• 3M Company is expected to report an EPS of $1.82 and revenue of $6.08 billion for the fourth quarter.
• The Safety and Industrial unit's strong performance is anticipated to drive a revenue increase of 4.6% to $6.08 billion.
• Despite a recent downgrade, 3M's focus on margin improvements and its dividend yield of 1.71% continue to attract investors.

3M Company (NYSE:MMM) is set to release its fourth-quarter earnings on January 20, 2026, before the market opens. Analysts expect the company to report earnings per share (EPS) of $1.82 and revenue of approximately $6.08 billion. This release is closely watched as 3M has a history of exceeding earnings expectations, with an average earnings surprise of 4.8% over the last four quarters.

The anticipated revenue increase of 4.6% to $6.08 billion is driven by strong performance in 3M's Safety and Industrial unit. This segment benefits from robust demand in the electrical and industrial markets. Despite a slight 0.5% decrease in the earnings estimate over the past 60 days, earnings are expected to rise by 8.3% compared to the same quarter last year.

3M is also focusing on margin improvements through restructuring actions. These efforts help offset higher costs and expenses, contributing to the expected earnings growth. The company's price-to-earnings (P/E) ratio is approximately 27.03, and its price-to-sales ratio is about 3.65, indicating a relatively high valuation compared to its sales.

Despite a recent downgrade by Deutsche Bank analyst Nicole Deblase from a Buy to a Hold rating, investors remain interested in 3M's dividends. The company offers an annual yield of 1.71%, translating to a quarterly dividend of 73 cents per share, or $2.92 annually. To earn $500 monthly from dividends, an investment of approximately $351,611, or about 2,055 shares, would be required.

3M's financial metrics, such as a debt-to-equity ratio of about 2.92 and a current ratio of approximately 1.84, indicate a significant level of debt but also a good level of liquidity to cover short-term liabilities. These factors, along with the upcoming earnings release, are likely to influence investor sentiment and stock performance in the near term.