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Amazon Data Centers Promise Big Revenue Boost for 3M -- WSJ

Amazon Data Centers Promise Big Revenue Boost for 3M -- WSJ

Dow JonesDow Jones2026/10/20 16:15

By John Keilman

$1 billion

3M is poised to sell nearly that much in server connectors next year after signing a deal with Amazon, and that could be just the start.

The connectors, known as "expanded beam optical ferrules," can connect servers in seconds rather than minutes, taking six months off a data center's construction time, the company says. They're also easier to maintain than other connectors, 3M says.

The manufacturer's shares were up 5% in midday trading. The company updated its guidance to project full-year earnings per share of up to $9.15, a 20-cent boost over its last forecast.

-- The deal with Amazon, announced Monday, will allow the retailer to buy nearly 3.2 million 3M shares over seven years. The shares would fully vest after Amazon spends $6 billion on the connectors and other data center products.

-- 3M Chief Executive Bill Brown told analysts that the company expects to sell about $800 million of the connectors next year. He wouldn't comment on future sales but said the entire market will soon be worth $2 billion annually. 3M's total revenue last year was $25 billion.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

October 20, 2026 12:15 ET (16:15 GMT)

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