TLDR
- 3M announced a partnership with Microsoft to deploy its Expanded Beam Optical (EBO) technology in Azure AI data centers
- 3M will also use Microsoft’s AI tools internally for credit checks, customer service, and sales functions
- MMM stock closed at $172.62, up 8.0% over the past week and 16.2% over the past year
- Q2 2026 earnings beat expectations: EPS of $2.40 vs. $2.25 estimated; revenue of $6.50B vs. $6.40B estimated
- JPMorgan upgraded MMM to “overweight” with a $180 price target; consensus rating is “Hold” with a $177.21 target
3M (MMM) stock closed at $172.62, up 8.0% over the past week, as the company announced a new partnership with Microsoft to deploy its Expanded Beam Optical (EBO) technology inside Azure AI data centers.
The deal puts 3M’s material science directly into the infrastructure behind one of the largest cloud platforms in the world.
The partnership works both ways. 3M is supplying its EBO connectivity technology to Microsoft’s Azure buildout, while also adopting Microsoft’s AI tools inside its own operations — covering areas like credit checks, delinquency assessments, and customer service.
That dual role is worth paying attention to. It positions 3M as both a vendor to hyperscalers and an active user of enterprise AI — two storylines investors in this space are watching closely.
EBO technology is being pushed as a standard through a Multi-Source Agreement, which would allow multiple manufacturers to produce compatible components. If that gains traction, it could expand the market well beyond just Microsoft.
Q2 Results Back the Story
The Microsoft deal landed alongside a solid earnings report. 3M posted Q2 2026 EPS of $2.40, beating the $2.25 consensus estimate. Revenue came in at $6.50 billion, above the $6.40 billion estimate, and up 2.5% year-over-year.
Net income for the quarter was $933 million. Return on equity hit 115.87%.
Full-year 2026 guidance was set at $8.80–$8.95 EPS. Analysts currently expect $8.93 EPS for the full year.
3M also paid a quarterly dividend of $0.78 per share in June, which annualizes to $3.12 and implies a yield of around 1.8%. The payout ratio sits at 55.42%.
The company repurchased 36,390,756 shares for approximately $5.73 billion, showing active capital returns alongside its growth moves.
Analyst Ratings and Institutional Activity
JPMorgan upgraded MMM from “neutral” to “overweight” on July 17th, raising its price target from $178 to $180. Goldman Sachs reaffirmed a “buy” rating. Wells Fargo reiterated “overweight” with a $165 target.
On the other side, Sanford C. Bernstein and Royal Bank of Canada both carry “underperform” ratings, with targets of $145 and $132 respectively.
The overall consensus sits at “Hold” with a $177.21 average price target, based on 8 buy ratings, 5 holds, and 2 sells.
Institutional buying has picked up. Entropy Technologies LP opened a new position worth roughly $10.9 million in Q1. SG Americas Securities increased its stake by 653.6%, now holding over 2.3 million shares valued at $344 million. Institutional investors now own 65.25% of the stock.
MMM has a 52-week range of $139.34 to $177.41 and a market cap of $88.93 billion. The 50-day moving average is $158.49, and the 200-day sits at $156.42.
The stock is currently trading well above both moving averages, with its one-year high of $177.41 within close range.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Be the first to comment