3M cites ‘volatile environment’ as sales growth misses estimates
April 21, 2026
(Bloomberg) — 3M Co.’s sales growth was short of Wall Street’s expectations to start the year, a sign that economic turbulence is complicating the conglomerate’s turnaround plan.
Organic sales, which strips out the effects of portfolio changes and currency fluctuations, declined 1.4% in the first quarter, the St. Paul, Minnesota-based company said Tuesday in a statement. On an adjusted basis, the figure rose 1.2%, short of the 2% growth anticipated on average in analyst estimates compiled by Bloomberg.
That tarnished a quarter in which adjusted earnings of $2.14 a share beat expectations. 3M also stood by its financial guidance for the year, “despite operating in a volatile environment,” Chief Executive Officer Bill Brown said in the statement.
The results suggest Brown’s push to simplify 3M’s operations and exit non-core businesses isn’t entirely able to overcome the challenges buffeting the company’s end markets, including rising costs and impacts from the war in Iran. The maker of Post-it notes, roofing granules and electronic materials has sought to bolster its product lines, showcasing technologies ranging from improved interconnectors for data centers to new products designed to dissipate heat across electrical systems.
3M’s shares fell 3% before regular trading in New York. The stock declined 5.4% this year through Monday’s close, underperforming the S&P 500 Index.
Barclays analyst Julian Mitchell pointed to worse-than-expected segment profit for a likely “subdued share price reaction.” Investor epectations were already low coming into the report, he said.
Brown has been active lately in his effort to reshape 3M, inking a deal last month in partnership with Bain Capital to buy Madison Fire & Rescue for $1.95 billion. The deal involves 3M contributing its Scott Safety unit and receiving $700 million at closing along with a 50.1% stake in the new company, with Bain Capital owning the remainder.
3M is also pushing to grow in the data center market, which accounts for a small part of its revenue currently. The company said in March that it plans to double manufacturing capacity of its Expanded Beam Optical interconnect technology targeting high-speed data center customers.
The manufacturer continues to be dogged by litigation over its use of so-called forever chemicals and defective combat arms earplugs. 3M made combined settlement payments of about $3.4 billion in 2025, but still has obligations outstanding that will weigh on free cash flow in the medium term, according to Bloomberg Intelligence.
The company reaffirmed its full-year forecast calling for adjusted earnings of $8.50 to $8.70 a share and adjusted total sales growth of about 4%.
“We remain confident in achieving our 2026 guidance while staying committed to our long-term strategy,” Brown said in the statement. The focus will continue to be on “simplifying and standardizing” processes while reworking the portfolio.
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