3M (MMM) Stock Forecast & Price Target

3M has demonstrated consistent growth in its consumer business, achieving an increase for four consecutive quarters due to effective management, new product introductions, and heightened advertising efforts. The company's adjusted operating margins have shown notable improvement, increasing 120 basis points year-over-year to 24.4% in the most recent quarter, surpassing previous forecasts, while organic sales grew 3.2%, exceeding expectations. Looking ahead, 3M anticipates a 100 basis point expansion in segment-level operating margins for 2026, supported by increases in organic sales growth guidance, which reflects an optimistic outlook for continued revenue enhancement and customer engagement.

3M has faced notable challenges in its Consumer segment, reporting a decline of -2.2% in performance, which has raised concerns about broader consumer-related weaknesses and weakened demand for roofing granules. The company's disappointing margin expansion guidance, particularly in light of the rolling off of Solventum TSAs, suggests ongoing pressures on profitability moving forward. Additionally, ongoing PFAS litigation and expected slowdowns in foreign markets, particularly a projected deceleration of China's industrial production, add to the negative outlook on 3M's financial health.