3M jumps 8% on Microsoft Azure deal and strong Q2 results

3M shares surged 8% to $172.62 after the industrial conglomerate posted strong Q2 results and announced a Microsoft Azure partnership. The company reported $6.5 billion in sales and $933 million in net income while repurchasing $5.73 billion in shares.

3M shares surged 8% to $172.62 after posting Q2 sales of $6.5 billion and announcing a partnership with Microsoft to deploy its optical connectivity technology in Azure data centers.

"This agreement places 3M's material science at the center of emerging AI and data center infrastructure build outs," the company said.

Q2 net income reached $933 million. The company also repurchased 36.4 million shares for $5.73 billion during the period. The stock has gained 16.2% over the past year, outperforming the broader industrial sector.

The partnership puts 3M's Expanded Beam Optical technology into Microsoft's Azure AI data centers, linking the industrial conglomerate to hyperscaler capital spending. Under the deal, 3M will also deploy Microsoft's AI tools internally for credit checks, delinquency assessments and customer service.

The Microsoft deal gives 3M exposure to AI infrastructure spending, a theme driving multiyear capital expenditure among hyperscalers including Microsoft, Amazon and Google. For 3M, the partnership supports its pivot toward high-tech connectivity solutions for the AI era. The dual role as both technology supplier to Azure and AI user inside 3M may strengthen the company's relevance with enterprise customers. Investors will watch for adoption of EBO technology in data centers and updates on 3M's internal AI transformation in coming quarters.

This article is for informational purposes only and does not constitute investment advice.