3M Stock Shifting Gears Ahead Of Earnings

3M (MMM) is scheduled to report second-quarter earnings before the open on Tuesday, July 21.

According to Zacks Research, analysts expect earnings of $2.27 per share on $6.38 billion in revenue, representing year-over-year growth of 5.1%.

The industrial giant is heading into earnings with fresh momentum, up 2.6% to trade at $160.45 today and helping boost the Dow Jones Industrial Average (DJI) after announcing a strategic partnership with Microsoft (MSFT) to advance AI data center infrastructure and enterprise transformation.

The shares have seen quite a bit of volatility since their February 12 five-year peak of $177.41, rebounding off the 50-day moving average this past week after a rejection at $170. Today’s pop also has MMM inching into positive territory for 2026.

Options traders are pricing in a 6.6% post-earnings move on Tuesday, slightly below the stock’s average post-earnings swing of 7.2% over the last eight quarters.

MMM has finished four of its last eight post-earnings sessions higher, though it dropped 1.9% following its April report.

Options bears have been building their positions over the last 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 3M’s 50-day put/call volume ratio of 1.13 ranks higher than 98% of readings from the past year, signaling an unusually high appetite for puts among options traders.

Sentiment appears to be shifting today, however, as 21,000 calls have been exchanged so far – quadruple the call volume MMM typically sees at this point.

Analyst sentiment is mixed. Of the 18 brokerages covering 3M, nine carry a "strong buy" rating, while seven recommend "hold" and two say "strong sell."

With the stock back in rally mode and AI optimism providing a fresh catalyst, investors will be eyeing the company’s earnings for clues as to whether that momentum can continue.

Options are understandably expensive heading into the event, per the stock’s Schaeffer’s Volatility Index (SVI) of 34% sitting in the 64th percentile of its annual range. However, it’s worth noting that 3M’s Schaeffer's Volatility Scorecard (SVS ) comes in at 10 out of 100. In other words, the stock has consistently realized lower volatility than its options have priced in over the past 12 months, making it a premium selling candidate.