3M Shares Jump on Earnings Beat and Microsoft AI Optics Deal

3M, the diversified U.S. manufacturer behind products ranging from industrial adhesives to Post-it notes, is seeking new growth beyond its mature core markets. That strategy has gained relevance as hyperscale cloud operators expand artificial intelligence infrastructure and require faster, more reliable fiber connections. Microsoft is the first disclosed hyperscaler to deploy 3M’s Expanded Beam Optics, or EBO, technology, giving the relatively small business a foothold in a capital-spending cycle dominated by AI data centers.

On July 21, 2026, 3M reported second-quarter revenue of $6.5 billion, up 2.4%, and adjusted EPS of $2.40, beating consensus estimates of $6.4 billion and $2.24. The company raised its full-year adjusted EPS forecast to $8.80-$8.95 from $8.50-$8.70 and projected adjusted operating cash flow of $5.8-$6.0 billion. Management expects EBO to generate $40 million-$50 million this year and potentially quadruple over the next several years. 3M shares closed 7.32% higher.