3M is divesting its health care unit to focus on its high-growth businesses, strategic portfolio optimization remains a priority here.
The stock trades at 20.3 times the company’s forward earnings forecast, a reasonable multiple as the company benefits from operational improvements. The company’s restructuring program is approximately 90% complete, having achieved substantial cost savings and efficiency gains. That also helps offset the effects of tariffs
3M COMPANY (New York symbol MMM; www.3m.com) spun off its Health Care division as a separate firm called Solventum Corp. (New York symbol SOLV) on April 1, 2024. That business makes products that treat and prevent infection in wounds; it also manufactures dental filling materials, and filtration and purification products.
Investors received one share of Solventum for every four shares of 3M they held. 3M retained a 19.9% stake in the new firm, but it plans to sell those shares within five years.
Due to the spinoff, 3M cut your quarterly dividend by 53.6% with the June 2024 payment. The new annual rate of $2.80 a share yields 1.8%. However, with the March 2025 payment, it raised the dividend by 4.3%. The new annual rate of $2.92 a share yields 1.8%.
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Meantime, 3M’s remaining businesses make a wide variety of industrial and consumer products, including Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard fabric protection and Thinsulate insulation.
3M’s Rising demand from electronic-device makers leads the way
3M’s sales in the three months ended September 30, 2025, rose 4.1%, to $6.32 billion from $6.07 billion a year earlier. That beat the consensus forecast of $6.25 billion.
The higher sales are mainly due to rising demand from makers of electronic devices. That offset weaker sales to automakers and consumers.
Excluding unusual items, earnings improved 7.5%, to $1.18 billion from $1.10 billion. Due to fewer shares outstanding, per-share earnings gained 10.6%, to $2.19 from $1.98. That beat the $2.07 consensus estimate.
3M expects new tariffs in the U.S. and other countries will add $850 million to its costs in 2025. The company makes its products in the 26 countries, so it plans to adjust some of its production lines to reduce the tariff impact.
However, despite those extra costs, raised its full-year earnings outlook to between $7.95 and $8.05 a share from its earlier forecast of $7.75 to $8.00. The stock trades at a reasonable 20.3 times the midpoint of that new range.
Recommendation in Wall Street Stock Forecaster: 3M Company is a buy.
