MMMNEUTRAL

MMM Gross Margin Analysis

41.3%

Higher than 74% of Industrials sector peers

Updated 297h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so 3M's 41.3% means it keeps $0.413 from each sales dollar before other expenses.

Sector Performance

74th percentile

MMM

41.3%

Sector Median

28.9%

Sector Avg

846.3%

Prior Period

40.7%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so 3M's 41.3% means it keeps $0.413 from each sales dollar before other expenses.

That is well above the Industrials sector median of 29.6%, placing the company in the 75th percentile of its peer group. The trend is largely unavailable: the year-over-year change is N/A, the last-eight-quarter trend direction is N/A, but the quarter-over-quarter change is +1.5%, and the two most recent values are 41.3% and 40.7%. The combination of a high margin with only a short positive move suggests limited immediate risk from cost pressure, yet without a longer trend you cannot confirm sustained strength. This creates a moderate opportunity: the level signals competitive pricing and cost control, while the missing trend data leaves room for uncertainty. The metric supports the overall NEUTRAL verdict because the strong current level is reassuring but not enough to justify an offensive call given the incomplete trend history.

Frequently Asked Questions

What does the Gross Margin tell investors about MMM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does MMM's Gross Margin compare to its sector?

MMM's Gross Margin of 41.3% compares to a Industrials sector median of 28.9%, placing it in the 74th percentile.

Who are MMM's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: AVY (29.6%), BLDR (28.1%), SAVE (31.3%), AAL (26.0%), JOBY (22.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.