3M: From Dustbins to Breakthroughs (Oy Vey!)

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Alright, folks, listen up! Your friendly neighborhood portfolio manager is here to tell you a tale. A tale of tape, adhesives, and… innovation? Yes, even a company that makes enough Post-it notes to wallpaper the Sistine Chapel can fall into a rut. Back in August 2024, the new CEO, Bill Brown – a nice man, I’m sure, but probably doesn’t know a schlemiel from a schnook – diagnosed 3M’s problem. They weren’t inventing anything new! Can you believe it? A company built on “new” was…old. He said their products were aging. Aging! Like me after a particularly grueling earnings call.

For years, 3M was a veritable fountain of invention, churning out over 1,000 new products annually. A thousand! That’s like a product a day, plus a few for good measure. But then they slowed down. They got…comfortable. By 2024, they were launching fewer than 170. It’s like a comedian who stopped writing jokes and just started telling knock-knock jokes. The audience will eventually riot. Luckily, 3M didn’t quite face a full-scale revolt, but their numbers were…uninspiring, to put it mildly.

But hold on! There’s good news! It seems 3M has remembered how to innovate. They’ve kicked the innovation engine back into gear, and they’re planning to rev it up even further in 2026. It’s like teaching an old dog new tricks, except this dog makes things that stick to other things. A very meta situation, wouldn’t you agree?

3M is Innovating Again (Finally!)

During their fourth-quarter earnings call – a thrilling event, let me tell you – Brown announced they launched 284 new products in 2025. 284! That’s up 68% from 2024 and more than double what they did in 2023. And they’re aiming for 350 in 2026 – a 23% increase. He said these products are “vital for long-term growth.” Vital! Like oxygen…or a good accountant. These new products are already contributing to their top line. It’s a good thing, because frankly, the top line was looking a little…pale.

They were shooting for a high-teens percentage of revenue from products launched in the last five years, but they blew past that target. In 2025, these newer products accounted for 23% of total revenue. By the end of the fourth quarter, that number jumped to 44%! It’s like a magician pulling rabbits out of a hat, except the rabbits are…adhesive bandages.

Overall organic sales grew by a modest 2.2% in the fourth quarter, but those new product launches were the key to offsetting weakness in some areas. For 2026, they expect around 3% organic sales growth. And they’re investing $3.5 billion in R&D over the next three years. That’s a lot of money! Enough to buy a small country…or a really, really big roll of tape.

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Is it Time to Buy 3M Stock? (Don’t Ask Me, I’m Just a Portfolio Manager!)

So, 3M is fixing one of its core problems, but let’s not get carried away. There are still risks out there. The global economy is a bit shaky, and there’s talk of tariffs between the U.S. and Europe. Tariffs! It’s like adding extra pickles to an already expensive sandwich.

But here’s the thing: 3M’s valuation looks reasonable. They’re targeting adjusted earnings per share between $8.50 and $8.70 in 2026, which puts the stock at around 18 times that range. It’s not exactly a bargain, but for long-term investors who believe in the turnaround story, 3M looks like a solid bet. Just remember, I’m just a portfolio manager, not a fortune teller. Don’t blame me if the stock goes down. I’ve got enough problems of my own!

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2026-01-21 15:52