A tie-up with Amazon is helping to drive the gains.
A tie-up with Amazon is helping to drive the gains.
Diversified industrial and materials-science company 3M (MMM +5.15%) is expanding its data center business, and that is helping its shares jump today. The company announced an expansion of its commercial relationship with Amazon to deploy and scale 3M's optical connectivity and other data center products.
3M also boosted 2026 guidance for the third straight quarter. That helped lead to a 5.1% jump in the stock as of 11:15 a.m. ET.
In the deal with Amazon, 3M issued Amazon a warrant to buy up to 3.2 million 3M shares, tied to reaching $6 billion in cumulative sales of those data center products over seven years, plus other event-based milestones.
It's not just the Amazon data center business boosting results. 3M's adjusted earnings per share (EPS) jumped 12% year over year. Thermal management solutions (reflective film materials), fiber optic connection technologies, and display technologies are also areas of focus and growth.
$170.36+$8.35 (+5.15%)
NYSE · As of 12:00 PM ET 10/20/26
Management boosted full-year 2026 adjusted EPS guidance to a range of $9.10 to $9.15 per share. That's up from a midpoint of $8.88 in Q2 and $8.60 in Q1. 3M's acquisition of Madison Fire & Rescue is also contributing to its increase in guidance.
But investors are likely concentrating on the Amazon deal and what it means for 3M's push into data centers. It reflects the company's broader push into AI infrastructure. A 4.7% ownership investment in Genius Electronic Optical, a manufacturing partner for 3M's fiber connector technology design, is another example of that push.
Investors see more growth in AI infrastructure ahead, helping drive shares higher today.
Averytin News Financial update.