Cummins (NYSE:CMI) Announces Quarterly Earnings Results

Cummins (NYSE:CMI) issued its earnings results on Tuesday. The company reported $6.15 EPS for the quarter, topping the consensus estimate of $5.60 by $0.55, Briefing.com reports. The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The business’s quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $5.96 earnings per share.

Here are the key takeaways from Cummins’ conference call:

• Company raised full-year guidance, now forecasting 2026 revenue +8% to +11% and an EBITDA margin of 17.75%–18.5%, up from prior ranges—a clear upgrade to both top‑ and bottom‑line expectations.
• Power Systems delivered record EBITDA in Q1 and management raised its 2026 outlook for the segment to revenue growth of 14%–19% and EBITDA margins ~25%–26%, driven by strong data‑center demand and operational improvements.
• While North America on‑highway volumes were weak in Q1 (Cummins heavy‑duty unit sales down ~16%), the company upgraded demand assumptions—now guiding NA heavy‑duty 230k–250k units and medium‑duty 125k–135k units for 2026, citing stronger orders and earlier-than-expected H1 recovery.
• Cummins took a $199M net charge for the sale of its low‑pressure fuel cell business to Alstom, which reduced Q1 EBITDA but also narrowed Accelera’s projected 2026 losses (ex‑charge guidance now roughly $270M–$300M), leaving near‑term earnings hit offset by clearer long‑term focus.

Cummins Stock Performance

Shares of NYSE:CMI traded up $19.51 during midday trading on Tuesday, reaching $676.24. The company had a trading volume of 772,620 shares, compared to its average volume of 906,006. The company’s 50 day moving average price is $581.03 and its 200 day moving average price is $537.79. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 0.51. The stock has a market cap of $93.43 billion, a P/E ratio of 32.96, a P/E/G ratio of 2.08 and a beta of 1.27. Cummins has a 52-week low of $296.59 and a 52-week high of $689.35.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Friday, February 20th. Cummins’s payout ratio is presently 38.99%.

Insiders Place Their Bets

In other Cummins news, VP Donald G. Jackson sold 1,600 shares of the company’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total transaction of $960,208.00. Following the sale, the vice president directly owned 7,214 shares of the company’s stock, valued at $4,329,337.82. This represents a 18.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director William I. Miller sold 18,107 shares of the stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $597.10, for a total value of $10,811,689.70. Following the sale, the director owned 34,243 shares in the company, valued at approximately $20,446,495.30. This represents a 34.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 31,195 shares of company stock valued at $18,397,489 in the last quarter. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cummins

Institutional investors and hedge funds have recently modified their holdings of the company. Kemnay Advisory Services Inc. purchased a new stake in shares of Cummins in the fourth quarter worth about $28,000. Birchwood Financial Partners Inc. purchased a new stake in shares of Cummins in the fourth quarter worth $28,000. Osterweis Capital Management Inc. purchased a new stake in shares of Cummins in the second quarter worth $31,000. Acumen Wealth Advisors LLC purchased a new stake in Cummins in the fourth quarter valued at approximately $32,000. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of Cummins in the 3rd quarter worth about $37,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Zacks Research downgraded shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. JPMorgan Chase & Co. upped their price target on shares of Cummins from $485.00 to $580.00 and gave the stock a “neutral” rating in a report on Wednesday, January 14th. Barclays upped their price objective on Cummins from $546.00 to $610.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. Robert W. Baird set a $580.00 price objective on Cummins in a research note on Friday, February 6th. Finally, Wolfe Research downgraded Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 price objective for the company. in a research note on Monday, January 26th. Eleven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $600.27.

About Cummins

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.