3M CEO William Brown told investors the company's operational turnaround is running ahead of the targets set at its 2025 investor day, even as PFAS litigation continues to resurface. Brown said 3M has lifted its on-time delivery rate from the low 80% range to around 90%, increased product launches from 125 three years ago to 284 last year, and expects to exceed 350 launches this year, with new products projected to reach roughly 20% of sales by 2027 versus about 11% when he took over. The company posted 5.4% adjusted organic sales growth in the second quarter and Brown said 3M is now tracking above a 25% operating margin by 2027, while its expanded beam optical technology, adopted by Microsoft as a data-center standard, could serve a market he estimates at nearly $2 billion. On the legal front, a Montana federal judge recently denied without prejudice motions to dismiss a nationwide PFAS class action involving firefighter turnout gear, and 3M still faces a separate lawsuit from the Australian government seeking more than A$2 billion in damages over its PFAS-containing firefighting foam. 3M's existing $10.5 billion to $12.5 billion U.S. settlement covers only claims released by participating public water systems, leaving other PFAS-related litigation outstanding. Institutional interest strengthened during the quarter, with hedge fund holdings rising from 63 funds at the end of Q1 2026 to 72 funds at the end of Q2 2026, while short interest stood at 1.79% of float as of August 31, 2026.
3M Company3M CEO says operational turnaround is ahead of schedule, with 5.4% adjusted organic sales growth and operating margin tracking above 25% by 2027.
Microsoft Corporation
