics demand remained a headwind, with sales in that region declining during the quarter.