3M (NYSE:MMM) started 2025 on a strong note, delivering first-quarter results that topped Wall Street projections, thanks to steady sales growth and a notable jump in profitability. As a result, shares rose more than 8% intra-day today.
The company reported adjusted earnings of $1.88 per share, outpacing the average analyst forecast of $1.75. Quarterly revenue reached $5.8 billion, narrowly beating expectations and marking a modest 0.8% increase from the same period last year. Organic sales rose 1.5% year-over-year, signaling stable underlying demand across its product portfolio.
Operational efficiency played a major role in the upbeat quarter. Adjusted operating margins improved to 23.5%, a significant gain of 220 basis points from the prior year. The company credited strategic pricing efforts and ongoing cost-cutting measures for the margin expansion.
Looking ahead, 3M projects full-year adjusted earnings in the range of $7.60 to $7.90, bracketing the consensus estimate of $7.75. However, the company acknowledged that trade-related headwinds could shave off as much as $0.40 per share from that forecast, depending on how tariff risks unfold.
