Shares of 3M Company (MMM) jumped on Tuesday after the industrial giant reported second-quarter results that beat Wall Street's expectations and raised its full-year outlook. The company is navigating a mixed bag: strong global demand in many areas, but persistent weakness in consumer electronics and some other markets.

Adjusted earnings came in at $2.40 per share, topping the analyst consensus estimate of $2.25. Revenue rose 2.4% year over year to $6.50 billion, ahead of the expected $6.41 billion. Organic sales—which strip out currency and acquisition effects—grew 5.4%, fueled by new product launches, supply chain improvements, and solid execution.

The growth was broad-based. China delivered double-digit organic growth, industrial businesses in the U.S. and Canada posted mid-single-digit gains, Europe returned to growth, and India showed strong momentum. But not everything is rosy. 3M said it continues to face pressure in consumer electronics, automotive, and auto aftermarket markets, and noted softer U.S. consumer spending.

Adjusted operating profit got a boost of about $240 million from higher sales and productivity improvements. But CFO Anurag Maheshwari said that was partially offset by roughly $110 million in tariff-related costs and stranded expenses. The company hasn't received any tariff refunds yet.

On the innovation front, 3M launched 92 new products during the quarter, a 44% increase from a year ago. In the first half, it launched 176 products, putting it on track to introduce more than 350 new products in 2026. The company also completed its acquisition of Madison Fire and Rescue on July 1, combining it with Scott SCBA to form a majority-owned joint venture. That deal generated $700 million in cash proceeds, and 3M expects the venture to generate about $800 million in annual revenue with high-single-digit growth and margins above the company average.

In a nod to the AI boom, 3M partnered with Microsoft (MSFT) to deploy its Expanded Beam Optics technology in Azure data centers, aiming to improve connector durability and support growing AI infrastructure demand.

3M returned $1.4 billion to shareholders during the quarter, including $400 million in dividends and $1 billion in share repurchases.

Looking ahead, 3M raised its 2026 adjusted earnings forecast to a range of $8.80 to $8.95 per share, up from its prior outlook of $8.50 to $8.70. That's above the analyst consensus estimate of $8.75. The company expects organic sales growth in the high-3% range or better in the second half of 2026 and about 100 basis points of year-over-year margin expansion. It also remains on track to exceed 1,000 product launches by 2027 and expects new products to generate about $4 billion in sales in 2026.

At the time of publication, 3M shares were up 7.67% at $171.32.