3M raised its full-year earnings outlook Tuesday after reporting stronger third-quarter profitability and expanding a commercial relationship with Amazon that gives the industrial group greater exposure to AI data-center investment.
The company reported third-quarter sales of $6.6 billion and adjusted earnings of $2.50 per share, up 12% from a year earlier on 3M’s updated reporting basis.
Adjusted operating margin reached 26.2%, an increase of 110 basis points.
3M now expects adjusted 2026 earnings of $9.10 to $9.15 per share, compared with its previous $8.80-to-$8.95 forecast.
The more strategically important development for investors may be outside 3M’s traditional industrial businesses.
3M disclosed an expanded commercial relationship with Amazon covering optical connectivity and other products used in data centers.
Under the arrangement, Amazon received warrants to purchase as many as 3.2 million 3M shares. Vesting is tied partly to Amazon reaching as much as $6 billion in cumulative purchases of qualifying data-center products during the next seven years and other milestones.
The agreement places 3M inside another layer of the AI infrastructure supply chain.
Rapid construction of increasingly powerful data centers requires more than processors. Optical connectivity, electrical equipment, cooling systems and specialized materials are becoming important beneficiaries of hyperscaler capital spending.
3M is also investing in approximately 4.7% of optical-technology manufacturer Genius Electronic Optical as the companies collaborate on expanded-beam optics.
The next issue for investors is whether the Amazon agreement develops into significant incremental revenue rather than simply providing a long-duration sales opportunity.
For now, the combination of improved operating margins, higher earnings guidance and additional data-center exposure gives 3M a stronger earnings profile heading into the final quarter of 2026.
