Jan 20 (Reuters) - Industrial giant 3M forecast annual adjusted profit slightly below Wall Street estimates on Tuesday, sending its shares down 4.7% before the bell.
The Saint Paul, Minnesota-based company
forecast 2026 adjusted profit between $8.50 and $8.70 per share, with the midpoint a cent below estimates of $8.61, according to data compiled by LSEG.
Weak demand in the United States, soft retail markets and discretionary spending pressures continued to weigh on the company's consumer segment, home to products such as Scotch-tape and Post-it.
Fourth-quarter sales at the segment, which made up more than 20% of the company's 2024 revenue, fell 1.2% from a year ago — in contrast to a rise in 3M's remaining business segments.
The U.S. consumer sentiment index deteriorated in November and December, highlighting moderation in spending after it surged in the third quarter, as anxiety over jobs and the economic outlook grew.
However, 3M's cost cuts, price hikes and the introduction of new products under CEO Bill Brown have helped the company cushion margins from weak demand against a prolonged inflationary backdrop.
In 2025, 3M added 284 new products, a 68% rise from last year.
The company's adjusted profit stood at $1.83 per share during the period, compared with analysts' estimate of $1.80 per share.
"Our accelerated pace of innovation and commercial execution positions us to outperform the macro environment again in 2026," said CEO Brown in a statement.
3M reported a fourth-quarter operating margin of 23.4%, up from 21.4% the year earlier. It targets an operating margin of 25% by the end of 2027.
It posted quarterly adjusted revenue of $6.02 billion, slightly above LSEG-compiled estimates of $6.01 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Devika Syamnath)
