Cummins (NYSE:CMI) Issues Quarterly Earnings Results, Beats Estimates By $0.64 EPS

Posted by Stephan Jacobs on Feb 5th, 2026

Cummins (NYSE:CMI – Get Free Report) posted its quarterly earnings results on Thursday. The company reported $5.81 EPS for the quarter, beating the consensus estimate of $5.17 by $0.64, Briefing.com reports. Cummins had a return on equity of 26.02% and a net margin of 7.95%.During the same period in the previous year, the business posted $5.16 earnings per share. The business’s revenue was up 1.1% on a year-over-year basis.

Here are the key takeaways from Cummins’ conference call:

Cummins reported strong 2025 results with full-year revenues of $33.7 billion and record underlying EBITDA of $5.8 billion (17.4% ex‑items), delivering record segment earnings in Power Systems and Distribution despite a North America truck downcycle.
Management guided 2026 company revenue growth of +3% to +8% and EBITDA of ~17%–18% of sales, while flagging a roughly 50‑bp margin dilution from tariffs and capex of $1.35–$1.45 billion.
Power Systems is a key growth driver — 2025 revenue hit a record $7.5 billion with EBITDA 22.7%, completed the 95‑liter capacity expansion ahead of schedule, and expects 2026 power revenues to rise 12%–17% on strong multi‑year data center demand.
The company took $458 million of accelerate/electrolyzer charges in 2025 (including $218 million in Q4) and is scaling back hydrogen/electrolyzer participation, which will reduce losses but signals weaker near‑term prospects in that zero‑carbon line.
North America heavy and medium‑duty truck demand remained weak (engine volumes down ~30% in Q4), with management expecting continued H1 softness but a H2 pickup and some pre‑buy ahead of the 2027 Low‑NOx rule — a timing risk with upside if recovery accelerates.

Cummins Price Performance

Shares of NYSE CMI traded down $58.88 during mid-day trading on Thursday, hitting $546.75. 1,368,769 shares of the stock were exchanged, compared to its average volume of 891,425. Cummins has a twelve month low of $260.02 and a twelve month high of $617.98. The stock’s fifty day simple moving average is $538.55 and its two-hundred day simple moving average is $459.09. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.11 and a current ratio of 1.77. The company has a market cap of $75.47 billion, a P/E ratio of 28.54, a PEG ratio of 2.12 and a beta of 1.13.

Wall Street Analyst Weigh In

Several brokerages recently commented on CMI. Argus raised their target price on Cummins from $459.00 to $573.00 and gave the stock a “buy” rating in a research report on Tuesday, November 25th. Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 28th. UBS Group raised shares of Cummins from a “sell” rating to a “neutral” rating in a report on Tuesday, November 25th. Raymond James Financial raised shares of Cummins from a “market perform” rating to an “outperform” rating and set a $585.00 target price on the stock in a research note on Monday, December 22nd. Finally, Sanford C. Bernstein restated a “market perform” rating and set a $475.00 price target on shares of Cummins in a research note on Friday, November 7th. Eleven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, Cummins has a consensus rating of “Moderate Buy” and an average price target of $522.07.

Read Our Latest Analysis on Cummins

Insider Buying and Selling

In related news, insider Brett Michael Merritt sold 1,450 shares of the stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total transaction of $709,514.00. Following the sale, the insider directly owned 9,271 shares in the company, valued at $4,536,485.72. This represents a 13.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jennifer Rumsey sold 4,570 shares of Cummins stock in a transaction on Tuesday, November 11th. The shares were sold at an average price of $473.89, for a total value of $2,165,677.30. Following the completion of the transaction, the chief executive officer owned 42,880 shares of the company’s stock, valued at approximately $20,320,403.20. The trade was a 9.63% decrease in their position. The SEC filing for this sale provides additional information. 0.41% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cummins

A number of hedge funds have recently added to or reduced their stakes in the stock. Betterment LLC raised its stake in shares of Cummins by 3.5% in the third quarter. Betterment LLC now owns 673 shares of the company’s stock worth $284,000 after acquiring an additional 23 shares during the last quarter. Coldstream Capital Management Inc. increased its holdings in shares of Cummins by 1.0% in the third quarter. Coldstream Capital Management Inc. now owns 2,685 shares of the company’s stock valued at $1,134,000 after purchasing an additional 27 shares in the last quarter. 44 Wealth Management LLC raised its position in Cummins by 0.8% in the 2nd quarter. 44 Wealth Management LLC now owns 4,338 shares of the company’s stock worth $1,421,000 after purchasing an additional 36 shares during the last quarter. Moneta Group Investment Advisors LLC raised its position in Cummins by 5.5% in the 3rd quarter. Moneta Group Investment Advisors LLC now owns 895 shares of the company’s stock worth $378,000 after purchasing an additional 47 shares during the last quarter. Finally, Tocqueville Asset Management L.P. lifted its holdings in Cummins by 1.6% during the 3rd quarter. Tocqueville Asset Management L.P. now owns 3,093 shares of the company’s stock worth $1,306,000 after buying an additional 50 shares in the last quarter. Institutional investors own 83.46% of the company’s stock.

Key Cummins News

Here are the key news stories impacting Cummins this week:

Positive Sentiment: Q4 earnings beat and modest revenue growth — Cummins reported $5.81 EPS (above consensus) and revenue up ~1.1% year-over-year, driven by better margins and operational performance; this supports the company’s underlying profitability. Cummins Q4 Earnings Beat on Strong Performance From Power Systems Unit
Positive Sentiment: Power Systems margin strength — management cited a surge in EBITDA margin in the Power Systems unit, a meaningful operational bright spot that supports cash flow and long‑term profitability. Cummins Q4 Earnings Beat on Strong Performance From Power Systems Unit
Positive Sentiment: Data-center demand offsets some weakness — Cummins took a strategic charge in its Accelera segment but is benefiting from higher sales into data centers, which supports longer-term revenue diversification. Cummins Takes $458 Million Accelera Hit But Cashes In On Data Centers
Neutral Sentiment: FY‑2026 guidance is mixed — the company updated revenue guidance to a range of about $34.7B–$36.4B (vs. consensus near $35.1B), a range that straddles analyst estimates and leaves uncertainty about full‑year upside.
Neutral Sentiment: Cummins India shows localized improvement — quarterly profit at Cummins India rose on lower expenses, a positive datapoint for international operations but limited immediate impact on the U.S. ticker. Cummins India’s quarterly profit rises on lower expenses
Negative Sentiment: Large Accelera charge — Cummins recorded a $458M hit tied to restructuring/strategic changes in Accelera, which pressured reported results and raises near‑term earnings variability. Cummins Takes $458 Million Accelera Hit But Cashes In On Data Centers
Negative Sentiment: Proposed class-action settlement announced — a court‑approved notice about a proposed settlement creates legal overhang and potential future cash or disclosure implications. The Rosen Law Firm Reminds Investors of Proposed Class Action Settlement

About Cummins

(Get Free Report)

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.