3M's Commercial Excellence Initiatives Fuel Turnaround

3M Company (MMM) is turning around thanks to commercial excellence initiatives and productivity programs. Organic sales growth has been driven by these efforts, reaching 5.4% year-over-year in Q2 2026. The company's adjusted operating margin also increased to 24.9%, nearing its FY27 target of 25%. With reduced legal uncertainties and a 1.8% dividend yield, MMM offers a favorable risk-reward profile.

Analysts believe that MMM has good growth prospects ahead, as it transitions from a period of inefficient execution due to management distractions. The company's focus on productivity programs aims to save $1 billion by 2027, which is already boosting margins.