3M (NYSE: MMM) Stock Rises on Strong Earnings and Goldman Sachs "Buy" Rating

• Goldman Sachs reiterated a "Buy" rating for 3M, raising its price target to $202.
• 3M exceeded Q2 analyst expectations with adjusted earnings of $2.40 per share and revenue of $6.5 billion.
• The company increased its full-year 2026 adjusted earnings forecast and demonstrated strong operational performance with a 24.9% operating margin and $1.3 billion in free cash flow.

3M (NYSE: MMM) is a large company that makes a wide variety of products for industries, healthcare, and consumers. On July 22, 2026, the investment bank Goldman Sachs restated its "Buy" rating for 3M. It also raised its price target, which is an analyst's prediction of a stock's future price, to $202 from $190.

This update came after 3M reported better-than-expected results for its second quarter. As highlighted by Benzinga, the company's adjusted earnings were $2.40 per share, beating analyst estimates of $2.25. Revenue for the quarter was approximately $6.5 billion, which was also higher than the expected figure of over $6.4 billion.

Following this strong performance, 3M increased its financial forecast for the entire year. The company now expects its 2026 adjusted earnings to be in the range of $8.80 to $8.95 per share. This new guidance is higher than its previous forecast and also above the Wall Street consensus estimate of $8.75.

The company's operational results support this confidence. 3M reported an operating margin of 24.9%, which shows how much profit it makes from its core business operations. It also generated a strong free cash flow of $1.3 billion. Free cash flow is the cash left over after a company pays for its operating expenses and capital expenditures.

To reward its investors, 3M returned $1.4 billion to shareholders, which included $400 million in dividends and $1 billion in share repurchases. According to 24/7 Wall St., the strong quarter and raised guidance support a higher valuation for the company's future earnings, aligning with the new, higher price target from Goldman Sachs.