3M CO
For the period ended Mar 31, 2026. Filed Apr 21, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 21, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 2. Results of Operations
Results of Operations
Net Sales: Discussion of business segment results is provided in the Performance by Business Segment section. Information regarding sales by geographic area is included below.
| Americas | Asia Pacific | EMEA | Worldwide | |
|---|---|---|---|---|
| Net sales (millions) | $3,153 | $1,783 | $1,094 | $6,030 |
| % of worldwide sales | 52.3% | 29.6% | 18.1% | 100.0% |
| Components of net sales change: | ||||
| Organic sales(b) | (2.6) | 2.0 | (3.2) | (1.4) |
| Divestitures(c) | (0.2) | — | — | (0.1) |
| Translation | 1.1 | 1.6 | 9.9 | 2.8 |
| Total sales change | (1.7)% | 3.6% | 6.7% | 1.3% |
(c) Acquisition and divestiture sales change impacts are measured separately for the first twelve months post-transaction.
| Operating Expenses: | Three months ended March 31, | ||
|---|---|---|---|
| (Percent of net sales) | 2026 | 2025 | Change |
| Cost of sales | 59.3% | 58.4% | 0.9% |
| Selling, general and administrative expenses (SG&A) | 12.3 | 15.9 | (3.6) |
| Research, development and related expenses (R&D) | 5.1 | 4.8 | 0.3 |
| Loss (gain) on business divestitures | 0.1 | — | 0.1 |
| Operating income margin | 23.2% | 20.9% | 2.3% |
Cost of Sales measured as a percent of sales: Increases in the first quarter of 2026 were primarily due to cost dis-synergies due to the PFAS exit and tariff impacts, partially offset by ongoing manufacturing productivity initiatives. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
SG&Ameasured as a percent of sales: Decreases were primarily impacted by benefits from insurance recoveries reducing net costs from significant litigation. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
R&Dmeasured as a percent of sales:3M continues to invest in a range of R&D activities from application development, product and manufacturing support, product development and technology development aimed at disruptive innovations. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
Other Expense (Income), Net: See Note 6 for a detailed breakout of this line item.
Interest expense (net of interest income) decreased YoY driven by reduced imputed interest associated with the obligations resulting from the PWS Settlement and the CAE Settlement (discussed in Note 15).
The non-service pension and postretirement net cost decreased approximately $30 million YoY. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
Solventum ownership - change in value resulted in a YoY headwind of $699 million in the first quarter of 2026 as Solventum's share price decreased during the period in 2026 compared to an increase in 2025.
| Provision for Income Taxes: | Three months endedMarch 31, | |
|---|---|---|
| (Percent of pre-tax income) | 2026 | 2025 |
| Effective tax rate | 25.2% | 19.1% |
| Adjusted effective tax rate(a) | 17.5 | 20.9 |
The primary factors that increased the Company's effective tax rate YoY were the tax impacts of 3M's retained ownership interest in Solventum, partially offset by increased tax benefits from stock-based compensation.
| Income from Unconsolidated Subsidiaries, Net of Taxes: | Three months endedMarch 31, | |
|---|---|---|
| (Millions) | 2026 | 2025 |
| Income from unconsolidated subsidiaries, net of taxes | $2 | $2 |
Income from unconsolidated subsidiaries, net of taxes, is attributable to the Company’s accounting under the equity method for ownership interests in certain entities. In the second quarter of 2025, 3M sold its interest in one of these investments.
| Net Income Attributable to Noncontrolling Interest: | Three months endedMarch 31, | |
|---|---|---|
| (Millions) | 2026 | 2025 |
| Net income attributable to noncontrolling interest | $6 | $6 |
Net income attributable to noncontrolling interest represents the elimination of the income or loss attributable to non-3M ownership interests in 3M consolidated entities. The primary noncontrolling interest relates to 3M India Limited, of which 3M’s effective ownership is 75 percent.
Certain Expenses Impacting Multiple Line Items within Results of Operations:
Stock compensation impacts cost of sales, SG&A, and R&D. YoY stock compensation expense was relatively consistent.
Pre-tax defined benefit pension and postretirement service cost expense impacts cost of sales, SG&A, and R&D while the non-service cost component of pension and postretirement benefits impacts the other expense (income), net line item. Refer to Note 12 for additional information.
Pre-tax stock compensation expense and defined benefit pension and postretirement expense for the periods presented were the following:
| Three months endedMarch 31, | ||
|---|---|---|
| Pre-tax amounts (millions) | 2026 | 2025 |
| Stock compensation expense | $80 | $85 |
| Defined benefit pension and postretirement benefit expense | ||
| Service cost | $39 | $41 |
| Non-service cost (benefit) | (2) | 28 |
| Total defined pension and postretirement expense | $37 | $69 |
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