1127 ET - 3M's sharper-than-expected margin deterioration in 4Q overshadowed the small beat to EPS, says Morgan Stanley's Christopher Snyder. "The negative surprise in 4Q vs our model was margins," pointing to a 360-basis-point sequential drop that was worse than normal seasonality, the analyst says in a report. The consumer segment was the main drag, with operating income coming in 12% below consensus and margins falling to 18%. Snyder adds that this shortfall increases near-term risk to 1Q, despite 2026 guidance landing roughly in line with expectations. "FY26 EPS will be unchanged and we think that is as good of an outcome as short-cycle industrials will deliver this EPS season," he says. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

January 20, 2026 11:28 ET (16:28 GMT)

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