3M raised its full-year adjusted earnings forecast after third-quarter sales increased to $6.6 billion. The October 20 results show improved reported earnings and margins, but the revised treatment of intangible-asset amortization is an important part of the adjusted figures.
For the third quarter of 2026, GAAP sales grew 1% and diluted EPS reached $2.63, compared with $1.55 a year earlier. Adjusted EPS was $2.50, up 12% from the comparable $2.23 figure on the new basis.
Source: 3M’s October 20, 2026 results. All dollar figures below are US dollars.
Verified figures at a glance
| Measure | Disclosed result or forecast | Primary source |
|---|---|---|
| GAAP sales | $6.6bn; +1.0% year on year | Issuer results |
| GAAP diluted EPS | $2.63, versus $1.55 | Issuer results |
| Adjusted EPS (new basis) | $2.50, versus $2.23 | Issuer results |
| Operating margin, GAAP / adjusted | 23.7% / 26.2% | Issuer results |
| Organic sales growth, GAAP / adjusted | 0.2% / 3.3% | Issuer results |
| 2026 adjusted EPS forecast | $9.10–$9.15; includes new reporting basis | Issuer results |
Why the new basis matters
Non-GAAP measures remove items the company identifies in its reconciliation. From this quarter, 3M treats intangible-asset amortization as a special item for every period presented. Amortization spreads the accounting cost of intangible assets, such as acquired technology, over their useful lives. Excluding it changes the adjusted measure, not the underlying GAAP result.
3M says the new treatment adds approximately $0.04 to base third-quarter adjusted EPS and about 40 basis points to adjusted operating margin. Prior periods have been put on the same basis, so the reported 12% adjusted EPS comparison uses comparable definitions. One basis point is one hundredth of a percentage point.
The adjusted EPS figure is lower than GAAP EPS in this quarter. That is not inherently a contradiction: adjustments can remove gains as well as costs. The release’s reconciliation includes a gain in the value of the Solventum ownership interest alongside litigation, transformation and other items.
Sales growth and the forecast
Both GAAP and adjusted sales round to $6.6 billion, but their growth rates differ. Reported organic sales increased 0.2%; adjusted organic sales increased 3.3%. Adjusted sales exclude manufactured PFAS products. Organic growth describes the company’s stated underlying growth calculation rather than simply the headline change in reported dollars.
The updated full-year adjusted EPS range is $9.10–$9.15. It incorporates year-to-date performance, the Madison Fire & Rescue acquisition and the accounting-basis change. It remains a forecast, not annual earnings already achieved.
Operating cash flow was $0.5 billion, compared with $1.2 billion of adjusted free cash flow. Those measures use different definitions and should not be substituted for each other. Readers assessing cash generation should use the issuer’s reconciliation rather than treating adjusted free cash flow as cash from operations.
For another industrial report separating achieved results from guidance, see CapKet’s Steel Dynamics earnings coverage.
Additional official record: The issuer-hosted PDF contains the same earnings release and reconciliations as the webpage. Both records originate with the issuer, not independent third-party corroboration.
Primary records observed: and . Announcement dated October 20, 2026; quarterly results cover the period ended September 30, 2026. Forward-looking figures are labeled as forecasts.